Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
100 Cards in this Set
- Front
- Back
|
Explain market segmentation
|
The process of dividing a large group of consumers into subgroups based in specific characteristics and common needs.
|
|
|
What is the major difference between consumer and business markets?
|
Individuals or socially related groups who purchase products for personal consumption, and Companies and organizations that purchase products for the operation of business or the completion of a new business.
|
|
|
What is mass marketing?
|
Directs a company’s marketing mix at a large and heterogeneous group of consumers.
|
|
|
What is psychographics?
|
People’s interests and values
|
|
|
List the steps in identifying potential market segments.
|
•Number of potential customers
•Customers’ interest in the product or service and other mix elements •Amount of money customers have available to make the purchase •Business’s ability to communicate with and distribute the products to consumers. |
|
|
What is indirect competition? Give an example.
|
Occurs when a business competes with other companies offering products that are not in the same product category but satisfy similar customer needs.
Example: Going to buy one item but spend money on other product |
|
|
What are the benefits of competition?
|
•One benefit is that the it keeps prices down.
•A second benefit of competition is that it encourages improvements in products with the addition of unique features and benefits. •Third, to match their competition, businesses must continually search for new product ideas. •Finally, competition offers consumers the benefits of a wide variety of products from which to choose |
|
|
What is market potential?
|
It‘s the total revenue that can be obtained from the market segment.
|
|
|
Positioning strategies usually revolve around three major areas. Name them.
|
•Consumer Perception
•Competition •Business Environment |
|
|
Give 2 reasons why non-price competition may occur.
|
It occurs when businesses decided to emphasize factors of their marketing mix other than price. Also effective when the market values something other than price.
|
|
|
Benefit Segmentation
|
divides consumers into groups depending on specific vales or benefits they expect or require from the use of a product or service.
|
|
|
Demographics
|
the descriptive characteristics of a market such as age, gender, race, income, and educational level.
|
|
|
Market Opportunity
|
An identified market with excellent potential based on careful research.
|
|
|
Market Share
|
the portion of the total market potential that each company expects in relation to its competitors.
|
|
|
Price Competition
|
rivalry among businesses on the basis of price or value.
|
|
|
Can every business complete all of its activities using the Internet? Why or why not?
|
No, everyone has access to the internet.
|
|
|
What is a banner as it relates to advertising?
|
It broadcast the product and business to the consumers.
|
|
|
What are the stages of e-commerce development?
|
•Information Stage
•Interaction Stage •Full Integration Stage |
|
|
List 2 disadvantages of e-commerce.
|
Customers who placed orders with new businesses often found that products were not as described on the web site, not delivered on time, or damaged when received. Errors were made in order processing. Customer service was difficult to obtain. Returning an unwanted or defective product was often difficult.
|
|
|
When was the Internet first developed?
|
It was first developed in the 1950s as a military research tool
|
|
|
Today’s consumers are most likely to use the Internet to do what?
|
•Communicating
•Gathering Information •Improving Operations |
|
|
What are the four primary promotion methods used by companies involved in e-commerce?
|
•Online Advertising
•Web Sponsorship •Priority Placement •Information Web Sites |
|
|
About how many people worldwide can access the Internet for business or personal use?
|
One billon people
|
|
|
Briefly describe the function of online shopping carts
|
They are used to store items the customer is about to purchase online.
Make quick payment and safely make your purchase |
|
|
Explain the difference between the terms reach and frequency.
|
Reach is the total number of people who see an ad, and frequency is the number of times a member of the target audience is exposed to the advertising message.
|
|
|
Brick and Click Businesses
|
companies that combine traditional businesses operation with the use of the internet.
|
|
|
Virtual Marketing
|
the completion of marketing activities primarily through the use of computer and internet technologies.
|
|
|
Rich Media
|
a variety of digital technologies that provide interactive multimedia experiences for users.
|
|
|
Business Blog
|
regularly updated online journals written by company experts
|
|
|
Pop-Up
|
an advertisement that opens in a new window when a web page is being viewed
|
|
|
Define the term buying behavior and give an example.
|
The decision processes and actions of consumers as they buy services and products. Example: Shopping sales
|
|
|
Marketing plans are developed in three stages. What are they?
|
•Planning to Plan
•Plan Require Information •Gathering Needed Information |
|
|
What is a positioning statement?
|
It’s a specific description of the unique qualities of the marketing mix that makes it different from the competition and satisfying to the target market.
|
|
|
What does a market include?
|
All consumers
|
|
|
What is the most important part of the product marketing mix element?
|
Promotion
|
|
|
What is an image? Why is it important for a business to have one?
|
A unique, memorable quality of a brand, it’s important to have one because some brands have an image of quality, others of low price, and still others of innovation.
|
|
|
List the stages of the product life cycle.
|
•Introduction
•Growth •Maturity •Decline |
|
|
What happens to a product during the maturity stage?
|
Sales peak and profits begin to decline, consumers are aware of the product and either buys it or not based on their needs.
|
|
|
List all of the types of goods. Explain each.
|
•Convenience Goods: Wants to make many of their purchases as conveniently as possible.
