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96 Cards in this Set

  • Front
  • Back
physical characteristics of the tangible item or service
reasons for having those features
how the product or service satisfies a need
a bundle of benefits, a collection of solutions to needs and wants
product life cyle
PLC, product grows (in sales), mature, and at some point, die out. this is the cycle of development, introduction, growth, maturity, and decline in sales
development stage
that stage in the product's life when it is designed and readied for market
when a competitor brings out a product that is at least one step better technologically
introduction stage
sales are relatively low and profits are unlikely, as sales revenue is invested in creating awareness. if distributors or other intermediaries are needed, getting their agreement to carry the product can be difficult because there is not yet a well-defined market for the product
primary demand
demand for that type of product, must be created
growth stage
when sales and profits grow at a fast rate. competition against an innovative product is most likely to enter the market in this stage, and vendors begin to differentiate their product in order to create secondary demand
secondary demand
demand for a particular vendor's offering
maturity stage
when sales level off. note that sales can level off for a product category, in which case that market is said to be mature. profits are relatively high and marketing expenses should begin to decline
product portfolio management
suggests managing all products simultaneously as you would a financial portfolio, balancing risk and return among all product investments
market growth is high in a market where we control a large amount of total market
cash cows
have high market share and strength in a steady market and are those products that should contribute the most to the company's profit
question marks
those products in high-growth markets that currently have low market share and may not be too strong
products with low share in a poor market
market attractiveness
a composite measure of the potential for sales and profits in a particular market segment, and business strength as its dimensions
business strength
the strength of our offering relative to other companies' products
investment risk
the risk that we decide to go ahead with the product, it fails, and we lose some or all of our investment
opportunity risk
the risk that we decide to kill a product and thereby lose all of the revenue we would have gained if it had been a success
Quality Function Deployment
QFD, link customer needs to product attributes
Earlier supplier involvement
ESI, the concept of involving suppliers early in the product design process
beta testing
or field testing , testing the product by letting customers use it in real-world conditions
rolling launch
launch the product in certain areas, rolling to new areas as support personnel are trained and ready
first-mover advantage
being first is no guarantee of success. companies can also gain just by looking like they were first or by introducing a product soon after the original product was introduced by a competitor, but introducing it with a bigger and more effective launch
demand intermediaries
organizations that facilitate the transfer of title between the producer and user of a product
merchant wholesaler
or industrial distributors, are intermediaries who take title to the merchandise. include a number of subtypes which differ in the functions they perform.
and brokers represent the other class of intermediaries; they do not buy or own the goods they sell
specialty wholesalers
firms carrying a very narrow line and supporting that with technical expertise and consultative selling
cash-and-carry distributors
firms that provide no buyer financing or delivery
drop shipper
or desk jobber buys products from a supplier buy never takes physical possession
truck jobber
carries all its inventory on a truck and services customers on a frequent basis or route
manufacturers' agent
sell the lines of noncompeting principals for a commission
the manufacturer or other person or firm that contracts for the service of the agent in its own behalf
bring buyers and sellers together, typically in environments where buyers and sellers lack the information needed to connect with one another
gap analysis
a set of tools for comparing performance outcomes or expectations on specific criteria
felt or enacted tension between parties-in this situation, channel members
mean leaving a relationship
involves some means of articulating dissatisfaction
steadfast perseverance in the face of conflict's felt tension or abuse
includes open or covert actions intended to injure the conflict party
means to leave the conflict untreated, perhaps allowing the relationship to atrophy or face in significance
a property of a relationship deriving from one member's dependence on another for valued resources-resources that are not readily available elsewhere
reward power
the ability to provide payoffs to a party for specified behaviors or outcomes
coercive power
the ability of one channel member to mediate punishments to get another to do what it otherwise would not do
information power
resides in a channel member's reliance on facts and figures, models, and insights from its partner
expert power
the ability to gain a target firm's compliance based on that target's regard for the source as knowledgeable
referent power
the potential to influence another based on the other's desire to identify with or be like the source firm
traditional legitimate power
the source is able to direct the behavior of the target because cultural norms support the source
legal legitimate power
explicit authority over certain behaviors granted to the source in a sales agreement or contract
administered channels
recognize their participation in a large system, but they interact without a formal chain of command or a set of rules
contractual channels
tightly coordinated by formal procedures and pledges of ongoing exchange
corporate channels
what we tend to see are high degrees of vertical integration in the sales and distribution functions
customer relationship management
CRM, provides us the strategic framework for understanding how to create customer dialogue
integrated marketing communication
IMC, strategic, two-way communication targeted to specific customers and their needs, all coordinated through a variety of media
hierarchy-of-effects model
used by many companies when planning communication campaigns because it describes the mental stages through which the target must progress prior to reasoned action
created when potential buyers become acquainted with the product or brand
the next step after awareness and reflects the buyer's desire to learn more about what is being discussed
the recognition by the buyer that when the needs occur, that is the brand or product to buy
the desired behavior that we want from the audience
strategic goals
what you want the overall strategy to accomplish
tactical goals
desired outcomes for specific communications
someone for whom we know needs, budget, and time frame for purchase
place in the mind of the buyer. position goals reflect the ratings we want our offerings to have in the customer's multiattribute evaluation of the options
action goals
set for those communications that are intended to cause the receiver to do something, we want buyers to take action
search engine marketing
SEM, the marketer may bid on key search items and thereby have its firm name appear when a potential customer searches using that term
selling under the guise of doing research, not appropriate
trade shows
temporary exhibitions of product and services
inbound telemarketing
electronic communication initiated by the customer
outbound telemarketing
initiated by the marketer
personal selling
interpersonal communication in which one person attempts to secure a purchase from another person
direct influence
skirt the hierarchy of effects and go right after the action
breakdown budgeting
methods that begin with the manager setting a total communications budget, then allocating (breaking down) the budget to the various forms of communication
objective-and-task method
budget buildup method, requires the decision maker to set the budget after determining the communication strategy. the method has three steps: defining objective, determining strategy, and estimating cost
evoked set
products of which the buyer is aware
creative plan
determining what the content of the message will be (encoding)
media plan
choosing the channel of communication
trade publications
magazines written for a particular trade, profession, or industry
controlled circulation
distribution only to qualified readers
the total number of buyers that see an ad
the number of times a potential buyer is exposed to an ad
cost per thousand
CPM, readers is a critical variable in selecting trade publications and can be calculated by dividing the cost of an ad's space by the number of readers (in thousands)
public relations
the management function that focuses on the relationships and communications with individuals and groups in order to create mutual goodwill
the generation of news about a person, product, or organization that appears in broadcast or electronic media
press agentry
the planning and staging of an event in order to generate publicity
press kit
media kits, support staged events, and contain information about the event and key information for publication in news stories
net buying influence
the percentage of show audience that has influence in the buying process fro the specific product exhibited
total buying plan
the percentage of the audience planning to buy exhibited products with the next 12 month
direct marketing
an interactive form of marketing using one or more advertising media to effect a measurable response and/or transaction at any location, with this activity stored on database
combines telemarketing with field efforts
transactional channels
members trade at arms length
variable costs
cost of goods sold, expenses not directly related to production
fixed costs
do not fluctuate with output. program costs in attempt to generate sales, package design but not package production
relevant costs
expected to occur in the future as a result of some marketing effort
sunk costs
past expenditures for a given activity, generally irrelevant to future decisions