Mktg Ch 8,9,10,11

Front 1

A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers needs and is received in exchange for money or something else of value

Back 1

Product

Front 2

The tangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value

Back 2

Services

Front 3

Are products purchased by the ultimate consumer

Back 3

Consumer Products

Front 4

Are products organizations buy that assist in providing other products for resale. Also called B2b products or industrial products

Back 4

Business Products

Front 5

Are items that the consumer purchases frequently, conveniently and with a minimum of shopping effort

Back 5

Convenience Products

Front 6

Are items for which the consumer compares several alternatives on criteria, such as price, quality, or style

Back 6

Shopping Products

Front 7

Items that a consumer makes a special effort to search out and buy

Back 7

Specialty Products

Front 8

Items that the consumer either does not know about or knows about but does not initially want

Back 8

Unsought Products

Front 9

The stage of the new-product process that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort

Back 9

Screening and Evaluation

Front 10

The stage of the new-product process that specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections

Back 10

Business Analysis

Front 11

The stage of the new-product process that turns the idea on paper into a prototype

Back 11

Development

Front 12

The stage of the new-product process that exposes actual products to prospective consumers under realistic purchases conditions to see if they will buy

Back 12

Market Testing

Front 13

The stage of the new-product process that positions and launches a new production full-scale productions and sales

Back 13

Commercialization

Front 14

Specific product that has a unique brand, size or price

Back 14

Product Item

Front 15

Is a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets, or fall within a given price range

Back 15

Product Line

Front 16

Consists of all of the product lines offered by an organization

Back 16

Product Mix

Front 17

Statement that, before product development begins, identifies; 1) a well-defined target market; 2) specific customers' needs, wants and preferences; and 3) what the product will be and how to satisfy consumers

Back 17

Protocol

Front 18

Consists of the seven stages an organization goes through to identify business opportunities and convert them to sellable products or services

Back 18

New Product Process

Front 19

Is the stage of the new-product process that defines the role for a new product in terms of the firms overall objectives

Back 19

New Product Strategy Development

Front 20

The stage of the new-product process that develops a pool of concepts to serve as candidates for new products, building upon the previous stages results

Back 20

Idea Generation

Front 21

Then money or other considerations (including other products and services) exchanged for the ownership or use of a product or service

Back 21

Price

Front 22

The ratio of perceived benefits to price; or value = (perceived benefits divided by price)

Back 22

Value

Front 23

The practice of simultaneously increasing product and services benefits while maintaining or decreasing price

Back 23

Value pricing

Front 24

Profit = Total revenue - total cost or

Profit = ( unite price x quantity sold ) - ( fixed cost + variable cost)

Back 24

Profit Equations

Front 25

Specify the role of price in an organizations marketing and strategic plans

Back 25

Pricing Objectives

Front 26

Factors that limit the range of prices a firm may set

Back 26

Pricing constraints

Front 27

Graph relating the quantity sold and price, which shows the maximum number of units that will be sold at a given price

Back 27

Demand curve

Front 28

The total money received from the sale of a product

Back 28

Total Revenue

Front 29

The average amount of money received for selling one unit of a product, or simple the price of that unit

Back 29

Average revenue

Front 30

The change in total revenue that results from producing and marketing one additional unit of a product

Back 30

Marginal Revenue

Front 31

The percentage change in quantity demanded relative to a percentage change in price

Back 31

Price elasticity of demand

Front 32

The total expense incurred by a firm in producing and marketing a product. Total cost is the sum of the fixed cost and variable cost

Back 32

Total Cost

Front 33

The sum of the expense of the firm that are stable and do not change with the quantity of a product that is produced and sold

Back 33

Fixed Cost

Front 34

The sum of the expenses of the first hat vary directly with the quantity of a product that is produced and sold

Back 34

Variable cost

Front 35

Is variable cost expressed on a per unit basis for a product

Back 35

Unit Variable Cost

Front 36

The change in total cost that results from producing and marketing one additional unit of a product

Back 36

Marginal cost

Front 37

Continuing, concise trade off of incremental costs against incremental revenues

Back 37

Marginal Analysis

Front 38

A technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output

Back 38

Break-even Analysis

Front 39

The quantity at which total revenue and total cost are equal

Back 39

Break-Even Point

Front 40

Involves setting the highest initial price that customers really desiring the product are willing to pay when introducing a new pr innovative product

Back 40

Skimming Pricing

Front 41

Involves setting a low initial price on a new product to appeal immediately to the mass market

Back 41

Penetration pricing

Front 42

Involves setting a high price so that the quality or status conscious consumers will be attracted to the product and buy it

Back 42

Prestige Pricing

Front 43

Involves setting the price of a line of products at a number of different specific pricing points

Back 43

Price lining

Front 44

Involves setting prices a few dollars or cents under an even number

Back 44

Odd-even Pricing

Front 45

Consists of 1) estimating the price that ultimate consumers would be willing to pay for a product, 2) working backward through mark ups taken by retailers and wholesalers to determine what price to charge wholesalers, 3) deliberately adjusting composition and features of the product to achieve the target price to consumers

