Marketing Test 1

Front 1

The 5 C's of Pricing

Back 1

Customers, Costs, Competition, Channel members, Company objectives

Front 2

Price

Back 2

the overall sacrifice a customer is willing to make-money, time, energy-to acquire a specific product or service

Front 3

profit orientation

Back 3

a company objective that can be implemented by focusing on target profit pricing, maximizing profits, or target return pricing

Front 4

target profit pricing

Back 4

a pricing strategy implemented by firms when they have a particular profit goal as their overriding concern; uses price to stimulate a certain level of sales at a certain profit per unit

Front 5

maximizing profits

Back 5

a profit strategy that relies primarily on economic theory. If a firm can accurately specify a mathematical model that captures all the factors required to explain and predict sales and profits, it should be able to ID the price at which its profits are maximized

Front 6

target return pricing

Back 6

a pricing strategy implemented by firms less concerned with the absolute level of profits and more interested in the rate at which their profits are generated relative to their investments; designed to produce a specific return on investment, usually expressed as a percentage of sales

Front 7

sales orientation

Back 7

a company objective based on the belief that increasing sales will help the firm more than will increasing profits

Front 8

premium pricing

Back 8

a competitor-based pricing method by which the firm deliberately prices a product above the prices set for competing products to capture those consumers who always shop for the best or for whom price does not matter

Front 9

competitor orientation

Back 9

a company objective based on the premise that the firm should measure itself primarily against its competition

Front 10

competitive parity

Back 10

a firm's strategy of setting prices that are similar to its competitors

Front 11

status quo pricing

Back 11

a competitor-oriented strategy in which a firm changes prices only to meet those of competition

Front 12

customer orientation

Back 12

a company objective based on the premise that the firm should measure itself primarily according to whether it meets its customers' needs

Front 13

demand curve

Back 13

shows how many units of a product or service consumers will demand during a specific period at different prices

Front 14

prestige products or services

Back 14

those that consumers purchase for status rather than functionality

Front 15

price elasticity of demand

Back 15

measures how changes in a price affect the quantity of the product demanded; specifically, the ratio of the percentage change in quantity demanded to the percentage change in price

Front 16

elastic

Back 16

refers to a market for a product or service that is price sensitive; that is, relatively small changes in price will generate fairly large changes in the quantity demanded

Front 17

inelastic

Back 17

refers to a market for a product service that is price insensitive; that is, relatively small changes in price will not generate fairly large changes in quantity demanded

Front 18

income effect

Back 18

refers to the change in the quantity of a product demanded by consumers due to a change in their income

Front 19

cross-price elasticity

Back 19

the percentage change in demand for product A that occurs in response to a percentage change in price of product B

Front 20

complementary products

Back 20

products whose demand curves are positively related, such that they rise and fall together; a percentage increase in demand for one results in a percentage increase in demand for the other

Front 21

substitute products

Back 21

products for which changes in demand are negatively related; that is, a percentage increase in the quantity demanded for product A results in a percentage decrease in the quantity demanded for product B

Front 22

variable costs

Back 22

those costs, primarily labor and materials, that vary with production volume

Front 23

fixed costs

Back 23

those costs that remain essentially at the same level, regardless of any changes in the volume of production

Front 24

total cost

Back 24

the sum of the variable and fixed costs

Front 25

break-even analysis

Back 25

technique used to examine the relationships among cost, price, revenue, and profit over different levels of production and sales to determine the break-even point

Front 26

break-even point

Back 26

the point at which the number of units sold generates just enough revenue to equal the total costs, at this point, profits are zero

Front 27

contribution per unit

Back 27

equals the price less the variable cost per unit. Variable used to determine the break-even point in units

Front 28

monopoly

Back 28

one firm provides the product or service in a particular industry

Front 29

oligopolistic competition

Back 29

occurs when only a few firms dominate a market

Front 30

price war

Back 30

occurs when two or more firms compete primarily by lowering their prices

Front 31

predatory pricing

Back 31

a firm's practice of setting a very low price for one or more of its products with the intent to drive its competition out of business; illegal under both the Sherman Antitrust Act and the Federal Trade Commission Act

Front 32

monopolistic competition

Back 32

occurs when there are many firms that sell a closely related but not homogenous products, these products may be viewed as substitutes but are not perfect substitutes

