Koofers

Exam two - Flashcards

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Class:BCOR 2400 - Fundamentals of Marketing
Subject:Business Core
University:University of Colorado - Boulder
Term:Fall 2010
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product life cycle introduction, growth, maturity, decline; the stages a product goes through in the marketplace
product form pertains to variations within the product class (i.e. cassette tapes, CDs)
product modification involves altering a product’s characteristic, such as its quality, appearance, performance, to increase the product’s value to customers and increase sales
market modification company tries to find, increase a product’s use among existing customers, or create new use situations
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branding when an organization uses a name, phrase, design, symbols, or combination of these to identify its products and distinguish them from those of its competitors
brand name any word, device (design, sound, shape, or color), or combination of these used to distinguish a seller’s goods or services
brand equity the added value a brand name gives to a product beyond the functional benefits provided
brand licensing contractual agreement whereby one company (licensor) allows its brand name(s) or trademark(s) to be used with products or services offered by another company (licensee) for a royalty or a fee
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multiproduct branding company uses one name for all its products in a product class
multibranding involves giving each product a distinct name (useful when each brand is intended for a different market segment
private branding company manufactures products but sells them under the brand name of a wholesaler or a retailer
mixed branding firm markets products under its own name(s) and that of a reseller because the segment attracted to the reseller is different from its own market) types of branding
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packaging any container in which the product is offered for sale and on which label information is conveyed
label an integral part of the package and typically identifies the product or brand, who made it, where and when it was made, how it is to be used, and package contents and ingredients
warranty statement indicating the liability of the manufacturer for product deficiencies
price money or other considerations (including other products and services) exchanged for the ownership or use of a product or service
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value the ratio of perceived benefits to price
value-pricing practice of simultaneously increasing product or service benefits while maintaining or decreasing price
profit equation Profit = Total Revenue – Total Cost = (Unit Price x Quantity Sold) – (Fixed Cost + Variable Cost)
pricing objectives involve specifying the role of price in an organization’s marketing and strategic plans
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pricing constraints factors that limit the range of prices a firm may set
demand curve a graph relating the quantity sold and price, which shows the maximum number of units that will be sold at a given price
price elasticity of demand percentage change in quantity demanded relative to a percentage change in price: Price Elasticity of Demand = % change in quantity demanded/% change in price
marginal analysis a continuing, concise trade-off of incremental costs against incremental revenues
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break-even analysis technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output
break-even point (BEP) quantity at which total revenue and total cost are equal; profit then comes from all units sold beyond the BEP BEP = Fixed Cost/(Unit Price – Unit Variable Cost)
price war involves successive price cutting by competitors to increase or maintain their unit sales or market share
quantity discounts reductions in unit costs for a larger order (used by firms at all levels in the marketing channel)
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promotional allowances sellers in the marketing channel can qualify for these for undertaking certain advertising or selling activities to promote a product
price fixing conspiracy among firms to set prices for a product (illegal)
price discrimination practice of charging different prices to different buyers for goods of like grade and quality
marketing channel consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users
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industrial distributor performs a variety of marketing channel functions, including selling, stocking, delivering full product assortment, and financing
electronic marketing channels employ the Internet to make goods and services available for consumption or use by consumers or business buyers
direct marketing channels allow consumers to buy products by interacting with various advertising media without a face-to-face meeting with a salesperson (i.e. catalogs, etc.)
