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102 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Consumer products (pg. 275) |
Products bought by ultimate consumers for personal use. |
Toothbrush, event tickets, cell phones, magazines |
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Geographic segmentation (pg. 277) |
Dividing an overall market into homogeneous groups based on their locations. Geographic location does not ensure all consumers in this location will make the same buying decisions, but this segmentation approach helps identify some general patterns. |
California, Atlanta, Canada |
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Market segmentation (pg. 275) |
Dividing the total Market into smaller relatively homogeneous groups. |
By culture, age, location, etc. |
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(Family) Life cycle stages (pg. 288) |
The process of family formation and dissolution. As people move from one life stage to another, they become potential customers for different types of goods and services. |
1) Single 2) Married 3) Parenthood 4) Empty nest |
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Psychographic segmentation (pg. 291) |
The division of a population into groups having similar attitudes values and lifestyles. Lifestyle refers to a person's mode of living and describes how an individual operates on a daily basis. Consumers' lifestyles are composites of their individual psychological profiles including their needs, motives, perceptions, and attitudes. A lifestyle also bears the mark of many other influences such as family, job social activities, and culture. |
Psychological profile & personal influences |
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80/20 principle (pg. 293) |
Generally accepted rule that 80% of product revenues come from 20% of its customers. Relatively few heavy users of a product can account for the bulk of its consumption. |
Also known as Pareto's Law |
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Product usage/related segmentation (pg. 292) |
Division of a population into a homogeneous groups based on their relationships to a product. This segmenting is based on 1) the benefits people seek when they buy a product, 2) usage rates for a product, and 3) according to customers' brand loyalty toward a product. |
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Stages of the market segmentation process (pg. 294-295) |
1) Develop a relevant profile for each segment, 2) forecast Market potential (, 3) forecast probability market share, 4) select specific market segments. |
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1) Develop a relevant profile for each segment (pg. 294) |
This in-depth analysis of consumers helps managers accurately match buyers needs with the firm's marketing offers. The process must identify characteristics that both explain the similarities among consumers within each segment and account for differences among segments. The task at this stage is to develop a profile of the typical consumer in each segment. |
lifestyle patterns, attitudes towards product attributes, and brands, product use habits, geographic locations, and demographic characteristics |
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2) Forecast market potential (pg. 294) |
Market segmentation and market opportunity analysis combine to produce a forecast of market potential within each segment which sets the upper limit on the demand competing firms can expect from a segment; multiplying by market share determines a single firm's maximum sales potential. This step should define a preliminary "go" or "no-go" decision from management because the total sales potential and each segment must justify resources devoted to further analysis. |
Determine the demand for the product and the disposable income of that group. |
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3) Forecast probable market share(pg. 294-295) |
Competitors' positions in targeted segments must be analyzed, and a specific marketing strategy must be designed to reach these segments. By settling on a market strategy and tactics, a firm determines the expected level of resources it must commit --- that is the cost it will incur to tap the potential demand in each segment. |
Check page |
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4) Select specific market segments (pg. 295) |
Marketers weigh more than monetary cost and benefits they also consider many difficult-to-measure but critical organizational and environmental factors. The assessment of both financial and non-financial factors is a difficult the vital step in the decision process. |
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Undifferentiated marketing (pg. 295) |
Strategy that focuses on producing a single product and marketing to all customers. |
Mass marketing; efficient from a production viewpoint |
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Differentiated marketing (pg. 296) |
Strategy that focuses on producing several products, and pricing, promoting, and distributing them with different marketing mix is designed to satisfy smaller segments. |
Promote numerous products with differing marketing mixes; increases production, inventory, and promotional cost but diversifies & reaches new customers. |
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(Concentrated marketing) Niche marketing (pg. 297) |
Focusing marketing efforts on satisfying a single market segment. |
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Product attributes (pg. 298) |
Unique qualities of a product that distinguish it from other products. |
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Positioning strategy (pg. 298) |
Placing a certain product at a certain point or location within a market in the minds of prospective buyers. |
Attributes, price/quality, competitors, application, product user, product class |
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Transaction-based exchange/marketing (pg. 340) |
Buyer and seller exchange is characterized by limited Communications and little or no ongoing relationship between the parties. |
Short-term, one-time exchanges |
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Relationship marketing (pg. 340) |
Development, growth, and maintenance of long-term cost effective relationships with individual customers, suppliers, employees, and other partners for mutual benefit. |
Loyal, mutually beneficial relationships with existing customers, suppliers, distributors, and employees |
