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46 Cards in this Set

  • Front
  • Back
What is value?
The relative comparison of a product's benefits versus its costs.
What is a high value product?
An item with a low cost but is versatile. Example: a pen, it's cheap but it lasts long and can do a lot.
What are consumer goods?
Tangible goods that consumers may buy for personal use.
What are industrial goods?
Physical items used by companies to produce other products.
What is a trend in the technological environment and describe how it might affect marketers?
If a new device comes out (such as the iPhone) other marketers are going to manufacture a similar product or try to make it better and/or different.
Explain how organizational buying behavior differs from consumer buying behavior.
A. normally, multiple individuals are involbed
B. buying decision rules or standards may be applicable
C. purchases occur as a result of derived demand
What is marketing?
A set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders (finding a need and fufulling it...product, place, price, promotion)
What externanal environmental factors influence any marketing program?
Polotical-legal, sociocultural, technological, economic and competitive
What are features?
Special characteristics only
What are benefits?
They include not only the functions of the product, but also the emotional satisfaction associated.
What are the three major categories of consumer goods?
1. Convenience goods
2. Shopping goods and services
3. Speciality goods and services
What are convenience goods?
Frequent purchases, inexpensive, immediate consumption
What are shopping goods and services?
Less frequent purchases, more expensive, more search and comparison
What are specialty goods and services?
Infrequent or one time purchase, more expensive, extensive search
What is a product mix?
THe group of products (consumer, industrial, or both) that a company makes available for sale.
What is a product line?
A group of products that are closely related because they function in a similar manner or are sold to the same customer group who will use them in similar ways
What are the 4 elements of the marketing mix?
1. Product
2. Price
3. Place
4. Promotion
What are target markets?
Groups of people with similar wants and needs and who can be expected to show interest in the same products.
What part does market segmentation play in target markets?
Market segmentation (dividing a market into categories of customer types or segments) allows you to target your mmarket (demographic, geographic, and/or psychographic)
How are market segments identified?
1. Demographic (age, gender, race, income, religion)
2. Geographic (location)
3. Psychographic (lifestyle variables)
What are the 4 major inflences on consumer behavior?
Psychological, personal, social, and cultural influences
What are the steps involved in the consumer buying process
Problem/need recognition, information seeking, evaluation of alternatives, purchase decision, and postpurchase evaluation
What are the 4 stages in the product life cycles?
1. Introduction
2. Growth
3. Maturity
4. Decline
Refering to product life cycle, what is introduction?
Product reaches marketplace and marketers want consumers to be aware of it. Promotional and developmental costs erase all profits.
Refering to product life cycle, what is growth?
If product attracts attention, sales climb rapidly and prodct starts to show profit and other firms produce their own versions.
Refering to product life cycle, what is maturity?
Sales growth stats to slow, product already earned its highest profit early on in this state, competition forces prices to fall and profits are lowered
Refering to product life cycle, what is decline?
Sales and profits contine to fall because new products are in the introduction stage and take away sales. Firms end or reduce promotional support buy may let the product linger to provide some profits.
What are the elements of the marketing mix?
Product, price, place, promotion.
What is the collective rold of the elements of the marketing mix?
To plan and implement activities that result in the transfer of goods/services to the customers.
What is the distribution mix?
The combination of distribution channels by which a firm gets products to end users.
How does a speciality store differ from a supermarket?
A specialty store carries one line of products. A supermarket carries broad product lines.
What is the most important factor in determining the promotional mix?
The target audience, with its unique characteristics.
What is the purpose of point-of-sale displays?
To grab customer's attention. They're usually at the ends of the aisles or near checkout counters to make it easier for customers to find products and easier for sellers to eliminate competitors from consideration.
What is cost-oriented pricing?
It considers the firm's desire to make a profit and its need to cover production costs.
Why might a retailer price a TV at $299 rather than $300?
Odd-even pricing. Consumers prefer prices that are not stated in even dollar amounts.
What are the 4 elements of the promotional mix?
Advertising, personal selling, sales promotions, and publicity & public relations
What are the 5 forms of sales promotion?
1. Coupons
2. Premiums (free or reduced price items)
3. Point-of-sale displays
4. trade shows
What is a situation in which a company might adopt a pricing objective other than profit maximization?
The company wants to dominate the market. They want to have a high percentage of the total industry's sales for a specific product type. (iPods)
How do you calculate breakeven points?
Total fixed costs
Price - variable cost
Why would a firm want to set their price above competitors prices?
Pricing above the market takes advantage of the common assumption that higher price means higher quality.
What are 2 pricing strategies that may be used for new products?
1. Price skimming
2. Penetration pricing
What is price skimming?
Setting an initially high price to cover costs and generate a profit
What is penetration pricing?
Setting an initially low price to establish a new product in the market.
What are 4 other objectives marketers have other than increasing sales?
1. Communicate info
2. Position products
3. Add value
4. Control sales volume
What is pricing objective?
Goals that sellers hope to attain in pricing products for sale.
What is profit maximization?
process by which a firm determines the price and output level that returns the greatest profit