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77 Cards in this Set
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Process for creating, communicating, and delivering, value to customers and for managing customer relationship in ways that benefit the organization and its stakeholders.
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Marketing
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Compares a products benfit with its costs
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Value
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Include not only the functions of the product but also the emotional satisfaction associated with owning, experiencing, or possessing it.
o Aggie Ring o Core member purchasing boots |
Benefits
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Utility Types
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Form
Time Place |
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Blue Jeans
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Form Utility
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Marketers are going to push their products at a particular time of year
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Time Utility
Christmas, Halloween Decorations |
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Where you locate the product to get someone to purchase it
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Place Utility
nike tempo shorts at the WW store |
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Tangible goods that consumers may buy for personal use
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Comsumer Goods
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Products with in tanible (non-physical) features
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Servies
Example: Haircut |
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Substitute Product
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Green Giant vs. “Regular”
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Companies try to convince you that their product differs and is better than another.
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Brand Competition
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A detailed strategy for focusing marketing efforts on consumer needs and wants.
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Marketing Plan
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Marketing Mix
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Product
Pricing Place Promotion |
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Product
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Item that you are selling
*1st thing you start w/ |
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Pricing
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*Odd/Even – $19.99 instead of $20.00
Selecting the best price at which to sell the product |
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Place
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Distributing a product through proper channels
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Promotion
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Communicating information about a product
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Groups of people with similar wants and needs and who can be expected to show interest in the same products
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Target Markets
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Dividing a market into categories of customer types
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Market Segmentation
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or "segments"
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Psychological influences
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Buying a ring
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Consumers who regularly purchase products because they are satisfied with their performance.
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Brand Loyalty
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Provides a bundle of benefits and features to satisfy the needs and wants of customers
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Value Package
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Classifying Consumer Products
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Convenience
Shopping Specialty |
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Frequent purchase, inexpensive, immediate consumption, and little search and consideration.
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Convenience Goods and Services
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Less frequent purchase, more expensive, and more search and comparison of products
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Shopping Goods and Services
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Infrequent (or one-time) purchase, most expensive, and an extensive search effort for specific product
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Specialty Goods and Services
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Few product ideas (1 in 50) actually reach the market
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Product Mortality Rates
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Ways to Research
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Survey
Experimentation Focus Group Observation Method |
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Product Life Cycle
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Intro
Growth Maturity Decline |
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Focus on making customers aware of the product
*Make Consumers aware* |
Intro
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Competitors are coming in
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Growth
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Sells slow but profits are at highest
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Maturity
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No one purchases it
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Decline
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New store Concept
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Define, Design, Market
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Want the lowest discount/price
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Price Customer
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Want the coolest merchandise
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WOW Customer
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Shop where they feel secure
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Trust Customer
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“Just make this quick”
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Conveinence Customer
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Want the royal treatment
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Status Customer
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Want the “authority” on products
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Expert Customer
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Patronize socially responsible stores
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Caring Customer
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Want fun and lively atmosphere
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Entertainment Customer
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The goals that sellers hope to achieve in pricing products for sale
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Pricing Objectives
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Considering the firm’s desire to make a profit and its need to cover production costs
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Cost-Oriented Pricing
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Shows, at any selling price, the amount of loss or profit for each possible volume of sales.
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Break-Even Analysis
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*Initially high price
Setting an initially high price to cover costs and generate a profit – may generate a large profit on each item sold. |
Product Skimming
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*Initially low price
Setting an initially low price to establish a new product in the market |
Penetration Pricing
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Dynamic Pricing for E-Business
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Bidding
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*Price Points
Offering all items in certain categories at a limited number of prices (Price Points) |
Price Lining
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Odd – Even Pricing
Customers prefer prices that are not stated in even dollar amounts |
Psychological Pricing
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*The combination of distribution channels
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Distribution Mix
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Trucks
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Typically low breakage
Best Means for short distances |
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Planes
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Typically most expensive
Example: Restaurant owner selling fresh shrimp |
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Water Carriers
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Very Slow
Tend to be cheapest |
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The technique a firm uses for communicating info about products
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Promotion
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Direct marketing to the consumer
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Pull Strategy
ex. Coupon $200 off Sample of Bear Asprin or Tylenol |
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Company tries to push the product on to you
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Push Strategy
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Promotional Tools
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Persuasive Advertising
Comparative Advertising Reminder Advertising |
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Persuade you that their product is the best
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Persuasive Advertising
ex. tire distributior used in all NASCAR races |
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Pepsi vs. Coke #1
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Comparative Advertising
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Convince you this is why you want to purchase this product
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Reminder Advertising
ex. state farm - state farm is there Cambells soup - "give cambells another try" Choosie Mothers choose JIF |
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Any paid non personal communication
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Advertising
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The specific communication devices for carrying a sellers message to potential customers
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Advertising Media
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Television
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Most Widely Used
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Direct Mail
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Marketer send directly to consumer
Not overly effective Success Rate, Not real high Junk Mail |
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Newspaper
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Flexible and has rapid coverage
Some people do not read the newspaper |
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Magazine
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Highly Segmented
Need a lot of lead time |
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Radio
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Segment the market
Help Identify particular audiences |
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Internet
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Internet
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Outdoor
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High repeat exposure
Billboard Relatively inexpensive Not a lot of competition |
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Communicate one on one with the customer
Most important aspect “is closing” the sale |
Personal Selling
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Types of Sales Promotions
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Samples
Coupons Premiums – Give you something for a free purchase Contests Point of Sale Displays Trade Shows |
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Company influenced publicity to build good relations w/ the public
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Public Relations
ex. Presidential Elections |
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Starbucks
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Product
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Jet Blue
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Price and Place
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REI
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Product
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Coke
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Product Promotion
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