Markets And Consumers Test 3

Front 1

With whom did the formation of Adidas begin? Where, and in what year?

Back 1

Rudolf and Adolf Dassler
1920, West Germany

Front 2

Rudolf and Adolf Dassler: Who was the Business Man and who was the Innovator?

Back 2

Rudolf: Business
Adoff: Innovator

Front 3

Adidas rose to prominence in ____ by _____ _____. This is considered the day that ______ ______ were born.

Back 3

1935, Jesse Owens, sports endorsements

Front 4

When the Dassler brothers had a fight, they split and became what 2 companies?

Back 4

Adolf: Adidas
Rudolf: Puma

Front 5

What 2 things did Adidas's Marketing Strategy do?

Back 5

1) Set the standard for marketing in this industry
2) Caused other companies to copy Adidas

Front 6

Adidas's marketing strategy put focus on: (4)

Back 6

Kinesiology
Product Line
Endorsment Contracts
Liscensing Agreements

Front 7

(Marketing Strategy)
The science dealing with the interrelationship of the physiological processes and anatomy

Back 7

Kinesiology

Front 8

(Marketing Strategy)
Adidas was the first company to develop this.

Back 8

An extensive product line.

Front 9

(Marketing Strategy)
When the company pays an athlete to use or wear their product. The brand is identified with a logo which needs to be simple yet distinctive. Tends to be more effective than an ad because seeing the "real thing" increases credibility.

Back 9

Endorsement Contracts

Front 10

(Marketing Strategy)
Adidas Negotiated these with small foreign firms to produce their shoes

Back 10

Licensing Agreements

Front 11

What are the 3 economic advantages of licensing agreements?

Back 11

1) Maybe paying fewer taxes
2) Labor is cheaper
3) Since Adidas doesn't own the factories, it keeps cost low

Front 12

What is the break even point?

Back 12

The point where sales=expenses and
profits= zero

Front 13

What is the contribution margin?

Back 13

selling price- var cost

Front 14

What is Potential Profit?

Back 14

Cost Volume Profit
(Revenue- Fixed Cost-variable Cost)

Front 15

"Criticism of Licensing Agreements" If a company doesn't use licensing agreements, then their break even point will be ____ and they will not be able to compete.

Back 15

Higher

Front 16

Mostly focused on working conditions in overseas factories including low wages and long hours, child labor, and unsafe working conditions

Back 16

criticism

Front 17

Who used this for Market Research (Merchants of cool video)
- Go to person's habitat to find out who they are -

Back 17

MTV

Front 18

MTV's created teenage male, crude, loud, obnoxious

Back 18

"Mook"

Front 19

A management practice in which organizations seek to engage in activities that have a positive effect on society and promote a public good

Back 19

Social Responsibility

Front 20

A position taken by an organization to protect or enhance the natural environment as it conducts its business activities. ex: walmart does this a lot

Back 20

environmental stewardship

Front 21

(America's Running Culture)
one of the best runner's in the world

Back 21

Steve Prefontaine

Front 22

(America's Running culture)
Won the marathon in the 1972 Olympics

Back 22

Frank Shorter

Front 23

What school was the Track Powerhouse? Who was the coach?

Back 23

University of Oregon, Bill Bowerman

Front 24

Who is the CEO of Nike today?

Back 24

Phil Knight

Front 25

Between Knight and Bowerman, who was the innovator and who was the Business man?

Back 25

Knight: Businessman
Bowerman: Innovator

Front 26

Knight was the sole distributor of _____ and ______

Back 26

Tigers and Asics

Front 27

Bowerman and Knight started ______

Back 27

Blue Ribbon Shoe co.

Front 28

Where a firm will place its products along a line of attributes

Back 28

Linear city Model

Front 29

(Linear City Model) Knight saw a big gap where there was no ____ shoes.

Back 29

Running

Front 30

Where a firm would locate it's "presence" given the distribution of potential consumers (ex: knowing there are a lot of consumer's in oregon)

Back 30

Location Model

Front 31

Nike is named after what?