multichannel marketing blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online
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dual distribution arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product
strategic channel alliances one firm’s marketing channel is used to sell another firm’s products (popular in global marketing)
merchant wholesalers independently owned firms that take title to the merchandise they handle
manufacturer’s agents (manufacturer’s representatives) work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory
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selling agents represent a single producer and are responsible for the entire marketing function of the producer
brokers independent firms or individuals whose principal function is to bring buyers and sellers together to make sales
vertical marketing systems professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact
franchising contractual arrangement between a parent company (a franchisor) and an individual or firm (a franchisee) that allows the franchisee to operate a certain type of business under an established name and according to specific rules
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channel partnership consist of agreements and procedures among channel members for ordering and physically distributing a producer’s products through the channel to the ultimate consumer
intensive distribution a firm tries to place its products and services in as many outlets as possible
exclusive distribution extreme opposite of intensive distribution because only one retailer in a specifies geographical area carries the firm’s products
channel conflict arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals
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disintermediation conflict that arises when a channel member bypasses another member and sells or buys products direct
channel captain channel member that coordinates, directs, and supports other channel members (economic, expertise, identification, and legitimate right can be forms of influence)
communication process of conveying a message to others; requires six elements: (1) source, (2) message, (3) channel of communication, (4) receiver, (5) encoding, (6) decoding
source company or person who has information to convey
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message information sent by the source
channel of communication means by which the message is conveyed
receivers consumers who read, hear, or see the message
encoding process of having the sender transform an idea into a set of symbols
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decoding process of having the receiver take a set of symbols, the message, and transform the symbols back into an idea
field of experience similar understanding and knowledge applied to the message by the sender and receiver
response impact the message had on the receiver’s knowledge, attitudes, or behaviors
feedback the sender’s interpretation of the response; indicates whether the message was decoded and understood as intended
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noise includes extraneous factors that can work against effective communication by distorting a message or the feedback received
advertising any paid form of nonpersonal communication about a organization, good, service, or idea by an identified sponsor
personal selling two-way communication between a buyer and seller designed to influence a person’s or group’s purchase decision
public relations form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services
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publicity nonpersonal, indirectly paid presentation of an organization, good, or service
sales promotion a short-term inducement of value offered to arouse interest in buying a good or service
direct marketing uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet
push strategy directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product
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pull strategy directing promotional mix at ultimate consumers to encourage them to ask the retailer for a product
profit equation tr-tc (Unit contribution x quantity sold)-fixed costs
Break Even Quanitiy Equation Quantity= Fixed Cost/ Unit Contribution
Quantity Sold equation based on market share Industry sales x market share
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Break even Market Share BEQ/Industry Sales
Profit Goal (Fc+Profit Goal)/ Unit Contribution
Ethics Moral principals and values that govern the actions and decisions of an individual or group
Laws Societys values and standards that are enforceable in the courts
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Culture a set of values ideas and attitudes learned and shared among members of the group
Business Culture Compromise the effective rules of the game, boundaries between competitive and unethical behavior and codes of conduct in business dealing
Cave at Emptor Let Buyer beware
a consumer bill of rights codified the ethics of exchange between buyers and sellers
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economic espionage clandestine collection of trade secrets or proprietary information about a company competitor
codes of ethics a formal statement of ethical principles and rules of conduct
whistle blowers employees who report unethical or illegal action of their employers
moral idealism a personal moral philosophy that considers certain individual rights or duties as universal regardless of the outcome
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utilitarianism the greatest good for the greatest number by assessing costs and benefits of consequences
social responsibility organizations are part of a larger society and are accountable to that society for their actions
profit responsibility Companies duty to maximize profit for their stockholders or owner
stakeholder responsibility obligations an organization has to those who can affect achievement of objectives
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societal responsibility obligation to the preservation of ecological environment and the general public
triple bottom line recognition of the need for organization to improve the state of the people planet and profit simultaneously if they are to achieve sustainable long term growth
Green Marketing to produce promote and reclaim environmentally sensitive
cause marketing charitable contributions of a firm are tied directly to customer revenue produced through the promotion of one of its products
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Social Audit systematic assessment of a firms objectives strategies and performance in terms of social responsibility
sustainable development conducting business in a way that protects the natural environment while making economic progress
green washing making an unsubstantiated or misleading claim about environmental benefits of a product service technology or company
consumer behavior the actions a person takes in purchasing and using products and services including the mental and social process that come up before these actions
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problem recognition perceiving a difference between a persons ideal and actual situations big enough to trigger a decision
internal search scan memory for previous experience with brands or products
external search when past expierence isnt enough. risk of making a wrong decsion is high cost of gathering info is low
personal sources consumer reports government agencey tv consumer programs
