Principles Of Marketing 3

Front 1

Acquisition

Back 1

buying of a whole company, patent, or license to produce someone else’s product

Front 2

New product development

Back 2

original products, product improvements, product modifications, and new brands developed from the firm’s own research and development

Front 3

Idea generation

Back 3

the systematic search for new-product ideas

Front 4

Idea screening

Back 4

reduce number of ideas

Front 5

Concept Development / Testing

Back 5

Develop Product Concept – detailed version of the new-product idea stated in consumer terms and Test concept(s) with target consumers

Front 6

Market Strategy Development

Back 6

design initial marketing strategy for new product.

Front 7

Business Analysis

Back 7

compare new product’s financial goals to corporate strategy and objectives

Front 8

Product Development

Back 8

Develop concept into physical reality

Front 9

Test Marketing

Back 9

product and marketing program are tested in realistic market settings.

Front 10

Commercialization

Back 10

launch new product into market. Includes when, where and planned roll-out

Front 11

Fads

Back 11

temporary periods of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity

Front 12

Introduction

Back 12

low customer awareness and acceptance; sales rise gradually; high marketing costs, low profits

Front 13

Growth

Back 13

rapid sales increase; lower price, lower profit. More competition.

Front 14

Maturity

Back 14

Sales still increasing at slower rate, but will decline in later stage. Price competition, more segmented market.

Front 15

Decline stage

Back 15

sharp decrease in sales volume, profits continue to fall. Cover costs, maintain market share, reduce inventory.

Front 16

Product Modification

Back 16

redesign product or packaging;

Front 17

Market Modification

Back 17

encourage new product uses / users;

Front 18

Marketing Mix Modification

Back 18

increase sales by changing one or more components of the marketing mix

Front 19

Product

Back 19

anything offered in a market for attention, acquisition, use or consumption that might satisfy a need or want.

Front 20

Services

Back 20

any benefit or activity that one party can offer another and does not result in ownership of anything.

Front 21

Consumer products

Back 21

products / services for personal consumption

Front 22

Convenience

Back 22

customer buys frequently, immediately, and with minimum effort. Often inexpensive.

Front 23

Shopping

Back 23

customer compares carefully on suitability, quality, price, and style. Occasional purchase, (more) expensive

Front 24

Specialty

Back 24

possess unique characteristics or brand identification. Considerable buying effort.

Front 25

Unsought

Back 25

consumer does not know about or knows about but does not normally think of buying.

Front 26

Industrial products

Back 26

purchased for further processing or for use in conducting a business

Front 27

Materials and parts

Back 27

raw materials and manufactured parts that become part of a product

Front 28

Capital items

Back 28

major and accessory equipment used for production or operations

Front 29

Supplies and services

Back 29

facilitate operations and production

Front 30

Organization marketing

Back 30

activities to create, maintain, or change attitudes and behavior of consumers toward an organization

Front 31

Person marketing

Back 31

activities to create, maintain, or change attitudes and behavior of consumers toward particular people

Front 32

Place marketing

Back 32

activities to create, maintain, or change attitudes and behavior of consumers toward particular places

Front 33

Social marketing

Back 33

use of marketing concepts and tools to influence individuals’ behavior to improve their well-being and that of society. Marketing of social ideas.

Front 34

Product attributes

Back 34

communicate a product’s benefits (utility). Includes quality, features, style and design

Front 35

Brand

Back 35

name, term, sign, or design—or a combination of these—that identifies a seller’s products as distinct from others. May include brand name, brand mark, trademark or trade name

Front 36

Product Mix

Back 36

set of all product lines and items a firm offers for sale

Front 37

Product line

Back 37

group of products closely related as they function in similar manner, are sold to the same customer groups, or fall within given price range.

Front 38

Intangibility

Back 38

services cannot be seen, tasted, felt, heard or smelled prior to purchase

Front 39

Variability

Back 39

service quality is dependent on provider, and on when, where and how service is provided

Front 40

Inseparability

Back 40

services cannot be separated from the provider

Front 41

Perishability

Back 41

services cannot be stored for later sale or use

Front 42

Brand equity

Back 42

differential effect knowing the brand name has on customer response to the product or its marketing.

Front 43

Brand Positioning

Back 43

positioning based on product attributes, benefits or beliefs / values

Front 44

Brand Sponsorship

Back 44

marketers have four options:Manufacturer’s (national) brand, Private (store) brand, Licensed brand, Co-brand

