Marketing Exam II

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  1. Business Market
    these are people or groups that purchase a specific kind of product for resale and for direct use in producing other products
  2. Producer Market
    these purchase products to turn a profit, or to produce other products
  3. Government Market
    it could e a federal, state, a county or a local government that buys goods and services (VERY COMPLEX)
  4. Re-seller Market
    These are intermediaries who buy finished goods for resell for a profit
  5. Institutional Market
    These are organizations with charitable educational or community with non-business goals
  6. reciprocity
    This is an arrangement where two organizations agree to buy from each other
  7. A method of Business Buying:1) New Task Purchase
    this is the first purchase by the company of an item that will help perform a new job or solves a new problem
  8. Methods of Business Buying: 2) Straight Re-buy Purchase
    this is a routine purchase of the same product by a business buyer
  9. Methods of Business Buying: 3)
    This is when a new task purchase is changed on subsequent orders for when the requirements of a straight re-buy purchase are modified
  10. Derived demand
    demand for products that stems from a demand for consumer products
  11. Inelastic demand
    demand that is NOT altered by a price increase or price decrease
  12. Joint Demand
    demand involving two or more items in combination to produce a product
  13. buying center
    these are people within an organization such as buyers, deciders, department heads and gatekeepers that make a business purchase decision
  14. Standard Identification Code (SIC)
    federal system used i classifying economic characteristics, industrial, commercial, financial and service institutions
  15. Product
    anything that a consumer/customer receives in an exchange
  16. Consumer Product
    products purchased to satisfy personal wants and needs
  17. convenience products
    these are inexpensive items with little effort
  18. specialty product
    items that have a unique characteristics that buyers are willing to spend a considerable effect to obtain
  19. Business Products
    used for resale or to make other products
  20. unsought product
    products that are purchased to solve a sudden problem
  21. shopping product
    these are items that buyer's will spend a large amount of time before the purchase
  22. product line
    this is a group of closely related product that are viewed as a unit because o marketing and technical or end user considerations
  23. product mix
    this is the total number of products an organization makes available to the customer

    • -width: number of product lines a company offers
    • -depth: this is the average number of different products offered in each product line
  24. Product Life Cycle
    • (1) Introduction: this is it's first appearance in the market place when sales start at zero and profits are zero
    • (2) Growth: when sales rise rapidly, profits reach a peak and start to decline
    • (3) Maturity: this is when sale's curve is at a peak starts to decline and profits continue to fall
    • (4) Decline: when sales fall rapidly
    •              -It does not match it's offering to the customer's needs (why products fail)
  25. lagger
    people who are reluctant to change
  26. line extension
    this is the development of a product that is closely related to an existing product but meets different customer's needs
  27. product modification
    when one or more characteristic of a product is changed
  28. 3 Types of Product Modification
    (1) Functional modification: these are changes that are made to a product that affect versatility, effectiveness, the convenience or the safety

    (2) Quality modification: these are changes that are made on dependability and durability

    (3) Aesthetic modification: these are changes in the sensory appeal of a product (i.e. this could happen by changing the taste, the smell, the appearance.)
  29. New Product Development Process
    (1) Idea  Generation: this is looking for products to achieve objectives

    (2) Screening: this is selecting the best ideas for review

    (3) Concept Testing: this is the seeking potential buyer's and their responses to a product's idea (THIS IS THE LEAST COSTLY)

    (4) Business Analysis: this is assessing the potential of a product's idea for the company's  sales, costs, and profits

    (5) Product Development: Is the product feasible and cost effective?

    (6) Test Marketing: this is an introduction on a limited basis to see if the customers will actually buy it

    (7) Commercialization: this is the deciding now on full-scale manufacturing, marketing plans and preparing of budgets and if any changes in the marketing mix are needed
  30. product differentiation
    • this is creating products that customers perceive to be different from competing products
    • (1) Quality: this is the overall characteristics of a product that allows it to perform in satisfying customer's needs

    • (2)Product Design: this is how a product is received, planned and produced
    •                      -styling: physical appearance of a product
    •                    -product positioning: this is maintaining a certain concept of a product in the customer mind

    (3)Support Service (CUSTOMER SERVICE)
  31. venture team
    this is a cross functional group that creates new products that may be aimed at new markets
  32. branding
    this is an identifying name, term, design or symbol
  33. brand name
    it is anything that can be spoken
  34. brand mark
    it is not made up of words
  35. trade mark
    this is the legal designation of exclusive use of a brand (in the U.S. this trademark must be registered at the U.S. patent office in Washington D.C.)
  36. trade name
    FULL NAME of an organization
  37. brand loyalty
    this is a customer's favorable attitude towards a specific brand
  38. brand recognition
    this is a customer's awareness that a brand exists and is an alternative to a purchase
  39. brand equity
    this is the marketing and financial value associated with a brand's strength in a market
  40. A Type of Brand: (1) Manufacturer's Brand
    these are brands initiated by producers
  41. A Type of Brand: (2) Private Distributor Brand
    these are brands that are initiated and owned by re-seller
  42. A Type of Brand: (3) Generic Brand
    these are brands that only indicate the product's category
  43. A Type of Brand: (4) Individual Branding
    this is a policy of naming each product differently
  44. A Type of Brand: (5) Family Brands
    these are brands whereby a company's products are all named the same
  45. Line Extension
    this will use an existing brand for an improved or new product
  46. brand licensing
    this is an agreement whereby one firm allows another firm to use their brand on other products for a licensing fee
  47. Family packaging
    a firm will use similar packaging in all it's products with one common design
  48. Universal Product Code (UPC)
    this is the bar code lines that identify a product, its inventory and its price information
  49. service
    this is an intangible product, involving a deed, a performance or an effort that can't  be physically possessed
  50. Characteristics of Service
    (1) intangibility: not physical and cannot be touched

    (2) inseparability: this is being produced and consumed at the same time

    (3) perishability: this is the inability of unused service capacity to be stored for a future use

    (4) heterogeneity: variation of quality

    (5) Client based relationships: these are long-term relationships whereby interactions that result in satisfied customers who use a service repeatedly over time.

    (6) Customer Contact: this is the level of interaction between the provider and the customer needed to deliver the service
  51. opportunity cost
    this is the value of the benefit given up by choosing one alternative over another
  52. distribution
    this is the activities that make products available when and where they want to purchase them
  53. marketing channel
    this is a group of individuals and organizations that direct products from producers to consumers
  54. supply chain
    long term partnership among marketing channel members that reduce waste, cost, and develop innovative approaches to satisfy customers
  55. What is the order of the supply chain?
    Manufacturer, Wholesale, Retailer, Customer
Card Set:
Marketing Exam II
2014-11-03 18:06:21

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