Marketing Exam 2

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Marketing Exam 2
2015-03-30 17:28:56
boyd marketing bmgt 350

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  1. Culture
    • the┬áset of basic values, perceptions, wants, and behaviors learned by a member of
    • society from family and other important institutions
  2. Subculture
    • a
    • group of people with shared value systems based on common life experiences and
    • situations (ethnic groups)
  3. Social
    • relatively
    • permanent and ordered divisions in a society whose members share similar
    • values, interests, and behaviors
  4. Membership
    • belong
    • directly to
  5. Reference
    • direct
    • or indirect points of reference in forming a person's attitude or behavior
  6. Aspirational
    • basketball
    • player wanting to be like Mike
  7. Opinion
    • a
    • person within a reference group who, because of special skills, knowledge,
    • personality, or other characteristics, exerts social influence on others
  8. Buzz
    • brand
    • ambassadors
  9. Brand
    personality traits
    • sincerity,
    • excitement, competence, sophistication, ruggedness
  10. Motive
    • a
    • need that is sufficiently pressing to direct the person to seek satisfaction of
    • the need
  11. Perception
    • process
    • by which people select, organize, and interpret information to form a
    • meaningful picture of the world
  12. Maslow's
    hierarchy of needs
  13. Self-actualization (smallest)
    • Esteem: recognition, status
    • Social needs: sense of
    • belonging, love
    • Safety needs
    • Physiological needs: hunger,
    • thirst
  14. Selective
    • the
    • tendency of people to interpret information in a way that will support what
    • they already believe
  15. Attitude
    • a
    • person's consistently favorable or unfavorable evaluations, feelings, and
    • tendencies toward an object or idea
  16. Adoption
  17. mental process through which
    • an individual passes from first hearing about an innovation to final
    • adoption
  18. Awareness
    • Interest: seek information
    • Evaluation
    • Trial
    • Adoption: make full and
    • regular use of product
  19. Influence of product
    characteristics on rate of adoption
  20. Relative advantage
    • Compatibility: can it fit
    • into existing lifestyles
    • Complexity
    • Divisibility: degree to which
    • it can be tried on a limited basis
    • Communicability: can the
    • benefits be explained to others
  21. Derived
    • business demands that ultimately comes from
    • the demand for consumer goods
  22. Systems
    • buying a packaged solution to a problem from a
    • single seller, thus avoiding all the separate decisions involved in a complex
    • buying situation
  23. Global
    • a
    • firm that, by operating in more than one country, gains R&D, production,
    • marketing, and financial advantages in its costs and reputation that are not
    • available to purely domestic competitors
  24. Globalization Steps
  25. Look at global marketing
    • environment
    • Decide whether to go global
    • Decide which markets to enter
    • Decide how to enter market
    • Decide on global marketing
    • program
    • Decide on global marketing
    • organization
  26. Free
    trade zones
  27. Subsistence
  28. usually agriculture
  29. Few market
    • opportunities
    • Much of Africa
  30. Raw
    material exporting economies
  31. rich in one resource, poor in
    most others
  32. Chile, Congo
    • Good market for large
    • supplies and trucks, etc
  33. Emerging
  34. industrializing economies
  35. Growth in
    • manufacturing results in rapid overall economic growth
    • Brazil, Russia, India, China
    • New rich class, growing
    • middle class
    • Demand new types of imported
    • goods
  36. Industrial
  37. major exporters of
    manufactured goods, services, and investment funds
  38. US, Japan, Norway
  39. Global market environments
    • economic
    • political-legal
    • cultural
  40. When deciding whether to go global, evaluate market:
  41. Size
    • Growth level
    • Cost of doing business
    • Competitive advantage
    • Risk level
  42. Exporting
    • selling
    • good produced in the company's home country, often with little modification
  43. Joint
    • joining with foreign companies to produce or
    • market a product or service
  44. Licensing
    • developing
    • an agreement with a licensee in the foreign market
  45. Contract
    • a
    • company contracts with manufacturers in a foreign market to produce its product
    • or provide its service
  46. Management
    • the
    • domestic firm supplies the management know-how to a foreign company that
    • supplies that capital; the domestic firm exports management services rather
    • than products
  47. Joint
    • cooperative
    • venture in which a company creates a local business with investors in a foreign
    • market, who share ownership and control
  48. Direct
    • developing
    • foreign-based assembly or manufacturing facilities
  49. Standardized
    global marketing
    • using
    • the same marketing mix and strategy in all of the company's international
    • markets
  50. Adapted
    global marketing
    • tailoring
    • the marketing strategy and mix to elements of each international target market,
    • which creates more costs but hopefully produces a larger market share and
    • return
  51. Straight
    product extension
    • marketing
    • a product in a foreign market without making any changes to the product
  52. Product
    • adapting
    • the product to meet local conditions or wants in foreign markets (change in
    • Oreo recipe)
  53. Product
    • creating
    • new products or services for foreign markets
  54. Idea
  55. systematic search for new
    product ideas
  56. Internal sources:
    • R&D
    • External sources: suppliers
    • and distributors can contribute ideas
    • Competitors
    • Customers
    • Crowdsourcing
  57. Crowdsourcing
    • inviting
    • broad communities of people; customers, employees, independent scientists and
    • researchers, and even the public at large, into new product innovation process
  58. Idea
    • screening
    • new product ideas to spot good ones and drop poor ones as soon as possible
  59. Questions
    to ask for idea screening
    • Real need?
    • Sustainable competitive advantage?
    • Overall strategy?
  60. Product
    • a
    • detailed version of the new product idea stated in meaningful consumer terms
  61. Product
    • the
    • way customers see the product
  62. Concept
    • testing
    • new product concepts with a group of target customers to find out if the
    • concepts have strong consumer appeal
  63. Marketing
    strategy development
    • designing
    • an initial marketing strategy for a new product based on the product concept