Back 45

Target Pricing

Front 46

Involves the marketing of two or more more products in a single package price

Back 46

Bundle pricing

Front 47

Involves the charging of different prices to maximize revenue for a set amount of capacity at any given time

Back 47

Yield Management Pricing

Front 48

Involves adding a fixed percentage to the cost of all items in a specific product class

Back 48

Standard mark up pricing

Front 49

Involves summing the total unit cost of a providing a product or service and adding specific amount to the cost to arrive at a price

Back 49

Cost-Plus Pricing

Front 50

Method of pricing based on the learning effect, which holds that the unit cost of many products and services decline by 10 percent to 30 percent each time a firms experience at producing and selling them doubles

Back 50

Experience Curve-Pricing

Front 51

Involves setting an annual target of a specific dollar volume of profit

Back 51

Target Profit Pricing

Front 52

Involves setting a price to achieve a profit that is a specified percentage of the sales volume

Back 52

Target Return on sales Pricing

Front 53

Involves setting a price to achieve an annual target return on investment

Back 53

Target return on investment pricing

Front 54

Involves setting a price that is dictated by tradition, a standardized channel of distribution, or other competition factors

Back 54

Customary Pricing

Front 55

Setting a market price for a product or product class based on a subjective feel for the competitors price or market price as the benchmark

Back 55

Above, at, or below market pricing

Front 56

Deliberately selling a product below is customary pricing, not to increase sales but to attract customers attention in hopes that they will buy other products as well

Back 56

Loss-Leader Pricing

Front 57

Setting one price for all buyers of a product or service. Also called fixed pricing

Back 57

One-Price Policy

Front 58

Setting different prices for products and services depending on individual buyers and purchase situations. Also called dynamic pricing

Back 58

Flexible-Price Policy

Front 59

The setting of prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necessarily for each item

Back 59

Product line Pricing

Front 60

Successive price cutting by competitors to increase or maintain their unit sales or market share

Back 60

Price War

Front 61

Reductions in unit costs for a large order

Back 61

Quantity Discounts

Front 62

Cash payments or extra amount of free goods awarded sellers in the channel of distribution for under taking certain advertising or selling activities to promote a product

Back 62

Promotional Allowances

Front 63

The Practice of replacing promotional allowances with lower manufacturer list prices

Back 63

Everyday Low Pricing

Front 64

"Free on board" price the seller quotes that includes only the cost of loading the product onto the vehicle and specifies the name of the location where the loading is to occur (sellers factory or warehouse)

Back 64

FOB origin pricing

Front 65

The price the seller quotes that includes all transportation costs

Back 65

Uniform Delivered pricing

Front 66

Selecting one or more geographical locations (basing point) from which the list price for products plus freight expenses are charged to the buyer

Back 66

Basing-point pricing

Front 67

The practice of charging different prices to different buyers for goods of like grade and quality

Back 67

Price Discrimination

Front 68

The practice of charging a very low price for a product with the intent of driving competitors out of business

Back 68

Predatory pricing

Front 69

Consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users

Back 69

Market Channel

Front 70

Involves the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online

Back 70

Multichannel Marketing

Front 71

An arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product

Back 71

Dual Distribution

Front 72

A level of distribution density whereby a firm tries to place its products and services in as many outlets as possible

Back 72

Intensive Distribution

Front 73

A level of distribution density whereby only one retailer in a specific geographical area carries the firms products

Back 73

Exclusive Distribution

Front 74

Level of distribution density whereby a firm selects a few retailers in a specific geographical area to carry its products

Back 74

Selective Distribution

Front 75

Arises when one channel member believes another channel members is engaged in behavior that prevents it from achieving its goals

Back 75

Channel Conflict

Front 76

Consists of those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost

Back 76

Logistics

Front 77

Consists of a sequence of firms that performs activities required to create and deliver a product or service to ultimate consumers or industrial users

Back 77

Supply Chain

Front 78

Consists of the expenses associated with transportation, materials handling and warehousing, inventory, stock outs, order processing and return goods handling

Back 78

Total Logistics Cost

Front 79

The ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience

Back 79

Customer Service

Front 80

A process of reclaiming, recyclable and reusable materials, returns and reworks from the point of consumption or use for repair, remanufacturing, redistribution or disposal

Back 80

Revers Logistics

Front 81

The combination of one or more communication tools used to : 1) inform prospective buyers about the benefits of the product, 2) persuade them to try it, 3) remind them later about the benefits they enjoyed by using the product

Back 81

Promotional Mix

Front 82

Concept of designing marketing communications programs that coordinate all promotional activities - advertising, personal selling, sales promotions, public relations, relations, and direct marketing to provide a consistent message across all audiences

Back 82

Integrated Marketing Communications

Front 83

The process of conveying a message to others and that requires six elements: a source, a message, a channel of communication, a receiver and the processes of encoding and decoding