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Measuring customer satisfaction (pg. 346) |
Using the knowledge of what customers need, want, and expect is the central concern of companies focused on building long-term relationships. Customer satisfaction is the extent to which customers are satisfied with their purchases. |
Careful monitoring, constant alertness |
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Frequency marketing (pg. 348) |
Frequent-buyer or -user marketing programs that reward customers with cash, rebates, merchandise, or other premiums. |
Reward cards |
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Affinity marketing (pg. 349) |
Marketing effort sponsored by an organization that solicits responses from individuals who share common interests and activities. |
Create extra value for members and encourage stronger relationships; marketing based on things we hold dear/are fond of |
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Database marketing (pg. 349-350) |
Use of software to analyze marketing information, identifying and targeting messages towards specific groups of potential customers. Properly used databases can help companies in several ways including: identifying their most profitable customers, calculating the lifetime value of each customer's business, creating a meaningful dialogue that builds relationships and encourages genuine brand loyalty, improving customer retention and referral rates, reducing marketing and production costs, boosting sales volume per customer or targeted customer group, and expanding loyalty programs. |
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Viral marketing (pg. 350) |
Efforts that allows satisfied customers to spread the word about products to other consumers via social media campaigns (on Facebook, Pinterest, Twitter...) and Partnerships with other brands, etc. |
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Customer relationship management, CRM (pg. 352) |
Combination of strategies and tools that drives relationship programs, reorienting the entire organization to a concentrated focus on satisfying customers. Benefits of successful CRM systems: include creating partnerships with customer in ways that align with the company's mission and goals, reducing costs by empowering customers to find the info they need to manage their own orders, improving customer service by centralizing data and helping sales representatives guide customers to info, reducing response time and thus increasing customer satisfaction, improving customer retention and loyalty, leading to more repeat business and new business from word-of-mouth, providing access to vital customer info anytime or anywhere, and resulting results are measurable. |
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Partnerships (pg. 355-356) |
Affiliation of two or more companies that help each other achieve common goals. |
From informal cooperative purchasing advancements to formal production and marketing agreements |
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Co-branding (pg. 356) |
Cooperative arrangement in which two or more businesses team up too closely linked their names on a single product. |
Example: Nike & NBA |
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National account selling (pg. 357) |
Promotional effort in which a dedicated sales team is assigned to a firm's major customers to provide sales and service. |
Special effort to serve the largest most profitable customers; demonstration of depth of commitment to customer |
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Strategic alliances (pg. 359) |
Partnership in which two or more companies combine resources and capital to create competitive advantages in a new market. More formal long-term Arrangement which improve each partner's supply chain relationships and enhance operating flexibility. |
The ultimate expression of relationship marketing; with or without partial ownership |
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Lifetime value of customers (pg. 360) |
Revenues and intangible benefits, such as referrals and customer feedback, a customer brings to the seller over an average lifetime of their relationship, less the amount the company must spend to acquire, market to, and serve the customer. |
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How to measure lifetime value of a customer (pg. 360-361) |
Reviewing customer comments and feedback on social media sites; tracking rebate request coupon redemption, credit card purchases, and product registrations; monitoring returned merchandise and analyzing why customers leave; reviewing reply cards, comment forms, and surveys; monitoring click-through behavior on websites to identify why customers stay and why they leave. |
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Brand recognition (pg. 411) |
Consumer awareness and identification of a brand is the company's first objective for newly introduced product. Marketers begin the promotion of new items by trying to make them familiar to the public; advertising is effective. |
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Brand preference (pg. 411) |
Consumer choice of a product on the basis of a previous experience. |
Preferences from past influence present purchases |
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Generic products (pg. 413) |
Products characterized by plain labels no advertising in the absence of brand names. The cost of such products can be as much as 30% below branded products prices. |
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Captive branding (pg. 413) |
National brands sold exclusively by a retail chain. Captive brands typically provide better profit margins than private labels. |
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Family branding (pg. 413) |
Single brand name that identifies several related products such as Procter & Gamble. |
Johnson & Johnson, Procter & Gamble, Unilever, Nabisco, Kraft |
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Equity branding (brand equity) (pg. 414) |
Added value that a respected, well-known brand name gives to a product in the marketplace. |
Disney, Google, Apple |
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Trade name/mark (brand name, brand mark) (pg. 416-417) |
Part of a brand, consisting of letters numbers or words, that can be spoken and that identifies and distinguishes a firm's offerings from those of competitors; symbol or pictorial design that distinguishes a product; brand for what the owner claimed exclusive legal protection. |
