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225 Cards in this Set
- Front
- Back
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Product
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Everything both favorable and unfavorable that a person receives in an exchange.
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Business Product (Industrial Product)
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A product used to manufacture other goods or services to facilitate an organization's operations or to resell to other customers.
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Consumer Product
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A product bought to satisfy an individuals personal wants.
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Convenience Product
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A relative inexpensive item that merits little shopping effort.
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Shopping Product
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A product that requires comparison shopping because it is usually more expensive that a convenience product and is found inf fewer stores.
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Specialty Product
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A particular item that consumers search extensively for an are very reluctant to accept substitutes.
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Unsought Product
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Product unknown to the potential buyer or a known product that the buyer does not actively seek.
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Product Item
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A specific version of a product that can be designed as a distinct offering among an organization's products.
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Product Line
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A group of closely product items.
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Product Mix
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All products that an organization sells.
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Product Mix Width
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The number of product lines an organization offers
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Product Line Depth
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The number of product items in a product line.
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Product Modification
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Changing one or more of product characteristics.
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Planned Obsolescence
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The practice of modifying products so those that have already been sold become obsolete before they actually need replacing.
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Product Line Extension
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Adding additional product to an existing product line in order to compete more broadly in the industry.
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Brand
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A name term symbol design or combination thereof that identifies a seller's products or differentiates them from competitors products
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Brand Name
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That part of a brand that can be spoken including letters words and numbers.
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Brand mark
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The elements of a brand that cannot be spoken.
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Brand equity
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The value of company and brand names.
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Global Brand
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A brand that obtains at least a third of its earnings from outside its home country, is recognizable outside its home base of customers, and has publicly available marketing and financial data.
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Brand Loyalty
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A consistent preference for one brand over all others.
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Generic Product
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No frills, no brand name, low cost product that is simply identified by its product category.
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Manufacturers Brand
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The brand name of a manufacturer
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Product Brand
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A brand name owned by a wholesaler or retailer
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Captive Brand
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A brand manufactured by third party for an exclusive retailer without evidence of that retailers affiliation.
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Individual Branding
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Using different brand names for different products
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Family Brand
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Marketing several different products using the same brand name.
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Co-branding
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Placing two or more brand names on a product or its package.
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Trademark
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The exclusive right to use a brand or part of a brand
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Service Mark
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A trademark for service.
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Generic Product Name
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Identifies a product by class or type and cannot be trademarked.
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Persuasive Labeling
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A type of package labeling that focuses on a promotional theme or logo and consumer information is secondary
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Informational labelling
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A type of package labeling designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase.
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Universal Product Code
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A series of this and thinv ertical lines (bar codes) readable by computerized optical scanners, that represent numbers used to track products.
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Warranty
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A confirmation of the quality or performance of a good or service.
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Express Warranty
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A written garauntee
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Implied warranty
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An unwritten garauntee that the good or service is fit for the purpose for which it was sold.
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New product
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a product new to the world, the market, the producer, the seller, or some combination of these
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New product strategy
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A plan that links the new product development process with the objectives of the marketing department the business unit and the corporation
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Product Development
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a marketing strategy that entails the creation of marketable new products, the process of converting applications for new technologies into marketable products
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Brainstorming
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the process of getting a group to think of unlimited ways to vary a product or solve a problem
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Screening
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The first filter in the product development process which eliminates ideas that are inconsistent with the organization's new product strategy or are obviously inappropriate for some other reason.
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Concept Test
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A test to evaluate a new product idea, usually before any prototype has been created
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Business analysis
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The second stage of the screening process where preliminary figures for demand cost sale and profitability are calculated
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Development
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The stage in the product development process in which a prototype is developed and a marketing strategy is outlined
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Simultaneous Product Development
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A team oriented approach to new product development.
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Test Marketing
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The limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.
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Simulated (Lab) Market Testing
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the presentation of advertising and other promotional materials for several products including a test product to members of the product's target market
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Commercialization
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the decision to market a product
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Innovation
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A product perceived as new by a potential adopter.
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Diffusion
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The process by which the adoption of innovation spreads.
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Product Life Cycle
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A concept that provides a way to trace the stages of a product's acceptance from its introduction (birth) to its decline (death)
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Product Category
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All brands that satisfy a particular type of need.
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Introductory Stage
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The full scale launch of a new product into the marketplace.
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Growth Stage
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The second stage of the product life cycle when sales typically go at an increasing rate. Many competitors enter the market, large companies may start acquiring small pioneering firms and profits are healthy.
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Maturity Stage
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A period during which sales increase at a decreasing rate.
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Decline Stage
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A long run drop in sales.
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Service
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The result of applying human or mechanical efforts to people or objects
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Intangibility
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The inability of services to be touched, seen, tasted, heard, or felt in the same manner that goods can be sensed
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Search Quality
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A characteristic that can be easily assessed before purchase
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Experience Quality
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A characteristic that can be assessed only after use
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Credence Quality
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A characteristic that consumers may have difficulty assessing even after purchase because they do not have the necessary knowledge or experience.
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Inseparability
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The inability of the production and consumption of a service to be separated; consumers must be present during the production
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Heterogeneity
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The variability of the inputs and outputs of services, which causes services to tend to be less standardized and uniform than goods.
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Perishability
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The inability of services to be stored, warehoused, or inventoried.
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Reliability
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The ability to perform a service dependably, accurately, and consistently
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Responsiveness
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the ability to provide prompt service
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Assurance
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The knowledge and courtesy of employees and their ability to convey trust
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Empathy
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caring, individualized, attention to customers
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Tangibles
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The physical evidence of a service, including the physical facilities, tools, and equipment used to provide the service.
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Gap Model
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A model identifying five gaps that can cause problems in service delivery and influence customer evaluations of service quality.
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Core Service
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The most basic benefit the customer is buying
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Supplementary Services
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A group of services that support or enhance the core service
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Mass Customization
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A strategy that uses technology to deliver customized services on a mass basis.
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Internal Marketing
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Treating employees as customers and developing systems and benefits that satisfy their needs
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Nonprofit Organization
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An organization that exists to achieve some goal other than the usual business goals of profit, market share, or return on investment
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Nonprofit Organization Marketing
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The effort by nonprofit organizations to bring about mutually satisfying exchanges with target markets.
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Public Service Advertisement (PSA)
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An announcement that promotes a program of federal, state, or local government or of a nonprofit organization
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Marketing Channel (Channel of Distribution)
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A set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer.
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Channel Members
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All parties in the marketing channel that negotiate with one another, buy and sell products, and facilitates the change of ownership between buyer and seller in the course of moving the product from the manufacturer into the hands of the final consumer.
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Supply Chain
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The connected chain of all of the business entities, both internal and external to the company, that perform or support the marketing channel functions
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Discrepancy of quantity
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The difference between the amount of product produced and the amount an end user wants to buy
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Discrepancy of Assortment
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The lack of all the items a customer needs to receive full satisfaction from a product or products
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Temporal Discrepancy
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A situation that occurs when a product is produced but a customer is not ready to buy it.
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Spatial Discrepancy
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The difference between the location of a producer and the location of widely scattered markets
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Retailer
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a channel intermediary that sells mainly to consumers
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merchant wholesaler
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an institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers and that receives and takes title to goods, stores them in its own warehouses, and later ships them
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agents and brokers
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wholesaling intermediaries who do not take title to a product but facilitate its sale from producer to end user by representing retailers wholesalers or manufacturers
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Logistics
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the efficient and cost effective forward and reverse flow as well as storage of goods services and related information into through and out of channel member companies
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direct channel
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a distribution channel in which producers sell directly to consumers
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dual distribution (multiple distribution)
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the use of two or more channels to distribute the same product to target markets
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strategic channel alliance
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a cooperative agreement between business firms to use the other's already established distribution channel
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intensive distribution
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a form of distribution aimed at having a product available in every outlet where target customers might want to buy it
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selective distribution
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a form of distribution achieved by screening dealers to eliminate all but a few in any single area
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exclusive distribution
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a form of distribution that establishes one or a few dealers within a given area
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arm's-length relationship
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a relationship between companies that is loose, characterized by low relational investment and trust, and usually taking the form of a series of discrete transactions with no/low expectation of future interaction or service
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cooperative relationship
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a relationship between companies that takes the form of informal partnership with moderate levels of trust and information sharing as needed to further each company's goals
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Integrated relationship
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a relationship between companies that is tightly connected with linked processes across and between firm boundaries and high levels of trust and interfirm commitment
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channel power
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the capacity of a particular marketing channel member to control or influence the behavior of other channel members
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channel control
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a situation that occurs when one marketing channel member intentionally affects another member's behavior
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channel leader (channel captain)
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a member of a marketing channel that exercises authority and power over the activities of other channel members
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channel conflict
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a clash of goals and methods between distribution channel members
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horizontal conflict
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a channel conflict that occurs among channel members on the same level
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vertical conflict
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a channel conflict that occurs between different levels in a marketing channel, most typically between the manufacturer and wholesaler or between the manufacturer and retailer
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channel partnering (channel cooperation)
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the joint effort of all channel members to create a supply chain that serves customers and creates a competitive advantage
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supply chain
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the connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function
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supply chain management
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a management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value
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business processes
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bundles of interconnected activities that stretch across firms in the supply chain
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customer relationship management process
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allows companies to prioritize their marketing focus on different customer groups according to each group's long term value to the company or supply chain
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customer service management proces
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present a multi-company unified response system to the customer whenever complaints, concerns, questions or comments are voiced
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demand management process
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seeks to align supply and demand throughout the supply chain by anticipating customer requirements at each level and creating demand related plans of action prior to actual customer purchasing behavior
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order fulfillment process
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a highly integrated process, often requiring persons from multiple companies and multiple functions to come together and coordinate to create customer satisfaction at a given place and time
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manufacturing flow management process
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connected with ensuring that firms in the supply chain have the needed resources to manufacture with flexibility and to move products through a multi-stage production process
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supplier relationship management process
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closely related to the manufacturing flow management process and contains several characteristics that parallel the customer relationship management process
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product development and commercialization process
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includes the group of activities that facilitates the joint development and marketing of new offerings among a group of supply chain partner firms
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returns management process
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enables firm to manage volumes of returned product efficiently while minimizing returns related costs and maximizing the value of the returned assets to the firms in the supply chain
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logistics
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the process of strategically managing the efficient flow and storage of raw materials, in process inventory, and finished goods from point of origin to point of consumption
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logistics information system
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the link that connects all of the logistics functions of the supply chain
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supply chain team
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an entire group of individuals who orchestrate the movement of goods services and information from the source to the consumer
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mass customization (build to order)
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a production method whereby products are not made until an order is placed by the customer; products are made according to customer specifications
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just-in-time production
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a process that redefines and simplifies manufacturing by reducing inventory levels and delivering raw materials at the precise time they are needed on the production line
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order processing system
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a system whereby orders are entered into the supply chain and filled
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electronic data interchange
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information technology that replaces the paper documents that usually accompany business transactions, such as purchase orders and invoices, with electronic transmission of the needed information to reduce inventory levels, improve cash flow, streamline operations, and increase the speed and accuracy of information transmission
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inventory control system
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a method of developing and maintaining an adequate assortment of materials or products to meet a manufacturers or a customer's demand
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materials requirement planning (materials management)
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an inventory control system that manages the replenishment of raw materials, supplies, and components from the supplier to the manufacturer
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distribution resource planning
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an inventory control system that manages the replenishment of goods from the manufacturer to the final consumer
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materials handling system
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a method of moving inventory into, within, and out of the warehouse
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outsourcing ( contract logistics )
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a manufacturer's or suppliers use of an independent third party to manage an entire function of the logistics system, such as transportation, warehousing, or order processing
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electronic distribution
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a distribution technique that includes any kind of product or service that can be distributed electronically, whether over traditional forms such as fiber-optic cable or through satellite transmission of electronic signals
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promotion
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communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response
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promotional strategy
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a plan for the optimal use of the elements of promotion: advertising, public relations, personal selling, and sales promotion
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competitive advantage
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the unique set of features of a company and its products that are perceived by the target market as significant and superior to the competition
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promotional mix
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the combination of promotional tools - including advertising, public relations, personal selling, and sales promotion - used to reach the target market and fulfill the organizations overall goals
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advertising
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impersonal, one way mass communication about a product or organization that is paid for by a marketer
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public relations
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the marketing function that evaluates public attitudes, identifies areas within the organization the public may be interested in, and executes a program of action to earn public understanding and acceptance
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publicity
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public information about a company, product, serice, or issues, appearing in the mass media as news item
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sales promotion
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marketing activities - other than personal selling, advertising, and public relations - that stimulate consumer buying and dealer effectiveness
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personal selling
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a purchase situation involving a personal, paid for communication between two people in an attempt to influence each other
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communication
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the process by which meanings are exchanged or shared through a common set of symbols
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interpersonal communication
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direct, face to face communication between two or more people
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mass communication
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the communication of a concept or message to large audiences
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sender
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the originator of the message in the communication process
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encoding
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the conversion of a sender's ideas, and thoughts into a message, usually in the form of words or signs
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channel
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a medium of communication - such as a voice, radio, or newspaper - for transmitting a message
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noise
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anything that interferes with, distorts, or slows down the transmission of information
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receiver
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the person who decodes a message
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decoding
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interpretation of the language and symbols sent by the source through a channel
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feeback
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the receiver's response to a message
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corporate blogs
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blogs that are sponsored by a company or one of its brands and maintained by one or more of the company's employees
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non-corporate blogs
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independent blogs that are not associated with the marketing efforts of any particular company or brand
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AIDA concept
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a model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message; the acronym stands for attention, interest, desire, and action
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push strategy
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a marketing strategy that uses aggressive personal selling and trade advertising to convince a wholesaler or a retailer to carry and sell particular merchandise
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pull strategy
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a marketing strategy that stimulates consumer demand to obtain product distribution
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integrated marketing communications
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the careful coordination of all promotional messages for a product or a service to assure the consistency of messages at every contact point where a company meets the consumer
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price
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that which is given up in an exchange to acquire a good or service
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revenue
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the price charged to customers multiplied by the number of units sold
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profit
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revenue minus expenses
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Return on investment
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net profit after taxes divided by total assets
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market share
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a company's product sales as a perentage of total sales for that industry
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status quo pricing
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a pricing objective that maintains existing prices or meets the competitions prices
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demand
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the quantity of a product that will be sold in the market at various prices for a specified period
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supply
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the quantity of a product that will be offered to the market by a supplier at various prices for a specified period
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price equilibrium
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the price at which demand and supply are equal
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elasticity of demand
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consumers' responsiveness or sensitivity to changes in price
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elastic demand
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a situation in which consumer demand is sensitive to changes in pricec
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inelastic demand
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a situation in which an increase or a decrease in price will not significantly affect demand for the product
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unitary elasticity
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a situation in which total revenue remains the same when prices change
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yield management systems
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a technique for adjusting prices that uses complex mathematical software to profitably fill unused capacity by discounting early purchases, limiting early sales at these discounted prices, and overbooking capacity
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variable cost
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a cost that varies with changes in the level of output
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fixed cost
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a cost that does not change as output is increase or decreased
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average variable cost (AVC)
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total variable costs divided by quantity of output
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average total coast (ATC)
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total osts divided by quantity of output
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marginal cost (MC)
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the change in total costs associated with a one-unit change in output
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markup pricing
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the cost of buying the product from the producer, plus amounts for profit and for expenses not otherwise accounted for
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keystoning
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the practice of marking up prices by 100 percent or doubling the cost
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profit maximization
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a method of setting prices that occurs when marginal revenue equals marginal cost
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marginal revenue
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the extra revenue associated with selling an extra unit of output or the change in total revenue with a one unit change in output