Front 33

pure competition

Back 33

occurs when different companies sell commodity products that consumers view as able to be substituted; price is usually set according to the laws of supply and demand

Front 34

gray market

Back 34

employs irregular but not necessarily illegal methods; generally it legally circumvents authorized channels or distribution to sell gooeds at prices lower than those intended by the manufacturer

Front 35

everyday low pricing (EDLP)

Back 35

strategy used to emphasize the continuity of their retail prices at a level somewhere between the regular, nonsale price and the deep-discount sale prices their competitors may offer

Front 36

high/low pricing

Back 36

a pricing strategy that relies on the promotion of sales, during which prices are temporarily reduced to encourage purchases

Front 37

reference price

Back 37

the price against which buyers compare the actual selling price of a product and that facilitates their evaluation process

Front 38

market penetration strategy

Back 38

a growth strategy that employs the existing marketing mix and focuses the firm's efforts on existing customers

Front 39

experience curve effect

Back 39

refers to the drop in unit cost as the accumulated volume sold increases, as sales continue to grow, the costs continue to drop, allowing even further reductions in price

Front 40

price skimming

Back 40

a strategy of selling new product or service at a high price that innovators and early adopters are willing to pay in order to obtain it; after the high-price market segment become s saturated and sales begin to slow down, the firm generally lowers the price to capture the next most price sensitive segment

Front 41

loss leader pricing

Back 41

takes the tactic of leader pricing one step further by lowering the price below the store's cost

Front 42

bait-and-switch

Back 42

a deceptive practice of luring customers into the store with a very low advertised price on an item, only to aggressively pressure them into purchasing a higher-priced model

Front 43

price discrimination

Back 43

the practice of selling the same product to different resellers or to the ultimate consumer at different prices; some but not all forms of price discrimination are illegal

Front 44

price-fixing

Back 44

the practice of colluding with other firms to control prices

Front 45

horizontal price fixing

Back 45

occurs when competitors that produce and sell competing products collude, or work together, to control prices, effectively taking price out of the decision-making process

Front 46

vertical price fixing

Back 46

occurs when parties at different levels of the same marketing channel collude to control the prices passed onto consumers

Front 47

manufacturer's suggested retail price

Back 47

the price that manufacturers suggest retailers use to sell their merchandise

Front 48

marketing research

Back 48

a set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data that can aid decision makers involved in marketing goods, services, or ideas

Front 49

secondary data

Back 49

pieces of information that have already been collected from other sources and usually are readily available

Front 50

primary data

Back 50

data collected to address specific research needs

Front 51

sample

Back 51

a group of customers who represent the customers of interest in a research study

Front 52

data

Back 52

raw numbers or facts

Front 53

information

Back 53

organized, analyzed, interpreted data that offers value to marketers

Front 54

syndicated data

Back 54

data available for a fee from commercial research firms such as National Purchase Diary Panel

Front 55

scanner data

Back 55

a type of syndicated external secondary data used in quantitative research that is obtained from scanner readings of UPC codes at check-out counters

Front 56

panel data

Back 56

information collected from a group of consumers

Front 57

data warehouses

Back 57

large computer files that store millions and even billions of pieces of individual data

Front 58

data mining

Back 58

the use of a variety of statistical analysis tools in order to uncover previously unknown patterns in the data stored in databases or relationships among variables

Front 59

churn

Back 59

the number consumers who stop using a product or service, divided by the average number of consumers of that product or service

Front 60

qualitative research

Back 60

informal research methods, including observation, following social media sites, in-depth interviews, focus groups, and projective techniques

Front 61

quantitative research

Back 61

structured responses that can be statistically tested to confirm insights and hypotheses generated via qualitative research or secondary data

Front 62

observation

Back 62

an exploratory research method that entails examining purchase and consumption behaviors through personal or video camera security

Front 63

sentiment mining

Back 63

data gathered by evaluating customer comments posted through social media sites such as Twitter and Facebook

Front 64

focus group interviews

Back 64

a research technique in which a small group of persons (usually 8 to 12) comes together for an intensive discussion about a particular topic, with the conversation guided by a trained moderator using an unstructured method of inquiry

Front 65

in-depth interview

Back 65

an exploratory research technique in which trained researchers ask questions, listen to and record the answers, and then pose additional questions to clarify or expand on an additional issue

Front 66

survey

Back 66

a systematic means of collecting information from people that generally uses a questionnaire

