Marketing Exam #3

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Marketing Segmentation

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

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Market Segments

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are the relatively homogeneous groupsof prospective buyers that result from the market segmentation process.

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Product Differentation

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is a marketing strategy that involvesa firm using different marketing mix activities to help consumers perceive the product as being different and better than competing products.

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Synergy

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is the increased customer value achievedthrough performing organizational functions more efficiently.

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Usage rates

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is the quantity consumed or patronage (store visits) during a specific period. Also called frequency marketing

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80/20 Rule

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is a concept that suggests 80 percent of a firm’s sales are obtained from 20 percent of its customers.

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Market Product-Grid

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is a framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization.

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Product Positioning

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is the place an offering occupies in consumers’ minds on important attributes relative to competitive products.

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Product Repositioning

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involves changing the place an offering occupies in consumers’ minds relative to competitive products.

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Perceptual Map

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is a means of displaying or graphing in two dimensions the location of productsor brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands and then take marketing actions.

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Market Potential

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is the maximum total sales of a product by all firms to a segment during a specified time period under specified environmental conditions and marketing efforts of the firms. Also called industry potential.

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Industry Potential

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is the maximum total sales of a product by all firms to a segment duringa specified time period under specified environmental conditions and marketing efforts of the firms. Also called market potential.

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Sales Forecast

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consists of the total sales of a product that a firm expects to sell during a specified time period under specified environmental conditions and its own marketing efforts. Also called a company forecast.

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Company Forecast

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consists of the total sales of a product that a firm expects to sell during a specified time period under specified environmental conditions and its own marketing efforts. Also called a sales forecast.

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Direct Forecast

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consists of estimating the value to beforecast without any intervening steps.

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Lost-horse forecast

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consistsof making a forecast using thelast known value and modifying it according to positive or negative factors expected in the future.

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Survey of buyers-intentions forecast

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consists of asking prospective customers if they are likely to buy the product during some future time period.

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salesforce survey forecast

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consists of asking the firm’s salespeople to estimate sales during a coming period.

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Trend extrapolation

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involves extending a pattern observed in past data into the future.

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Linear trend extrapolation

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involves using a straight line to extend a pattern observed inpast data into the future.

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Product Life cycle

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describes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline.

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Product Class

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consists of the entire product category or industry.

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Product Form

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consists of variations of a product within the product class.

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Product Modification

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involves altering a product’s characteristic, such as its quality, performance, or appearance, to increase the product’s value and sales.

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Market Modification

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is astrategy in which a company tries to find new customers, increasea product’s use among existing customers, or create new use situations.

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Trading Up

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involves adding value to the product (or line) through additional features or higher-quality materials.

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Trading Down

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involves reducing the number of features, quality, or price.

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Branding

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is a marketing decision by an organization to use a name, phrase, design, or symbols, or combination of these to identify its products and distinguish them from those of competitors.

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Brand Name

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is any word, device (design, shape, sound, or color), or combination of these used to distinguish a seller’s goods or services.

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Trade Name

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is a commercial, legal name under which a company does business.

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Trademark

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

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Brand Personality

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is a set of human characteristics associated with a brand name.

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Brand Equity

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is the added value a given brand name gives to a product beyond the functional benefits provided.

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Brand licensing

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

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Multiproduct Branding

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is a branding strategy in which a company uses one name for all its products in a product class.

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Multibranding

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is a branding strategy that involves giving each product a distinct name when each brand is intended for a different market segment.

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Private Branding

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is a branding strategy used when a company manufactures products but sells them under the brand name of a wholesaler or retailer. Also called private labeling or reseller branding.

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Mixed Branding

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is a branding strategy where a firm markets products under its own name(s) and that of a reseller because the segment attracted to the reseller is different from its own market.

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Packaging

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is a component ofa product that refers to any container in which it is offered for sale and on which label information is conveyed.

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Label

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is an integral part of the package that typically identifies the product or brand, who made it, where and when it was made, how it is to be used, and package contents and ingredients.

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Warranty

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is a statement indicating the liability of the manufacturer for product deficiencies.

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Marketing Channel

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consistsof Individuals and firms involvedin the process of making a product or service available for use or consumption by consumers or industrial users.

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Industrial Distributor

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is an intermediary that performs a variety of marketing channel functions, including selling, stocking, delivering a full product assortment, and financing.

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Electronic Marketing Channels

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employ the Internet to make goods and services available for consumption or use by consumers or business buyers.

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Direct Marketing Channels

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allow consumers to buy products by interacting with various advertising media without a face-to-face meeting with a salesperson.

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Multichannel marketing

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involvesthe 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.

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Dual Distribution

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

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Strategic Channel Alliances

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is a practice whereby one firm’s marketing channel is used to sell another firm’s products.

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Merchant Wholesalers

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are independently owned firms that take title to the merchandise they handle.

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Manufacturer's Agents

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are agents who work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory. Also called manufacturer’s representatives.

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Selling Agents

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are agents who represent a single producer and are responsible for the entire marketing function of that producer.

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Brokers

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are independent firmsor individuals whose principal function is to bring buyers and sellers together to make sales.

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Vertical Marketing Systems

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are professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact.

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Franchising

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involves a contractual arrangement between a parent company (a franchisor) and an individual or firm (a franchisee) that allows the franchisee to operate a certain type of business under an established name and according to specific rules.

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Channel Partnership

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consists of agreements and procedures among channel members for ordering and physically distributing a producer’s products through the channel to the ultimate consumer

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Intensive Distribution

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

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Exclusive Distribution

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is a level of distribution density whereby only one retail outlet in a specific geographical area carries the firm’s products.

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Selective Distribution

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is a level of distribution density whereby a firm selects a few retail outlets in a specific geographical area to carry its products.

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Channel Conflict

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arises whenone channel member believes another channel member is engaged in behavior that prevents it from achieving its goals.

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Disintermeditation

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involveschannel conflict that arises when a channel member bypasses another member and sells orbuys products direct.

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Channel Captain

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is a channel member (producer, wholesaler, or retailer) that coordinates, directs, and supports other channel members.