Marketing 3150 Exam 3

Front 1

Clayton Anti-Trust act

Back 1

added to US antitrust law; seeked to prevent competitive practices

Front 2

Sherman Anti-trust Law

Back 2

1890; 1st Federal Law outlawing practices considered to be harmful to consumers (ex. monopolies)

Front 3

Example of Legal Restrictions

Back 3

Toys'R'Us using its power to keep toy prices higher and reduced toy outlet choices by extracting agreements w/ toy manufacturers to stop selling certain toys to warehouse clubs

Front 4

Advantages of streamline distribution

Back 4

- reduces # of transactions
- increases value of for consumer
- more efficient and effective

Front 5

the Dimensions of the Data Warehouse

Back 5

Time, merchandise, location

Front 6

What makes strategic relationships successful?

Back 6

-mutual trust
- open communication
- common goals
- credible commitments

Front 7

Difference in Push vs Pull Strategy in Supply Chains

Back 7

Pull - better when demand is uncertain, often for new products
Push - use when products do not need sophisticated system; good for steady demand items such as milk or eggs

Front 8

Advantages of the Distribution center

Back 8

- more accurate sales forecast
- lower inventory per store
- less expensive to store in remote warehouse than retail location

Front 9

What does RFID stand for?

Back 9

Radio Frequency Distribution Tags

Front 10

What are the benefits of a Just-In-Time system

Back 10

- reduced lead time
- increased product availability
- lower inventory investment
- ex. Zappos, Tubular Steel

Front 11

Types of Vertical Marketing Systems

Back 11

- Administered
- Contractual
- Corporate

Front 12

What type of vertical marketing system has no common ownership and no contractual relationship but a dominant group controls relationship

Back 12

Administered

Front 13

What type of vertical marketing system has independent firms and different levels of the supply chain that join together through contracts?

Back 13

Contractual

Front 14

What type of vertical marketing system has a parent company which has complete control and dictates priorities in the supply chain?

Back 14

Corporate

Front 15

What are the types of Distribution Intensities?

Back 15

- Intensive Distribution (ex. Coca-cola)
- Exclusive Distribution (ex. Coach purses)
- Selective Distribution (in between intensive and exclusive)
- Limited Distribution (ex. Birkenstock)

Front 16

What are the types of food retailers?

Back 16

- supermarket
- super center
- convenience
- warehouse club

Front 17

What's an example of a super marker?

Back 17

Kroger

Front 18

What's an example of a super center?

Back 18

Walmart

Front 19

What's an example of an convenience store?

Back 19

Seven Eleven

Front 20

What's an example of a warehouse club?

Back 20

Sam's Club, Costco

Front 21

What are the types of general merchandise retailers?

Back 21

- specialty
- department
- full-line discount
- drug stores
- off price
- extreme value
- category specialists

Front 22

What's an example of a specialty store?

Back 22

bath and body works

Front 23

What's an example of a department store?

Back 23

Macy's,

Front 24

What's an example of a full-line discount store?

Back 24

Target

Front 25

What's an example of an off price store?

Back 25

TJ Maxx

Front 26

What's an example of an extreme value store?

Back 26

Dollar General, Dollar Tree

Front 27

What's an example of a category specialist?

Back 27

Lowe's, Staple's

Front 28

What was the key points in the in class movie regarding Walmart?

Back 28

Walmart was successful b/c they:
1. had a vision
2. wanted to respect everyone

Front 29

What retailers were discussed in depth in class?

Back 29

Toys'R'Us, Kmart, Target, Bath and Body Works

Front 30

What examples were given in class for internet retailing success?

Back 30

H&M and Lands End

Front 31

What are the goals for retailers to evolve to multichannel marketing?

Back 31

- overcome limitations of existing format
- increasing share of power
- expanding market presence
- insights into customer's shopping behavoirs

Front 32

What does ADS stand for?

Back 32

Average Daily Sales

Front 33

What are transaction drivers?

Back 33

inexpensive product deals that gets customers into stores
- ex. $1 lip gloss at Bath and Body Works

Front 34

What are Inventory Turns?

Back 34

inventory turnovers per yr (want a high number)`

Front 35

What does POS stand for?

Back 35

Point of Sale

Front 36

What does sell through mean?

