Marketing Exam 2

Front 1

Market segments

Back 1

relatively homogenous groups of prospective buyers that result from the market segmentation process

Front 2

Product differentiation

Back 2

a firm's using different marketing mix activities to help consumers perceive the product as being different and better

Front 3

Market-product grid

Back 3

framework to relate the market segments of potential buyers to products offered or potential marketing actions by the firm

Front 4

Synergy

Back 4

increased customer value achieved through performing organizational functions more efficiently

Front 5

Usage rate

Back 5

quantity consumed or patronage during a specific period

Front 6

80/20 rule

Back 6

concept that suggests 80 percent of a firm's sales are obtained from 20 percent of customers

Front 7

Product positioning

Back 7

the place an offering occupies in consumers' minds on important attributes relative to competitive products

Front 8

Product repositioning

Back 8

changing the place an offering occupies in a consumer's mind relative to competitive products

Front 9

Perceptual map

Back 9

means of displaying or graphing in 2 dimensions the location of products or brands in the minds of consumers

Front 10

Market potential/Industry potential

Back 10

the maximum total sales of a product by all firms to a segment during a specified time period under specified environmental conditions and marketing efforts of the firm

Front 11

Sales forecast/Company forecast

Back 11

the total sales of a product that a firm expects to sell during a specified time period under specified conditions

Front 12

Direct forecast

Back 12

estimating the value to be forecast without any intervening steps

Front 13

Lost-horse forecast

Back 13

making a forecast using the last known value and modifying it according to factors expected in the future

Front 14

Survey of buyers' intentions forecast

Back 14

asking prospective customers if they are likely to buy a product during some future time period

Front 15

Salesforce survey forecast

Back 15

asking the firm's salespeople to estimate sales during a coming period

Front 16

Trend extrapolation

Back 16

extending a pattern observed in past data into the future

Front 17

Linear trend extrapolation

Back 17

when a pattern is described with a straight line

Front 18

Product life cycle

Back 18

stages a new product goes through in the marketplace: introduction, growth, maturity, and decline

Front 19

Product class

Back 19

the entire product category or industry

Front 20

Product form

Back 20

pertains to variations within a class

Front 21

Product modification

Back 21

altering a product's characteristics to try to increase product sales

Front 22

Market modification

Back 22

a company tries to find new customers, increase a product's use among customers or create new use situations

Front 23

Trading up

Back 23

adding value to the product or service through additional features or higher=quality materials

Front 24

Trading down

Back 24

reducing the number of features, quality, or price

Front 25

Downsizing

Back 25

reducing the content of packages without changing the size of package and maintaining or increasing the price

Front 26

Branding

Back 26

an organization uses a name, phrase, design, etc. to identify products and distinguish them from competitors

Front 27

Brand name

Back 27

any word, device, or combination used to distinguish a seller's goods or services

Front 28

Trade name

Back 28

commercial, legal name under which a company does business

Front 29

Trademark

Back 29

identifies that firm has legally registered its brand so that it has exclusive use of it

Front 30

Brand personality

Back 30

a set of human characteristics associated with a brand name

Front 31

Brand equity

Back 31

the added value a given brand name adds to a product beyond the functional benefits

Front 32

Brand licensing

Back 32

contractual agreement whereby one company allows its brand name or trademark to be used with products or services offered by another company for a fee

Front 33

Multiproduct branding

Back 33

a company uses one name for all its products in a product class

Front 34

Co-branding

Back 34

pairing of 2 brand names of 2 manufacturers on a single product

Front 35

Multibranding

Back 35

involves giving each product a separate name

Front 36

Private branding

Back 36

a company manufactures products but sells them under the brand name of a wholesaler or retailer

Front 37

Mixed branding

Back 37

a firm markets products under its own name and that of a reseller because it can reach two different segments

Front 38

Packaging

Back 38

any container in which a product is offered for sale and on which label information is conveyed

Front 39

Label

Back 39

integral part of the package and typically identifies the product or brand, who made it, where, and when it was made, etc.

Front 40

Warranty

Back 40

a statement indicating the liability of the manufacturer for product deficiencies

Front 41

Product

Back 41

good, service, or idea consisting of a bundle of tangible or intangible attributes that satisfies consumers and is received in exchange for money

Front 42

Product mix

Back 42

number of product lines offered by a company

Front 43

Product line

Back 43

group of products closely related because they satisfied a class of needs, are used together, are sold to the same customer group, distributed through the same outlet, or fall within a certain price range

Front 44

Consumer goods

Back 44

products purchased by the ultimate consumer

Front 45

Business goods

Back 45

products that assist directly or indirectly in providing products for resale

Front 46

Convenience goods

Back 46

items that a consumer purchases frequently, conveniently, and with a minimum of shopping effort

Front 47

Shopping goods

Back 47

items for which the consumer compares several alternatives on criteria

Front 48

Specialty goods

Back 48

items that a consumer makes a special effort to search out and buy

Front 49

Unsought goods

Back 49

items that the consumer either doesn't know about or doesn't initially want

Front 50

Production goods

Back 50

items used in the manufacturing process that become part of the final product

Front 51

Support goods

Back 51

items used to assist in producing other goods and services

Front 52

Protocol

Back 52

statement that before product development begins, identifies 1) a well-defined target market, 2) customer needs and wants and 3) what the product will be and do

