Marketing 300 - Exam 2

Front 1

80/20 Rule

Back 1

A concept that suggests 80% of a firm's sales are obtained from 20% of its customers.

Front 2

Back Translation

Back 2

The practice where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors.

Front 3

Balance of Trade

Back 3

The difference between monetary value of a nation's exports and imports.

Front 4

Brand Equity

Back 4

The aded value a brand name gives to a product beyond the functional benefits provided.

Front 5

Brand Licensing

Back 5

A contractual agreement whereby one company (licensor) allows its brand name or trademark to be used with products or services offered by another company (licensee) for a royalty or fee.

Front 6

Brand Name

Back 6

Any word, device, or combination (design, shape, sound, or color) of these used to distinguish a seller's products or services.

Front 7

Brand Personality

Back 7

A set of human characteristics associated with a brand name.

Front 8

Branding

Back 8

A marketing decision in which an organization uses a name, phrase, design, symbols, or combination of these to identify its products and distinguish them from those of competition.

Front 9

Break-Even Analysis

Back 9

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

Front 10

Break-Even Point

Back 10

The quantity of which total revenue and total cost are equal.

Front 11

Bundle Pricing

Back 11

The marketing of two or more products in a single package price.

Front 12

Convenience Products

Back 12

Items that the consumer purchases frequently, conveniently, and with a minimum shopping effort.

Front 13

Copyright

Back 13

Gives the author of a literary, dramatic, musical, or article work the exclusive right to print, perform, or otherwise copy that work.

- 70 years past death for individual.

-95 years past death for company.

Front 14

Cost-Plus Pricing

Back 14

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

Front 15

Currency Exchange Rate

Back 15

The price of one country's currency expressed in terms of another country's currency.

Front 16

Customer Contact Audit

Back 16

A flowchart of the points of interaction or "service encounters" between consumers and a service provider.

Front 17

Customer Experience Management (CEM)

Back 17

The process of managing the entire customer experience within the company.

Front 18

Customs

Back 18

What is considered normal and expected about the way people do things in a specific country.

Front 19

Data Mining

Back 19

Extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patterns and marketing actions.

Front 20

Dumping

Back 20

Occurs when a firm sells a product in a foreign country below its domestic price or below its actual cost.

Front 21

Everyday Low Pricing (EDLP)

Back 21

The practice of replacing promotional allowances with lower manufacturer list prices.

Front 22

Experience Curve Pricing

Back 22

A method of pricing based on the learning effect, which holds that the unit cost of many products and services declines by 10%-30% each time a firm's experience at producing/selling doubles.

Front 23

Exporting

Back 23

A global marketing strategy in which a company produces products in one country and sells them in another country.

Front 24

Fixed Cost (FC)

Back 24

The sum of the expenses of the firm that are stable and do not change with the quantity of the product that are purchased and sold.

Front 25

Focus Groups

Back 25

Informal brainstorming groups of 8-10 people to generate ideas.

Front 26

Four I's of Services

Back 26

1) Intangibility

2) Inconsistency

3) Inseparability

4) Inventory

Front 27

Gap Analysis

Back 27

A type of analysis that compares the differences between the consumer's expectations about and experiences with a service based on dimensions of service quality.

Front 28

Geographic Segmentation

Back 28

Collecting and analyzing information according to the physical location of the customer or data source.

Front 29

Gray Market

Back 29

A situation where products are sold through unauthorized channels of distribution.

Front 30

Gross Domestic Product (GDP)

Back 30

The monetary value of all products and services produced in a country during one year.

Front 31

Internal Marketing

Back 31

The notion that a service organization must focus on its employees or internal market, before successful programs can be directed at customers.

Front 32

Loss-Lender Pricing

Back 32

Deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention to it in hopes that they will buy other products with large markups as well.

Front 33

Majority Fallacy

Back 33

Strategy error which leads to the mistaken belief that the largest segment of the market is the most lucrative. In reality, it may be the least profitable because of the amount of competition.

Front 34

Market Segmentation

Back 34

Involves aggregating prospective buyers into groups, or segments, that have 1, common needs and 2, will respond similarly to a marketing action.

Front 35

Market Share

Back 35

The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself.

Front 36

Market-Product Grid

Back 36

A framework to relate the market segments of potential buyers to products offered or potential marketing actions.

Front 37

Marketing Research

Back 37

The process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions.

Front 38

New-Product Process

Back 38

The 7 stages an organization goes though to identify opportunities and convert them into salable products or services.

Front 39

Patents

Back 39

Preserves rights for products and how everything is done.

Front 40

Penetration Pricing

Back 40

Setting a low initial price on a new product to appeal immediately to the mass market.

Front 41

Perceptual Map

Back 41

A means of displaying in two dimensions the locations of products or brands in the minds of consumers to enable a manager to see how they perceive competing products/brands and their own.

Front 42

Post Mortem

Back 42

Debrief.

1- What worked?

2- What didn't work?

3- What makes us think so?

4- What are we going to do with what we learned?