    • Part 1: target market, value
    • proposition, sales, market share, and profit goals
    • Part 2: planned price,
    • distribution, and marketing budget
  64. Product
    life cycle
  65. course of a product's sales
    and profits over time, can describe product class, form, or brand
  66. Product
    • development begins: sales 0 expenses up
    • Introduction: slow sales
    • growth, no profits
    • Growth: rapid acceptance and
    • increasing profits
    • Maturity: slowdown in sales
    • growth
    • Decline
  67. In decline, options:
    • Maintain
    • brand and reposition

    • Harvest brand: reducing costs
    • (plant, manufacturing, maintenance), hoping that sales hold up
    • Drop product from line
  68. Style
    • basic
    • and distinctive mode of expression, may last for generations and cycle in
    • popularity
  69. Fashion
    • currently
    • accepted or popular style in given field: grow slowly, remain popular for a
    • while, then decline slowly
  70. Fad
    • temporary
    • periods of unusually high sales driven by consumer enthusiasm and immediate
    • product or brand popularity (Silly Bandz)
  71. Marketing
    • part
    • of the marketing mix that brings value
  72. Levels of product value (What
    is the customer really buying?) [iPad]
  73. Core customer value: tablet
    • computer
    • Actual value: experiences,
    • including packaging and UI
    • Augmented product: offer
    • additional customer services and benefits
  74. Convenience
    • product
    • the user buys frequently, immediately, and with minimal comparison and buying
    • effort
  75. Shopping
    • customer
    • frequently compares on such attributes as suitability, quality, price, and
    • style [clothing]
  76. Specialty
    • unique
    • characteristics or brand identification for which a significant group of buyers
    • is willing to make a special purchase effort [gourmet foods, legal/medical
    • services]
  77. Unsought
    • does
    • not know about or does not normally consider buying [funeral services]
  78. Organization
    • create,
    • maintain, or change the attitudes and behavior of target consumers toward an
    • organization [corporate image marketing]
  79. Social
    • use
    • of commercial marketing concepts and tools in programs designed to influence
    • individuals' behavior to improve their well-being and that of society
  80. Product
    • characteristics
    • of a product or service that bear on its ability to satisfy stated or implied
    • customer needs
  81. Total
    Quality Management
    • all
    • the company's people are involved in constantly improving the quality of
    • product, services, and business processes
  82. Branding
    • name,
    • term, sign, symbol, or design, or combination, that identifies the products or
    • services of one group of sellers and differentiates them from those of
    • competitors
  83. Packaging
    • designing
    • and producing the container or wrapper for a product
  84. Labeling
    • identify,
    • describe, promote
  85. Product
    • group
    • of products that are closely related because they function in a similar manner,
    • are sold to the same customer groups, are marketed through the same types of
    • outlets, or fall within given price ranges
  86. Product line issues in length
  87. Too short if can increase
    • profit by adding items (line filling)
    • Too long if can increase
    • profits by dropping items (line stretching)
  88. Product
    • set
    • of all product lines and items that a particular seller offers for sale
  89. Product width
    • number
    • of different product lines company carries
  90. Length
    • total
    • number of items carried within product lines
  91. Depth
    • number
    • of versions offered for each product in the line
  92. Consistency
    • how closely related the various product lines
    • are in end use, production requirements, distribution channels, or some other
    • aspect
  93. Nature and characteristics of
    a service
  94. Service intangibility: cannot
    be seen, tasted, felt, heard, or smelled before bought
  95. Look for signals
    of quality
  96. Service
    • produced
    • and consumed at same time and cannot be separated from their providers
  97. Service
    • quality
    • of services may vary greatly depending on who provides them and when, where,
    • and how they are provided
  98. Service
    • cannot
    • be stored for later sale or use
  99. Service
    profit chain
    • links
    • service firm profits with employee and customer satisfaction
  100. Internal
    service quality
    • superior
    • employee selection and training, quality work environment
  101. Internal
    • orienting
    • and motivating customer-contact employees and supporting service employees to
    • work as a team to provide customer satisfaction
  102. Interactive
    • training
    • service employees in the fine art of interacting with customers to satisfy
    • needs
  103. Solution
    to price competition
    • develop
    • differentiated offer, delivery, and image
  104. Brand
    • differential
    • effect that knowing the brand name has on customer response to the product or
    • its marketing
    • Differentiation,
    • knowledge of the brand, and esteem (regard for brand)
  105. Brand
    associating with a benefit
  106. Brand name selection
  107. Suggest something about
    • benefits
    • Easy to recognize, pronounce,
    • and remember
    • Distinctive
    • Extendable
    • Translatable to other
    • languages
  108. Line
    • extending
    • an existing brand name to new forms, colors, sizes, ingredients, or flavors of
    • an existing product category
  109. Brand
    • extending
    • an existing brand name to new product categories
  110. Multibranding
    • PepsiCo:
    • Pepsi, Sierra Mist, Lipton
  111. Marketing
    (distribution) channel
    • set
    • of interdependent organizations that help make a product or service available
    • for use or consumption by the consumer or business user
  112. Promotion
    • developing
    • and spreading persuasive communications about and offer
  113. Contact
    • finding
    • and communicating with potential buyers
  114. Matching
    • shaping
    • offers to meet buyer's needs
  115. Negotiation
    • reaching
    • an agreement on price and other terms
  116. Physical
    • transporting
    • and sorting goods
  117. Financing
    • acquiring
    • and using funds to cover the costs of the channel work
  118. Channel
    • layer of intermediaries that performs some
    • work in bringing the product and its ownership closer to the final buyer
  119. Direct
    marketing channel
    • no intermediary channels / indirect marketing
    • channel
  120. Channel
  121. Channel
    • disagreements
    • among marketing channel members on goals, roles, and rewards; who should do
    • what and for what rewards