Front 67

questionnaire

Back 67

a form that features a set of questions designed to gather information from respondents and thereby accomplish the researchers' objectives; questions can either be structured or unstructured

Front 68

unstructured questions

Back 68

open-ended questions that allow respondents to answer in their own words

Front 69

structured questions

Back 69

closed-ended questions for which a discrete set of response alternatives, or specific answers, is provided for respondents to evaluate

Front 70

experimental research

Back 70

a type of conclusive and quantitative research that systematically manipulates one or more variables to determine which variables have a casual effect on another variable

Front 71

biometric data

Back 71

digital scanning of the physiological or behavioral characteristics of individuals as a mean of indentification

Front 72

geographic segementation

Back 72

the grouping of consumers on the basis of where they live

Front 73

demographic segmentation

Back 73

the grouping of consumers according to easily measured, objective characteristics such as age, gender, income, and education

Front 74

psychographics

Back 74

used in segmentation; delves into how consumers describe themselves; allows people to describe themselves using those characteristics tat help them choose how they occupy their time and what underlying psychological reasons determine those choices

Front 75

self-values

Back 75

goals for life, not just the goals one wants to accomplish in a day; a component of psychographics that refers to overriding desires that drive how a person lives his or her life

Front 76

self-concept

Back 76

the image a person has of him- or herself; a component of psychographics

Front 77

lifestyles

Back 77

a component of psychographics; refers o the way a person lives his or her life to achieve goals

Front 78

Values and Lifestyle Survey

Back 78

a psychographic tool developed by SRI Consulting Business Intelligence; classifies consumers into 8 segments: innovators, thinkers, believers, achievers, strivers, experiencers, makers, or survivors

Front 79

benefit segmentation

Back 79

the grouping of consumers on the basis of the benefits they derive from products or services

Front 80

behavioral segmentation

Back 80

a segmentation method that divides customers into groups based on how they use the product or service; some common behavioral measures include occasion and loyalty

Front 81

occasion segmentation

Back 81

a type of behavioral segmentation based on when a product or service is purchased or consumed

Front 82

loyalty segmentation

Back 82

strategy of investing in loyalty initiatives to retain the firm's most profitable customers

Front 83

geodemographic segmentation

Back 83

the grouping of consumers on the basis of a combination of geographic, demographic, and lifestyle characteristics

Front 84

undifferentiated targeting strategy (mass marketing)

Back 84

a marketing strategy a firm can use if the product or service is perceived to provide the same benefits to everyone, with no need to develop separate strategies for different groups

Front 85

differentiated target strategy

Back 85

a strategy through which a firm targets several market segments with a different offering for each

Front 86

concentrated targeting strategy

Back 86

a marketing strategy of selecting a single, primary target market and focusing all energies on providing a product to fit that market's needs

Front 87

micromarketing

Back 87

an extreme form of segmentation that tailors a product or service to suit an individual customer's wants or needs; also called one-to-one marketing

Front 88

cookies

Back 88

computer program, installed on hard drives, that provides identifying information

Front 89

value proposition

Back 89

the unique value that a product or service provides to its customers and how it is better than and different from those of competitors

Front 90

value

Back 90

reflects the relationship of benefits to costs, or what the consumer gets for what he or she gives

Front 91

perceptual map

Back 91

displays, in two or more dimensions, the position of products or brands in the consumer's mind

Front 92

ideal points

Back 92

the position at which a particular market segment's ideal product would lie on a perceptual map

Front 93

marketing

Back 93

an organizational function and a set of processes for creating, capturing, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholder

Front 94

marketing plan

Back 94

a written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs, and projected or pro forma income

Front 95

exchange

Back 95

the trade of things of value between the buyer and the seller so that each is better as a result

Front 96

marketing mix (4 Ps)

Back 96

product, price, place, and promotion- the controllable set of activities that a firm uses to respond to the wants of its target market

Front 97

goods

Back 97

items that can be physically touched

Front 98

services

Back 98

any intangible offering that involves a deed, performance, or effort that cannot be physcially possessed; intangible customer benefits that are produced by people or machines and cannot be separated from the producer

Front 99

ideas

Back 99

intellectual concepts-thoughts, opinions, and philosophies

Front 100

B2c

Back 100

businesses selling to consumers

Front 101

B2B

Back 101

businesses selling to businesses

Front 102

C2C

Back 102

consumers selling to consumers

Front 103

value cocreation

Back 103

customers act as collaborators with a manufacturer or retailer to create the product or service

