MARK 3336 Exam2

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  1. Involves Aggregating prospective buyers into groups that 
    1) have commin needs
    2) will respond similarly to a marketing action 
    Market Segmentation
  2. The relatively homogeneous groups of prospective buyers that result from the market segmentation process.  Each consists of people who are relatively similar to each other in terms of their consumption behavior.
    Market Segments
  3. This strategy involves a firm using different marketing mix activities, such as product features and advertising, to help consumers perceive the product as being different and better than competing products. 
    Product Differentiation
  4. The quantity consumed or patronage (store visits) during a specific period
    Usage Rate
  5. Framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization.  
    Market-Product Grid
  6. usage rate is sometimes referred to as this.  This concept suggests that 80% of a firm's sales are obtained from 20% of its customers.
    80/20 Rule
  7. A means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands as well as a firm's own product or brand. 
    Perceptual Map
  8. Refers to the place a product occupies in consumers' minds on important attributes relative to competitive products.  
    Product Positioning
  9. Changing the place a product occupies in a consumers mind relative to competitive products
    Product repositining 
  10. A good, service or idea consisting of tangible and intangible features that satisfies consumer's needs and is received in exchange for money or something else of value
  11. Intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value
  12. Products purchased by the ultimate consumer
    consumer products
  13. Products organizations buy that assist directly or indirectly in providing other products for resale
    business products
  14. A specific product that has a unique brand, size or price
    Product Item
  15. A group of products that are closely related because they are similar in terms of consumer needs and uses, market segments, sales outles or prices
    Product Line
  16. All the product lines offered by a company
    Product Mix
  17. The four unique elements that distinguish services from goods: 

    The Four I's of Services
  18. When the service provider is available, but there is no demand for the service
    Idle Production Capacity
  19. The seven stages and organization goes through to identify business opportunities and convert them into salable products or services
    New-Product Process
  20. The process of managing the entire customer experience within the company 
    Customer Experience Management (CEM)
  21. The stages a new product goes through in the marketplace:

    Product life cycle
  22. In which an organization uses a name, phrase, design, symbols or combination of these to identify its products and distinguish them from those of competitors
  23. Any word, device (design, sound, shape or color) or combination of these used to distinguish a seller's goods or services
    Brand Name
  24. A set of human characteristics associated with a brand name
    Brand Personality
  25. The added value a brand name gives to a product byond the functional benefits provided
    Brand Equity
  26. A branding strategy in which a company uses one name for all its products in a product class
    Multiproduct Branding
  27. A branding strategy that involves giving each product a distinct name
  28. Expanding the four P's framework to include: 

    Physical Environment
    Eight P's of services Marketing
  29. Integrating the service component of the marketing mix with efforts to influence consumer demand
    Capacity Management
  30. Charging different prices during different times of the day or days of the week to reflect variations in demand for the service
    Off-Peak Pricing
  31. The money or other consierations (including other products and services) exchanged for the ownership or use of a product or service
  32. Profit equals total revenue minus total cost
    Profit equation
  33. The ratio of perceived benefits to price
  34. Value =
    • Perceived Benefits 
    • _______________
    •       Price 
  35. Profit = 
    Total Revenue - Total Cost
  36. A graph relating the quantity sold and the price which shows how many units will be sold at a given price
    Demand Curve
  37. The percentage change in the quantity demanded relative to a percentage in price
    Price Elasticity of Demand
  38. The total money received from the sale of a product; the unit price of a product multiplied by the quantity sold
    Total Revenue
  39. Total Revenue Equation
    TR = P x Q

    price x quantity 
  40. The total expenses incurred by a firm in producing and marketing a product; total cost is the sum of fixed costs and variable costs
    Total Cost
  41. A technique that examines the relationship between total revenue and total cost to determine profitability at different levels of output
    Break-Even Analysis
  42. Expectations that specify the role of price in an organization's marketing and strategic plans
    Pricing Objectives
  43. Factors that limit the range of prices a firm may set
    Pricing constratints 
  44. Break-even
    fixed cost/ (unit price - unit variable cost)
  45. Unitvariable cost= 
    variable costs/ units sold
  46. Profit = 
    Total revenue- total cost

    •             = (unit price * quantity sold) -
    • (fixed cost + variable cost)
  47. Four general pricing approaches
    • Competition Oriented Pricing 
    • Cost Oriented Pricing
    • Profit Oriented Pricing
    • Demand Oriented Pricing 
  48. skimming prices
    setting the highest initial price that customers really desiring the product are willing to pay
  49. penetration price
    setting a low initial price on a new product to appeal immediately to the mass market
  50. prestige
    setting a price so that quality or status conscious consumers will be attracted to the product and buy it
  51. demand oriented approaches
    weigh factors underlying expected customer taste and preferences more heavily than such factors as cost, profit and competition when selecting a price level
  52. odd-even pricing
    pricing at $499 rather than $500, for example
  53. Demand Oriented Pricing Approaches (7)
    • Skimming
    • Penetration
    • Prestige
    • Odd-Even
    • Target Pricing
    • yield Management Pricing
    • Bundle Pricing 
  54. Cost Oriented Pricing Aproaches (2)
    • Standard Markup Pricing
    • Cost-Plus Pricing 
  55. Profit Oriented Pricing (3)
    • Target Profit Pricing
    • Target Return on Sales Pricing
    • Target Return on Investment Pricing 
  56. Competition Oriented Pricing Approaches (3)
    • Customary Pricing
    • Above-, At- or Below-Market Pricing
    • Loss Leader Pricing
Card Set
MARK 3336 Exam2
MARK 3336 Professor Zahn - University of Houston
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