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117 Cards in this Set
- Front
- Back
Value
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a customer's subjective assessment of benefits relative to costs in determining the worth of a product
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Relationship Marketing
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establishing long-term, mutually satisfying buyer-seller relationships
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Marketing Concept
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a philosophy that an organization should try to satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve it's goals.
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Customer Relationship Marketing
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Using information about customers to create marketing strategies that develop and sustain desirable customer relationships
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Marketing Strategy
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a strategy for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market
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Marketing Plan
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a written document that specifies the activities to be performed to implement and control an organization's marketing activities
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Sustainable Competitive Advantage
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an advantage that the competition cannot copy
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Market Opportunity
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A combination of circumstances and timing that permits an organization to take action to reach a target market
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Mission Statement
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a long-term view of what the organization wants to become
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Marketing Environment
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the competitive, economical, political, legal and regulatory, technological, and sociological cultural forces that surround the customer and affect the marketing mix
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Approaches
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Passive/reactive and Proactive
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Passive/Reactive Approach
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an approach that views environmental forces as uncontrollable
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Proactive Approach
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an approach that believes that environmental forces can be shaped
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Classes of Competitors
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Desire, Generic, Product, and Brand
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Federal Trade Commission (FTC)
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The adoption of a strategic focus for fulfilling the economic , legal, ethical, and philantrhopic social responsibilities expected by stakeholders
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Consumerism
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Organized efforts by individuals, groups, and organizations to protect consumers' rights
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Marketing Ethics
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principles and standards that define acceptable marketing conduct as determined by various stakeholders
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Social Responsibility
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An organization's obligation to maximize its positive impact and minimize negative impact on society
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Cause-related marketing
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practive of linking products to a particular social cause on an ongoing, short-term basis
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Organizational Culture
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set of values, beliefs, goals, norms, and rituals that members of an organization share
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Environmental difference in global marketing
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differences in environment are based on the impact of culture, economics, ethics, technology, politics, and competitors and their forces in foreign environments
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Levels of Commitment
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Exporting, Licensing and Franchising, Contract Manufacturing, Joint Ventures, and Direct Ownership
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Globalization
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Development of marketing strategies that treat the entire world (or it's major regions) as a single entity
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Marketing Research
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systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities
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Marketing Information System
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framework for the management and structuring of information gathered regularly from sources inside and outside an organization
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Steps of Marketing Research Process
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Locate and define problems or issues, design research project, collect data, interpret findings, and report research findings
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Types of Research Design
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Exploratory, Descriptive and Causal
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Exploratory Research Design
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use when making tentative hypothesis more specific
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Descriptive Research Design
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understand characteristics of certain phenomena
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Causal Research Design
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Variable X causes Variable Y
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Reliability
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condition existing when a research technique produces almost an identical result in repeated trials
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Validity
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condition existing when a research method measures what it is designed to measure
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Probability Sampling
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Sampling technique in which every element in the population being studied has a known chance of being selected for study
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Target Market
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group of buyers that a firm has targeted
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Segmentation Variables
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Demographic, geographic, psychographic, behavioristic
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Demographic
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variables based on age, gender, race, ethnicity, income, education, occupation, family size, family life cycle, religion, social class
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Geographic
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variables based on region, urban/suburban/rural, city size, county size, state size, market density, climate, terrain
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Psychographic
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variables based on personality attributes, motives, lifestyles
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Behavioristic
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variables based on volume usage, end use, benefit expectations, brand loyalty, and price sensitivity
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Micro-Marketing
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an approach to market segmentation in which organizations focus on precise marketing efforts on very small geographic markets
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Benefit-Segmentation
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division of a market according to benefits that customers want the product
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Executive Judgement
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intuition of one or more executives
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Types of surveys
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customer forecasting, sales force forecasting, expert forecasting, and delphi technique
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Customer forecasting
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survey of customers regarding the types and quantities of products they inted to buy at a specific period
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Sales force forecasting
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survey of firm's sales force regarding anticipated sales in their territories
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Expert forecasting
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sales forecasting prepared by experts such as economists, management consultants, advertising executives, college professors, or other persons outside the firm
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Delphi technique
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a procedure in which experts create initial forecasts, submit them to the company for averaging, and then refine the forecasts
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Time-series analysis
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uses historical sales data to discover patterns in sales
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Regression analysis
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finds relationship between past sales and one or more variables
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Market Tests
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making a product avaliable in one or more test area and measuring pruchases and consumer responses to distribution, population, promotion, and price
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Level of Involvement
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an individual's intensity of interest in a product and the importance of the product for that person
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Problem Solving Processes
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Routinized response behavior, limited problem solving, extended problem solving, and impulse buying
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Routinized response behavior
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consumer buys frequently purchased, low-cost items needing little search and decision effort
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Limited Problem Solving
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buy occasionally, or need information about unfamiliar product in a familiar category
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Extended Product Solving
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purchase unfamiliar, expensive, or infrequently bought products
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Impulse buying
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no conscious planning, but has a powerful urge to buy
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Consumer Buying Decision Process
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Problem recognition, information search, evaluation of alternatives, purchase, and post-purchase evaluation
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Cognitive Dissonance
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doubts about whether your decision to purchase a product was the right one
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Influences on the Consumer Buying Decision
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situational, psychological, and social
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Situation influences
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results from circumstances, time, and location that affect the consumer buying decision process (i.e. physical surroundings, social surroundings, time perspective, reason for purchase, and buyer's mood and condition
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Psychological influences
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partly determine people's general behavior and thus influence their behavior as consumers (i.e. perception, motives, personality, learning, lifestyles, self-concept, and attitudes
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Social influences
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Forces that other people exert on buying behavior (i.e. roles, family, reference groups, and opinion leaders, social classes, culture, and subculture)
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Business Markets
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Individuals or gropus that purchase a specific kind of product for resale, direct use in producing other products, or use in general daily operations
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Derived Demand
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demand for industrial products that stems from demand for consumer products
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Categories of Influence on Business Buying Decisions
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Environmental, organizational, interpersonal, and individual
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Stages of Business Buying Decision Process
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problem recognition, develop product specifications, search and evaluate potential products and suppliers, select product and supplier and order product, and evaluate product and supplier performance
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Types of Business Purchases
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straight re-buy, modified re-buy, and new-task purchase
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Straight Re-buy
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routine purchase of the same products by a business buyer
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Modified Re-buy
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new task purchase that is changed on subsequent orders or when the requirements of a straight rebuy purchase are modified
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New-Task Purchase
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an initial purchase by an organization of an item to be used to perform a new job or solve a new problem
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Types of Consumer Products
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convenience, shopping, specialty, and unsought products
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Convenience products
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relatively inexpensive, frequently purchased, with little purchasing effort
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Shopping products
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items that consumers are willing to spend considerable effort in planning and making purchase (i.e. comparing stores/prices for items such as appliances, bicycles, furniture, etc.)
