markting finale Flashcards

1
Q

Product

A

is anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want.

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2
Q

Service

A

is a product that consists of activities, benefits, or satisfactions and that is essentially intangible and does not result in the ownership of anything.

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3
Q

Product and Service Classifications

A

Consumer products
Industrial products
“Products also include other marketable entities such as experiences, organizations, persons, places, and ideas.

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4
Q

Consumer products

A

are products and services bought by final consumers for personal consumption.

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5
Q

Consumer products

A

differ in the ways consumers buy them and, therefore, in how they are marketed

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6
Q

Convenience products

A

are consumer products and services that the customer usually buys frequently, immediately, and with a minimum comparison and buying effort.

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7
Q

Shopping products

A

are less frequently purchased consumer products and services that the customer compares carefully on suitability, quality, price, and style.

Furniture
Cars
Appliances

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8
Q

Specialty products

A

are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.

Medical services
Designer clothes
High-end electronics

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9
Q

Unsought products

A

are consumer products that the consumer does not know about or knows about but does not normally think of buying

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10
Q

Industrial products

A

are those products purchased for further processing or for use in conducting a business.

Materials and parts
Capital items
Supplies and services

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11
Q

Materials and parts

A

Raw materials consist of farm products and natural products. Manufactured materials and parts consist of component materials and component parts. Most manufactured materials and parts are sold directly to industrial users. Price and service are the major marketing factors; branding and advertising tend to be less important.

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12
Q

Capital items

A

are industrial products that aid in the buyer’s production or operations, including installations and accessory equipment. Installations consist of major purchases such as buildings and fixed equipment. Accessory equipment includes portable factory equipment and tools and office equipment. They have a shorter life than installations and simply aid in the production process.

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13
Q

Supplies and services

A

include operating supplies and repair and maintenance items. Supplies are the convenience products of the industrial field because they are usually purchased with a minimum of effort or comparison. Business services include maintenance and repair services and business advisory services usually supplied under contract.

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14
Q

Product line

A

is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges.

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15
Q

Product line length

A

is the number of items in the product line.

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16
Q

A company can expand its product line in two ways:

A

: by line filling or line stretching.

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17
Q

. Line filling

A

involves adding more items within the present range of the line for earning extra profits, satisfying dealers. using excess capacity, being the leading full-line company, and plugging holes to keep out competitors. However, line filling is overdone if it results in cannibalization and customer confusion. The company should ensure that new items are noticeably different from existing ones.

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18
Q

. Line stretching

A

occurs when a company lengthens its product line beyond its current range − downward, upward, or both ways.

Companies located at the upper end of the market can stretch their lines downward. A company may stretch downward to plug a market hole that otherwise would attract a new competitor or respond to a competitor’s attack on the upper end. Or it may add low-end products because it finds faster growth taking place in the low-end segments.

Companies can also stretch their product lines upward. Sometimes, companies stretch upward to add prestige to their current products. Or they may be attracted by a faster growth rate or higher margins at the higher end.

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19
Q

Product mix

A

consists of all the product lines and items that a particular seller offers for sale.

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20
Q

Width

A

number of different product lines

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21
Q

Length

A

total number of items the company carries within its product line

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22
Q

Depth

A

number of versions offered of each product in the line.

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23
Q

Consistency:

A

how closely the various product lines are in end use, production requirements, or distribution channels.

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24
Q

Types of Service Industries:

A

Government: offer services through courts, employment services, hospitals, military services, police and fire departments, the postal service, and schools.

Private not-for-profit organizations: offer services through museums, charities, churches, colleges, foundations, and hospitals.

Business organizations: offer services such as airlines, banks, hotels, insurance companies, consulting firms, medical and legal practices, entertainment and telecommunications companies, real estate firms, retailers, and others.

