Marketing Final

Front 1

Value and 3 ways a business can increase value

Back 1

Customer value is the unique combination of benefits received by targeted buys that includes quality, price convenience, on-time delivery and both before-sale and after-sale service divided by perceived price paid in time or money
3 ways to increase consumer’s value
1)improve product
2) decrease price
3) increase service

Front 2

What is a market?

Back 2

Potential customers make up a market which is: people with the desire and with the ability to buy a specific product (yours).

Front 3

What is marketing?

Back 3

Marketing is the activity for creating, communicating, delivering and exchanging offerings that benefit the organization, its stakeholders and society at large

Front 4

What is a marketing exchange?

Back 4

1. Exchange is the trade of things of value between buyer and seller so that each is better off after the trade.

Front 5

What is the marketing concept?

Back 5

First identify the marekt's needs. Second satisfy the market's needs

Front 6

What is the difference between ethics and laws?

Back 6

Ethics are the moral principles and values that govern the actions and decisions of an individual or group. Laws are society’s values and standards that are enforceable in the courts

Front 7

What is the difference between Moral Idealism and Utilitarianism?

Back 7

11. Difference between Moral Idealism and Utilitarianism – moral idealism is a personal moral philosophy that considers certain individual rights or duties as universal regardless of the outcome. Utilitarianism is a personal moral philosophy that focuses on “the greatest good for the greatest number” by assessing the costs and benefits of the consequences of ethical behavior

Front 8

New buy

Back 8

Here the organization is a first time buyer of the product or service. This involves greater potential risks in the purchase, so the buying center is enlarged to include all those who have stake in the new buy. Procter and Gambles purchase of a multimillion dollar fiber optic network from Corning, Inc., for its corporate offices in Cincinnati,. Represented a new buy.

Front 9

Modified rebuy

Back 9

In this buying situation the users, influencers, or deciders in the buying center want to change the product specifications, price, delivery schedule or supplier. Although the item purchases is largely the same as the straight rebuy, the changes usually necessitate enlarging the buying center to include people outside the purchasing department.

Front 10

Straight rebuy

Back 10

The buyer or purchasing manager reorders and existing product or service from the list of acceptable suppliers, probably without even checking with users or influencers from the engineering, production or quality control departments. Office supplies and maintenance services are usually obtained as straight rebuys.

Front 11

What does S.M.A.R.T. goals mean?

Back 11

Specific – Be a precise description of what is to be achieved
Measurable – Be a quantitative value to show attainment
Attainable – Be achievable, but challenging
Relevant – Be pertinent to the organization’s mission
Time-Based – Have a deadline for completion

Front 12

What are the 7 C's in website design?

Back 12

Context – refer’s to a websites aesthetic appeal and functional look and feel reflected in site layout and visual design.
Content – applies to all digital information on a website, including the presentation form (text, video, audio and graphics).
Customization –websites ability to tailor itself to different users or to allow users to personalize the site
Communication – The ways the site enables sit-to use, user-to site, or two-way communication
Connection – the degree the site is linked to other sites
Commerce – the site’s capabilities to enable commercial transactions
Community – the ways that the site enables user-to-user communication

Front 13

What is marketing research and what are the 5 steps?

Back 13

37. Know the 5 steps to a marketing research approach
Marketing research is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information and recommending actions.
1) Define the problem – set research objectives, identify possible marketing actions
2) Develop the research plan – specify constraints, identify data needed for marketing actions, determine how to collect data
3) Collect relevant information – secondary data, primary
4) Develop findings – analyze data, present findings
5) Take marketing actions – make action recommendations, implement actions, evaluate results

Front 14

What is the depth of a product line?

Back 14

Means that the store carries a large assortment of each item, such as a shoe store offers running shoes, dress shoes and children’s shoes. Stores that carry a considerable assortment (depth) of a related line of items are limited-line stores. Example: sporting goods store. Stores that carry tremendous depth in one primary line of merchandise are single-line stores. Example: Victorias Secret. Both limited and single line stores are often referred to as specialty outlets. Specialty discount outlets focus on one type of product such as electronics, office supplies or books at very competitive prices. These outlets are referred to in the trade as category killers.

Front 15

What is the breadth of a product line?

Back 15

Refers to the variety of different items a store carries, such as appliances and CDS. Stores that carry a broad product line, with limited depth are referred to as general merchandise stores. Example: Macy’s which carries a wide range of different types of products but not unusual sizes.

Front 16

What are the 5 types of questions that can be asked on a survey?

Back 16

1) Likert 5
2) Forced choice 4 or 6
3) Semantic differential
4) Rank order
5) Constant Sum

Front 17

What are the 4 I's of service?

Back 17

1) Intangibility –services are a performance rather than an object
2) Inconsistency – Variability in the quality of service due to the variability of the people who deliver the service
3) Inseparability – services are difficult to separate from the deliverer of the service
4) Inventory – The cost of maintaining the ability to deliver a service (The cost of paying the person used to provide the service along with the cost of any needed equipment

Front 18

What is brand equity?

Back 18

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

Front 19

What are the 5 dimensions of service quality?

Back 19

Reliability - Ability to perform the promised task accurately
Tangibles - Appearance of physical facilities, communication materials
Responsiveness - Willingness to help customers
Assurance - Knowledge and courtesy of employees and their ability to convey trust and confidence
Empathy - Caring, individualized attention

Hint 19

Think: RATER

Front 20

What are the benefits of packaging?

Back 20

1) Communication Benefits – (identify the brand, convey descriptive & persuasive information)
2) Functional Benefits- (facilitate product transportation & protection, assist at-home storage, aid product consumption)
3) Perceptual Benefits

Front 21

What is the profit equation?

Back 21

profit = total revenue - total cost
profit = (unit price x quantity sold)-(Fixed cost+variable cost)

Front 22

What is a demand curve?

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A demand curve is a graph relating the quantity sold and price, which shows the maximum number of units that will be sold at a give price.

Front 23

What are the three things a demand curve depends on?

Back 23

1) Consumer tastes – these depend on many factors such as demographics, culture and technology. Because consumer tastes can change quickly, up-to date marketing research is essential.
2) Price and availability of similar products. The laws of demand word for one’s competitors, too. If the price of Time magazine falls, more people will buy it. That means fewer people will buy Newsweek. . Time is considered by economists to be a substitute for Newsweek. The point to remember is, as the price of substitute’s falls or their availability increases, the demand for a product (Newsweek) will fall.
3) Consumer income – In general, as real consumer income (allowing for inflation) increases, demand for a product also increases

Front 24

Definition and difference of movement along a demand curve and shift

Back 24

Movement along a demand curve – as the price of Newsweek is lowered from 2.00 to 1.50 an issue, the quantity demanded increased from 3 million to 4.5 million. This assumes that other factors (consumer tastes, price and availability of substitutes and consumer income remain unchanged)
Shift in the demand curve – if some factors do change. For example, if advertising causes more people to want Newsweek, newsstand distribution is increased or if consumer incomes rise, then the demand for all magazines including Newsweek increases.

Front 25

What is the break even analysis?

Back 25

is a technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output. The break even point is the quantity at which total revenue and total cost are equal BEP=FC/Unit price – Unit variable cost or BEP = FC/P-UVC

Front 26

What is fixed cost?

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Fixed cost – is the sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold. Examples of fixed costs are rent on the building, executive salaries and insurance.

Front 27

What is variable cost?

Back 27

Variable Cost is the sum of the expenses of the firm that vary directly with the quantity of a product that is produced and sold. For example, as the quantity sold doubles, the variable cost doubles. Examples are the direct labor and direct materials used in producing the product and the sales commissions that are tied directly to the quantity sold. UVC=VC/Q and TC =FC+VC

Front 28

What is total cost?

Back 28

The total expense incurred by a firm in producing and marketing a product. Total cost is the sum of fixed cost and variable cost

Front 29

What is pure competition?

Back 29

Many sellers who follow the market price for identical commodity products. No product differentiation. Market sets the price so no price competition. Little advertising with the purpose to inform prospects of the product. example corn

Front 30

What is monopolistic competition?

Back 30

Many sellers who compete on nonprice factors. for example peanut butter Compete over range of prices. Differentiate products from competitors. Lots of advertising with the purpose to differntiate firm's products from competitors

Front 31

What is oligopoly?

Back 31

Few sellers who are sensitive to each other's prices. Extent of product differentiation is various, depends on the industry. Some advertising with the purpose to inform but avoid price competiton. examples, boeing, airbus

Front 32

What is a pure monopoly?

