Marketing Final

Front 1

the mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products

Back 1

Marketing myopia

Front 2

everything that goes into the product, the experience, who I buy it from, different features, which includes warrantees, guarantees, after-sales service, installation, delivery, credit.

Back 2

Augmented product

Front 3

price in order to penetrate the entire market, meet more people on the market

Back 3

Market-Penetration Pricing

Front 4

a strategy for company growth through starting up or aquiring businesses outside the company’s current products and markets

Back 4

Diversification

Front 5

developing the product concept into a physical product in order to ensure that the product idea can be turned into a workable product

Back 5

Product development

Front 6

Publicity vs. Advertising (pros and cons)

Back 6

Publicity- cannot control all factors; reaches audience that may not otherwise reach since it is more often seen as "news", less expensive
Advertising- reach masses of geographically dispersed people, impersonal, not as directly persuasive

Front 7

Push-promotion strategy that calls for using sales force and trade promotion to push the product through channels
Pull-advertising and consumer promotion to induce final consumer demand to buy a product

Back 7

Push and Pull Strategies

Front 8

used to harmonize all of the company's logistics decisions in order to create high market satisfaction at a reasonable price

Back 8

Cross Functional Teams

Front 9

Groups that form a comparison or reference in forming attitudes or behavior. People often are influenced by reference groups to which they do not belong. This is why companies like Nike and Sprite pay chunks of money to athletes. Example: “If Michael Jordan wears Nike shoes, they must be good”.

Back 9

Reference Groups

Front 10

Limits on the amount of foreign imports that they will accept in certain product categories. The purpose of a quota is to conserve on foreign exchange and to protect local industry and employment.

Back 10

Quotas

Front 11

Taxes on certain imported products designed to raise revenue or to protect domestic markets.

Back 11

Tariffs

Front 12

An advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices.

Back 12

Competitive Advantage

Front 13

Company can build competitive advantage (superior value ) through
1. product differentiation (make it better)
2. people differentiation (top-notch employees)
3. service differentiation (speedy, convenient, careful delivery)
4. image differentiation (Ritz-Carlton = quality, Nike = the best athletes, Michael Jordan, Tiger Woods)

Back 13

Competitive Advantage

Front 14

A competitive advantage is worth establishing only if it satisfies the following criteria: Important, distinctive, superior, communicable, preemptive (cannot be easily copied), affordable (for customer), profitable (for company).

Back 14

Competitive Advantage

Front 15

The benefit or customer value receives by uses of a product.

-FORM utility created by production of product.
-PLACE utility created by delivery of product.
-TIME utility achieved by availability when it’s needed.
-POSSESSION utility is getting the product to consumers so they can use it.

Back 15

Utility (4 utilities- different than 4 P’s)

Front 16

An approach to cost reduction in which components are studied carefully to determine if they can be redesigned, standardized, or made by less costly methods of production.

Back 16

Value Analysis

Front 17

involves choosing the ideal product characteristics and specifications.

Back 17

Value Analysis

Front 18

Marketing efforts to spur demand for a product that is experiencing declining demand by marketing it as though it were a new product. The success of a remarketing effort is dependent upon a good understanding of what market changes have caused demand to decline so that the remarketing strategy can be based upon the current market environment. Example: The nonpower lawnmower has benefited from remarketing that positioned it as a quieter, environmentally friendly alternative to power lawnmowers that is both a lawn tool and an exercise machine.

Back 18

Remarketing

Front 19

Marketing with the objective to decrease demand for a product

Back 19

Demarketing

Front 20

a firm cannot supply in large-enough quantities, or does not want to supply in a certain region where the high costs of distribution or promotion allow only a little profit margin. Common demarketing strategies include higher prices, scaled-down advertising, and product redesign.

Back 20

Demarketing

Front 21

The individual or group who actually consumes or uses a good or service, distinct from a regular buyer. Marketers try and identify the ultimate consumer to aim their promotional efforts at them.

Back 21

Ultimate consumer

Front 22

the exclusive right to make copies, license, and otherwise exploit a literary, musical, or artistic work, whether printed, audio, video, etc

Back 22

copyrights

Front 23

All of these things ____ _____ ____ ____ deal with the identification of a product or service and serve as a means to differentiate one product from another.

Back 23

copyrights

Front 24

The owner of a _____ has exclusive right to use it on the product it was intended to identify._____are protected by federal statute.

Back 24

trademark

Front 25

Advertising for an organization rather than for its products.

Back 25

Institutional Advertisement

Front 26

Advertising which points out features of a brand which may not be available in other brands, but does not directly name a competitor.

Back 26

Competitive Advertising

Front 27

A specific communication task to be accomplished with a specific target audience during a specific period of time. Advertising objectives can be classified by primary purpose--whether the aim is to inform, persuade, or remind. (See figure 15.1 on pp. 426)

Back 27

advertising objectives

Front 28

Part of the receiver's response communicated back to the sender--HP research shows that consumers are struck by and remember the ad or consumers write or call HP praising or criticizing the ad or HP's products.

Back 28

feedback

Front 29

Reactions of the receiver after being exposed to the message--any of hundreds of possible responses, such as the consumer is more aware of the attributes of HP copiers, visits the HP Web site for more info, actually buys an HP copier, or does nothing.

Back 29

response

Front 30

Unplanned static or distortion during the communication process, which results in the receiver's getting a different message than the one the sender sent--the consumer is distracted while reading the magazine and misses the HP as or its key points.

Back 30

noise

Front 31

Process by which the receiver assigns meaning to the symbols encoded by the sender--a consumer reads the HP copier ad and interprets the words and illustrations it contains.