Back 83

Communication

Front 84

A company or person who has information to convey during the communication

Back 84

Source

Front 85

Consists of the information sent by a source to a receiver during the communication process

Back 85

Message

Front 86

The means (e.g., a salesperson, advertising media, or public relations tools) of conveying a message to a receiver during the communication process

Back 86

Channel of Communication

Front 87

Any paid form of non personal communication about an organization, good, service, or idea by an identified sponsor

Back 87

Advertising

Front 88

Consists of the two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a persons or groups purchase decision

Back 88

Personal Selling

Front 89

Form of communication management that seeks to influence the feelings, opinions or beliefs held by customers, prospective customers, stock holders, suppliers, employees, and other publics about a company and its products or services

Back 89

Public Relations

Front 90

A non personal, indirectly paid presentation of an organization, good, or service

Back 90

Publicity

Front 91

Short-term inducement of value offered to arouse interest in buying a good or service

Back 91

Sales Promotion

Front 92

A promotion alternative that uses direct communication with consumers to generate a response in the form of an order, a request for further information or a visit to retail outlet

Back 92

Direct Marketing

Front 93

Involves direction the promotional mix to channel members to gain their cooperation in ordering and stocking the product

Back 93

Push Strategy

Front 94

Involves direction the promotional mix at ultimate consumers to encourage them to ask the retailer for a product

Back 94

Pull Strategy

Front 95

Involves allocating funds to promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold

Back 95

Percentage of Sales Budgeting

Front 96

Involves allocating funds to promotion by matching the competitors absolute level of spending, or the proportion per point of market share

Back 96

Competitive Parity Budgeting

Front 97

Allocating funds to promotion only after all other budget items are covered

Back 97

All you can afford budgeting

Front 98

Involves allocating funds to promotion whereby the company 1) determines its promotion objectives; 2) outlines the tasks to accomplish these objectives; and 3) determines the promotion cost of performing

Back 98

Objective and Task Budgeting

Front 99

The result of direct marketing offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction

Back 99

Direct Orders

Front 100

The result of a direct marketing offer designed to generate interest in a product or service and a request for additional information

Back 100

Lead Generation

Front 101

The outcome of a direct marketing offer designated to motive people to visit a business

Back 101

Traffic Generation

Front 102

Any paid form of non personal communication about an organization, good, service, or idea by an identified sponsor

Back 102

Advertising

Front 103

Are advertisements that focus on selling a good or service and which take three forms: 1) pioneering (or informational), 2) competitive (or persuasive), and 3) reminder

Back 103

Product Advertisement

Front 104

Are advertisements designed to build goodwill or an image for an organization rather than promote a specific good or service

Back 104

Institutional Advertisements

Front 105

Is the number different people or households exposed to an advertisement

Back 105

Reach

Front 106

Is the percentage of households in a market that are tuned to particular TV show or radio station

Back 106

Rating

Front 107

The average number of times a person in the target audience is exposed to a message or an advertisement

Back 107

Frequency

Front 108

Is a reference number used by advertisers that is obtained by multiplying reach (expressed as a percentage of the total market) by frequency

Back 108

Gross Rating Points

Front 109

Is the cost of reaching 1,000 individuals or households with the advertising message in a given medium ( M is the roman numeral for 1,000)

Back 109

Cost per Thousand (CPM)

Front 110

Are program-length (30 minute) advertisements that take an educated approach to communication with potential customers

Back 110

Infomercials

Front 111

Are tests conducted before an advertisement is placed in any medium to determine whether it communicates the intended message or to select among alternative versions of the advertisement

Back 111

Pretests

Front 112

Is an advertising agency that provides the most complete range of services, including market research, media selection, copy development, artwork, and production

Back 112

Full-Service Agency

Front 113

Advertising agencies that specialize in one aspect of the advertising process, such as providing creative services to develop the advertising copy, buying previously unpurchased media space, or providing Internet services

Back 113

Limited-service agencies

Front 114

Consists of the company's own advertising staff, who may provide full services or a limited range of services

Back 114

In-House agencies

Front 115

Tests conducted after an advertisement has been shown to the target audience to determine whether it accomplished its intended purpose

Back 115

Posttests

Front 116

Consists of sales tools used to support a company advertising and personal selling directed to ultimate consumers. Also called consumer promotions

Back 116

Consumer-Oriented Sales Promotion

Front 117

A consumer sales promotion tool that uses a brand-name product in a movie, television show, video game, or a commercial for another product

Back 117

Product Placement

Front 118

Are sales tools used to support a company's advertising and personal selling directed to wholesalers, distributors, or retailers. Also called trade promotions.

Back 118

Trade-Oriented Sales Promotions

Front 119

Consists of advertising programs by which a manufacturer says a percentage of the retailers local advertising expense for advertising the manufacturers products

Back 119

Cooperative advertising

Front 120

Methods of obtaining non personal presentation of n organization, good, or service without direct cost, such as news releases, new conferences, and public service announcements

Back 120

Publicity Tools