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25
Brand equity
is the differential effect that knowing the brand name has on customer response to the product or its marketing.
26
Brand value
is the total financial value of a brand
27
High brand equity provides a company with many competitive advantages:
high level of consumer brand awareness and loyalty more leverage in bargaining with resellers easier launch of line and brand extensions  defense against fierce price competition
28
Brand Positioning
Marketers need to position their brands clearly in target customers’ minds. They can position brands at any of three levels. Attributes Benefits Beliefs and values
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Attributes
At the lowest level, they can position the brand on product attributes
30
Benefits:
A brand can be better positioned by associating its name with a desirable benefit
31
Beliefs and values:
The strongest brands are positioned on strong beliefs and values, engaging customers on a deep, emotional level.
32
Brand Name Selection:
Suggests benefits and qualities Easy to pronounce, recognize, and remember Distinctive Extendable Translatable for the global economy Capable of registration and legal protection
33
Licensing
: Some companies license names or symbols previously created by other manufacturers, names of well-known celebrities, or characters from popular movies and books. For a fee, any of these can provide an instant and proven brand name.
34
Co-branding
occurs when two established brand names of different companies are used on the same product. Co-branding offers many advantages. Because each brand operates in a different category, the combined brands create broader consumer appeal and greater brand equity. Examples include Benjamin Moore and Pottery Barn, Taco Bell and Doritos.
35
Line extensions
occur when a company extends existing brand names to new forms, colors, sizes, ingredients, or flavors of an existing product category. A line extension works best when it takes sales away from competing brands, not when it “cannibalizes” the company’s other items
36
Brand extension
extends a current brand name to new or modified products in a new category.
37
Multibrands
Companies often market many different brands in a given product category.
38
New brands
A company might believe that the power of its existing brand name is waning, so a new brand name is needed. Or it may create a new brand name when it enters a new product category for which none of its current brand names are appropriate.
39
Price
is the amount of money charged for a product or service, or the sum of all the values that customers exchange for the benefits of having or using the product or service.
40
Three major pricing strategies:
customer value-based pricing cost-based pricing competition-based pricing
41
Effective customer-oriented pricing
involves understanding how much value consumers place on the benefits they receive from the product and setting a price that captures that value.
42
Everyday low pricing (EDLP)
involves charging a constant everyday low price with few or no temporary price discounts.
43
High-low pricing
involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items
44
Pure competition
the market consists of many buyers and sellers trading in a uniform commodity . No single buyer or seller has much effect on the going market price. Thus, sellers in these markets do not spend much time on marketing strategy.
45
Monopolistic competition
the market consists of many buyers and sellers who trade over a range of prices because sellers can differentiate their offers to buyers.
46
Oligopolistic competition:
the market consists of only a few large sellers. Each seller is alert and responsive to competitors’ pricing strategies and marketing moves.
47
Pure monopoly
the market is dominated by one seller. The seller may be a government monopoly , a private regulated monopoly ,or a private unregulated monopoly . Pricing is handled differently in each case
48
Upstream partners
are firms that supply raw materials, components, parts, information, finances, and expertise needed to create a product or service.
49
Downstream partners
include the marketing channels or distribution channels that look toward the customer, including retailers and wholesalers.
50
Supply chain
“make and sell” view includes the firm’s raw materials, productive inputs, and factory capacity.
51
Demand chain
“sense and respond” view suggests that planning starts with the needs of the target customer.
52
Value delivery network
is composed of the company, suppliers, distributors, and, ultimately, customers who partner with each other to improve the performance of the entire system.
53
Marketing channel (distribution channel)
is a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user.
54
How Channel Members Add Value
-Transform the assortment of products into assortments wanted by consumers. -Bridge the major time, place, and possession gaps that separate goods and services from users.
55
Members of the marketing channel perform many key functions:
Information Promotion Contact Matching Negotiation Physical distribution Financing Risk taking
56
Channel level :
is a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer.
57
Direct marketing channel
is a marketing channel that has no intermediary levels.
58
Indirect marketing channel
is a marketing channel containing one or more intermediary levels.
59
All the institutions(members) in the channel are connected by several types of flows:
Physical flow of products Flow of ownership Payment flow Information flow Promotion flow
60
Marketing channel design:
Designing effective marketing channels by analyzing customer needs, setting channel objectives, identifying major channel alternatives, and evaluating those alternatives.
61
Types of intermediaries
refers to channel members available to carry out channel work. Most companies face many channel member choices
62
Intensive Distribution:
a strategy in which they stock their products in as many outlets as possible. Producers of convenience products and common raw materials typically seek it.
63
Exclusive Distribution:
the producer gives only a limited number of dealers the exclusive right to distribute its products in their territories. It is often found in the distribution of luxury brands.
64
Selective Distribution:
the use of more than one but fewer than all of the intermediaries who are willing to carry a company’s products.
65
Responsibilities of Channel Members
Price policies: the producer should establish a list price and a fair set of discounts for the intermediaries. Conditions of sale Territory rights: It must define each channel member’s territory, and it should be careful about where it places new resellers. Specific services: Mutual services and duties need to be spelled out carefully, especially in franchise and exclusive distribution channels.
66
Evaluating Major Alternatives in the channel design decision process
Economic criteria : Using economic criteria, a company compares the possible sales, costs, and profitability of different channel alternatives. What will be the investment required by each channel alternative, and what returns will result? Control issues: Using intermediaries usually means giving them some control over the marketing of the product, and some intermediaries take more control than others. The company prefers to keep as much control as possible. Adaptability criteria: Channels often involve long-term commitments, yet the company wants to keep the channel flexible so that it can adapt to environmental changes. Thus, to be considered, a channel involving long-term commitments should be greatly superior on economic and control grounds.
67
Exclusive distribution
is when the producer gives only a limited number of dealers the exclusive right to distribute its products in their territories.
68
Exclusive dealing
is when the seller requires that the exclusive distribution sellers not handle competitor’s products.
69
Exclusive territorial agreements
are where producer or seller limit territory.
70
Tying agreements
are agreements where the dealer must take most or all of the line.
71
The promotion mix
is the specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships.
72
Advertising
is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.
73
Sales promotion
is a short-term incentive to encourage the purchase or sale of a product or service.
74
Personal selling
is the personal interaction by the firm’s sales force for the purpose of engaging customers, making sales, and building customer relationships.
75
Public relations
involves building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events. Examples of public relations include press releases, sponsorships, events and Web pages.
76
Direct and digital marketing
involves engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships
77
Steps in Developing Effective Marketing Communication:
Identify the target audience Determine the communication objectives Design the message Choose the media to send the message Select message source and collect feedback
78
Nonpersonal communication
channels are media that carry messages without personal contact or feedback, including major media, atmospheres, and events
79
The affordable method
sets the promotion budget at the level management thinks the company can afford. Small businesses often use this method, reasoning that the company cannot spend more on advertising than it has. They start with total revenues, deduct operating expenses and capital outlays, and then devote some portion of the remaining funds to advertising.
80
The percentage-of-sales method
sets the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price. simple to use and helps management think about the relationships between promotion spending, selling price, and profit per unit.
81
The competitive-parity method
sets the promotion budget to match competitors’ outlays. monitor competitors’ advertising or get industry promotion spending estimates from publications or trade associations and then set their budgets based on the industry average.
82
The objective-and-task method
develops the promotion budget by specific promotion objectives and the costs of tasks needed to achieve these objectives. The most logical budget-setting method, which entails (1) defining specific promotion objectives, (2) determining the tasks needed to achieve these objectives, and (3) estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget.