Marketing Exam 2

Front 1

Marketing research

Back 1

procedures that develop and analyze new information about a market

Front 2

marketing information system

Back 2

an organized way of continually gathering, accessing, and analyzing information that marketing managers need to make ongoing decisions

Front 3

data warehouse

Back 3

a place where databases are stored so that they are available when needed

Front 4

decision support system

Back 4

a computer program that makes it easy for a marketing manager to get and use information as he or she is making decisions

Front 5

marketing model

Back 5

a statement of relationships among marketing variables

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sales analysis

Back 6

a detailed breakdown of a company's sales records

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Marketing Research process

Back 7

1) Defining the Problem
2) Analyzing the Situation
3) Getting problem-specific data
4) Interpreting the data
5) Solving the problem

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situation analysis

Back 8

an informal study of what information is already available in the problem area

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research proposal

Back 9

a plan that specifies what information will be obtained and how

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qualitative research

Back 10

seeks in-depth, open-ended responses, not yes or no answers

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quantitative research

Back 11

seeks structured responses that can be summarized in numbers, like percentages, averages, or other stats

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response rate

Back 12

% of people contacted who complete the questionnaire

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consumer panels

Back 13

group of consumers who provide information on a continuing basis

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statistical packages

Back 14

easy-to-use computer programs that analyze data

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validity

Back 15

concerns the extend to which data measures what it is intended to measure

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product

Back 16

refers to the need-satisfying offering of a firm

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quality

Back 17

refers to a product's ability to satisfy a customer's needs or requirements

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service

Back 18

deed performed by one party for another

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product assortment

Back 19

set of all product lines that are closely related

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product line

Back 20

set of individual products that are closely related

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individual product

Back 21

a particular product line within a product line

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consumer products

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products meant for the final consumer

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business products

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products meant for use in producing other products

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derived demand

Back 24

demand for business products derives from the demand for final consumer products

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convenience products

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products a consumer needs but isn't willing to spend much time or effort shopping for

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staples

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products that are bought often, routinely, and without much thought

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impulse products

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products that are bought quickly because of a strongly felt need

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emergency products

Back 28

products that are purchased immediately when the need is great

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shopping products

Back 29

products that a consumer feels are worth the time and effort to compare with competing products

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homogeneous shopping products

Back 30

shopping products the consumer sees as basically the same and wants at the lowest price

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Heterogeneous shopping products

Back 31

shopping products the consumer sees as different and wants to inspect for quality and suitability

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Specialty products

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consumer products that the customer really wants and makes a special effort to find

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Unsought products

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products that potential customers don't yet want or know they can buy and normally need promotion in order to get sold

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New unsought products

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products offering really new ideas that potential customers don't know about yet

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Regularly unsought products

Back 35

stay unsought but not unbought forever; personal selling is very important for these types of products

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installations

Back 36

such as buildings, land rights, and major equipment are important capital items

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capital item

Back 37

long-lasting product that can be used and depreciated for many years

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accessories

Back 38

short-lived capital items such as tools and equipment used in production or office activities

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raw materials

Back 39

unprocessed goods that are moved to the next production process with little handling such as logs iron ore and wheat

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expense item

Back 40

product whose total cost is treated as a business expense in the year it's purchased

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farm products

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grown by farmers - examples are oranges, sugar cane, and cattle

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natural products

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products that occur in nature - such as timber, iron ore, oil and coal

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components

Back 43

are processed expense items that become part of a finished product

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supplies

Back 44

expense items that do not become part of afinished product

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professional services

Back 45

specialized services that support a firm's operations; they are usually expense items

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branding

Back 46

means the use of a name term symbol to identify a product

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trademark

Back 47

includes only those words, symbols, or marks that are legally registered for use by a single company

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service mark

Back 48

is the same as a trademark except that it refers to a service offering

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conditions favorable to branding?

Back 49

○ The product is easy to label and identify by brand or trademark
○ The product quality is easy to maintain and provides best value for the price
○ Dependable and widespread availability is possible
○ Demand is strong enough that a price can be set to make branding profitable
○ There are economies of scale
○ There are favorable shelf locations or display space available at stores

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brand familiarity

Back 50

means how well customers recognize and accept a company's brand

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brand rejection

Back 51

means that potential customers won't buy a brand unless its image is changed

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brand nonrecognition

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means final customers don't recognize a brand at all - even though intermediaries may use the brand name for identification and inventory control

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brand recognition

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means that customers remember the brand

Front 54

brand preference

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which means that target customers usually choose a particular brand over other brands, perhaps because of habit or favorable past experience

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brand insistence

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means customers insist on a firm's branded product and are willing ot search for it

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brand equity

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value of a brand's overall strength in the market

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Lanham Act

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spells out what kinds of marks can be protected and the exact method of protecting them

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family brand

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the same brand name for several products

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licensed brand

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a special kind of family brand that is well known in which sellers pay a fee to use

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individual brands

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these separate brand names for each product are used when it's important for each of the products to have a separate identity, as when products vary in quality or type

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generic products

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products that have no brand at all other than identification of their contents and the manufacturer or middleman

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manufacturer brands

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brands created by middlemen

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battle of the brands

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competition between dealer brands and manufacturer brands

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packaging

Back 64

involves promoting, protecting, and enhancing the product

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Federal Fair Packaging and Labeling Act

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requires that consumer goods be clearly labeled in easy-to-understand terms, which gives consumers more information

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warranty

Back 66

explains what the seller promises about its product

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Magnuson-Moss Act

Back 67

says that producers must provide a clearly written warranty if they choose to offer any warranty

Front 68

product life cycle

Back 68

describes the stages a really new product idea goes through beginning to end: four stages are market introduction, market growth, market maturity, and sales decline

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market intro stage

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sales are low as a new idea is first introduced to a market

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market growth stage

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industry sales grow fast - but industry profits rise then start falling

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market maturity stage

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occurs when industry sales level off and competition gets tougher

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sales decline

Back 72

new products replace the old; price competition from dying products becomes more vigorous

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Factors that can lead to sales growth...

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comparative advantage, easy to use, easy to communicate advantages, product can be tried on a limited basis, and if it is compatible with the values and experiences of target customers

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new products

Back 74

one that is new in any way for the company concerned

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FTC

Back 75

federal government agency agency that policies anti monopoly laws

Front 76

New Product Development Process

Back 76

Idea generation -> Screening -> Idea evaluation -> Development -> Commercialization

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Product or Brand managers

Back 77

manage specific products - often taking over the jobs formerly handled by an advertising manager

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Total quality management

Back 78

the philosophy that everyone in the organization is concerned about quality, throughout all of the firm's activities, to better serve customer needs

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continuous improvement

Back 79

a commitment to constantly make things better one step at a time

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pareto chart

Back 80

a graph that shows the number of times a problem cause occurs, with problem causes ordered from most frequent to least frequent

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fishbone diagram

Back 81

a visual aid that helps organize cause-and-effect relationships for "things gone wrong"

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benchmarking

Back 82

picking a basis of comparison for evaluating how well a job is being done

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price seen by consumers

Back 83

○ Price less discounts less allowances less rebate and coupon value plus transportation and taxes = product/place of delivery or when available

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price seen by channel members

Back 84

Price less discounts less allowances plus transportation, taxes, and tariffs = product/place/promotion/price

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target return objective

Back 85

sets a specific level of profit as an objective

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profit maximization objective

Back 86

seeks to get as much profit as possible

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sales-oriented objective

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seeks some level of unit sales, dollar sales, or share of market - w/o referring to profit

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status quo objective

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don't rock-the-pricing-boat objectives

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nonprice competition

Back 89

aggressive action on one or more of the Ps other than price

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administered prices

Back 90

consciously set prices

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one-price policy

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means offering the same price to all customers who purchase products under essentially the same conditions and in the same quantities

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flexible-price policy

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means offering the same product and quantities to different customers at different prices

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skimming price policy

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tries to sell the top of a market at a high price before aiming at more price-sensitive customers

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penetration pricing policy

Back 94

tries to sell the whole market at one low price

Front 95

introductory price dealing

Back 95

temporary price cuts, which aim to speed new products into a market and get customers to try them

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basic list prices

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prices that final customers or users are normally asked to pay for products

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discounts

Back 97

reductions from list price given by a seller to buyers who either give up some marketing function or provide the function themselves

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quantity discounts

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discounts offered to encourage customers to buy in larger amounts

Front 99

cumulative quantity discounts

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apply to purchases over a given period and the discount usually increases as the amount purchased increases

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noncumulative quantity discounts

Back 100

apply only to individual orders; encourage larger orders but do not tie a buyer to a seller thereafter

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seasonal discounts

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discounts offered to encourage buyers to buy earlier than present demand requires

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net

Back 102

means the payment for the face value of the invoice is due immediately

Front 103

cash discounts

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reductions in price to encourage buyers to pay their bills quickly

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trade discount

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is a list price reduction given to channel members for the job they are going to do

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sale price

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temporary discount from the list price

Front 106

everyday low pricing

Back 106

setting a low list price rather than relying on frequent sales, discounts, or allowance; many supermarkets use this approach

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allowances

Back 107

are given to final consumers, customers, or channel members for doing something or accepting less of something

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advertising allowances

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are price reductions given to firms in the channel to encourage them to advertise or otherwise promote the supplier's products locally.