•Staple Goods: Products that are regular, routine purchases. •Impulse Goods: Items purchased on the spur of the moment without advance planning. •Emergency Goods: Products or services that are purchased as a result of an urgent need. •Shopping Goods: Most of major purchases made by consumers •Attribute-Base Goods: When a variety of differences exist and the consumer considers a number of factors to determine the best value. •Price-Based Goods: Products that consumers believe are similar but have significant price differences. •Specialty Goods: Products that have this strong brand loyalty •Unsought Goods: Those products that consumers don’t want to buy |
|
|
What is the SWOT analysis?
|
•Strength
•Weaknesses •Opportunities •Threats |
|
|
Define the term buying behavior and give an example.
|
The decision processes and actions of consumers as they buy services and products. Example: Shopping sales
|
|
|
Marketing plans are developed in three stages. What are they?
|
•Planning to Plan
•Plan Require Information •Gathering Needed Information |
|
|
What is a positioning statement?
|
It’s a specific description of the unique qualities of the marketing mix that makes it different from the competition and satisfying to the target market.
|
|
|
What does a market include?
|
All consumers
|
|
|
5. What is the most important part of the product marketing mix element?
|
Promotion
|
|
|
What is an image? Why is it important for a business to have one?
|
A unique, memorable quality of a brand, it’s important to have one because some brands have an image of quality, others of low price, and still others of innovation.
|
|
|
List the stages of the product life cycle.
|
•Introduction
•Growth •Maturity •Decline |
|
|
What happens to a product during the maturity stage?
|
Sales peak and profits begin to decline, consumers are aware of the product and either buys it or not based on their needs.
|
|
|
List all of the types of goods. Explain each.
|
•Convenience Goods: Wants to make many of their purchases as conveniently as possible.
•Staple Goods: Products that are regular, routine purchases. •Impulse Goods: Items purchased on the spur of the moment without advance planning. •Emergency Goods: Products or services that are purchased as a result of an urgent need. •Shopping Goods: Most of major purchases made by consumers •Attribute-Base Goods: When a variety of differences exist and the consumer considers a number of factors to determine the best value. •Price-Based Goods: Products that consumers believe are similar but have significant price differences. •Specialty Goods: Products that have this strong brand loyalty •Unsought Goods: Those products that consumers don’t want to buy |
|
|
What is the SWOT analysis?
|
•Strength
•Weaknesses •Opportunities •Threats |
|
|
Brand
|
a unique name, symbol, or design that identifies a product, service, or company.
|
|
|
Warranty
|
a specific written statement of the seller’s responsibilities related to the guarantee.
|
|
|
Product Life Cycle
|
identifies the stage a product goes through from time it enters the market until it is no longer sold.
|
|
|
Staple Good
|
products that are regular, routine purchases.
|
|
|
Mission
|
the nature of business or the reasons the business exists.
|
|
|
What is the most important part of a product?
|
For marketers to realize that consumers view product differently than the business that develops it.
|
|
|
What are component parts?
|
It‘s incorporated into the products that a business makes. However, component parts have been either partially or total processes by another company.
Example: a computer manufacturer will buy computer chips from a chip manufacturer. |
|
|
List the steps in new product development.
|
•Idea Development
•Idea Screening •Strategy Development •Financial Analysis •Product Development and Testing •Product Marketing |
|
|
On average what percent of new products fail? What do you think the reason for this is?
|
60% because every business is ran by consumers and if the marketing mix is not strong or effective enough the new product will fail.
|
|
|
What are the most important considerations in planning the product mix?
|
•Product Line
•Product Assortments •Packaging •Brand Development |
|
|
Explain direct demand
|
The quantity of a product or service needed to meet the needs of the consumer
|
|
|
How long can a company call a product “new”? Why
|
Only six months after the introduction or change of a product. A new product must be entirely new or changed in an important and noticeable way. Many companies have misused the term new for products that really weren’t new.
|
|
|
What are the three important roles for marketers in the product development process?
|
•The Role of Marketing
•Marketing Activities in Product Development •The Product Planning Function |
|
|
Product design moves through three levels. What are they?
|
•Basic Product: the most important part of the product is the basic physical product. It is a readily recognizable product in its simplest form.
