Marketing Clep

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Marketing Clep
2011-10-31 12:44:00

Flashcards for the study of the marketing Clep Exam from REO book notes.
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  1. Product Planning
    decision making related to new and existing products
  2. Convenience Good
    purchased frequently, minimum shopping effort (low involvement)
  3. Shopping goods
    goods where: price comparison and visit of several stores before purchase
  4. specialty goods
    goods that have strong buyer loyalty. and buyer accepts no substitute
  5. unsought goods
    • have no demand
    • no one wants it
  6. Industrial goods
    basic materials the become part of teh end product.
  7. operating supplies
    low cost items that aid in production
  8. Tangible products
    can be described by color size or weight
  9. imatative products
    me too products not new to market
  10. Idea generation
    search for new product opportunities
  11. products screening
    analyze based on product stregnth and weaknesses
  12. concept testing
    • new ideas
    • subject to public scrutiny
  13. business analysis
    evaluation of comercial feasibility
  14. product development stage
    ideas produced and limited marketing strategy created
  15. product adoption
    process of customer learning about new products
  16. Innovators
    first to buy - younger more affluent
  17. early adopters
    second to buy.
  18. early majority
    usually above average socio economics- usually influenced by ads and sales people
  19. late majority
    • 4th level to purchase
    • resistant to change (middle aged or older)
  20. laggards
    last to buy, price conscious
  21. product positioning
    product perception
  22. mix expansion
    new groth opportunities
  23. wide product mix
    diverse products
  24. deep product mix
    smaller product lines
  25. Product Life Cycle - PLC
    profits become positive
  26. Product Life Cycle

    slowing sales, market saturation, consumer demand peaks, more price competition
  27. Product Life Cycle

