Test #2 Flashcards
A group of activities designed to expedite transactions by creating, distributing, pricing, and promoting goods, services, and ideas
Marketing
The act of giving up one things (money, credit, labor, goods) in return for something else (goods, services, or ideas)
Exchange
The idea that an organization should try to satisfy customers’ needs through coordinated activities that also allow it to achieve its own goals
Marketing Concept
An approach requiring organizations to gather information about customer needs, share that information throughout the firm, and use that information to help build long-term relationships with customers
Market orientation
A plan of action for developing, pricing, distributing, and promoting products that meet the needs of specific customers
Marketing Strategy
A group of people who have a need, purchasing power, and the desire and authority to spend money on goods, services, and ideas
Market
A specific group of consumers on whose needs and wants a company focuses its marketing efforts
Target Market
A strategy whereby a firm divides the total market into groups of people who have relatively similar product needs
Market Segmentation
A market segmentation approach whereby a firm tries to appeal to everyone and assumes that all buyers have similar needs and wants
Total-market approach
A market segmentation approach whereby a company develops one marketing strategy for a single market segment
Concentration Approach
A market segmentation approach whereby the marketer aims its efforts at two or more segments, developing a market strategy for each
Multisegment approach
The four marketing activities - product, price, promotion, and distribution - that the firm can control to achieve specific goals within a dynamic marketing environment
Marketing Mix
A complex mix of tangible and intangible attributes that provide satisfaction and benefits whether a good, service, idea, or combination.
-The most visible contact with customers
-Almost every purchase has trade-offs
-Often the central focus of the marketing mix
Product
A value placed on an object exchanged between a buyer and a seller
-Can be changed quickly to stimulate demand
-Directly relates to the generation of revenue and profits
-Ex. Subscription based pricing
Price
Making products available to customers in the quantities desired
-Involves transporting, warehousing, materials, handling, inventory control, packaging, and communication
-Supply Chain Management: Acquiring resources, inventory, and the interlinked networks that make products available to customers
Distribution
A persuasive form of communication that attempts to expedite a marketing exchange by influencing individuals, groups, or organizations to accept goods, services, or ideas
-Must effectively manage their resources and understand product and target-market characteristics
-Websites, TV, radio, newspapers
Promotion
A systematic, objective process of getting information about potential customers to guide marketing decisions
Marketing Research
Political, Legal, and regulatory forces: laws and regulators’ interpretation of laws, law enforcement, and regulatory activities
Social forces: The public’s opinions and attitudes toward issues such as living standards, ethics, the environment, lifestyles, and quality of life
Competitive and economic forces: Competitive relationships in industries, unemployment, purchasing power, and general economic conditions
Technological forces: Computers and other technological advances that improve distribution, promotion, and new product development
External Forces that influence marketing strategies
- Idea development: Idea is thought of then research is done to create that idea into a product
- New Idea Screening: Marketing manager looks at firm’s ability to produce and market the product
- Business analysis: Assessment of a product’s compatibility in the marketplace and potential profitability
- Product development: Idea is developed into a prototype (Expensive!)
- Test marketing: A trial minilaunch of a product in limited areas that represent the potential market
- Commercialization: The full introduction of a complete marketing strategy and the launch of the product for commercial success
6 Steps of Product Development
Products that consumers spend little to no time planning to purchase: Beverages, granola bars, gasoline, batteries.