•Enhanced Product: the basic product responds to an important need of consumers. However; we know that consumers are usually trying to satisfy several needs with one purchase. •Extended Product: businesses can improve the satisfaction provided by a product in ways other than product enhancements. Customer satisfaction can be improved if the business offers services, guarantees, information on effective use of the product, and even additional products that improve the use of the primary product. |
|
|
What is the goal of a business in using branding?
|
The goal is to gain customer recognition of the brand in order to increase the likelihood of sale. Businesses want brands that convey a particular image and that can be recalled to encourage repeat purchases.
|
|
|
Product
|
anything offered to a market by the business to satisfy needs, including physical products, services, and ideas.
|
|
|
Trademark:
|
the legal protection of the words or symbols for use by a company
|
|
|
Consumer Markets
|
individuals or socially related groups who purchase products for personal consumption.
|
|
|
Derived Demand
|
the quantity of a product or service needed by a business in order to operate at a level that will meet the demand of its customers.
|
|
|
Copyright
|
the exclusive right to make copies, license, and otherwise exploit a literary, musical, or artistic work, whether printed, audio, video, etc.
|
|
|
Identify four reasons for the growth of service employment in the United States.
|
•Prosperity
•Automation •Complexity •Foreign Competition |
|
|
What is the most important difference between goods and services?
|
Goods are the products that the company sells to consumers. Service is an activity that is intangible, exchanged directly from producer to consumer, and consumed at the time of production.
|
|
|
About how many jobs in the United States can be classified as service jobs?
|
A large amount
|
|
|
What are the three types of service standards used to evaluate service quality?
|
•Competition
•Performance Standards •Consumer Satisfaction |
|
|
What is the most effective promotional strategy for services?
|
Endorsements are the most effective promotional strategy
|
|
|
What are the two types of markets for services?
|
Business consumers and individual consumers
|
|
|
Discretionary Income
|
the amount of income left after paying basic living expenses and taxes.
|
|
|
Heterogeneous
|
differences between services
|
|
|
Service quality
|
the degree to which the service meets customers’ needs and expectations.
|
|
|
Labor intensiveness
|
the amount of human effort required to deliver a service.
|
|
|
Endorsement
|
an advertisement in which satisfied user publicly expresses approval of a product or service.
|
|
|
Explain just in time supply.
|
That the inventory level is kept low and supplied by supply chain members just as it is needed.
|
|
|
In business to business marketing who specifies the conditions of the sale?
|
Consumers
|
|
|
What is the purpose of a merchandise plan?
|
It identifies the types, assortments, prices, and quantities of products that will be stocked by the business for a specific period of time.
|
|
|
Explain derived demand.
|
It’s the quantity of a product or service needed to meet the needs of the consumer.
|
|
|
What are the five major categories of businesses?
|
•Derived Demand
•Purchase Volume •Similar Purchases •Number of Businesses •Buyer/Seller Relationship |
|
|
What type of information is typically included in inventory records?
|
A physical inventory system determines the amount of product on hand by visually inspecting and counting the items. A physical inventory count is conducted on a regular basis, often even few months or half-year. A perpetual inventory system determines the amount of a product on hand by maintain records on purchases and sales. Daily inventory levels determined through the perpetual systems are maintained on computers.
|
|
|
Capital goods
|
the building and major equipment of businesses
|
|
|
Purchase specifications
|
detained requirements for construction or performance of a product
|
|
|
Reorder point
|
level of inventory needed to meet the usage needs of the business until the product can be resupplied.
|
|
|
Business-to-business marketing
|
exchange of products and services between businesses.
|
|
|
Give two examples of non-store retailing
|
Door-To-Door Selling & Catalog
|
|
|
What does distribution have the most direct effect on?
|
The Marketing Plan
|
|
|
What are the steps in the physical distribution planning process?
|
Moving the product
-Railroad -Trucks -Ships and Boats -Airplanes -Pipelines -Combing Methods |
|
|
Name the five typical wholesaling activities.
|
•Buying
•Selling •Transporting •Storing •Financing |
|
|
What is inventory shrinkage?
|
It’s a loss of products due to theft, fraud, negligence, or error.
|
|
|
Distribution function
|
determining the best methods and procedures to use so that prospective customers can locate, obtain, and use a business’s product and services.
|
|
|
Economic utility
|
the amount of satisfaction a consumer receives from the consumption of a particular product or service.
|
|
|
Wholesalers
|
companies that assist with distribution activities between businesses.
|
|
|
Atmospherics
|
elements of the shopping environment that appeal to customers, attract them to a store, and encourage them to buy.
|
