Test 2 (Chapters 8-15) Flashcards
In a decision, the restrictions placed on potential solutions to a problem
Constraints
The facts and figures related to the problem that are divided into two main parts: secondary data and primary data
Data
The extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patterns and marketing actions
Data mining
Involves operating computer networks that can store and process data
Information technology
The process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions
Marketing research
Criteria or standards used in evaluation proposed solutions in to the problem
Measures of success
Facts and figures obtained by watching, either mechanically or in person, how people actually behave
Observational Data
Fact and figures that are newly collected for the project
Primary data
Facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors
Questionnaire data
The total sales of a product that a firm expects to sell during a specified time period under specified environmental conditions and its own marketing efforts
Sales forecast
Facts and figures that have already been recorded before the project at hand
Secondary data
A concept that suggests 80% of a firm’s sales are obtained from 20% of its customers
80/20 rule
A framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization
Market-product grid
Involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action
Market segmentation
The relatively homogenous groups of perspective buyers that result from the market segmentation process
Market segments
A means for displaying or graphing in two dimensions the location of products or bands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands, as well as the firm’s own product or brand
Perceptual map
A marketing strategy that involves a firm using different marketing mix activities to help consumers perceive the product as being different and better than competing products
Product differentiation
The place a product occupies in consumers’ minds on important attributes relative to competitive products
Product Positioning
Changing the place a product occupies in a consumer’s mind relative to competitive products
Product repositioning
The quantity consumed or patronage (store visits) during a specific period. (Also called frequency marketing)
Usage rates
The stage of the new-product process that specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections
Business analysis
Products organizations buy that assist in providing other products for resale
Business products
The stage of new-product process that positions and launches a new product in full-scale production and sales
Commercialization
Products purchased by the ultimate consumer
Consumer products
Items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort
Convenience products
The stage of the new-product process that turns the idea on paper into a prototype
Development
The stage of the new-product process that develops a pool of concepts to serve as candidates for new products, building upon the previous stage’s results
Idea generation
The stage if the new-product process that exposes actual products to prospective consumers under realistic purchase conditions to see if they will buy
Market testing
The seven stages an organization goes through to identify business opportunities and convert then into salable products or services
New-product process
The stage of the new-product process that defines the role for a new product in terms of the firm’s overall objectives
New-product strategy development
A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs and is received in exchange for money or something else of value
Product
A specific product that has a unique brand, size, or price
Product item
A group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets, or fall within a given price range
Product line
Consists of all of the product lines offered by an organization
Product mix
A statement that, before product development begins, identifies (1) a well-defined target market; (2) specific customers’ needs, wants, and preferences; and (3) what the product will be and do to satisfy customers
Protocol
The stage of the new-product process that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort
Screening and evaluation
Intangible activities or benefits that an organization provides to satisfy customers’ needs in exchange for money or something else of value
Services
Items for which the consumer compares serval alternatives on criteria, such as price, quality, or style
Shopping products
Items that a consumer makes a special effort to search out and buy
Specialty products
Items that the consumer does not know about or knows about but does not initially want
Unsought products
The added value a brand name gives to a product beyond the functional benefits provided
Brand equity
A contractual agreement whereby one company allows its brand name(s) or trademark(s) to be used with products or services offered by another company for a royalty or fee
Brand licensing
Any word, device, or combination of these used to distinguish a seller’s goods or services
Brand name
A set of human characteristics associated with a brand name
Brand personality
A marketing decision in which an organization uses a name, phrase, design, symbols, or combination of these to identify its products and distinguish them from those of competitors
Branding
An integral part of the package that typically identifies the product or brand, who made it, where and when it was made, how it is to be used, and package contents and ingredients
Label
Strategies by which a company tries to find new customers, increase a product’s use among existing customers, or create new use situation
Market modification
A branding strategy where a firm markets products under its own name(s) and that of a reseller because of segment attracted to the reseller is different from its own market
Mixed branding
A branding strategy that involves giving each product a distinct name when each brand is intended for a different market segment
Multibranding
A branding strategy in which a company uses one name for all its products in a product class
Multiproduct branding
A component of a product that refers to any container in which it is offered for sale and on which label information is conveyed
Packaging
A branding strategy used when a company manufactures products but sells them under the brand name of a wholesaler or retailer
Private branding
Refers to the entire product category or industry
Product class
Pertains to variations of product within the product class
Product form
Describes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline
Product life cycle
Strategies that alter a product’s characteristics, such as its quality, performance, appearance, to increase a product’s value to customers and increase sales
Product modificiation
A commercial, legal name under which a company does business
Trade name
Identifies that a firm has legally registered its brand name or trade name so the firm has its exclusive use, thereby preventing others from using it
Trademark
Reducing the number of features, quality, or price of the product
Trading down