Front 45

Options for Brand Sponsorship

Back 45

Manufacturer’s (national) brand, Private (store) brand, Licensed brand, Co-brand

Front 46

Parts of line development

Back 46

line extension, brand extension, multibrands, and New brands

Front 47

Line extension

Back 47

existing brand name in a existing market

Front 48

Brand extension

Back 48

existing brand name in a new market

Hint 48

Arm and hammer

Front 49

Multibrand

Back 49

new brand name in an existing market

Front 50

New brand

Back 50

new brand name in a new market

Front 51

Competition-Based Pricing

Back 51

pricing based on competitors’ strategies, prices, costs and offerings

Front 52

Cost-based Pricing

Back 52

pricing based on the cost of the product or service

Front 53

Value-based Pricing

Back 53

pricing based on the perceived value of the product or service

Front 54

types of value-based pricing

Back 54

Value Added Pricing and Good Value pricing

Front 55

Good Value pricing

Back 55

offer right combination of quality and service at a fair price. (EDLP- everyday low prices)

Front 56

Value Added Pricing

Back 56

attaching value added features and services to differentiate the offer, thereby supporting the higher price (Pricing Power)

Front 57

Market-skimming

Back 57

high initial prices to “skim” revenue layers from the market. Skim the profit.

Front 58

Market-penetration

Back 58

low initial price to “penetrate” the market, and secure high volume

Front 59

Product line pricing

Back 59

accounts for cost differences, product features and competitor’s products – for products in a line.

Front 60

Optional-product pricing

Back 60

accounts for optional or accessory products along with the main product

Front 61

Captive-product pricing

Back 61

pricing products that must be used along with a main product.

Front 62

By-product pricing

Back 62

pricing by-products to make the main product competitive.

Front 63

Product bundle pricing

Back 63

Combining several products and offering the bundle at a reduced price

Front 64

Discount and allowance pricing

Back 64

price reductions to reward customers for certain responses

Front 65

Discounts

Back 65

straight price reduction during a stated period of time

Front 66

Allowances

Back 66

promotional money paid by manufacturers to retailers in return for featuring the manufacturer’s products.

Front 67

Segmented pricing

Back 67

product is sold at two or more prices even though the difference is not based on cost

Front 68

Promotional pricing

Back 68

when prices are temporarily priced below list price or below cost

Front 69

Geographical pricing

Back 69

used for customers in different parts of the country or the world

Front 70

Psychological pricing

Back 70

consider the psychology of prices, not simply the economics.(like 99 cents)

Front 71

Dynamic pricing

Back 71

prices are adjusted continually to meet the characteristics and needs of the individual customer and situations

Front 72

International pricing

Back 72

is when prices are set in a specific country based on country-specific factors

Front 73

Value delivery network

Back 73

the firm’s suppliers, distributors, and ultimately customers who partner with each other to improve the performance of the entire system

Front 74

Upstream partners

Back 74

include raw material suppliers, components, parts, information, finances, and expertise to create a product or service

Front 75

Downstream partners

Back 75

include the marketing channels or distribution channels that look toward the customer

Front 76

Marketing Channel

Back 76

set of interdependent organizations (intermediaries) that help make a product or service available for use by the customer

Front 77

Intermediaries

Back 77

offer greater efficiency in making goods available to markets. Through contacts, experience, specialization, and scale of operations, they offer the firm more than it can achieve on its own.

Hint 77

middleman/middleperson

Front 78

Channel conflict

Back 78

disagreement over goals, roles, and rewards by channel members

Front 79

Vertical Marketing Systems (VMS)

Back 79

a distribution channel structure in which producers, wholesalers and retailers act as a unified system

Front 80

Corporate

Back 80

combines stages of production / distribution under single ownership

Front 81

Contractual VMS

Back 81

independent companies at various levels of production / distribution are joined by contracts

Front 82

Administered

Back 82

coordinated stages of production / distribution through the power of one of the parties

Front 83

Horizontal marketing systems

Back 83

when two or more companies at one level join together to follow a new marketing opportunity. Companies combine financial, production, or marketing resources to accomplish more than any one company could alone

Front 84

Multichannel Distribution systems

Back 84

when a single firm sets up two or more marketing channels to reach one or more customer segments

Front 85

Disintermediation

Back 85

occurs when product or service producers cut out intermediaries and go directly to final buyers, or when radically new types of channel intermediaries displace traditional ones

Front 86

Retailing

Back 86

all the activities in selling products or services directly to final consumers

Front 87

Retailers

Back 87

businesses whose sales come primarily from retailing

Front 88

Types of retailers

Back 88

Specialty,Department,Convenience,Superstores, and Category killers

Front 89

Specialty

Back 89

narrow product line with deep assortments

Hint 89

kitchen collection

Front 90

Department

Back 90

wide variety of product lines

Hint 90

JCP

Front 91

Convenience

Back 91

limited line of high-turnover goods

Hint 91

Walgreens and 7eleven

Front 92

Superstores

Back 92

larger than supermarkets

Hint 92

super Target

Front 93

Category killers

Back 93

deep assortment of a particular line (deep in category)

Hint 93

barnes and nobles

Front 94

Wheel-of-retailing concept

Back 94

states that many new types of retailing forms begin as low-margin, low-price, low-status operations, and challenge established retailers. As they succeed they upgrade facilities and offer more services, increasing their costs and forcing them to increase prices, eventually becoming the retailers they replaced.