Convenience Products
Products where price, product features, quality, style, service, and image all influence the decision to buy. Computers, smartphones, clothing, sporting goods
Shopping Products
Products where consumers know what they want and go out of their way to find it. Motorcycles, designer clothing, art
Specialty Products
A group of closely related products that are treated as a unit because of similar marketing strategy, production, or end-use considerations
Product line
All the products offered by an organization
Product mix
Introductory stage: Consumer awareness and acceptance of the product are limited, sales are zero and profits are negative
Growth stage: Sales increase rapidly and profits peak, then start to decline
Maturity Stage: Sales curve peaks and starts to decline while profits continue to decline; severe competition and heavy expenditures
Decline stage: Sales continue to fall rapidly and profits also decline and may even become losses as prices are cut and necessary marketing expenditures are made
Life Cycle Stages
A low price designed to help a product enter the market and gain market share rapidly
Penetration pricing
Charging the highest possible price that buyers who want the product will pay
Price Skimming
Encourages purchases based on emotional rather than rational responses to the price
Psychological/Prestige
Temporary price reductions, often employed to boost sales
Discounts
Intermediaries who buy products from manufacturers and sell them to consumers for home and household use rather than for resale
Retailers create their own utility by bringing together an assortment of products from competing producers
Retailer Utility
A form of market coverage whereby a product is made available in as many outlets as possible
Intensive Distribution
a form of market coverage whereby only a small number of all available outlets are used to expose products
Selective Distribution
The awarding by a manufacturer to an intermediary of the sole right to sell a product in a defined geographic territory
Exclusive distribution
Advertising: Paid form of nonpersonal communication transmitted through a mass medium
Personal selling: Direct, two-way communication with buyers and potential buyers
Publicity: Nonpersonal communication through the mass media buy not paid for directly by the firm
Sales promotion: Direct inducements offering added value or some other incentive for buyers to enter into an exchange
4 Elements of Promotion mix
Coordinating the promotion mix elements and synchronizing promotion as a unified effort
Integrated marketing communication
An attempt to motivate intermediaries to push the product down to their customers
Push promotion strategy
The use of promotion to create consumer demand for a product so that consumers exert pressure on marketing channel members to make it availble
Pull promotion strategy
The use of promotion to create and maintain an image of a product in buyers’ minds
Promotional positioning
The study of how money is managed by individuals, companies, and governments
Finance
-Acceptability
-Divisibility
-Portability
-Stability
-Durability
-Difficult to counterfeit
Characteristics of Money
-Checking Account: Money stored in an account at a bank or other financial institution that can be withdrawn without advance notice
-Savings account: accounts with funds that usually cannot be withdrawn without advance notice
-Money market accounts: Accounts that offer higher interest rates than standard bank rates but with greater restrictions
-Certificates of Deposit
-Credit Cards
-Reward cards
-Debit card
-Cryptocurrency
Different Types of money
An independent agency of the federal government established in 1913 to regulate that nation’s banking and financial industry; also called “The Fed”
Federal Reserve System
An insurance fund established in 1933 that insures individual bank accounts
FDIC
-Commercial banks: The largest and oldest of all financial institutions, relying mainly on checking and savings accounts as sources of funds
-Savings and Loan Associations: Financial institutions that primarily offer savings accounts and make long-term loans for residential mortgages
-Credit unions: Owned and controlled by its depositors, who usually have a common employer, profession, trade group, or religion
-Mutual savings banks: Similar to S&Ls but are owned by their depositors
Banking Institutions
-Diversified firms: Specialize in specific finances
-Insurance companies: -Businesses that protect their clients against financial losses from certain specified risks
-Pension funds: Managed investment pools set aside by individuals, corporations, unions, and some nonprofits to provide retirement income for some members
-Mutual fund: An investment company that pools individual investor dollars and invests them in large numbers
-Exchange-traded funds: Made up of pool of assets that track an underlying index
-Brokerage firms: Firms that buy and sell stocks bonds, and other securities
-Investment bankers: underwrites new issues of securities
-Finance companies: Businesses that offer short-term loans at substantially higher rates than banks
Non-Banking Institutions
The process of analyzing the needs of the business and selecting the assets that will maximize its value
Capital budgeting
Financing a company through issuing stock through an investment banker. Gives company cash to use while stockholders get dividends
Equity Financing
Financing a company through issuing long-term liabilities like bonds or loans
Debt Financing
The sale of stocks and bonds for corporations
Investment Banking
Market that is one of the biggest in the United States
-80% is electronic
-Is also a stock buyers can purchase
New York Stock Exchange
Market that is one of the biggest in the United States
-Became a publicly traded company
-Operates through dealers who buy and sell common stock (inventory) for their own accounts
-Mainly tech companies like Apple, Microsoft, Alphabet Inc.
NASDAQ
Price-weighted average which gives high-priced stocks more weight in the index than low-priced stocks
-Made up of 30 companies to average high-priced stocks
Dow Jones Industrial Average