Back 31

The greek goddess of victory

Front 32

Nike's logo was created by ____ ____.

Back 32

Carolyn Davidson

Front 33

What are 2 extremely important innovations of Bowerman?

Back 33

Waffle Sole and making running shoes out of fabric instead of leather.

Front 34

In 1981, Nike had ____% of the Shoe Market.

Back 34

50

Front 35

Nike did what six things?

Back 35

1) expanded product line
2)Good use of endorsement Contracts
3) Contracted with Asian Factories for Production
4) Emphasizing research and development
**5) Created Advisory Boards and Research Committees
**6)Distribution channels

Front 36

What did Nike do that adidas did not?

Back 36

Created Advisory Boards and Research Committees
and
*****Used Distribution Channels

Front 37

Who endorsed Nike?

Back 37

Michael Jordan

Front 38

When Nike went into small towns to sell shoes

Back 38

Distribution Channels

Front 39

(Merchants of Cool)
MTV's teen female

Back 39

Midriff

Front 40

When the media sells and image and then the teens sell it back

Back 40

Feedback Loop

Front 41

What is the Mean-End Chain?

Back 41

(Means) Attributes-> (Means) Benefits-> Values (Ends)

Front 42

This explains how attributes cause benefits which fulfill value.

Back 42

Means-End Chain

Front 43

Marketers try to figure out what customers ____.

Back 43

Value

Front 44

One type of knowledge consumers have about products or brands
- Physical, tangible, measurable

Back 44

Attributes

Front 45

Positive consequences of product use

Back 45

"Benefits"

Front 46

(Type of Benefit)
Provide immediate physiological outcomes. Ex: padding and support on shoes= injury free runs

Back 46

Functional Benefit

Front 47

(Type of Benefit)
Benefits that make one feel a certain way
-Feel stronger= better able to cope

Back 47

Psychological Benefit

Front 48

(Type of Benefit)
Benefits are integrating
Ex: Join a Club

Back 48

Social Benefits

Front 49

The end state that consumers are tyring to achieve in their lives such as health and self-fulfillment
Ex: Nelly and people trying to be like him

Back 49

Values

Front 50

___ ____ ____ by linking product attributes and benefits to values- the marketer is associating the product or brand with a sub-culture

Back 50

Values Define Cultures

Front 51

Enduring beliefs about desirable outcomes that transcends specific situations and shape ones behavior

Back 51

Values

Front 52

What are the two parts to Value?

Back 52

Instrumental Value and Terminal Value

Front 53

(Type of Value)
Refers to a pattern of behavior in how consumers use products which leads to a different demand for products
Ex: wearing shoes to run vs someone wearing just to go to class

Back 53

Instrumental Value

Front 54

(Type of Value)
The end of the means end chain. Ultimately what the consumer wants to achieve.
* Can say brand is value Expressive

Back 54

Terminal Value

Front 55

What company did Rebok start out as?

Back 55

Fosters

Front 56

In 1982, Nike became what in America?

Back 56

#1 most profitable company

Front 57

Why was Fosters not able to compete with Adidas and Nike?

Back 57

They didn't have licensing agreements.

Front 58

Two grandson's of Fosters wanted to make a trendier shoe. The created ____ after a _____.

Back 58

Reebok, gizelle

Front 59

In 1979 ___ ___ came from America and found Reebok. He brought it to North America and got the distribution rights.

Back 59

Paul Fireman

Front 60

What was the most expensive running shoe on the market and how much did it cost in 1979?

Back 60

Reebok, $60

Front 61

How much did Paul Fireman purchase Reebok for in 1981?

Back 61

$700,000

Front 62

Reebok created a shoe called the _____ which was created for aerobic and dance exercises.

Back 62

The Freestyle

Front 63

Reebok anticipated what three major trends?

Back 63

1) Aerobic/dance exercise movement
2)Increasing involvement of women in exercise
3)Extension of athletic wear to casual wear

Front 64

What problem did Reebok end up facing?
Why?