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Specialty products
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possess one or more unique characteristics, and generally buyers are willing to spend considerable time and effort to obtain them (i.e. one-of-akind baseball memorabilia
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Unsought products
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products that are purchased due to a sudden problem, or a product the customer does not usually think of purchasing (i.e. automobile repairs)
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Stages of Product Life Cycle
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introduction, growth, maturity, and decline
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Introduction Stage of PLC
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sales at zero, profits negative
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Growth Stage of PLC
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sales rise rapidly, profits reach peak
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Maturity Stage of PLC
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sales peak, profits continue to fall, 3 stages attempted to achieved here - generate cash flow, maintain market share, increase share of customer)
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Decline Stage of PLC
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sales fall rapidly, profits continue to fall
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Profits peak at which stage?
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Growth
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Sales peak at which stage?
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Maturity
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Product Adaptation Process
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Awareness, interest, evaluation, trial, adoption
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Adopter Categories
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innovators(2.5%) early adopters(13.5%) early majority(34%) late majority(34%) laggards (16%)
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Brand Loyalty
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customers favorable attitude towards a specific brand
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Brand Recognition
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customer aware that the brand exists and views it as an alternative purchase if preferred brand is not available or if other unpreferrable brands are not available)
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Brand Preference
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customer definitely prefers one brand over competitor's and will purchase the brand if available rather than looking for preferred brand)
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Brand Insistence
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customer strongly prefers a brand, accepts no subtitutes, and is willing to spend a great deal of time and effort to acquire that brand
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Types of Brands
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manufacturer, distributor, and generic
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Manufacturer Brands
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initiated by products that ensure that producers are identified with their products at the point of purchase (i.e. Green Giant, Compaq, Levi's)
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Distributor Brands
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initiated and owned by resellers. Major characteristic is that manufacturer is not identified on the product (i.e. Sears Kenmore, JC Penny's Arizona Clothing)
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Generic Brands
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indicate only product category and do not include company name or other identifying terms (i.e. Ibuprofen)
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Criteria for Brand Naming
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easy to say, spell, and recall; name should indicate product's benefits; should be distinctive
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Packaging considerations
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meet FDA requirements, protects product, promotional role, meets need of reseller (easy to transport, store and handle), and environmentally sound
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Steps in Development of a New Product
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idea generation, screen and evaluating, concept testing, business analysis, product development, test marketing, and commercialism
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Line Extension
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development of a product that is closely related to existing products in the line but meets different customer needs
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Product Differentiation
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process of differentiating your product from your competitor's
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Quality
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overall characteristics that allow a product to perform as expected in satisfying customer needs
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Design
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styling and features; how a product is conceived, planned, and produced
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Support Services
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any human or mechanical efforts to provide value to product, such as a warranty on an automobile
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Product Positioning
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creating and maintaining a certain concept of a product in customer's minds
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Characteristics of Services
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intangibility, inseperability, heterogeneity, perishability, client based relationships, and customer contact
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Intangibility
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not physical and cannot be touched
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Inseperability
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production of service and consumption of service happen simultaniously
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Heterogeneity
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maintaining consistent quality
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Perishability
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unused services cannot be saved for a later time period
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Client Based Relationships
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repeated interaction with customers that results in satisfied customers who use a service
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Customer Contact
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level of interaction between service provider and customer
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Service Quality
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customer's perception of how well a service meets or exceed their expectations
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Non-Profit Marketing
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marketing conducted to achieve some goal other than ordinary business goals or profit, market share, or return on investment
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Steps to improve service quality
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analyze customer needs, service quality specifics, employee performance, and manage service expectations
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Opportunity cost
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the value of the benefit given up by choosing one alternative over another
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Marketing channel
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a group of individuals and organizations directing products from producers to customers
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Marketing intermediary
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a middleman linking procedures to other middlemen or the ultimate customer through contracts or purchase and resell or products
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Supply-Chain Management
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long term partnerships among marketing channel members that reduce inefficiencies, costs, and redundancies and develop innovative approaches to satisfy customers
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Vertical Marketing System
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marketing channel managed by a single channel member
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Intensity of Market Coverage
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Intensive (use all available outlets for promoting a product)
selective (use only some available outlets in area to promote a product) exclusive (use only one outlet in a fairly large geographical area to distribute product) |