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122 Cards in this Set
- Front
- Back
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What is Inertia to Passion?
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An indication of the levels of consumer involvement. Less involvement equals less time making decisions (inertia). More time spent making decisions (Passion)
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What is the criteria for a market?
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Customers and potential customers who share a common need that can be satisfied by a specific product and are willing, able, and have the authority to make the exchange
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What are the aspects of Utility?
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The usefulness or benefit customers receive from a product that makes consumers feel they are buying more than a product, but a lifestyle. Includes time, place, possession, form, and info
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What is time utility?
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The benefit marketing provides by storing products until they are needed - Ex. a woman renting a wedding dress
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What is place utility?
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Making products available where customers want them - Ex. a dress sewn in New York is no use to a woman in Kansas unless shipped on time
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What is possession utility?
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Allowing customers to own, use, and enjoy a product and sometimes when you otherwise wouldn't be able to - Ex. Best buy selling a TV on a payment plan
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What is form Utility?
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A company adds value by transforming raw materials into a finished good
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What is information utility?
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Comes in the form of informed staff who are knowledgeable about the product and can inform you about the product you are interested in
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What is value?
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The benefits a customer receives from buying a good or service and there is more value if the benefits outweigh the costs
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What are the components of value?
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Image, personal, services, product. Monetary cost, energy cost, psychic cost, all yield total customer cost and together they all yield customer delivered value
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What is the Societal Marketing Orientation (New Era)?
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Has an emphasis on satisfying the broader needs of society (employees, stakeholders, etc.) Similar to marketing orientation, but also builds long-term relationships, not just satisfies one time needs
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What is the Marketing (Customer) Orientation?
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A company that practices the marketing concept by determining and satisfying customer needs and wants at a profit
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What is the Selling Orientation?
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Getting the product out the door, reducing inventories, product supply is greater than the demand. Focuses on one time needs and does not establish long-term relationships
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What is the Competitor Orientation?
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The focus of this orientation is on competitor intelligence. Learning and reacting to what the competition is doing
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What is the Production Orientation?
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Emphasis is on making the product better. Production efficiencies are best when demand surpasses supply
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What is marketing myopia?
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Being short-sided/limited. A company wants to avoid being myopic meaning too narrow with their products
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What is a SWOT analysis?
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The second step in strategic planning in which internal and external environments are assessed by strengths, weaknesses, opportunities, and threats
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What are SWOT interactions?
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Leverage = strength + opportunities
Vulnerability = strengths + threats Constraint = weaknesses + opportunities Problem = weaknesses + threats |
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What is a portfolio analysis?
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The BCG matrix grid that analyzes the stages of a products life including star, dog, question mark, and cash cow
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What is the BCG Growth Matrix?
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Analyzes the potential for products to generate cash for the firm. Tells managers which products should grow (BCG stands for Boston Consulting Group)
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What does the Star represent in the BCG Growth Matrix?
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Represents high industry growth and high relative market. Requires much investment, generates high revenues. Build strategy to increase market share
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What is the Cash Cow in the BCG Growth Matrix?
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Owns the majority of the market. Low industry growth, high relative market share. Requires less investment and generates high revenues. Hold strategy to preserve market share
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What is the Dog in the BCG Growth Matrix?
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Sucks. Low market share and low market growth. Divest strategy to get rids of SBUs as quickly as possible
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What is the Question Mark in the BCG Growth Matrix?
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Low relative market share, but high market growth. Requires much investment and generates relatively low revenues. Harvest strategy to focus on short term profits
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What is ethnocentrism?
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The tendency to prefer products or people of one's own culture. The norms/products of one's culture are perceived to be superior
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What are demographics?
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Statistics that measure observable aspects of a population including size, age, gender, ethnic group, income, education, occupation and family structure
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What are social norms?
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Specific rules dictating what is right or wrong, acceptable or unacceptable in society
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What are cultural values?
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A society's deeply held beliefs about the right and wrong way to live
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What is product standardization?
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Advocates of product standardization argue that the world has become so small that basic needs and wants are the same everywhere. Helps create global brands such as Coca Cola
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What is localization?