Back 64

A pricing problem with the "Pump" because it was $130.

Front 65

What question should you ask when changing price?

Back 65

How much more inventory do I need?

Front 66

What are the Determinants of elasticity? (4)

Back 66

1) Number of substitutes available
2) How much time you have to respond
3) Share of budget involved in purchase decision
4)Necessity of Luxury

Front 67

(Determinant of Elasticity)
-the more substitutes we have the higher the elasticity because people can easily switch from product to product

Back 67

Number of substitutes available

Front 68

(Determinant of Elasticity)
-If it is something you need right away you will probably buy it, but if you have to think about it, you probably won't or are way less likely to

Back 68

How much time you have to respond

Front 69

(Determinant of Elasticity)
% of income it will take to buy something

Back 69

Share of budget involved in purchase decision

Front 70

(Determinant of Elasticity)
Posibility of:
Absolutely have to have, buy no matter the price

Back 70

Necessity of Luxury

Front 71

Price elasticity of demand=

Back 71

%change in quantity demanded/ %change in price

Front 72

In Price Elasticity of Demand, if over 1 it is _____ _____ if under 1 it is _____ _____.

Back 72

Elastic, Inelastic

Front 73

When consumers are not sensitive to prices.

Back 73

Inelastic Demand

Front 74

In inelastic demand, the change in quantity demanded is ___ than the change in price.

Back 74

less

Front 75

The higher the prices, the lower the demand is.

Back 75

Elastic demand

Front 76

Rebok thought the had what type of demand for the "pump?"

Back 76

Inelastic

Front 77

In Elastic Demand, the % change in quantity demanded is ____ than the % change in price.

Back 77

greater

Front 78

products that have a high price and that appeal to status conscious customers.
Demand increases as price ____.
Demand decreases as price ____.

Back 78

Prestige Products,
Increases
Decreases

Front 79

What was the first Mistake Reebok made?

Back 79

The pricing of the "Pump" was too high.

Front 80

When Retailers tried to cut the price of the "Pump" what happened?

Back 80

Reebok said they would cut off the supply, they ended getting charged with price fixing by the federal government.

Front 81

Measures the rate of response of quantity demanded of one good, due to a price change of another good.

Back 81

Cross Price elasticity

Front 82

Consumers purchase more of a good when the price of an alternative (similar) good increases

Back 82

substitute

Front 83

a price rise in one good causes the demand for both goods to fall

Back 83

Complements

Front 84

Measures the responsiveness of the quantity demanded of a good to the change in income of the people demanding the good.

Back 84

Income Elasticity

Front 85

As income increases quantity demanded decreases.
Ex: Ramen over Steak

Back 85

Inferior goods

Front 86

As income increases quantity demanded increases
ex: more expensive running shoes
vacations
eating steak over ramen

Back 86

Normal Goods

Front 87

What is the second Mistake Reebok made?

Back 87

Very High Cost:
Operating Cost (32.7%) compared with Indrustrial Average (27%)

Front 88

In Mistake #2 for Reebok, What made operating costs so great?

Back 88

1) Reebok spent too much money on endorsement contracts and sporting event sponsorships
2) Holding Cost for inventory was too great

Front 89

What does Reebok's Mistake number 3 relate to?

Back 89

The relate to Footlock, the key retailer.

Front 90

Marketers going to retail establishments to build a relationship with the retailer

Back 90

Account Managers

Front 91

Account Managers participate in ____ _____, which is also the developing of long term relationships and an atmospher of trust.

Back 91

Relationship Marketing

Front 92

Reebok hired people that lacked experience in the ____ _____

Back 92

Shoe Industry

Front 93

Footlocker wanted an ___ ___ from Reebok. (This was a marketing strategy)
Reebok said ____

Back 93

Exclusive Shoe

No

Front 94

Reebok wasn't working with the key retailer because they were distributing shoes to whom?

Back 94

Discounters near footlocker

Front 95

Ways that a product or brand links to the culture

Back 95

means-end-chain

Front 96

What was Nike's problem?