Front 53

New-product process

Back 53

the stages a firm goes through to identify business opportunities and convert them to a salable good or service

Front 54

New-product strategy development

Back 54

stage of the new product process that defines the role for a new product in terms of the firm's overall corporate objectives

Front 55

Six Sigma

Back 55

a means to "delight the customer" by achieving quality through a highly disciplined process to focus on developing near=perfect product or services

Front 56

Idea generation

Back 56

stage of the new-product process that involves developing a pool of concepts as candidates for new products

Front 57

Screening and evaluation

Back 57

stage of the new-product process that involves internal and external evaluations of the new-product ideas to eliminate those that warrant no further effort

Front 58

Business analysis

Back 58

stage of the new-product process that involves specifying the product features and marketing strategy and making necessary financial projections needed to commercialize a product

Front 59

Development

Back 59

stage of the new-product process that involves turning the idea on paper into the prototype

Front 60

Market testing

Back 60

stage of the new-product process that involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy

Front 61

Commercialization

Back 61

stage of the new-product process that involves positioning and launching a new product in full-scale production and sales

Front 62

Slotting fee

Back 62

payment a manufacturer makes to place a new item on a retailer's shelf

Front 63

Failure fee

Back 63

penalty payment a manufacturer makes to compensate a retailer for sales its valuable shelf space failed to make

Front 64

Services

Back 64

intangible activities or benefits that an organization provides to consumers in exchange for money or something else of value

Front 65

Four L's of services

Back 65

four unique elements to services: intangibility, inconsistency, inseparability, and inventory

Front 66

Idle production capacity

Back 66

when the service provider is available but there is no demand

Front 67

Service continuum

Back 67

a range from the tangible to the intangible or good-dominant to service-dominant offerings

Front 68

Gap analysis

Back 68

differences between consumer's expectations and experience

Front 69

Customer contact audit

Back 69

a flowchart of the points of interaction between consumer and service provider

Front 70

Internal marketing

Back 70

based on the notion that a service organization must focus on its employees before successful programs can be directed at customers

Front 71

Capacity management

Back 71

the service component of the marketing mix must be integrated with efforts to influence consumer demand

Front 72

Off-peak pricing

Back 72

consists of charging different prices during different times of the day or days of the week to reflect variations in demand for the service

Front 73

Promotional mix

Back 73

Combination of one or more communication tools, including advertising, personal selling, sales promotion, public relations, etc.

Front 74

Integrated marketing communications

Back 74

the concept of designing marketing communications programs that coordinate all promotional activities to provide a consistent message across all audiences

Front 75

Communication

Back 75

the process of conveying a message to others which requires a source, a message, a channel of communication, a receiver, and the processes of encoding and decoding

Front 76

Source

Back 76

a person or company who has information to convey

Front 77

Message

Back 77

the information sent by a source

Front 78

Channel of communication

Back 78

such as a salesperson, advertising media, or public relations tool

Front 79

Receivers

Back 79

customers who read, hear, or see the message

Front 80

Encoding

Back 80

the process of having the sender transform an idea into a set of symbols

Front 81

Decoding

Back 81

the process of having the receiver take a set of symbols and transform it back into an idea

Front 82

Field of experience

Back 82

similar understanding and knowledge applied to a message

Front 83

Response

Back 83

the impact the message had on a receiver's knowledge, attitudes, or behaviors

Front 84

Feedback

Back 84

the sender's interpretation of the response and indicates whether the message was decoded and understood as intended

Front 85

Noise

Back 85

extraneous factors that can work against effective communication by distorting a message or the feedback received

Front 86

Advertising

Back 86

any paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor

Front 87

Personal selling

Back 87

the 2-way flow of communication between a buyer and seller, designed to influence a person's or group's purchase decision

Front 88

Public relations

Back 88

a form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, prospective customers, stockholders, suppliers, etc. about a company and its products or services

Front 89

Publicity

Back 89

a nonpersonal, indirectly paid presentation of an organization, good, or service

Front 90

Sales promotion

Back 90

a short-term inducement of value offered to arouse interest in buying a good or service

Front 91

Direct marketing

Back 91

uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet

Front 92

Push strategy

Back 92

directing the promotional mix to channel members to gain their cooperation in ordering and stocking the project

Front 93

Pull strategy

Back 93

directing promotional mix at ultimate consumers to encourage them to ask retailers for a product

Front 94

Hierarchy of effects

Back 94

the sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action

Front 95

Percentage of sales budgeting

Back 95

funds are allocated to promotion as a percentage of past or anticipated sales in terms of either dollars or units sold

Front 96

Competitive parity budgeting

Back 96

matching the competitor's absolute level of spending or the proportion per point of market share

Front 97

All-you-can-afford budgeting

Back 97

money is allocated to promotion only after all the other budget items are covered

Front 98

Objective and task budgeting

Back 98

the company determines its promotion objectives, outlines tasks to accomplish these objectives, and determines the promotion cost of performing these tasks

Front 99

Direct orders

Back 99

the result of offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction

Front 100

Lead generation

Back 100

the result of an offer designed to generate interest in a product or service and a request for additional information

Front 101

Traffic generation

Back 101

the outcome of an offer designed to motivate people to visit a business