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What is marketing?
The activity, set of institutions, and processes for creating, communicating, delievering, and exchanging offerings that have value for customers, clients, partners, and society at large.
What is customer relationship management?
Using information about customers to create marketing strategies that develop and sustain desirable customer relationships.
What is customer lifetime value?
A combination of purchase frequency, average value of purchases, and brand-switching patterns over the entire span of a customer's relationship with a company.
What are the four types of utility?
- Form utility: Created by converting production inputs into finished products.
- Place utility: Created by making a product available at a location where customers wish to purchase it.
- Time utility: Created by making a product available when customers wish to purchase it.
- Possession utility: Created by transferring title or ownership of a product to a buyer.
What is marketing concept?
A business philosophy that a firm should provide goods and services that satisfy customers' needs through a coordinated set of activities that allows the firm to achieve its objectives.
What type of orientation did businesses take in the 1920s to 1950s?
What is a market?
A group of individuals or organizations, or both, that need products in a given category and that have the ability, willingness, and authority to purchase such products.
What is a marketing mix?
A combination of product, price, distribution, and promotion developed to satisfy a particular target market.
What is a target market?
A group of individuals, organizations, or both, for which a firm develops and maintains a marketing mix suitable for the specific needs and preferences of that group.
Know the fourcommon bases of market segmentation..
Demographic, psychographic, geographic, behavioristic
Know the 6 items in the marketing environment
Economic forces, political forces, legal and regulatory forces, technological forces, socio-cultural forces, competitive forces.
Know the steps in the consumer buying decision
Recognize problem, search for information, evalulate alternatives, purchase, evaluate after purchase.
Know the difference between personal, disposable, anddiscretionary income
- Personal income: Income an individual recieves from all sources less the social secuirity taxes the individual must pay
- Disposable income: Personal income less all additional personal taxes.
- Discretionary income: Disposable income + expenditure on food, clothing and housing.
What is a consumer product?
A product purchased to satisfy personal and family needs
What is a business product?
A product bought for resale, for making other products, or for use in a firm's operations.
What three categories can consumer products be divided into? and how do you define each one?
- Convenience product: Inexpensive, frequently purchased item for buyers exert minimum effort.
- Shopping product: buyers willing to expend considerable effort on planning to make the buy.
- Specialty product: item that posseses one or more unique (group) or buyers consider significant money to spend.
What are the business product classifications?
Raw material, major equipment, accessory equipment, component part, process material, supply, business service.
Know the four different stages of a product life cycle and how to describe each stage
- Introduction- Customer awareness and acceptance are low
- Growth- Sales increase rapidly as the product becomes well known
- Maturity- Sales are still increasing but at a slower rate; later in this stage, sale and profits begin to slowly decline.
- Decline stage-Sales volume decreases sharply and profits continue to fall.
Understand product mix and its depth and width
- All products firm offers for sale
- Width: the number of product lines the mix contains.
- Depth: average number of individual products within each line.
What is a product modification?
The process of changing one or more of a product's characteristics such as quality, function, aesthetics.
What are the phases in the new product development process?
Idea generation, screening, concept testing, business analysis, product development, testing market, comercialazion.
Know the difference between a trade name, a brand name, a brand, and a trademark
- Brand name:Part of a brand that can be spoken
- Brand mark: Symbol of brand
- Trademark: registred by U.S. patent
- Trade name: Complete and legal name of an organization.
Know brand loyalty and the difference between recognition, preference and insistence
- Brand loyalty: extent to which customer is favorable toward buying a specific brand.
What is the breakeven quantity?
The number of units that must be sold for total revenue(from all units sold) to equal the total cost(of all units sold)
Understand psychological pricing and promotional pricing
- Psychological Pricing: Odd-number pricing, multiple-unit pricing, reference prices, bundle prices, everyday low prices, customary price
- Promo Pricing: Price leader, special-event pricing, comparison discounting.
Know what a marketing intermediary and middleman are
- A marketing organization that links a producer and user within a marketing channel.
- middle man (same term as pack)
Know the different distribution channels
- Producer to consumer(direct)
- Producer to retailer to consumer
- Product to wholesaler to retailer to consumer
- Producer to agent to wholesaler to retailer to consumer
- Producer to business user
Know the three different types of distribution –intensive, selective and exclusive
- Intensive: Use of all available outlets for product to saturate the market
- Selective: use of only a portion of the available outlets for a product in each geographic location
- Exclusive: use of only a single retail outlet for a product in a larger geographic area.
What do wholesalers provide to retailers and to manufacturers
- Retailers:Buy in large quantities/sell in smaller quantities
- Deliver goods
- Stock a variety of goods in one place
- promote product for retailer
- Market info.
- Manufacturers:Provide instant sales forces to makers
- reduce makers inventory costs by buying finished goods in sizable quantities
- assume credit risks
What distinguishes a department store, a discount store, a convenience store, a superstore, and a category killer.
- Department store: a retail store, family apparel, furnishing appliances.
- Discount store: A self-service, general merchandise; lower prices
- Convenience store: small food store sells a limited variety extraopen hours
- Category Killer: Large specialty store concentrates on single product line and competes on basis of low prices and availabilty.
Know the difference between neighborhood shopping centers, community shopping centers, and regional shopping centers
- Neighborhood: Several small convenience and specialty stores
- Community: includes one or two department stores and some specialty stores, along with convenience stores
- Regional: Large department stores, numerous specialty stores, movies, sometimes hotels.
Know the difference between stock out costs and holding costs
- Stock-out costs: the costs of sales lost when items are not in inventory when needed.
- Holding costs: costs of storing products until they are purchased or shipped to customers.
Know the difference between inventory management, order processing, warehousing,materials handling, and transportation
- Inventory management: managing inventories in way to minimize inventory costs, including both stocking and holding cost.
- Order proccessing: activities involved in recieving and filling bought orders
- Warehousing: Set of activities involved in recieving and prepping goods for reshippment.
- Materials handling: physical handling of goods
- Transportation: shipment of products to customer.
Know the difference between common, contract, and private carriers
- Common: for hire to all shippers
- Contract: for hire by one or several shippers;not available to general public
- Private: owned and operated by shipper
What is promotion and the promotion mix?
- Promotion: Commonly the object of two misconceptions. make up entire field of marketing, unnecessary and cause higher prices.
- Promotion mix: combination of promotion methods a firm uses to reach a target market.
What is advertising?
A paid non-personal message communicated to a select audience through a mass medium.
What is personal selling?
Personal communication aimed at informing customers and persuading them to buy a firm's products.
What is sales promotion?
use of activities or materials as direct inducements to customers or salespersons
What is public relations?
Communication activities used to create and maintain favorable relationsbetween an organization and various public groups, both internal and external.
What are the three different types of advertising and be able to describe each one – primary demand, selective demand, institutional
- Primary-demand: used to increase demand for all brands of a product in a specific industry.
- Institutional: Designed to enhance a firm's image or build its reputation.
- Selective-demand: used to sell particular brand, most common.
What are the different steps in developing an advertising campaign?
- identify, analyze target audience
- define advertising objectives
- create advertising platform
- develop media plan
- create advertising message
- execute campaign
- evaluate effectiveness
Know the relationship between information and risk
when amount of available information is high, managers tend to make better decisions. on the other hand when info is too low there is a high risk of a poor desicion.
What are information rules?
- based on situational experience provide guidance in handling similar circumstances
- business research continuously looks for new rules since business conditions are always changing.