Midterm 1 Flashcards
(140 cards)
1
Q
Marketing
A
Activities designed to provide goods and services that provide value and satisfy customers
2
Q
What is work?
A
Investing energy to create something of value
3
Q
What is competition?
A
Invisible hand of the market.
Vital part of private enterprise
4
Q
What is the importance of competition?
A
Applies pressure for lower prices, efficiency, and new/better products
5
Q
Transaction
A
An exchange for profit
6
Q
Contract
A
Binding agreement to establish parameters of exchange
7
Q
Private enterprise system requires existence of these four conditions:
A
Private property, freedom of choice, fair competition, right to keep profits
8
Q
Stakeholders
A
Citizen, consumer, employee, business owner
9
Q
Shareholders
A
business owner
10
Q
Specialized economies has no sure success because of:
A
Uncertainty, Risk, Reward
11
Q
Most successful innovations involve:
A
experimentation, feedback, openness, and has target market who will benefit
12
Q
How is first mover and fast follower different?
A
First mover create new products. Fast follower creates a better/more efficient product
13
Q
Management Process
A
Planning, Organize, Operate, Control
14
Q
4 areas of management
A
Marketing, Production, Finance, Administrative
15
Q
Asset
A
items (tangible and intangible) that have value
16
Q
Economics
A
study of how society employs resources to produce goods/services for consumption
17
Q
Macroeconomics
A
nation’s economy
18
Q
Microeconomics
A
people/organization in markets
19
Q
Resource development
A
study of how to increase resources and create conditions that will better use them
20
Q
Invisible Hand Theory
A
self-directed gains lead to social and economic benefits
21
Q
Who is Adam Smith?
A
He is considered the father of modern economics. Smith is most famous for his 1776 book, The Wealth of Nations and theory of the invisible hand
22
Q
Capitalism
A
Land, factories, stores owned by individuals for profit
23
Q
State Capitalism
A
All run by state or government
24
Q
Free Market decisions
A
Decisions in free markets are made by buyers and sellers through signals of supply and demand
25
Supply
quantity of products businesses are willing to sell
26
Demand
quantity of products consumers are willing to buy
27
Equilibrium
market price determined by supply and demand, S = D
28
Four degrees of Competition:
Perfect, Monopolistic, Oligopoly, Monopoly
29
Perfect Competition
similar goods, commodities, can't compete on product
30
Monopolistic Competition
similar goods but not identical, competes on product
31
Oligopoly
small group of competitors
32
Monopoly
only one supplier of goods/services (often regulated)
33
What are free market benefits and cons?
Allows competition, lowers prices, better goods/services, innovation, opportunity
But driven by greed
34
Gross Domestic Product
(GDP) total value of final goods/services produced in a country in a given year
35
Inflation
general rise in price
36
Deflation
general decline in price
37
Consumer Price Index
(CPI) monthly statistics that measures the pace of inflation or deflation by computing cost of goods/services
38
Business Cycles
1. economic boom, 2. recession, 3. depression, 4. recovery
39
Fiscal Policy
government's efforts to keep economy stable through taxes and government spending
40
Monetary Policy
management of money supply and interest rates by the Federal Reserve Bank
41
Customer Relationship Management
(CRM) learning as much as possible about customers to satisfy and meet expectations and build long-term relationships
42
Customer Perceived Value
customer's evaluation of benefits and costs of a marketing offer
43
Marketing Mix
Product, Price, Place, Promotion
44
Role of marketing research:
process of planning, collecting, analyzing data relevant to marketing decision
45
Different types of market segmentation
Geography, demographics, psychographics, usage rate
46
Target Market
a group of people for which an organization designs, implements, and maintains a marketing mix intended to meet their needs
47
Customer Behavior
processes a consumer uses to make a purchase decision and use/dispose goods/services
48
Demographic Segmentation
Includes age, gender, income, family, life cycles
49
Psychographic Segmentation
personality, motives, lifestyles
50
Geo-demographic Segmentation
based on where you live and lifestyle
51
Environmental Scanning
process of identifying factors that affect market success (global, technological, sociocultural, etc)
52
Consumer Market (B2C)
individuals that want/purchase goods and services
53
Business 2 Business (B2B)
organizations that buy good/services to use in production
54
Niche Marketing
identifies small but profitable market segments
55
One to One marketing
develops unique mix of goods/services for individual consumers
56
Mass Marketing
developing products for large groups of people
57
Unemployment Rate
percent of people over 16 who are unemployed and tried to find a job within the past 4 weeks
58
Real Unemployment Rate
standard unemployment rate plus those who're underemployed, discouraged, looked for a job within the last year
59
Frictional Unemployment
people who quit out of dislike and are still without job and those who are entering workforce for the first time
60
Structural Unemployment
caused by restructuring of firms or mismatch of skills/location and requirements of available jobs
61
Cyclical Unemployment
due to recession or downturn in business cycles (most serious)
62
Seasonal Unemployment
demand for labor varies over the year
63
Production Era
marketing was a distribution function. Produce as many good as possible
64
Selling Era
emphasis on selling and advertising
65
Marketing Concept
businesses recognized need to be responsive to consumers
66
Customer Relationship Era
focused on enhancing customer satisfaction and long-term loyalty
67
Cost
expense of obtaining materials for making products
68
Price
something given up in exchange for goods/services
69
Profit Maximization
setting prices so that total revenue is as large as possible relative to costs
70
What is revenue?