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Role of packaging (pg. 418) |
A package serves three major objectives: protection against damage, spoilage, and pilferage; assistance in marketing the product; and cost-effectiveness. |
The role of packaging is to visual senses and develop packaging that reflects the personality of the product |
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Product diversification (strategy) (pg. 424) |
Developing entirely new products for new markets. |
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Market development (strategy) (pg. 323) |
Strategy that concentrates on finding new markets for existing products. |
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Adoption process (pg. 424-425) |
1)Awareness: individuals first learn of the new product but they lack the full information about it. 2)Interest: potential buyers begin to seek information about it. 3)Evaluation: they consider the likely benefits of the product. 4) Trial: they make trial purchases to determine its usefulness. 5)Adoption/rejection: if the trial purchase produces satisfactory results they decided to use the product regularly. |
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Concept testing (pg. 430) |
Method for subjecting a product idea to additional study before actual development by involving consumers through focus groups, surveys, instore polling, and similar strategies. |
Attempt to measure consumer attitudes and perceptions about new product ideas |
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Test marketing (pg. 431) |
Test marketing's purpose is to verify that the product will perform well in a real-life environment. If the product is well received the company can proceed to commercialize; if it flops the company can fine-tune certain features and reintroduce it or pull the plug on the project altogether. |
Snack foods, automobiles, and movies |
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Product liability lawsuits (pg. 431) |
The result of a company or manufacturer's failure to perform their responsibilities which causes injuries and damage by their products to consumers and causes said company/manufacturer to be liable in court. |
Settlements |
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Distribution strategy (pg. 444) |
The strategy on how to move goods and services from producers to customers. |
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Marketing channel (pg. 444) |
System of marketing institutions that enhances the physical flow of goods and services, along with ownership title, from producer to consumer or business user. |
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Marketing intermediaries (pg. 445) |
Wholesalers and retailers that operate between producers and consumers or business users. |
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Direct selling (pg. 447) |
Strategy designed to establish direct sales contact between producer and the final user it's an important option for goods requiring extensive demonstrations in persuading customers to buy. |
Major installations, accessory equipment, component parts, raw materials, consumer-goods (Avon, Pampered Chef, etc.) |
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Distribution Intensity (pg. 453) |
1) Intensive distribution: distribution of a product through all available channels. 2) Selective distribution: distribution of a product through a limited number of channels. 3) Exclusive distribution: when a producer grants exclusive rights to a wholesaler or retailer to sell its products in a specific geographic region. |
Intensive, selective, exclusive |
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Supply chain (pg. 459) |
Control of the activities of purchasing, processing, and delivery through which raw materials are transformed into products and made available to final consumers. |
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Inventory control (pg. 469) |
The process of maintaining enough inventory to meet customer demand without incurring costs for carrying excess inventory. |
JIT, RFID, VMI |
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Communication objective of advertising (pg. 520) |
1) It gains the receivers attention. 2) It achieves understanding by both receiver and sender. 3) It stimulates the receivers needs and suggest an appropriate method of satisfying them. |
AIDA: attention, interest, desire, action |
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Product advertising (pg. 526) |
Non-personal selling of a particular good or service. |
Here's what we've got. Here is what it will do for you. Here is how to get it. |
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Stages of product life cycle (pg. 541) |
Introductory: personal & Non-personal selling utilized in this stage, also direct selling. In the growth & maturity stages advertising is used as well as personal selling to intermediaries. In the decline stage ads & promotion expenditures are reduced as market saturation is reached. |
Introductory, growth, maturity, decline |
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Reminder advertising (pg. 526) |
Advertising that reinforces previous promotional activity by keeping the name of a good, service, organization, person, place, idea, or cause before the public. |
Used mostly in the maturity and decline stage |
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Comparative advertising (pg. 527) |
Advertising strategy that emphasizes messages with direct or indirect promotional comparisons between competing brands. |
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Cooperative advertising (pg. 528) |
Strategy in which a retailer shares advertising costs with a manufacturer or wholesaler. Pools resources |
Lower rates are offered to local advertisers rather than National ones |
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Advertising campaign (pg. 530) |
Series of different but related ads that use a single theme and appear in different media within a specified time period. |
Emphasizes verbal or visual primary elements, tells the story. |
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Advertising appeals to motivate (pg. 530-531) |
Fear, humor, sex. Gaining attention and generating interest, stimulating buying action, informs or persuades. |
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Newspapers (pg. 535) |