Back 36

of 10 items put on the shelf, how many of those items were sold

Front 37

What does life time value of customer mean?

Back 37

The amount of money an individual spends on a certain Brand's products over their life time.
Ex,) Ford - focus, mustang, fusion, explorer

Front 38

What does disintermediation mean?

Back 38

bypassing the middle man

Front 39

What are the 5 C's of pricing?

Back 39

company objectives, customers, costs, competition, channel members

Front 40

What are the types of company objectives?

Back 40

profit orientation, sales orientation, competitor orientation, customer orientation

Front 41

What is a profit oriented company objective?

Back 41

set a min profit margin

Front 42

What are the 3 ways to set a profit margin?

Back 42

target profit pricing, maximizing profits, target return profits

Front 43

Define target profit pricing

Back 43

particular profit goal is the overriding concern

Front 44

Define maximizing profits

Back 44

identifying price that maximizes profit using mathematical equations

Front 45

Define target return profits

Back 45

strategy used to produce specific ROI

Front 46

What is a sales oriented company objective?

Back 46

set prices to increase sales

Front 47

Define premium pricing

Back 47

deliberately setting price high to capture customers who for price is of no concern

Front 48

What is a competitor oriented company objective?

Back 48

measuring themselves in comparison to another company

Front 49

Define competitive parity

Back 49

setting prices similar to those of competition

Front 50

Define status quo pricing

Back 50

changing prices to meet those of competition

Front 51

What is a customer oriented company objective?

Back 51

company should measure itself according to whether it meets needs of customers

Front 52

Traditional Demand Curve

Back 52

demand increases as price decreases, downward sloping

Front 53

Nontraditional Demand Curve

Back 53

occurs for prestigious products, upward sloping, leftward parabola

Front 54

Define the price elasticity of demand

Back 54

percent change in quantity demanded divided by percent change in price

Front 55

Give an example of an elastic product

Back 55

cruise, restaurants

Front 56

Give an example of an inelastic product

Back 56

milk, toilet paper, eggs

Front 57

What are the factors influencing the price elasticity of demand?

Back 57

income effect, substitution effect, cross-price elasticity

Front 58

Define the income effect

Back 58

change in quantity demanded due to a change in income

Front 59

Define the substitution effect

Back 59

consumer's ability to substitute other products for the name brand ones

Front 60

Define cross-price elasticity

Back 60

percent change in demand for product A occurs due to a percent change in demand for product B

Front 61

How do you calculate the break even point?

Back 61

fixed costs divide by the contribution per unit

Front 62

What are the types of competition?

Back 62

monopoly, oligopoly, pure

Front 63

Define a monopolistic competition

Back 63

occurs when many firms sell closely related but not same products. product differentiation is key rather than strict price competition

Front 64

Define a pure competition

Back 64

occurs when different companies sell products perceived to be substitutable, price is usually set according to laws of supply and demand

Front 65

What are the types of pricing strategies?

Back 65

EDLP, high/low, penetration, skimming, free

Front 66

Define EDLP

Back 66

everyday low prices. example walmart

Front 67

Define high/low pricing

Back 67

relies on promotion of sales. it attracts 2 segments: those whose are not price sensitive who will pay the high price and the price-sensitive customers willing to wait for the low price

Front 68

Define price skimming

Back 68

set initial price very high and skim off people who would pay anything then slowly lower price to gain more sales/customers. common in technology markets

Front 69

Define penetration pricing

Back 69

set price very low, very competitive to try to gain market shares, build sales and profits quickly

Front 70

Free Pricing Video

Back 70

Google book review and interview of author Chris Anderson. he states 1st problem is we have lost scarcity due to exponential increase in competition. 2nd problem is Craigslist and Google news is threatening the classified ads and newspapers

Front 71

Explain the Long Tail

Back 71

The distribution and inventory costs of businesses successfully applying this strategy allow them to realize significant profit out of selling small volumes of hard-to-find items to many customers instead of only selling large volumes of a reduced number of popular items. The total sales of this large number of "non-hit items" is called "the long tail".

Front 72

What does MSRP stand for?

Back 72

manufacturers suggested retail price

Front 73

price is a signal

Back 73

prices set to high signal low value but prices set to low signal poor quality.