Front 43

Predatory Pricing

Back 43

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

Front 44

Prestige Pricing

Back 44

Setting a high price so that quality or status conscious customers will be attracted to the product and buy it.

Front 45

Price Discrimination

Back 45

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

Front 46

Price Fixing

Back 46

A conspiracy among firms to set prices for a product.

Front 47

Price Lining

Back 47

Setting the price of a line or product at a number of different specific pricing points.

Front 48

Price Constraints

Back 48

Factors that limit the range of prices a firm may set.

Front 49

Price Objectives

Back 49

Specifying the role of price in an organizations marketing and strategic plans.

Front 50

Primary Data

Back 50

Facts and figures that are newly collected for the project.

Front 51

Private Branding

Back 51

A branding strategy used when a company manufactures products but sells them under the brand name of a wholesaler or retailer.

Front 52

Product Class

Back 52

Refers to the entire product category or industry.

Front 53

Product Differentiation

Back 53

A marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products.

Front 54

Product Life Cycle (PLC)

Back 54

Describes the stages a new product goes through in the marketplace:

1- Introduction

2- Growth

3- Maturity

4- Decline

Front 55

Product Line

Back 55

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 customers, are distributed through the same outliers or fall within a given price range.

Front 56

Product Mix

Back 56

Consists of all of the product lines offered by an organization.

Front 57

Product Positioning

Back 57

The place a product occupies in consumers' minds based on important attributes relative to competitive products.

Front 58

Product-Line Pricing

Back 58

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.

Front 59

Promotional Allowances

Back 59

Cash payments or an extra amount of "free goods" awarded sellers in the marketing channel for undertaking certain advertising or selling activities to promote a product.

Front 60

Protectionism

Back 60

The practice of shielding one or more industries within a countries economy from foreign competition through the use of tariffs or quotas.

Front 61

Protocol

Back 61

A statement that before a product development begins, identifies:

1- A well-defined market

2- Specific customers needs/wants/preferences

3- What the product will be and do to satisfy customers

Front 62

Quota

Back 62

A restriction placed on the amount of a product allowed to enter or leave a country.

Front 63

Sales Forecast

Back 63

Total sales of a product that a firm expects to sell during a specific time period under specified environmental conditions an its own marketing efforts.

Front 64

Secondary Data

Back 64

Facts and figures that have already been recorded prior to the project.

Front 65

Semiotics

Back 65

A field of study that examines that correspondence between symbols and their role in the assignment of meaning for people.

Front 66

Shopping Products

Back 66

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

Front 67

Specialty Prodcuts

Back 67

Items that a consumer maker a special effort to search out and buy.

Front 68

Strategic Alliances

Back 68

Agreements among 2 or more independent firms to cooperate for the purpose of achieving common goals such as a competitive advantage or customer value creation.

Front 69

Tariffs

Back 69

Government taxes on products or services entering a country that primarily serve to raise prices on imports.

Front 70

Total Cost (TC)

Back 70

Total expense incurred by a firm in producing and marketing a product.

TC = FC + VC

Front 71

Total Revenue (TR)

Back 71

The total $ received from the sales of a product.

Front 72

Trademark

Back 72

Identifies that a firm has legally registered its brand name or trade name so the firm has its exclusive use, thereby preventing other from using it.

Front 73

Usage Rate

Back 73

The quantity consumed or patronage (store visits) during a specific period.

Front 74

Value-Pricing

Back 74

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

Front 75

Variable Cost (VC)

Back 75

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

Front 76

Warranty

Back 76

A statement indicating the liability of the manufacturer for product deficiencies.

Front 77

World Trade Organization

Back 77

A permanent institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions.

Front 78

Data vs. Information

Back 78

Data = Facts and figures

Information = Processing of the data

Front 79

Euro

Back 79

Currency of the EU.

Front 80

Demographic Segmentation

Back 80

Market segmentation according to age, race, religion, gender, family size, ethnicity, income, and education.

Front 81

Measure of Segmentation/Programs Efficiency

Back 81

Total Sales-Non-Target Market Sales/Total Sales

Front 82

WTO Compared to GATT

Back 82

GATT focused on tariffs and quotas.

WTO focused on any kind of barriers to trade and in 8-12 months trade disputes were resolved!

Front 83

Non-Sampling Error

Back 83

Everything outside of significance.

Front 84

Price Skimming Strategy

Back 84

Start low, move high.

Front 85

Problems Underlying the Euro Crisis

Back 85

No exit strategy.

Front 86

Profit Equation

Back 86

Total Revenue - Total Cost = Profit

Front 87

Sampling Error

Back 87

Measures Significance. The deviation of the selected sample from the true characteristics, traits, behaviors, qualities or figures of the entire population.

Front 88

Stages of New Product Development

Back 88

1) Idea Generation

2) Idea Screening

3) Concept Testing

4) Business Analysis

5) Product/Strategy Development

6) Test Marketing

7) Commercialization

Front 89

What is a brand?

Back 89

A chunk of information that stimulates senses.