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The world is still very different and companies need to tailor products and promotional messages to local environments
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What is an independent variable?
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Manipulated by researcher, controlled or selected by the experimenter to determine its relationship to an observed phenomenon
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What is a dependent variable?
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Measured by researcher, not directly controlled and is the variable that is observed
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What are the advantages of primary data collection techniques?
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Respondent feels anonymous, low cost, good for ongoing research
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What are the disadvantages of primary data collection techniques?
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Take long to be returned, low rate of response or may not be returned, inflexible, length is limited by respondents interest in the topic
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What is data mining?
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The process which analysts sift through data to identify unique patterns of behavior among different customer groups
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What is CRM?
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Customer Relationship Management - a business strategy designed to optimize profitability, revenue, and customer satisfaction
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What is segmentation process?
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Dividing a larger market into smaller pieces based on one or more meaningfully shared characteristics
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What is the concentrated segmentation strategy?
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Only focus on one segment, most companies start with this. Focuses efforts on offering one ore more products to a single segment
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What is the differentiated segmentation strategy?
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Different product offerings for each segment. Developing one ore more products for each of the several distinct customer groups and making sure these offerings are kept separate in the marketplace
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What is the undifferentiated segmentation strategy?
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One strategy for everyone, mass marketing. Appealing to a broad spectrum of people
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What is the decision making process?
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Step 1: Problem recognition - consumer sees significant differences between his current state of affairs and some desired affairs. Step 2: Information Search - consumer searches for appropriate info to make reasonable decision. Step 3: Evaluate Alternatives - evaluate by what is important to you such as price, weight, design, etc. Step 4: Product Choice - choose and make the purchase based on brand loyalty heuristics, country of origin heuristics. Step 5: Postpurchase evaluation - overall feelings of satisfaction or disatisfaction
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What is extended problem solving?
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High involvement, usually for expensive items like houses or cars
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What is limited problem solving?
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Medium involvement for items like jeans
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What is routine/habitual problem solving?
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Low involvement, habit brand purchases for items like milk or newpapers
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What is an opinion leader?
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A person who influences other's attitudes or behaviors. One generally trusts and knows opinion leaders, they will tell you both the positive and negatives about a product
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What is stimulus generalization?
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Existing S-R (Stimulus-Response) relationship generalizes to a new (similar) stimulus - generalizes the relationship to another stimuli
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What are "me too products"?
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A strategy in which you make your product look very similar to one that is already produced by other companies and is already on the market - known as the halo effect
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What is an Evoked Set?
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A small set of choices that you would even consider, the shortlist of potential products that the consumer has to choose from within the purchasing decision making process - like which bike to choose
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What is the Elaboration LIkelihood Model (ELM)?
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How attitudes were formed and how change was developed and distinguished between two routes of persuasion. Central route - subject considers the idea logically. Peripheral route - audience uses preexisting ideas and superficial qualities to be persuaded
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What is new task buying?
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Expensive, high-risk, and extensive decision making like buying a jet
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What is a modified rebuy?
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A buying situation classification used by business buyers to categorize previously made purchases that involves some changes and that requires limited decision making - modification to products like buying a new truck
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What is a straight rebuy?
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A buying situation in which business buyers make routine purchases that require minimal decision making, consistent with habitual decision making
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What is crowdsourcing?
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A practice in which firms outsource marketing activities (such as selecting an advertisement) to a community of users - harness crowds and source solution to business problems
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What is outsourcing?
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The business buying process of obtaining outside vendors to provide goods or services that otherwise might be supplied in house
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What is a product?
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Anything tangible or intangible that through the exchange process, satisfies consumer/business customer needs - there are emotions and feelings attached to products
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What are core products?
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Benefits product will provide. Ex. car = transportation
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What is the actual product?
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Physical good or delivered service. Ex. the car itself
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What is augmented product?
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The actual product + supporting features. Ex. car warranty for 3 years or $36,000
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What is a convenience consumer product?
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Consumer good or product that is usually low priced, widely available, and purchased frequently with minimal comparison and effort - staple items like milk
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What is a shopping consumer product?