Front 74

in class examples of price as a signal

Back 74

Iams pet food, limited brands and Macy's, JC Penny

Front 75

Define globalization of production

Back 75

offshoring; manufacturers procurement of goods from around the globe to takeadvantage of national differences in costs, labor, energy etc

Front 76

What is GATT?

Back 76

General Agreement Trade Organization; purpose is to lower trade barriers, such as high tariffs

Front 77

What is WTO?

Back 77

World Trade Organization; replaced GATT; institution based in Geneva, Switzerland instead of just an agreement. main function is to ensure that trade flows as smoothly and freely as possible. Also administers trade agreements, settles trade disputes and assists developing countries

Front 78

What is IMF?

Back 78

International Monetary Fund; conceived in 1944; primary objective is to promote international monetary cooperation and facilitate expansion of international trade

Front 79

What is the Word Bank Group?

Back 79

purpose is to fight poverty and improve standard of living of people in developing countries.

Front 80

What are the components of assessing global markets?

Back 80

economic analysis using metrics, analyzing infrastructure and technological capabilities, analyzing government actions, analyzing sociocultural factors

Front 81

Define GDP

Back 81

gross national product; market value of goods/services produced by a country in a year

Front 82

Define GNI

Back 82

gross national income; consists of GDP and net income earned from investments abroad. More companies taking closer look at GNI

Front 83

What is the power purchasing parity?

Back 83

theory that states if exchange rates of 2 countries are in equilibrium, product purchased in one will cost same as in the other, expressed in the same currency

Front 84

What is the Human Development Index? What does it measure?

Back 84

3 indicators of quality of life in developing countries: life expectancy at birth, educational attainment, average incomes to meet basic needs of life

Front 85

What are the 4 elements to consider when analyzing infrastructure and technological capabilities?

Back 85

transportation, channels, communication, commerce

Front 86

What are the key points of assess when analyzing sociocultural factors?

Back 86

Power distance (low), uncertainty avoidance (low) , individualism (high), masculinity (low), time orientation (high)

Front 87

What are the levels of a global entry strategy?

Back 87

exporting, franchising, strategic alliances, joint venture, direct investment

Front 88

Define franchising

Back 88

a contractual agreement that allows the franchise to operate a business using a name and format developed and supported by the franchisor.

Front 89

Define strategic alliance

Back 89

a collaborative relationship between independent firms, though the partnering firms do not invest in one another

Front 90

Define a joint venture

Back 90

formed when a firm entering a new market pools its resources with those of a local firm to form a new company in which ownership, control, and profits are shared

Front 91

A strong dollar favors _________ where as a weak dollar favors _______.

Back 91

imports; exports.

Front 92

Define a strong dollar

Back 92

When the dollar can be exchanged for a large amount of foreign currency

Front 93

Define weak dollar

Back 93

more dollars are needed to buy a unit of foreign currency

Front 94

Explain the EU

Back 94

European Union; 27 members, economic and monetary union which lowers trade barriers between its members. Consolidated to the euro

Front 95

What are the 2 obstacles to success in an international market?

Back 95

self-reference criterion - Unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decisions (ex standing in line)
ethnocentrism - Notion that people in one’s own company, culture, or country know best how to do things.

Front 96

what does MkIS stand for?

Back 96

Marketing Information Systems

Front 97

What are the five marketing researching steps?

Back 97

define objectives, design research, conduct testing, analyze date, present results

Front 98

What are the data collection techniques?

Back 98

exploratory research vs conclusive research

Front 99

What tests are classified under exploratory research?

Back 99

observations, focus groups, in-depth interviews,

Front 100

What tests are classified under conclusive research?

Back 100

experiments, surveys, scanner, panel

Front 101

What are the types of secondary data?

Back 101

external, syndicated, scanner, panel, internal

Front 102

What is an example of a company who provides syndicated data?

Back 102

AC Nielson

Front 103

What are the advantages of web surveys?

Back 103

high response rates, less likely to lie, inexpensive

Front 104

Which step in the marketing research should company's focus spend the majority of their time on?

Back 104

Defining the objectives

Front 105

What in depth marketing research examples were discussed in class?

Back 105

Bath & Body Works repositioning
Union Tools leaf rake, wheelbarrow, snow tools and hand tools

Front 106

What brief examples were given in class when discussing marketing research?

Back 106

McDonalds, Chef Boyardee, Mattel Toys