Front 104

relational orientation

Back 104

a method of building a relationship with customers based on the philosophy that buyers and sellers should develop a long-term relationship

Front 105

customer relationship management

Back 105

a business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm's most valued customers

Front 106

supply chain

Back 106

the group of firms that make and deliver a given set of goods and services

Front 107

marketing channel

Back 107

the set of institutions that transfer the ownership of and move goods from the point of production to the point of consumption; consists of all the institutions and marketing activities in the marketing process

Front 108

entrepreneurs

Back 108

a person who organizes, operates, and assumes the risk of a new business venture

Front 109

marketing strategy

Back 109

a firm's target market, marketing mix, and method of obtaining a sustainable competitive advantage

Front 110

sustainable competitive advantage

Back 110

something the firm can persistently do better than its competitors

Front 111

customer excellence

Back 111

involves a focus on retaining loyal customers and excellent customer service

Front 112

operational excellence

Back 112

involves a firm's focus on efficient operations and excellent supply chain management

Front 113

product excellence

Back 113

involves a focus on achieving high-quality products; effective branding and positioning is key

Front 114

location

Back 114

a method of achieving excellence by having a strong physical location and/or Internet presence

Front 115

marketing plan

Back 115

a written document composed of an analysis of the current marketing conditions, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs, and pro forma income statements

Front 116

planning phase

Back 116

when marketing executives, in conjunction with other top managers, 1) define the mission or vision of the business and 2) evaluate the situation by assessing how various players, both in and outside the organization, affect the firm's potential for success

Front 117

implementation phase

Back 117

when marketing managers 1) ID and evaluate different opportunities by engaging in segmentation, targeting, and positioning and 2) implement the marketing mix using the 4 Ps

Front 118

control phase

Back 118

when managers evaluate the performance of the marketing strategy and take any necessary corrective actions

Front 119

mission statement

Back 119

a broad description of a firm's objectives and the scope of activities it plans to undertake; attempts to answer two main questions: What type of business is it? What does it need to do accomplish its goals and objective?

Front 120

situation analysis

Back 120

second step in a marketing plan; uses SWOT analysis that assesses both the internal with S and W and the external with O and T

Front 121

STP

Back 121

the processes of segmentation, targeting, and positioning that firms use to identify and evaluate opportunities for increasing sales and profits

Front 122

market segment

Back 122

a group of consumers who respond similarly to a firm's marketing efforst

Front 123

market segmentation

Back 123

the process of dividing the market into groups of customers with different needs, wants, or characteristics, who therefore might appreciate products or services geared especially for them

Front 124

target marketing/targeting

Back 124

the process of evaluating the attrativeness of various segments and then deciding which to pursue as a market

Front 125

market positioning

Back 125

involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparasion with competing products

Front 126

products

Back 126

anything that is of value to a consumer and can be offered through a voluntary marketing exchange

Front 127

metric

Back 127

a measuring system that quantifies a trend, dynamic, or characteristic

Front 128

strategic business unit (SBI)

Back 128

a division of the firm that can be managed and operated somewhat independently from other divisions and may have a different mission or objectives

Front 129

product lines

Back 129

groups of associated items, such as those that consuers use together or think of as part of a group of similar products

Front 130

market share

Back 130

percentage of a market accounted for by a specific entity

Front 131

relative market share

Back 131

a measure of the product's strength in a particular market, defined as the sales of the focal product divided by the sales achieved by the largest firm in the industry

Front 132

market growth rate

Back 132

the annual rate of growth of the specific market in which the product competes

Front 133

market penetration strategy

Back 133

a growth strategy that employs the existing marketing mix and focuses the firm's efforts on exsisiting customers

Front 134

market development strategy

Back 134

a growth strategy that employs the exsisting marketing offering to reach new market segments; whether domestic or international

Front 135

product development strategy

Back 135

a growth strategy that offers a new product or service to a firm's current target market

Front 136

diversification strategy

Back 136

a growth strategy whereby a firm introduces a new product or service to a market segment that it does not currently serve

Front 137

related diversification

Back 137

a growth strategy whereby a current target market and/or marketing mix shares something in common with the new opportunity

Front 138

unrelated diversification

Back 138

a growth strategy whereby a new business lacks any common elements with the present business