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Products that take time and effort (high involvement) in selection, there is moderate brand loyalty, comparison shop, and limited problem solving - clothing, appliances, services, etc.
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What are specialty consumer products?
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Unique characteristics and is important to the buyer and for which they will devote significant effort to acquire. Brand loyalty, durable good (high involvement) and important - Rolex, car, other luxury goods
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What is an unsought consumer product?
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The consumer has little awareness or interest of the product until the need for it arises, requires much advertising and personal selling - retirement plans, life insurance, burial plots, etc.
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What is a durable good?
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Goods with long-term benefits and high-involvement - cars and appliances
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What is product adoption?
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Process in which consumer or business begins to buy and use goods, services, or ideas - Stages include awareness, interest, evaluation, trail, confirmation
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What are the categories of adopters?
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Innovators, Early adopters, Early majority, late majority, and laggard
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What is the product life cycle?
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Explains how products change over time - introduction stage, growth stage, maturity stage, decline stage
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What is brand equity?
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The worth of a company's brand name in comparison to others in the same market
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What are characteristics of a service?
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Intangible - cant see it. Perishable - cant save a service for later time. Inseparable - manufactured and consumed at the same time. Variable - service can change or vary
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What is gap analysis and satisfaction?
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A measurement approach that gauges the difference between a customer's expectations of service quality and what actually occurs. By identifying specific places in the service system where there is a gap between what customers except and the service they received - used to get a handle on what needs to improve
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What are the functions of a distribution channel?
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Facilitates distribution or a product to the final customer, provides time, space, and ownership utility, but not form, increases efficiency from manufacturers to large number of customers, transportation and storage functions, communication and transactions, breaks bulk, creates assortment
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What is a direct distribution channel?
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Channel consists of a producer and a customer
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What is an indirect distribution channel?
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One or more channel intermediaries, such as wholesalers, agents, brokers, and retailers who help move the product to the consumer or business user
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What is a consumer channel?
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Direct from manufacturer to consumer and Indirect where anybody in between such as a wholesaler or retailer sells to consumer
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What is a B2B distribution channel?
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Direct is manufacturer to business, Indirect uses intermediaries such as industrial distributors to business customers
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How is internet used as a distribution channel?
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Eliminates layers of channels of distribution, allows you to receive/order products online, communication of the supply chain via internet, knowledge management
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What is a channel leader?
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Dominant firm that controls channels, have some form of power relative to other members of the channel
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What is channel power?
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Gains legitimate power when it has legal authority to call shots, gains economic power when it has ability to control resources, has a reward or coercive power if it engages in exclusive distribution and has the ability to give profitable products and take them away from channel intermediaries
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What is price?
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A value customers give up or exchange to obtain the desired product, may be in the form of anything that has value to the other party such as goods, services, or favors - opportunity cost is the cost of the things you give up
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What is a BE analysis?
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How many units of the product must be sold at a certain price to break even. Total fixed costs/unit selling price - unit variable costs
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What is psychological pricing?
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Consumers base their perceptions of price on what they perceive to be fair - reference price based on buyer's expectations, internal reference prices, and price-quality references
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What is odd/even pricing?
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Customers would rather see prices in odd numbers rather than even because we think they are lower ($4.99) Prestige products do not use this
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What is price lining?
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Items in a product line sell at different prices - cameras priced from $25, $50, $75 and no prices in between
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What is promotional mix?
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Refers to the communication elements that the marketer controls. Involves multiple elements such as advertising, personal selling, sales promotion, publicity and PR, direct marketing, and multi-level marketing
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What is the Top-Down approach?
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Requires top management to establish the overall amount of money that the organization allocates for promotion activities
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What is the Bottom-Up approach?
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Start at the beginning by identifying promotion goals and allocate enough money to accomplish them
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What is competitive parity?
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Looking at what the competition is spending then spending the same
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What is public relations?
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Attempts to influence the way consumers, stockholders, and other publics feel about companies, brands, politicians, celebrities, or other organizations
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What is a press release?
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Information distributed to media by organizations about its activities and intended to appear as publicity
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What is personal selling?
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Direct interaction between a company representative and a customer to inform a client about a good or service to get a sale
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What is transactional selling?