Adding value tot he product (or line) through additional features or higher-quality materials
Trading up
A statement indicating the liability of the manufacturer for product deficiencies
Warranty
Integrating the service component of the marketing mix with efforts to influence consumer demand
Capacity Management
A flowchart of the points of interaction between customers and service provider
Customer contact audit
The process of managing the entire customer experience within the firm
Customer experience management (CEM)
The four unique elements to services: intangibility, inconsistency, inseparability, and inventory
Four I’s of Service
A type of analysis that compares the differences between the consumer’s expectations about and experiences with a service based on dimensions of service quality
Gap analysis
Occurs when the service provider is available but there is no demand
Idle production capacity
The notion that a service organization must focus on its employees, or internal market, before successful programs can be directed at customers
Internal marketing
Charging different prices during different times of the day or days of the week to reflect variations in demand for the service
Off-peak pricing
The range of offerings companies bring to the market, from the tangible to the intangible or product-domain to service-dominant
Service continuum
Intangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange for money or something else of value
Services
An expanded marketing mix for services that includes the four P’s (product, price, promotion, and place) as well as people, physical environment, and process
Seven P’s of services marketing
Setting a market price for a product or product class based on a subjective feel for the competitor’ price or market price as the benchmark
Above-, at-, or below-marketing pricing
Selecting one or more geographical locations form which the list price for products plus freight expenses are charged to they buyer
Basing-point pricing
The marketing of two or more products in a single package price
Bundle pricing
Summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price
Cost-plus pricing
Setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors
Customary pricing
The practice of replacing promotional allowances with lower manufacturer list prices
Everyday low pricing (EDLP)
A method of pricing based on the learning effect, which holds that the unit cost of many products and services declines by 10% to 30% each time a firm’s experience at producing and selling them doubles
Experience curve pricing
Setting different prices for products and services depending on individual buyers and purchase situations
Flexible-price policy
The “free on board” (FOB) price the seller quotes that includes only the cost of loading the product onto the vehicle and specifies the name of the location where the loading is to occur
FOB origin pricing
Deliberately selling a product below its customary price, not to increase sales, but to attract customers’ attention in hopes that they will buy others products as well
Loss-leader pricing
Selling prices a few dollars or cents under a even number
Odd-even pricing
Setting one price for all buyers of a product or service
One-price policy
Setting a low initial price on a new product to appeal immediately to the mass market
Penetrating pricing
The practice of charing a very low price for a product with the intent of driving competitors out of business
Predatory pricing
Setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it
Prestige pricing
The practice of charging different prices to different buyers for goods of like grade and quality
Price discrimination
A conspiracy among firms to set prices for a product
Price fixing
Setting the price of a line of products at a number of different specific pricing point
Price lining
Successive price cutting by competitors to increase or maintain their unit sales or market share
Price war
The setting of prices for all items in a product line to cover the total cost and product a profit for the complete line, not necessarily for each item
Product-line pricing
Cash payments or an extra amount of “free goods” awarded sellers in the marketing channel for undertaking certain advertising or selling activities to promote a product
Promotional allowances
Reductions in unit costs for a larger order
Quantity discounts
Setting the highest initial price that customers really desiring the product are willing to pay when introducing a new or innovative product
Skimming pricing
Adding a fixed percentage to the cost of all items in a specific product class
Standard markup pricing
Consists of (1) estimating the price that ultimate consumers would be willing to pay for a product, (2) working backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers, and then (3) deliberately adjusting the composition and features of the product to achieve the target price to consumers
Target pricing
Setting an annul target of a specific dollar volume of profit
Target profit pricing
Setting a price to achieve an annual target return-on-investment (ROI)
Target return-on-investment pricing
Setting a price to achieve a profit that is a specified percentage of the sales volume
Target return-on-sales pricing
The price the seller quotes that includes all transportation costs
Uniform delivered pricing
The charging of different prices to maximize revenue for a set amount of capacity at any given time
Yield management pricing
Arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals
Channel conflict
The ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience
Customer service
Channel conflict that arises when a channel member passes another member and sells or buys products direct
Disintermediation
An arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product
Dual distribution
A level of distribution density whereby only on retailer in a specific geographical area carries the firm’s products
Exclusive distribution
A level of distribution density whereby a firm tries to place its products and services in as many outlets as possible
Intensive distribution
Those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost
Logistics
Individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users
Marketing channel
The blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online
Multichannel marketing
A process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal
Reverse logistics
A level of distribution density whereby a firm selects a few retailers in a specific geographical area to carry its products
Selective distribution
A sequence of firms that perform activities required to create and deliver a product or service to ultimate consumers or industrial users
Supply chain
Expenses associated with transportation materials handling and warehousing, inventory, stockouts (being sold out of inventory), order processing, and return goods handling
Total logistics cost
An inventory-management system whereby the supplier determines the product amount and assortment a customer (such as a retailer) needs and automatically delivers the appropriate items
Vendor-managed inventory (VMI)
Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact
Vertical marketing systems