Back 32

One seller who sets the price for a unique product. No price competition because the sole seller sets price. No product differentiation because there are no other products and there is little advertising with the purpose to increase demand for product class.

Front 33

Who are innovators?

Back 33

Venturesome; higher educated; use multiple information sources 2.5%

Front 34

Who are the early adopters?

Back 34

Leaders in social setting; slightly above average education 13.5%

Front 35

The early majority?

Back 35

Deliberate; many informal contacts
34%

Front 36

The late majority?

Back 36

Skeptical;below average social status
34%

Front 37

The laggards?

Back 37

Fear of debt; neighbors and friends are information sources. 16%

Front 38

What is product repositioning?

Back 38

Product repositioning changes the place a product occupies in a consumer's mind relative to competitive products.

Front 39

What are the four factors that trigger the need for a repositioning action?
page 290

Back 39

1) reacting to a competitors position
2)Reaching a new market
3) Catching a rising trend
4) Changing the Value offered

Front 40

What are the 6 forms of nonstore retailing?

Back 40

1) automatic vending machines
2)Direct mail and catalogs
3) Television home shopping
4) online retailing
5)Telemarketing
6 Direct selling - (door to door retailing)

Front 41

What are the five steps in the consumer purchase decision process?

Back 41

1) Problem Recognition – perceiving a need
2 Information search – seeking value
3) Alternative evaluation – assessing value
4) Purchase decision – buying value
5) Post purchase feelings – value in consumption or use

Front 42

What are the 4 ways of segmenting?
page 232

Back 42

1) Geographic – region, city size, statistical area, media-television, density
2) demographic – gender, age, race/ethnicity, life stage, birth era, household size, marital status, income, education, occupation
3) psychographic – personality values, lifestyle, needs
4) behavioral – outlet type, direct, product features, usage rate, user status, awareness/intentions

Front 43

What is a high learning product?
graph 285

Back 43

A high learning product is one for which significant customer education is required and there is an extended introductory period. Ex. Computers

Front 44

What is a low learning product?
285

Back 44

Low learning product sales begin immediately because little learning is required by the consumer and the benefits of purchase are readily understood. This product can be easily imitated by competitors so the marketing strategy is to broaden distribution quickly. Ex. razors

Front 45

What is a fashion product?
285

Back 45

A fashion product is a style of times. Life cycles for fashion products frequently appear in women's and men's apparel. Fashion products are introduced, decline and then seem to return.

Front 46

What is a fad?
286

Back 46

A fad experiences rapid sales on introduction and than an equally rapid decline. These products are typically novelties and have a short life cycle. ex. car tattoos

Front 47

What is cognitive dissonance?
118-119

Back 47

Feeling of post-purchase psychological tension or anxiety. To alleviate it, consumers often attempt to applaud themselves for making the right choice.

Front 48

What are the 5 environmental forces? 70-85

Back 48

characteristics of the population and its values. Changes in these forces can have a dramatic impact on marketing strategy. (Changing attitudes of men and women, baby boomers etcs)
2) Economy – pertains to the income, expenditures and resources that affect the cost of running a business and household
3) Technology – refers to inventions or innovations from applied science or engineering research, each new wave of technological innovation can replace existing products and companies.
4) Competition refers to the alternative firms that could provide a product to satisfy a specific market’s needs.
5) Regulation – consist of restrictions state and federal laws place on business with regard to the conduct of its activities.

Front 49

What are the four classifications of consumer goods?
257-258

Back 49

1) Convenience goods – items that the consumer purchases frequently, conveniently and with a minimum of shopping effort
2) Shopping goods are items for which the consumer compares several alternatives on criteria such as price, quality or style
3) Specialty goods are items such as Rolex watches that a consumer makes a special effort to seek out
4) Unsought goods are items that the consumer either does not know about or knows about but does not initially want (funeral insurance)

Front 50

What is an international firm?
174

Back 50

An international firm engages in trade and marketing in different countries as an extension of the marketing strategy in its home country. Generally speaking, these firms market their existing products and services in other countries the same way they do in their home country.

Front 51

What is a multinational firm?
174

Back 51

A multinational firm views the world as consisting of unique parts and markets to each part differently. Multinationals use a multidomestic marketing strategy, which means that they have as many different product variations, brand names, and advertising programs as countries in which they do business.