Back 96

The cultural context changed but Nike did not.

Front 97

What shoe company took better advantage of cultural trends?

Back 97

Reebok

Front 98

Another way of talking about brand loyalty is in terms of _____.

Back 98

Involvement

Front 99

customers aren't sensitive to changes in price (Reebok thought they had brand loyalty but they did not)

Back 99

inelastic demand

Front 100

Major account management should be geared towards developing ____ _____.

Back 100

long-term relationships

Front 101

Adidas bough Reebok in 2006 for ____.

Back 101

38 Billion

Front 102

When merging two brands, cutbacks are made in marketing, workers, and cut out costs so there is more profit

Back 102

Cost Synergies

Front 103

A buying situaion in which business buyers make routine purchases that require minimal decision making. ex: copy paper, the secretary places the same exact order every week

Back 103

Straight Rebuy

Front 104

Categorizes a previously made purchase that involves some change and that requires limited decision making.
ex: instead of ordering all white paper, order colored paper.

Back 104

Modified Rebuy

Front 105

A new business to business purchase that is complex or risky and that requires extensive decision making.
Ex: if you want to buy a smartboard and have never bought one

Back 105

New Task Buy

Front 106

The business practice of buying a particular product form only one supplier.
Ex: buying all supplies from staples

Back 106

Single Sourcing

Front 107

The business practice of buying a particular product from several different suppliers
ex: buying supplies from staples, office max, office depot

Back 107

Multiple Sourcing

Front 108

A trading partnership in which two firms agree to buy from one another
ex: Gm-> Borge Warner motors

Back 108

Reciprocity

Front 109

a business practice in which a buyer firm attempts to identify suppliers who will produce products according to the buyer firm's specifications
Ex: create a product and try to find someone to buy it

Back 109

Reverse Marketing

Front 110

A type of trade in which goods are paid for with other items instead of with cash.
Ex: Milashian Government bought 25 locomotives and paid with palm oil

Back 110

Countertrade

Front 111

A marketing stategy that supports enviromental stewardship by creating an environmentally founded differential benefit in the minds of consumers. Ex:Talking about what you are going to do to save the environment

Back 111

Green Marketing

Front 112

Marketing activities in which firms seek to have their corporate identity linked to a good cause through advertising public service and publicity
Ex:Telling people that we are supporting cause that is good for other people

Back 112

Cause Marketing

Front 113

The tendency to prefer products or people of one's own culture.

Back 113

Ethnocentrism

Front 114

Specific rules dictating what is right, wrong, acceptable or unacceptable.

Back 114

Norms

Front 115

A norm handed down form the past that controls basic behaviors.
Ex: division of labor in a household dictate hour at which we eat

Back 115

Custom

Front 116

Customs with a strong moral overtone
Ex: cannibalism is wrong where we live: eating dogs is wrong in our culture

Back 116

Mores

Front 117

Norms regarding the conduct of everyday life
Ex: What utensils we have on the table, the way we do things

Back 117

Conventions

Front 118

Three types of Norms?

Back 118

Customs, Mores, and Conventions

Front 119

These costs Change

Back 119

Variable Cost

Front 120

These costs stay the same

Back 120

Fixed Cost

Front 121

What is the equations for contribution margin?

Back 121

Selling price- variable cost

Front 122

What is the breakeven equation?

Back 122

total fixed costs/ Contribution margin

Front 123

What is the equation for potential profit?

Back 123

Revenue-Variable cost-Fixed cost

Front 124

How do you find Revenue?

Back 124

Selling price x volume

Front 125

How doyou find variable cost?

Back 125

Variable cost per unit x volume

Front 126

The man was forced to quit coaching because he refused to wear nike, lived w/Nike facotr workers. Discovered Nike was full of sweatshops

Back 126

James keety

Front 127

Who is the ceo of nike?

Back 127

Mark Parker

Front 128

Who endorsed nike skateboard shoes in 2003

Back 128

Paul Rodriguez Jr.

Front 129

What are sneaker collectors called?

Back 129

"sneakerheads"