Price x Units sold
71
What is the relationship between supply and demand?
It is inverse. As supply decreases, demand increases, and as demand decreases, supply increases
72
Commodities
products that are similar without meaningful differentiation
73
What is the value of service?
Services provide differentiation; can be influential for commodity products
74
Total Product Offering
everything consumers evaluate when deciding whether to buy something or not
75
Product Lines
a group of products that are physically similar or intended for similar market
76
Product Mix
combination of all product lines offered by a manufacturer or service provider
77
Product Differentiation
creation of real/perceived product differences through pricing, advertising, and packaging
78
Why have a mix of products?
matches different customer preferences and allows companies to set prices (maximizes profit)
79
Positioning
brand meaning perceived by target market
80
Break Even Point
point at which cost = income
(no net gain, no net loss)
81
Break Even Analysis
process used to determine profitability at various levels of sales; revenue = costs
82
Total Fixed Costs
all costs remain the same
83
Variable Costs
costs that change according to level of production
84
Formula for Break Even Point
Fixed Cost/Contribution Margin
85
Contribution Margin
price - variable cost per unit
86
Distributed Product Development
handing off various parts of innovation process
87
Good packaging must:
attract attention, protect goods, easy to open/use, give info on product, explain benefits
88
Brand
name, symbol, design that identifies goods/services of sellers and distinguishes from competition
89
Brand Equity
value of brand name and associated symbols
90
Brand Manager
has direct responsibility for one brand/product line
91
Product Screening
determines whether product has good potential and is marketable
92
Product Analysis
making cost estimates and sale forecasts
93
Product Life Cycle
Introduction, Growth, Maturity, Decline
94
New Product Development Process:
idea generation, product screening, product analysis, development, testing, commercialization
95
Cost Based Pricing
market determines price, includes cost of updates, marketing objectives
96
Target Based Pricing
based on demand, satisfies customers and meets profit margin
97
Competition Based Pricing
based on competition, customer loyalty, perceived differences
98
Skimming Price Strategy
prices a new product very high to recover costs and make as much profit as possible while there's little competition
99
Penetration Pricing
introduce low price for new products which undercuts competitors and attracts customers
100
Demand Oriented Pricing
marketers set price on basis of consumer demand, not costs
101
Non-Price Competition
marketers compete on factors other than price; product images, comfort, style, durability, convenience
102
What is the primary purpose of a business?
maximize revenue
103
What is a brand?
entire organization as seen through the eyes of stakeholders
104
Brand Loyalty
degree to which customers are satisfied and committed to further purchases
105
Brand Awareness
how quickly/easily a given brand name comes to mind
106
Introduction
introducing new product, keep mix small
107
Growth
product gains attention, improve product, keep mix limited
108
Maturity
profit peak, differentiate product, expand mix
109
Decline
demand goes down, cut product mix,
110
Place
how products get to our hands
111
Intermediaries
organizations that help move goods/services
112
Channel of Distribution
group of market intermediaries
113
Agents/Brokers
bring buyers and seller together, assist in negotiating an exchange
114
Wholesalers
sells products to other firms
115
Retailers
firm that sells products to costumers
116
What is the value of an intermediary?
perform marketing tasks quickly, lower costs, make markets more efficient by reducing transactions/contacts
117
Tasks and benefits of intermediaries include:
transport, store, sell, advertise, build relationships, inventory, stock, keep track of trends,
Faster and cheaper; provide value
118
Intensive Distribution
puts products into as many stores as possible
119
Selective Distribution
only preferred group of available retailers
120
Exclusive Distribution
only one retail outlet in a given geographic area
121
Direct selling
selling goods/services to customers in their homes/workplaces
122
Multi-leveling Marketing
uses salespeople who work as independent contractors, paid on sales not slary
123
Direct Marketing
directly links manufacturers/intermediaries to customers (online shopping)
124
Integrated Marketing Communications
combine promotional tools, creates a positive brand image, meets consumer needs, meets marketing and promotional goals
125
Channel of Distribution Order
Producer, Agents, Wholesalers, retailers, consumers
126
Utility
is the want-satisfying ability that organizations ad to goods/services by making them more useful and accessible
127
Time Utility
products are more available
128
Place Utility
products are where consumers want them
129
Possession Utility
delivery, installation, guarantees
130
Information Utility
opens 2-way flow of information
131
Service Utility
fast, friendly service and teaches customers how to best use products over time
132
Merchant Wholesalers
independently owned firms that take title to goods they handle
133
What is a disadvantage of Online Retailing?
traditional retailers have a price advantage since higher prices cover shipping
134
Corporate Distribution Systems
one firm owns all organizations in the channel of distribution
135
Contractual Distribution Systems
members are bound by agreements
136
Administered Distribution Systems
producers manage marketing functions
137
Supply Chains
linked activities organizations perform to move goods/services from materials to consumers
138
Logistics
planning, implementing, controlling physical flow of material, final goods, information, from origin to consumption to meet customer requirements
139
7 Right's
right of product, place, customer, time, quantity, condition, price
140
Value
Function (scarcity and need)