    • Horizontal: same level of the
    • channel (Ford dealers in Chicago vs. rest of country)
    • Vertical: different levels of
    • channel (KFC and franchisees)
  122. Vertical
    marketing system
    • channel
    • structure in which producers, wholesalers, and retailers act as a unified
    • system. One channel member owns the others, has contracts with them, or has so
    • much power that they all cooperate
  123. Conventional
    distribution channel
    • consisting
    • of one or more independent producers, wholesalers, and retailers, each a
    • separate business seeking to maximize its own profits, perhaps even at the
    • expense of profits for the system as a whole
  124. Corporate
    • combines successive stages of production and
    • distribution under single ownership, channel leadership is established through
    • common ownership
  125. Contractual
    • independent firms at different levels of
    • production and distribution join together through contracts
  126. Franchise
    • a
    • channel member, or franchisor, links several stages in the
    • production-distribution process
  127. Administered
    • coordinated
    • successive stages of production and distribution through the size and power of
    • one of the parties
  128. Horizontal
    marketing system
    • channel
    • arrangement in which two or more companies at one level join together to follow
    • a new marketing opportunity
  129. Multichannel
    distribution system
    • a single firm sets up two or more marketing
    • channels to reach one or more customer segments
  130. Disintermediation
    • cutting out of marketing channel
    • intermediaries by product or service producers or the displacement of
    • traditional resellers by radical new types of intermediaries
  131. Marketing
    channel design
    • designing
    • effective marketing channels by analyzing customer needs, setting channel
    • objectives, identifying major channel alternatives, and evaluating those
    • alternatives
  132. Intensive
    • stocking
    • the product in as many outlets as possible
  133. Exclusive
    • giving
    • a limited number of dealers the exclusive right to distribute the company's
    • products in their territories
  134. Selective
    • use
    • of more than one but fewer than all of the intermediaries that are willing to
    • carry the company's products
  135. Marketing
    channel management
    • selecting,
    • managing, and motivating individual channel members and evaluating their
    • performance over time
  136. Marketing
    logistics (physical distribution)
    • planning
    • implementing, and controlling the physical flow of materials, final goods, and
    • related information from points of origin to points of consumption to meet
    • customer requirements at a profit
  137. Goals
    of logistics system
    • maximize
    • customer service, minimize distribution cost
  138. Distribution
    • large,
    • highly automated warehouse designed to receive goods from various plants and
    • suppliers, take orders, fill them efficiently, and deliver goods to customers
    • as quickly as possible
  139. Inventory
    • how
    • much inventory to carry
  140. Transportation
    • truck,
    • rail, ship, air, pipeline
  141. Integrated
    logistics management
    • logistics
    • concepts that emphasizes teamwork, both inside the company and among all of the
    • marketing channel organizations -to maximize the performance of the entire
    • distribution system
  142. Third
    party logistics provider (3PL)
    • independent
    • logistics provider that performs any or all of the functions required to get a
    • client's product to market