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A form of personal selling that focuses on making an immediate sale with little or no attempt to develop a relationship with the customer
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What is relationship selling?
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A form of personal selling that involves securing, developing, and maintaining long-term relationships with profitable customers
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What is a push strategy?
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The company wants to move its products by convincing channel members to offer them and entice their customers to select these items - it pushes them through the channel. Assumes that if the customers see the products on store shelves, they will be motivated to make a trial purchase - promotion efforts will push products from producers to consumers
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What is a pull strategy?
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Counting on the customers to demand its products, popularity will convince retailers to respond by stocking these items on their shelves- uses media advertising and consumer sales
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What is IMC?
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Integrated Marketing Communications - a process for managing customer relationships that drive brand value primarily through communication efforts
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What is buzz?
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Made by the public
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What is hype?
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Something a company or brand creates
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What is stealth marketing?
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You have no idea you are being marketed to
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What is guerilla marketing?
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Unexpected, unconventional, potentially interactive, and consumers are targeted in unexpected places
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What is viral marketing?
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Consumers passing a message along to other consumers, hopefully in an exponential form - high pass along rates seen through facebook, email, youtube, etc.
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What are QR codes?
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A quick response code - type of matrix barcode that can be scanned by smart phones - tracking dominoes pizza order in class
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What is a Sales Manager Role?
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Process of planning, implementing, and controlling personal selling functions - prospecting, create sales force strategy, recruiting and training, evaluating sales force, compensation plans, setting objectives
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What is prospecting?
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Who to pursue on a business level as a consumer
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What is a straight commission compensation plan?
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Does not reward performance, reduces pushy sales people, likely to facilitate transactional selling
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What is a commission withdraw compensation plan?
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Get paid weekly, owe company money
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What is a straight salary compensation plan?
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Get paid on regular basis, relationship selling
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What is a quota bonus compensation plan?
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Meet quota and receive a bonus
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What is a combination compensation plan?
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Most companies do this - involves two or more compensation plans
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What is corporate social responsibility?
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A new era corporate orientation, improve company image through different activities by giving back to the community using philanthropic and environmental approaches
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What is greenwashing?
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The act of misleading consumers regarding the environmental practices of a company or the environmental benefits of a product or service
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What is the sin of hidden trade off?
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A claim suggesting a product is green based off a narrow set of attributes without attention to other important environmental issues
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What is sin of no proof?
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An environmental claim that cannot be substantiated by easily accessible supporting information or by a reliable third party certification
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What is the sin of vagueness?
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A claim this is so poorly defined or broad that its real meaning is likely to be misunderstood by the consumer
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What is the sin of irrelevance?
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An environmental claim that may be truthful but is unimportant or helpful
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What is the sin of lesser of two evils?
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Claim that may be true within the product category, but that risks distracting the consumer from the greater environmental impacts of the category as a whole
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What is the sin of fibbing?
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Environmental claims that are simply false
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What is the sin of worshipping false labels?
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A product that, through either words or images, gives the impression of third party endorsement where no such endorsement exists
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What are the benefits for consumers for technology in consumption?
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Consumers check all the suggested low carbon emission products, indicate that they have bought a suggested product and collected points, share product purchase over the internet, send a signal about their buying habits, use this as an extension of self/self-enhancement, and get info right away
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What are consumer rights?
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Right to safety - products should not harm their users. Right to be informed - complete and truthful info for consumers to make product choices. Right to choose - should have a variety of options for products from different companies. Right to be heard - consumers can voice concerns and complaints about the product in order to have the issue handled efficiently
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What are ethics?
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Advertising is manipulative - causes people to behave like robots and do things against their will. Advertising is deceptive and untruthful - ads falsely represent the product and consumers believe false info. Corrective advertising - message that clarifies or qualifies previous claims. Puffery - claims superiority that neither sponsors nor critics of the ad can prove are true or untrue.
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What is global branding?
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Widening business horizons to encompass the world in scanning for opportunity and threat - implements either standardization or localization
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What is BACN?
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Bland automated community notifications - we ask for these notifications such as deals from hotels or airlines
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What is spam?
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Pop ups that people hate!
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