MKTG Final Flashcards
Advertising
Paid, nonpersonal communication through various media about a business firm, not-for-profit organization, product, or idea by a sponsor identified in a message intended to inform or persuade members of a particular audience
AIDA Concept
Steps through which an individual reaches a purchase decision (Attention, Interest, Desire, Action)
App
Short for application, a free or paid download that links users to a wide range of goods and services, media and text content, social media platforms, search engines, and the like.
Backward Integration
Process through which a manufacturer attempts to gain greater control over inputs in its production process, such as raw materials
Blogging
An online journal for an individual or organization where a writer posts information or opinions on various topics and followers may respond.
Bottom Line
overall company profitability
Brand Equity
added value that a respected well-known brand name gives to a product in the marketplace
Brand Recognition
Consumer awareness and identification of a brand.
Business Product
Goods and services purchased for use either directly or indirectly in the production of other goods and services for resale.
Buyers Market
A market in which there are more goods and services than people willing to buy them.
Cannibalization
loss of sales of an existing product due to competition from a new product in the same line.
Cause Marketing
Identification and marketing of a social issue, cause, or idea to selected target markets.
Celebrity Testimonials
celebrity endorses and promotes a product/business
Channel Conflicts
Conflicts among manufacturers, wholesalers, and retailers. For example retailers do not like it when manufacturers create a website where they can sell the goods that are sold in the retail store.
Cohort Effect
Variations in the characteristics of an area of study (such as the incidence of a characteristic or the age at onset) over time among individuals who are defined by some shared temporal experience or common life experience, such as year of birth, etc.
Consultative Selling Process
Primarily focused on the experience that the potential customer (the lead) feels and sees during their interactions with you. The steps are: research, ask, listen, teach, qualify and close.
Content Marketing
A marketing technique of creating and distributing relevant and valuable content to attract, acquire, and engage a clearly defined and understood target audience – with the objective of driving profitable customer action.
Contractual Marketing System
System in which independent firms at different levels of distribution are tied together by contract to achieve economies of scale and greater sales impact.
Convenience Products
Products that appeal to a very large market segment. They are generally consumed regularly and purchased frequently. Examples of such products include most household items including food, cleaning products, and personal care products.
Cooperative Advertising
Agreement between a manufacturer and a member of the distribution chain (distributor, wholesaler, or retailer) under which the manufacturer shares a certain percentage of the member’s advertising and promotion costs, or contributes a fixed sum.
Corporate Website
an informational website operated by a business or other private enterprise such as a charity or nonprofit foundation.
Cultural Differences
The variations in the way of life, beliefs, traditions and laws between different countries, religions, societies and people.
Cumulative Quality Discount
More than one discount. For instance: Take an additional 20% off the 30% off. You can’t just add it to each other, you have to do the 30% off. Then 20% off that total amount.
Currency Exchange Rates
The price of one nation’s currency in the terms of another country’s currency. Fluctuations in exchange rates can make a nation’s currency more or less valuable compared with those of other nations.
Deregulation Movement
Fewer and simpler regulations will lead to a raised level of competitiveness, therefore higher productivity, more efficiency and lower prices overall.
Differentiated Marketing
Strategy that focuses on producing several products and pricing, promoting and distributing them with different marketing mixes designed to satisfy smaller segments; this allows a company to produce more sales because they are able to target many markets.
Direct Selling
is the marketing and selling of products directly to consumers away from a fixed retail location.
Dumping
controversial practice of selling a product in a foreign market at a price lower than what it receives in the producers domestic market. for example international companies that try to dump their products in the US at a lower price. To counteract this the US puts import tariffs on the foreign products so that the price increases to those prices of the US
Elastic Demand
Measure of responsiveness of purchasers and suppliers to a change in price
Elements of the Promotional Mix
Works like a subset of the marketing mix, with its product, distribution, promotion, and pricing elements.
Environmental Scanning
Process of collecting information about the external marketing environment to identify and interpret potential trends.
Ethics
Moral standards of behavior expected by a society.
Field Selling
Sales presentations made at prospective customer’s locations on a face-to-face basis.
Foreign Licensing
Agreement that grants foreign marketers the right to distribute a firm’s merchandise or to use its trademark, patent, or process in a specified geographic area.
Franchise
Contractual arrangement in which a wholesaler or retailer agrees to meet the operating requirements of a manufacturer or other franchiser.
Full-Service Research Supplier
Marketing research organization that offers all aspects of the marketing research process.
Global Marketing Strategy
standardized marketing mix with minimal modifications that a firm uses in all of its domestic and foreign markets. This approach brings the advantage of economies of scale to production and marketing activities.
Hierarchy of Needs (Maslow)
1) Physiological: food, water, vitamins, health care, etc.
2) Safety: Health and life insurance, business protection, auto safety features, smoke and carbon monoxide detectors
3) Belongingness: Cosmetics, food, entertainment, fashion, appliances and home furnishings, cars, clubs and organizations
4) Esteem: Fashion, jewelry, gourmet foods, electronics, luxury cars, credit cards, investments, sports and hobbies, travel, spas
5) Self-Actualization: Education, cultural events, sports and hobbies, motivational seminars, technology, travel, investments
High-Involvement Product
Purchases with high levels of potential social or economic consequences.
Horizontal Channel Conflict
Results from disagreements among channel members on the same level.
IMC Strategy Development
Integrated Marketing Communications?????????????
Inelastic Demand
Demand that, throughout an industry will not change significantly due to a price change
Inflation
Rising prices caused by some combination of excess consumer demand and increases in the costs of one or more factors of production.
Intensive Distribution
Distribution of a product through all available channels.