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break even analysis
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a method of determining what sales volume must be reached before total revenue equals total costs
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selling against the brand
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stocking well known branded items at high prices in order to sell store brands at discounted prices
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extranet
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a private electronic network that links a company with its suppliers and customers
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prestige pricing
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charging a high price to help promote a high quality image
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price strategy
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a basic long-term pricing framework that establishes the initial price for a product and the intended direction for price movements over the product life cycle
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price skimming
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a pricing policy whereby a firm charges a high introductory price, often coupled with heavy promotion
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penetration pricing
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a pricing policy whereby a firm charges a relatively low price for a product initially as a way to reach the mass market
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status quo pricing
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charging a price identical to or very close to the competitions price
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unfair trade practice acts
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laws that prohibit wholesalers and retailers from selling below cost
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price fixing
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an agreement between two or more firms on the price they will charge for a product
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predatory pricing
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the practice of charging a very low price for a product with the intent of driving competitors out of business or out of a market
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base price
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the general price level at which the company expects to sell the good or service
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quantity discount
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a price reduction offered to buyers buying in multiple units or above a specified dollar amount
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cumulative quantity discount
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a deduction from list price that applies to the buyers total purchases made during a specific period
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noncumulative quantity discount
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a deduction from list price that applies to a single order rather than to the total volume of orders placed during a certain period
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cash discount
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a price reduction offered to a consumer, an industrial user, or a marketing intermediary in return for prompt payment of a bill
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functional discount (trade discount)
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a discount to wholesalers and retailers for performing channel functions
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seasonal discount
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a price reduction for buying merchandise out of season
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promotional allowance (trade allowance)
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a payment to a dealer for promoting the manufacturer's products
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rebate
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a cash refund given for the purchase of a product during a specific period
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value based pricing
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setting the price at a level that seems to the customer to be a good price compared to the price of other options
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FOB origin pricing
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a price tactic that requires the buyer to absorb the freight costs from the shipping point (free on board)
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uniform delivered pricing
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a price tactic in which the seller pays the actual freight charges and bills every purchaser an identical, flat freight charge
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zone pricing
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a modification of uniform delivered pricing that divides the US (or market) into segments or zones and charges a flat freight rate to all customers in a given zone
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freight absorption pricing
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a price tactic in which the seller pays all or part of the actual freight charges and does not pass them on to the buyer
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basing point pricing
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a price tactic that charges freight from a given (basing) point, regardless of the city from which the goods are shipped
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single price tactic
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a price tactic that offers all goods and services at the same price (or perhaps two or three prices)
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flexible pricing (variable pricing)
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a price tactic in which different customers pay different prices for essentially the same merchandise bought in equal quantities
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price lining
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the practice of offering a product line with several items at specific price points
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leader pricing (loss leader pricing)
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a price tactic in which a product is sold near or even below cost in the hope that shoppers will buy other items once they are in the store
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bait pricing
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a price tactic that tries to get consumers into a store through false or misleading price advertising and then uses high pressure selling to persuade consumers to buy more expensive merchandise
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odd even pricing
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a price tactic that uses odd numbered prices to cannot bargains and even numbered pries to imply quality
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price bundling
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marketing two or more products in a single package for a special price
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unbundling
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reducing the bundle of services that comes with the basic product
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two part pricing
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a price tactic that charges two separate amounts to consumer a single good or service
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consumer penalty
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an extra fee paid by the consumer for violating the terms of the purchase agreement
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product line pricing
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setting prices for an entire line of products
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joint costs
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costs that are shared in the manufacturing and marketing of several products in a product line
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delayed quotation pricing
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a price tactic used for industrial installations and many accessory items in which a firm price is not set until the item is either finished or delivered
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escalator pricing
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a price tactic in which the final selling price reflects cost increases incurred between the time the order is placed and the time delivery is made
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price shading
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the use of discounts by salespeople to increase demand for one or more products in a line
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ethics
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the moral principles or values that generally govern the conduct of an individual or a group
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morals
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the rules people develop as a result of cultural values and norms
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code of ethics
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a guideline to help marketing managers and other employees make better decisions
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corporate social responsibility
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business's concern for society's welfare
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sustainability
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the idea that socially responsible companies will outperform their peers by focusing on the world's social problems and viewing them as opportunities to build profits and help the world at the same time
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pyramid of corporate social responsibility
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a model that suggests corporate social responsibility is composed of economics, legal, ethical, and philanthropic responsibilities and that the firm's economic performance supports the entire structure
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green marketing
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the development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment.
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