Front 52

What is a transnational firm?
174

Back 52

A transnational firm views the world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants more than differences. Transnational marketers employ a global marketing strategy - the practice of standardizing marketing activities when there are cultural similarites and adapting them when cultures differ.

Front 53

What is the Integrated Marketing Communications?

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The concept of designing marketing communications programs that coordinate all promotional activities -advertising, personal selling, sales promotion, public relations and direct marketing - to provide a consistent message across all audiences.

Front 54

What is the goal of logistics?

Back 54

Logistics involves those activities that focus on getting the right amount of the right products to the right place at the right time t the lowest possible cost. Minimize costs and maximize customer sevice

Front 55

What are the for forms of utility?
22

Back 55

Marketing creates utility, the benefits or customer value received by uses of the product.
1) form utility - the value to the consumers that comes from the production or alteration of a good or service.
2) Place utility is the value to consumers of having a good or service available where needed
3) Time utility - is the value to consumers of having a good or service aviable when needed
4) Possession utility - is the value to consumers of making an item easy to purchase so consumers can use it.

Front 56

What are the 4 I's of service?

Back 56

1) Intangibility
2) Inconsistency
3) Inserparability
4) Inventory

Front 57

How does protectionism affect world trade?

Back 57

It ultimately leads to a decrease in world trade. Tarriffs increase prices and quotas (a percentage of the industry has to be internal) limits the supply

Front 58

What is the percentage of sales method?

Back 58

Percentage of Sales – funds are allocated to promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold. A common budgeting method. The advantage is that it is simple and provides a financial safequard by tying the promotion budge to sales. However, there is a major fallacy in this approach, which implies that sales cause promotion. Using this method, a company may reduce its promotion budget because of a downturn in past sales or an anticipated downturn in future sales – situations in which it may need promotion most.

Front 59

What is the competitive parity method?

Back 59

Matching the competitors absolute level of spending or the proportion per point of market share. This approach ahs also been referred to as matching competitors or share of market. It is important to consider the competition in budgeting. The competitors budget level, however, should not be the only determinant in setting a company’s budget. The competition might have very different promotional objectives, which require a different level of promotion expenditures.

Front 60

What is the all you can afford method?

Back 60

Common to many small businesses. Money is allocated to promotion only after all other budget items are covered. Fiscally conservative, this approach has little else to offer. Using the budgeting philosophy, a company acts as though it doesn’t know anything about a promotion sales relationship or what its promotion objectives are.

Front 61

What is the objective and task method?

Back 61

The best approach to budgeting is objective and task whereby the company determines it promotion objectives, outlines the tasks to accomplish these objectives and determines the promotion cost of performing these tasks. This method takes into account what the company wants to accomplish and requires that the objectives be specified. Strengths of the other budgeting methods are integrated into this approach because each previous method’s strength is tied to the objectives. The difficulty with this method is the judgment required to determine the tasks needed to accomplish objectives.

Front 62

What is the purpose of the SWOT analysis? What does SWOT stand for?

Back 62

SWOT analysis, an acronym describing an organizational appraisal of its internal Strengths and Weakness and its external Opportunities and Threats. Swot analysis [provides foundation to identify actions in the marketing plan. Maximize your strengths to take advantage of your opportunites and minimize your weaknesses to eliminate your threats.

Front 63

What are porter's four generic business strategies?

Back 63

1) cost leadership - low cost, broad target ex. walmart
2) differentiation strategy - requires products to have significant points of difference in product offerings, brand image, hgher quality, advanced technology or superior service to charge a higher price while targeting a broad array of market segments. ex. delphi automobile systems
3) Cost focus strategy - office max
4) differentiation focus strategy - narrow target differentiation ex. toyota

Front 64

What is capacity management?

Back 64

-Capacity management – integrating the service component of the marketing mix with efforts to influence consumer demand. Service organizations must manage the availability of the offering so that 1) demand matches capacity over the duration of the demand cycle and 2) the organizations assets are used in ways that will maximize the return on investment

Front 65

What is value? values? value pricing?

Back 65

value is the ratio of perceived benefits to price or value = perceieved benefits/price.
Value pricing is the practice of simultaneously increasing product and service benefits while maintaining or decreasing price.
Values is a society's personally or socially preferable modes of conduct or states of existence that tend to persist over time

Front 66

How do you create value through personal selling?

Back 66

1) identify creative solutions to customer problems
2) ease the customer buying process
3) follow-up after the sale is made