The primary advantage of newspaper advertising is the flexibility it offers because the ads can vary from one locality to the next; they also allow for larger audiences and newspaper readers can keep the printed advertising message and refer back to it. Disadvantage: relatively poor reproduction quality. |
Printed and online |
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Magazines (pg. 535) |
The primary advantages of magazine advertising include the ability to reach precise target markets, quality reproduction, long life, and prestige associated with some magazines. The primary disadvantage is that magazines lack the flexibility of newspaper, radio, and TV. |
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Public relations (pg. 523, 538) |
Firms Communications and relationships with his various publics. |
Top concern |
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Cross promotion (pg. 538) |
Promotional technique in which marketing partners share the cost of promotional campaign that meets their mutual needs. These provide greater benefits in return for both organizations investments of time and money. |
Examples of this are comarketing & cobranding |
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Publicity (pg. 524, 538) |
The marketing oriented aspect of public relations. It can be defined as non-personal stimulation of demand for a good, service, person, cause, or organization through unpaid placement of significant news regarding the product and print, social, or broadcast medium. |
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Pre-testing (pg. 543) |
Research that evaluates an ad during the development stage to assess its likely effect of this before it actually appears in the chosen medium. |
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Media research (pg. 543) |
Advertising research that assesses how well a particular medium delivers an advertiser's message, where and when to place the advertisement, and the size of the audience. |
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Split runs (pg. 544) |
Methods of testing alternative ads by dividing and cable TV audience or a publication's subscribers in two, using two different ads, and then evaluating the relative effectiveness of each. |
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Puffery (pg. 540) |
Exaggerated claims of a product superiority or the use of subjective or vague statements that may not be literally true. |
Non-quantifiable statements such as "most advanced" or "most effective" |
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Personal selling (pg. 522) |
Interpersonal influence process involving a seller's promotional presentation conducted on a person-to-person basis with the buyer. Matching the needs of a client or customer. |
Oldest form; face-to-face, phone, video conference, PC |
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Sales representative (pg. 557) |
They must be able to do the following: 1) focus on a customer's situation and needs and create solutions that meet those needs; 2) follow through and stay in touch before, during, and after a sale; 3) know the industry and have a firm grasp not only of their own firm's capabilities but also of the competitors abilities; 4) work hard to exceed their customers expectations |
They must communicate the advantages of their firm's goods and services over those of competitors; problem solvers to focus on satisfying the needs of customers before during and after sales; armed with knowledge about their firm's goods or services, those of competitors, and their customers' business needs, sales reps pursue a common goal of creating mutually beneficial long-term relationships with customers; vital, vibrant, and dynamic. |
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Customer-focused firm (pg. 557) |
The customer focus from once it sells people to form long lasting relationships with Buyers by providing high levels of customer service rather than going for quick sales growing numbers of companies of integrated Communications and computer Technologies into the sales routine. |
Solve problems, communicate clearly, and be consistent |
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Relationship selling (pg. 562) |
Regular contacts between sales representatives and customers over an extended period to establish a sustained buyer-seller relationship; mutually beneficial partnerships through regular contacts over extended periods. |
Goal: meet and exceed buyers expectations |
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Field selling (pg. 559) |
Sales presentations made at prospective and existing customers locations (businesses or homes) on a face-to-face basis. |
1st convince them of need; more expensive than other selling options if travel is involved |
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Outbound telemarketing (pg. 560) |
Sales method in which sales personnel place phone calls to prospects and try to complete the sale over the phone. |
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Inbound telemarketing (pg. 561) |
Sales method in which prospects call a seller to obtain information, make reservations, and purchase goods and services. Typically involves a toll free number. |
Maximum convenience for customers to initiate the sales process |
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Cross-selling (pg. 563) |
Selling multiple, often unrelated, goods and services to the same customer based on knowledge of that customers needs. |
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Team selling (pg. 564) |
Selling situation in which several sales associates are other members of the organization are employed to help the lead sales representative reach all of those who influence the purchase decision. |
A joint effort in which a salesperson joints with Specialists from other functional areas of the firm to complete the selling process |
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Creative selling (pg. 566) |
Personal selling in which sales people use well-planned strategies to seek new customers by proposing innovative solutions to customers. Generally used to develop new business either by adding new customers and introducing new goods and services/upgrades or more expensive items. |
Identify problem, propose solution |
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Steps in the selling process (pg. 567-568) |
Prospecting and qualifying, approach, presentation, demonstration, handling objections, closing, and follow-up. |