    sales decline
  28. Manufacturer Brands
    Created by manufacturers ie. Sears Die hard, Sears craftsman
  29. Dealer brands
    created by middlemen or retailers (Walmart brand)
  30. Good Brand name
    state benefits, short, spellabe, pronouncable, pleasant sounding, distinct and memorable
  31. Brand Familarity types
    • Brand Insistance
    • Brand Preference
    • Brand recognition
    • Brand non-recognition
    • Brand rejection
  32. Family brand
    same brand applied to multiple products
  33. generics
    have no brand name
  34. licensed brand
    an established brand others pay to use (the name)
  35. trademarks
    brand names, marks or characters to identify a product
  36. packaging charactaristics
    protect, promote, inform
  37. what are charactaristics of services?
    intangible, insepable from the provider, perishable (cannot be returned), variable (cannot be performed same every time)
  38. Distribution Channels are:
    designed on teh needs of seller
  39. Distribution includes?
    transport, inventory, customer service, research, promotion, product panning, sorting
  40. accumulation?
    Pooling small amount of items together to transport as a group
  41. direct channel
    move goods from producer to consumer (barnes and noble online)
  42. indirect channel
    move goods using intermediary (seller using Amazon)
  43. Channel width
    all of the members of the channel
  44. Intensive Distribution
    use all channels who will sell to the end consumer
  45. selective distribution
    selles through select wholesalers and retailers
  46. Exclusive Distribution
    uses only 1 or 2 intermediaries in a market
  47. Corporate Distribution
    one firm owns all channels
  48. contractural distribution arrangements
    contract the specifies performance terms for members of a distribution channel
  49. administered distribution arrangements
    coordinate channel operations through dominant channel member (Market power of the other members is enough to secure voluntary cooperationi of other channel members)
  50. vertical integration
    acquire firms that operate different distribution channel levels
  51. horizontal integration
    acquiring firms that operate at the same distribution channel level.
  52. channel control
    influence of other members
  53. channel conflict
    disagreements over distribution channel practices
  54. horizontal channel conflict
    firms having conflict at same distribution level
  55. vertical channel conflict
    firms having conflict at different distribution level
  56. Pushing Distribution strategy
    uses promotion to insure intermediary cooperation
  57. pulling distribution strategy
    generates consumer demand to pull product through distribution channels. (Radio airplay to get distribution)
  58. total cost concept
    minimizing costs and satisfying customer demands are conflicting objectives. (How to provide good cust service at lowest cost?)
  59. Distribution center concept
    warehousing in relation to a market (Walmart)
  60. Sub optimization
    reducing cost in one function that increase costs of other functions
  61. customer service standard
    different customes require different levels of customer service
  62. stock out
    shortage; carrying too little product
  63. usage rate
    rate inventory sold
  64. safety stock
    inventory on hand to avoid stock out
  65. Eonomic order quantity
    order size that minimizes the total cost of carrying inventory and ordering
  66. intermodal
    two or more couriers for transport
  67. wholesaling
    resale of products to buyers or other wholesalers
  68. merchant wholesalers
    take title of and posessionof the product they are wholesaling
  69. rack jobbers
    full service merchant wholesalers (provide display racks in stores for their product)
  70. drop shippers
    buy product from manufacturer and arrange for delivery to retailers
  71. agents
    do not take title of product they sell
  72. broker
    brings buyers and sellers together (
  73. retailing
    all of the activities related to the sale of products to the "Final" Consumer.
  74. Verticle marketing system
    groups retail units into a group to enhance market power, advantage of being viewed as a chain
  75. franchise
    verticle marketing; provides use of name, trademarks, assistance, personnell, inventory to support they retailing efforts
  76. scrambled merchandising
    adding products not a part of typical product line
  77. direct marketing
    internet marketing, tv, catalog, direct mail, infomercials,
  78. promotion mix
    ads, selling, publicity, pub relations, sales promotions
  79. communication channels
    the medium where promotions is sent\delivered (Internet, radio etc)
  80. Reach
    percentage of target market exposed to an ad
  81. Selling process
    • prospecting -identify leads
    • pre approach - analyize buyer behavior
    • approach - meet buyer
    • presentation - canned presentation (meet objections raised by prospect, give any requested clarification)
    • close - gain purchase commitment
    • follow up - salesperson to assure customer satisfaction
  82. elasticity of demand
    the percent change in the units demanded divided by the percentage chane in the price of the product
  83. elastic demand
    increase in price produces decreas in demand
  84. inelastic demand
    increase in price product decrease in demand and increase in revenue
  85. unitary elasticity
    change in demand is propertional to change in price and revenue is unchanged.
  86. Sherman Act 1890
    Monopoly illegal
  87. Robinson Patman Act 1936
    wholesaler cannot discriminate against a buyer and charge higher price unless justified via cost savings or competition
  88. Psychological pricing
    • prestige pricing
    • odd even pricing (pricing just below the dollar)
  89. Leader pricing
    price to lead customer into building
  90. production era
    second half of 19th century
  91. Sales Era
    1920s to 1950s
  92. marketing era
    1950s +
  93. Sherman Act
    1890 prevent business from practicing predatory pricing: monopolization and conspiracies
  94. Robinson Patman (1936)
    prevent wholesaler price descriminiation
  95. Price skimming
    introduce new products at high prices
  96. Penetration pricing
    introduce new products at low prices
  97. cost based pricing
    proice as product of cost. Cost + ROI = price
  98. Demand pricing
    price based on customer response to price. 1. prestige pricing 2. odd even pricing 3. price lining 4. leader pricing
  99. one price
    same price to all buyers
  100. flexible pricing
    different prices to different buyers (car dealer)
  101. Geographic pricing
    price reflecting differnt levels of transportation costs related to distance between buyers and seller (zone pricing - price set by zones or distance of shipping and snipping costs)
  102. unit pricing
    price per unit
  103. alternative pricing
    when price reflects things other than profit maximization
  104. prestige price
    high price to denote high value
  105. odd even price
    prcin just below the dollar value -makes user feel like he has received a discount
  106. leader pricing
    selling below usual price to gain attention or get someone in store
  107. price lining
    setting price for different lines of a product via price levels.
  108. trade discount
    reduction in price given as trade to perform a certain task
  109. quantity discount
    price reduction based on size of order
  110. cash discount
    discount if paid in certain time. 2/10 Net 30 = 2% discount of paid in 10 days.
  111. Break even analysis
    estimates impace of pricing policy based on levels of profit.
  112. compensatory ethics
    morals and ethics determined by consequences
  113. non copensatory
    morals and ethics are without exception
  114. reverse logistics
  115. green marketing
    marketing products that do not harm the environment.
  116. product positioning
    shaping of a product in the consumers mind
  117. Marketing Plan
    marketing strategy and steps to carry out the strategy
  118. situation analysis
    identifies threats, stregnths and weakness of marketing environment
  119. marketing objectives
    specifies goals of firm that the marketing should acheive
  120. Marketing strategy
    how marketing mix is used to achieve organization goals
  121. Swot matrix
    assess value of new opportunities. stregnths, weaknesses, opportunities and threats
  122. Star
    high profits - High cost
  123. cash cow
    high profits - low cost
  124. probem child
    low profits - high cost
  125. dog
    low profits - no growth
  126. marketing myopia
    narrow minded management loosing sight of the customer being first
  127. Behavior dimensions
    purchase occasion, user status, user rate, brand loyalty
  128. psychographics
    influence consumers pattern of living or lifestyle. (Activities, intrests, Opinions) AIO
  129. High involvement stages
    • P - problem
    • S - search for info
    • E - evaluate alternatives
    • P - purchase decision
    • P - post purchase behavior
  130. cognitive dissonance
    consumer evaluates purchase desicion after the sale has been made
  131. consumer goods
    purchased frequently
  132. shopping goods
    consumer usually make price and quality comparisons at several stores before purchase
  133. specialty goods
    buyers have strong buying loyalty. will accept no substitutes
  134. product screening
    analyze based on stregnths and weaknesses
  135. concept testing
    subjecting new ideas to public scrutiny
  136. business analysis
    evaluate commercial feasability
  137. Product adoption
    process of learning about a product
  138. diffusion process
    rate of adoption
  139. diffusion adoptors (adoption process)
    • I - Innovators
    • E - Early adoptoer
    • E - Early majority
    • L - late majority
    • L - laggards
  140. Product life cycle
    • I - ntroduction
    • G - rowth
    • M - aturity
    • D - ecline
  141. G - rowth
    point at which profitability becomes positive
  142. M - aturity
    slowing sales, market saturation, price competition increase
  143. D - ecline
    Industry wide sales decline
  144. Vertical Integration (distribution)
    acquire firms that operate at different channel levels
  145. Horizontal integration
    acquiring firms that operate at the same level
  146. Total cost concept
    minimizing cost and satisfying customer demands are conflicting objectives
  147. sub optimiztion
    cost reduction that increases cost of other functions
  148. customer service standard
    customers require different levels of customer service
  149. vehicle marketing system
    grouping retail units into a collective to allow for more competitive power
  150. wheel of retailing
    new retailers enter market as low status low price competitors
  151. scrambled merchandising
    offering products outsisde typical product lines
  152. Promotion objectives
    address 3 goals of marketing mix
  153. unitary elasticity
    demand and price are proportional without changeing revenue
  154. elastic
    increase in price product decrease in demand
  155. inelastic
    increase in price product decrease in demand but increase in revenue
  156. markup
    (newprice - cost) /new price + %
  157. markdown
    (old price - new price)/oldprice = %