Front 109

stocking allowances

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are given to a middleman to get shelf space for a product

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push money allowances

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given to retailers by manufacturers or wholesalers to pass on to the retailers' salesclerks for aggressively selling certain items

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trade-in-allowance

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price reduction given for used products when similar new products are bought
• Rebate - refunds paid to consumers after a purchase

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rebate

Back 112

refunds paid to consumers after a purchase

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F.O.B

Back 113

this means that the seller pays the cost of loading the products onto some vehicle, then title to the products passes to the buyer

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zone pricing

Back 114

means making an average freight charge applicable to all buyers within specific geographic areas

Front 115

uniformed delivered pricing

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making an average freight charge applicable to all buyers

Front 116

freight-absorption price

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which means absorbing freight cost so that a firm's delivered price meets that of the nearest competitor

Front 117

value pricing

Back 117

means setting a fair price level for a marketing mix that really gives the target market superior customer value

Front 118

unfair trade practice acts

Back 118

put a lower limit on prices, especially at the wholesale and retail levels

Front 119

dumping

Back 119

pricing a product sold in a foreign market below the cost of producing it or at a price lower than the domestic market

Front 120

phony list prices

Back 120

prices customers are shown to suggest that the price has been discounted from list

Front 121

Wheeler Lea Amendment

Back 121

bans "unfair or deceptive acts in commerce"

Front 122

price fixing

Back 122

competitors getting together to raise, lower, or stabilize prices

Front 123

price discrimination

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selling the same products to different buyers at different prices - if it injures competition

Front 124

markup chain

Back 124

the sequence of markups firms use at different levels in a channel determines the price structure in the whole channel

Front 125

stockturn rate

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number of times the average inventory is sold in a year

Front 126

rule of thumb markup

Back 126

selling price = average production cost per unit x 3

Front 127

average-cost pricing

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means adding a reasonable markup to the average cost of a product

Front 128

break-even analysis

Back 128

evaluates whether the firm will be able to break even with a particular price

Front 129

break-even point

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the quantity where the firm's total cost will just equal its total revenue

Front 130

BEP (in units)

Back 130

TFC / (FC contribution per unit)

Front 131

marginal analysis

Back 131

focuses on the changes in total revenue and total cost from selling one more unit to find the most profitable price and quantity

Front 132

Customers tend to be less price sensitive when...

Back 132

someone else shares the bill, the greater the significance of the end benefit of the purchase, switching costs are involved (costs that a customer faces by buying a product that is different from what has been purchased or used in the past)

Front 133

Customers tend to be more price sensitive when...

Back 133

customers have substitute ways of meeting a need, when customers can compare prices, and the greater the total expenditure

Front 134

value in use pricing

Back 134

which means setting prices that will capture some of what customers will save by substituting the firm's product for the one currently being used

Front 135

reference price

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price consumer expects to pay

Front 136

leader pricing

Back 136

means setting some very low prices to get customers into retail stores

Front 137

bait pricing

Back 137

setting some very low prices to attract customers but trying to sell more expensive models or brands once the customer is in the store

Front 138

psychological pricing

Back 138

setting prices that have special appeal to target consumers

Front 139

odd-even pricing

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setting prices that end in certain numbers

Front 140

demand-backward pricing

Back 140

setting an acceptable final consumer price and working backward to what a produce can charge

Front 141

prestige pricing

Back 141

setting a rather high price to suggest high quality or high status

Front 142

full-line pricing

Back 142

setting prices for a whole line or products

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complementary product pricing

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setting prices on several products as a group

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product bundle pricing

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setting one price for a set of products

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bid pricing

Back 145

means offering a specific price for each possible job rather than setting a price that applies for all customers

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negotiated price

Back 146

price set based on bargaining between the buyer and seller