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Prospecting (pg. 567) |
Personal selling function of identifying potential customers. |
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Qualifying (pg. 567) |
Determining a prospect's needs, income, and purchase authority as a potential customer. |
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Approach (pg. 567-568) |
Salesperson's initial contact with a prospective customer. Gather as much information as you can before the approach. |
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Precall planning (pg. 568) |
Use of information collected during the prospecting and qualifying stages of the sales process and during previous contact with the prospect to tailor the approach and presentation to match the customers needs. |
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Presentation (pg. 568) |
Personal selling function of describing a product's major features, pointing out strengths and citing other customer's successes with the product, and relating them to a customer's problems or needs. |
Organized, clear, concise |
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Demonstration (pg. 569) |
Stage in the personal selling process in which the customer has the opportunity to try out or otherwise see how a good or service works before purchase. |
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Handling objections (pg. 570) |
Objections are expressions of resistance by the prospect and it's reasonable to expect them they can be in the form of stalling or indecisiveness. Use an objection as an opportunity to reassure your buyer about prices, features, durability, availability, etc. |
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Closing (pg. 570) |
Stage of the personal selling process in which the salesperson asks a customer to make a purchase decision. |
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Follow-up (pg. 571) |
Post-sale activities that often determine whether an individual who has made a recent purchase will become a repeat customer. |
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Span of control (pg. 574) |
Number of representatives who report to first-level sales managers. The optimal span of control is affected by factors such as complexity of work activities, ability of the individual sales manager, degree of interdependence among individual sales people, and the extent of training each salesperson receives. |
6 to 1 or 10 to 1 depending |
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Expectancy Theory (pg. 575) |
Theory that motivation depends on an individual's expectations of his or her ability to perform a job and how that performance relates to attaining a desired reward. |
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Ethical work (behavior) (pg. 577, 584) |
Employees understand what is expected of them, open communication, managers lead by example. Ethical behavior is vital to building positive, long-term relationships with customers. Although some people believe ethical problems are inevitable, employers can do much to foster a corporate culture that encourages honest and ethical behavior. In addition, each sales person is responsible for his or her own behavior and relationship with customers. |
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Bonus pack (pg. 580) |
Specially packaged item that gives the purchaser a larger quantity at the regular price. |
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Trade promotion (pg. 581) |
Sales promotion that appeals to marketing intermediaries rather than customers. Encourages resellers to stock new products, continue to carry existing ones, and promote both effectively to consumers. |
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Body copy |
Main text part of an advertisement or any printed matter (as distinct from the logo, headline, subheadings, and graphics) that provides the 'meat' of the communication. |
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Celebrity testimonials |
Celebrity endorsement is when a famous person uses their notoriety to help sell a product or service. The benefits of using a celebrity for advertising are the ability to: Build brand equity, meaning brand power is acquired through the name recognition, which allows the company to achieve larger sales and profits. |
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Traditional marketing channel |
Traditional marketing refers to any type of promotion, advertising or campaign that has been in use by companies for years, and that has a proven success rate. Methods of traditional marketing can include print advertisements, such as newsletters, billboards, flyers and newspaper print ads. |
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Assessment strategy marketing plan |
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Post-sale activities |
Phone calls at regular intervals, automatic email reminders for renew or reorder; customer contact to find out if they're satisfied with their purchases; reinforce the customer's original decision to buy; correct any problems and ensure the next sale. |
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Sales manager challenges (pg. 571-572) |
1) recruiting and selecting successful salespeople; 2) training new recruits to shape them into efficient sales representatives; 3) organizing the field sales force; 4) supervising the sales force; 5) motivating the salespeople (what works best?); 6) compensating salespeople either through commission or salary; 7) evaluating and controlling by setting standards and choosing the best methods for measuring sales performance. Sales volume, profitability, and changes in market share are you the usual means of evaluating sales effectiveness which involve sales quotas. |
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Impulse purchase |
An impulse purchase or impulse buying is an unplanned decision to buy a product or service, made just before a purchase. One who tends to make such purchases is referred to as an impulse purchaser or impulse buyer. |
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Manufactures motivating sales |
Manufacturers run dealer incentive programs and contests to reward retailers and their salespeople to increase sales and, more generally, to promote specific products. Information sharing, recognition, bonuses, incentives, and benefits can all be used to help defray frustration and motivate sales staff. |
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