Back 31

decoding

Front 32

Process of putting thought into symbolic form--HP's ad agency assembles words and illustrations into an advertisement that will convey the intended message.

Back 32

encoding

Front 33

encoding, decoding, noise, response, feedback

Back 33

Communication Process

Front 34

Carefully integrating and coordinating the company's many communications channels to deliver a clear, consistent, and compelling message about the organization and its products.

Back 34

Integrated Marketing Communications

Front 35

Information flows such as customer orders, billing, etc. that must be communicated across the channel partners. Can be shared in many ways such as: telephone, salespeople, EDI (electronic data interchang) and VMI (vendor-management inventory).

Back 35

Logistics information management-

Front 36

truck, rail, water, pipeline, air, internet. Trucks account for 35%...efficient for short hauls and flexible in routing. Rail accounts for 31%- most cost-effective for shipping large, bulk products over long distances. Water- cheap, but slow and can be affected greater by weather. Air- only 5%, expensive, but good for speed or for distant markets. Internet the cheapest, but can only move information.

Back 36

Transportation

Front 37

balancing customer demand with supply. Just-In-Time: retailers carry only a small inventory but automatically reorder often. New stock arrives exactly when needed. Accurate forecasting required.

Back 37

inventory

Front 38

also includes distribution centers (Ex: Wal-Mart dist. ctr. can supply 100 nearby Wal-Marts…massive buildings!) Becoming more advanced and automated.

Back 38

warehousing

Front 39

warehousing, inventory, transportation, logistics information management

Back 39

Logistical Functions in a Supply Chain

Front 40

-The planning, movement, etc. of materials, final goods, etc. to points of consumption to meet customer requirements at a profit.

-Coordinate activities of suppliers, purchasing agents, marketers, channel members, and customers.

-Efficient logistics can be a big cost-reducer to the company (20% of a product’s price is accounted for in transporting it).

-More important with a company with more variety of products.

-Goal should be to supply a targeted customer satisfaction level at the least cost, not the maximum customer satisfaction at the least cost (impossible). Another goal is to maximize profits, not sales.

Back 40

Logistics Management

Front 41

The net change in total revenue that results from producing and marketing one additional unit

Back 41

Marginal Revenue

Front 42

Total Rev - Total Costs

OR

(price x # of units) - (FC - VC)

Back 42

Profit

Front 43

Unit Volume Equation

Back 43

Unit Volume = Fixed Cost + target profit / Price - Variable Cost

Front 44

Gibson Guitars once tried lowering their prices to compete more effectively with Japanese rivals Yamaha and Ibanez. To their surprise, Gibson found that their instruments didn't sell as well at lower prices. "The more we charged the more we sold" said Gibson's Chief Executive. Of course if the company charges too much the level of demand would drop.

Back 44

Demand Curve

Front 45

“Developing the product concept into a physical product in order to ensure that the product idea can be turned into a workable product.”

Back 45

Product Development:

Front 46

“A review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company’s objectives.” For example, SWOT analysis: Strengths Weaknesses Opportunities Threats.

Back 46

Business Analysis:

Front 47

causes of movement along the curve and movement of the curve

Back 47

Demand

Front 48

Relationships RESONANCE what abt you and me
Response JUDGEMENTS FEELINGS what about you
Meaning PERFORMANCE IMAGERY what are you
Identity SALIENCE who are you

Back 48

Brand equity pyramid

Front 49

is the process in which a consumer first finds out about a new product (new to them) and make decisions on whether to adopt them or not.

Back 49

Adoption Process

Front 50

Stages of adoption process

Back 50

Awareness: Consumer becomes aware of product but lack info
Interest: Consumer seeks info about new product
Evaluation: The consumer considers whether trying the new product or not
Trial: Consumer tries new product on small scale
Adoption: The consumer decides to make full and regular use of new product

Front 51

Cultural The set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions. It is the most basic cause of a persons wants and behavior.

Back 51

Cultural Factors

Front 52

buyers decisions also are influenced by personal characteristics such as buyers age and life-cycle stage, occupation, economic situation, lifestyles, and personality and self concept

Back 52

Personal Factors

Front 53

of strawberry pop-tarts go way up, so before Hurricane Katrina they shipped extra boxes of strawberry pop-tarts to all the wal-marts in the region. People want them because they do not need to be refrigerated or cooked to eat.
Consumer Behavior

Back 53

Data Mining

Front 54

a instrument used in research. They are very flexible, and can ask many types of questions; Closed-end questions, Open end questions, Multiple Choice, scale option questions, complete sentence questions,

Back 54

Questionnaires

Front 55

good products and marketing programs begins with solid information. MIS (marketing Information systems) are designed to collect information for companies. It is important to have enough data but too much can be bad too.

Back 55

why do we collect data?

Front 56

management evaluates the product and businesses making up the company; a company classifies all its SBU's according to the growth-share matrix.

Back 56

BCG Portfolio Analysis

Front 57

the redefine the place the product occupies in consumers' minds relative to competing products
ex. Dunkin Donuts vs. Starbucks

Back 57

Repositioning

Front 58

shows consumer perception of their brands verses competing products on important buying dimensions

Back 58

Perceptual Maps

Front 59

The idea that consumers will favor products that offer the most quality, performance, and features and that the organization should therefore devote its energy to making continuous product improvements.

Back 59

Product Concept

Front 60

Strategies that will build profitable relationships with target consumers. The following five concepts are used by companies to design and carry out their marketing strategies.

Back 60

Marketing Management Orientations

Front 61

the act of obtaining a desired object from someone by offering something in return

Back 61

Exchange