Kurt Lewin
Psychologist who proposes B= f(P,E) where B-behavior is a function(f) of the interactions of personal influences (P) and pressures exerted by outside environmental forces (E)
Low-Involvement Product
Routine purchases that pose little risk to the consumer. A low-involvement purchase would be buying a loaf of bread from the store.
Marginal Cost
Change in total cost that results from producing an additional unit of output.
Market Segmentation
Division of the total market into smaller, relatively homogeneous groups.
Marketing Mix
Blending of the four strategy elements- product, distribution, promotion, and pricing- to fit the needs and preferences of a specific target market. It is an ever-changing combination of variables to achieve success. Pg. 46
Multidomestic Marketing Strategy
Application of market segmentation to foreign markets by tailoring the firm’s marketing mix to match specific target markets in each nation. It assumes that differences between market characteristics and competitive situations in certain nations require firms to customize their marketing decisions to effectively reach individual marketplaces. Chapter 8 Global Marketing. Pg. 257-258
NAFTA
Accord moving trade barriers among Canada, Mexico, and the United States (North American Free Trade Agreement)
Non probability Sample
Sample that involves PERSONAL JUDGEMENT somewhere in the selection process.
Penetration Pricing
Pricing strategy involving the use of a relatively low entry price compared with competitive offerings, based on the theory that this initial low price will help secure market acceptance.
Personalization
Also known as one-to-one marketing that emphasizes personalized interactions with the customers.
Place Utility
Availability of goods and services at convenient locations. Example: on-site daycare, banks in grocery stores, etc.
Price Bundling
Offering two or more complementary products and selling them for a single price.
Price Determination
(p.620) a technique that attempts to derive correct equilibrium prices in the marketplace by comparing demand and supply. It also requires more complete analysis than actual business firms typically conduct.
Price Quotations
(p 649) based on industry conditions, quoted prices are built around list price.
Price Skimming
Pricing strategy involving the use of a high price relative to competitive offerings
Pricing Objectives
A. Profitability objectives- profit maximization and target return
B. Volume Objectives- Sales maximization, Market share
C. Meeting competition objectives: Value Pricing
D. Prestige Objectives- Lifestyle Image (high priced, status items ie. BMW)
E. Not-for-profit objectives- Profit Max. Cost recovery, market incentives, market suppression
Primary Data
information collected for a specific investigation; information collected for the first time for a marketing research study usually done within the firm.
Private Brand
brand offered by a wholesaler or retailer
Product Positioning
consumers perceptions of a product’s attributes, uses, quality, and advantages and disadvantages relative to competing brands
Promotional Pricing
pricing policy in which a lower-than-normal price is used as a temporary ingredient in a firm’s marketing strategy
Prospecting
personal selling function of identifying potential customers; before doing this a company must be sure that they can define their brand to potential customers and explain what the brand can do for them
Protective Tariff
Taxes designed to raise the retail price of an imported product to match or exceed that of a similar domestic product ( has to do with dumping!)
Psychological Pricing
pricing policy based on the belief that certain prices or price ranges make a good or service more appealing than others to buyers
Pure Competition
market structure characterized by homogeneous products in which there are so many buyers and sellers that none has a significant influence on price
Pure Good
Consumer good, such as salt, that involves no service aspect
Push Money
cash reward paid to retail salespeople for every unit of a product they sell
Revenue Tariff
taxes designed to raise funds for the importing government
Robinson Patman Act
Federal legislation prohibiting price discrimination not based on a cost differential; also prohibits selling at an unreasonably low price to eliminate competition; 1936
Sales Promotion
Marketing activities other than personal selling, advertising, guerrilla marketing, and public relations that stimulate consumer purchasing and dealer effectiveness
Search Marketing
paying search engines, like Google, a fee to make sure the company’s listing appears toward the top of the search results
Second-Mover Strategy
theory that advocates observing closely the innovations of the first movers and then improving on them to gain advantage in the marketplace
Secondary Data
previously published information
Selective Distribution
distribution of a product through a limited number of channels–a firm chooses a limited number of retailers in an area to handle its line; by limiting the number of retailers, marketers can reduce total marketing costs while establishing strong relationships with the channel
Sellers Market
a market where there are more buyers for fewer goods and services
Services
Intangible tasks that satisfy the needs of consumer and business users. (Chpt 12)
Sherman Anti Trust Act
Prohibits restraint of trade and monopolization; identifies a competitive marketing system as a national policy goal. (Chpt 3)
Shopping Products
Products consumers purchase after comparing competing offerings. (Chpt 12)
Social Networking Sites
A website that provides virtual communities through which people can share information, post opinions, and increase their circle of online friends.
Specialty Store
A specialty store typically handles only part of a single product line.
Strategic Plans
Process of determining an organization’s primary objectives and adopting courses of action that will achieve these objectives.
Tactical Plans
Planning that guides the implementation of activities specified in the strategic plan.
Target Market
The group of people to whom the firm aims its marketing efforts and ultimately its merchandise
Task-Objective Method
Development of a promotional budget based on evaluation of the firm’s promotional objectives. This method has two steps.
- Firm must define realistic communication goals that they want the promotional mix to achieve.
- Firm must determine the amount and type of promotional activity required for each objective.
Telemarketing
promotional presentation involving the use of the telephone on an outbound basis by salespeople or on an inbound basis by customers who initiate calls to obtain information and place orders.
Truck Wholesalers
limited-function merchant wholesaler that markets perishable food items
Vertical Channel Conflict
Arises when a disagreement exists among channel members of different levels
Wholesalers
channel intermediary that takes title to goods it handles and then distributes these goods to retailers, other distributors, or B2B customers.