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marketer dominated sources info from sellers advertising company websites sales people
evaluate criteria info provided inadequate, represents both the objective attributes of a brand and subjective you use to compare different product or brands
consideration set group of brands a consumer considers acceptable from among all the brands if which they are ware in the product class
cognitive dissonance post purchase psychological tension or anxiety
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involvement personal social and economic significant
situational influences a purchase task, social surroundings, physical surroundings, temeperol effects (time of day, time available) , antecedent states
motivation energizing force that stimulates behavior to satisfy a need
personality a persons consistent behavior or responses to recurring situation
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key traits enduring characteristics with in a person or in his or her relationship with others
selective perception filtering of exposure, comprehension and retension
self concept the way people see themselves and the way they belive others see them
perception process an individual selects organizes and interprets info that creat a meaningful picture of the world
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selective perception filtering of exposure compreension and retension
selective comprehension interpreting info so its consistent with attitudes and beliefs
selective retention consumers dont remember all info they see read or hear even min after exposure
subliminal perception see or hear messages with out being aware of them
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perceived risk anxiety felt because consumer cannot anticipate the outcomes of a purchase but believes here may be negative consequences
learning behaviors that result from repeated experience and reasoning
behavioral learning the process developing auto responses to a situation built up through repeated exposure to it
stimulus generalization response one stimulus generalized to another stimulus Ie Tylenol different types
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stimulus discrimination precive difference in stimuli
cognitive learning making connections between two or more ideas or observation outcomes of other behaviors and adjusting your own accordingly
brand loyalty favorable attitude toward and consistent purchase of a single brand overtime
attitude learned predisposition to respond to an object or class of objects in a consistently favorable way
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beliefs consumers subjective perception of how a produce or brand preforms on different attributes
life style mode of living that is identified by how peopel spend their time and resources what they consider importnat in their ifestyle what they think of themselves and the world aroudn them
pschographics analysis of consumer lifestyle that provides insights into consumers needs and wants
opion leadership people who exert direct or indirec social influence over others
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word of mouth influencing of people during conversations
buzz popularity created by consumer word of mouth
reference groups poeple whom other people look as a basis for self appraisal or as a source of personal standards
consumer socialization process by which people quire skills knolege and attitudes necessary to function as consumers
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family life cycle distinct phases a family progresses through from formation to retirement
social class realitivly permanent homogeneous divisions in a society into which people sharing similar values interest and behaviors
subcultures sub groups with in a larger or national culture with unique values ideas and attitudes
countertrade practice of using boarder rather then money for making global
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trade feed back effect exports increase national output and income up. which leads to a rise in demand for imports. this stimulates exports of other countries which raise income stimulates demand for imports
gross domestic product monetary value of all goods and services produced in a country during one year
balance of trade the differnece between monetary value of a nations exports and imports
factor conditions nations ability to turn its natural resources education and infrastructure into a competitive advantage.
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demand conditions number and sophistication of domestic customers for an industry product
economic espionage act (1996) the theft of trade secrets by foreign entities a federal crime in us 15 years in prison fines up to 500,000
protectionism the practice of shielding one or more industries with in a countries economy
tariffs A tariff is a tax levied on imports or exports
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quota restriction placed on amount of product allowed to enter or leave a country
word trade organization address an array of world trade issues. sets rules governing trade between members and issue binding decisions.
global competition firms originate produce and market their products and services world wide
strategic alliances agreements among two or more independent firms to cooperate for the purpose of achieving common goals
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international firm views the world as consisting of nique parts and markets to each differently
multidomestic marketing strategy have as many different product variations brand names and ad programs as countries in which they do business
transitional firm views world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants more then differences
global marketing strategy practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ
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global brand brand marketed under the same name in multipule countries with similar and centrally coordinated marketing programs
global consumers consist of consumer groups living in many countries or regions of the world who have similar needs or seek similar gestures and benefits from products or services
cross cultural analysis the study of similarities and differences among consumers in two more more nations or societies
values represent personally or socially preferable modes of conduct or states of existence that tend to persist over time
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customs what is considered normal and expected about the way people do things in a specific country
foreign corrupt practices act a crime for us corporation to bribe an official of a foreign government or political party to obtain or retain business in a foreign country
cultural symbols things that represent ideas and concepts
semiotics examines the corispondence between symbols and their role in the assignment of meaning for poeple
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back translation translate word or phrase is re translated into the original language by a different interpreter to catch errors
cultural ethnocentric the belief that aspect of one culture and are superior to another
bottom of the pyramid larest but poorest socioeconomic group of people in the world
economic infrastructure a countries communication transportation financial and distribution system
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currency exchange rates price of one countries currecy expressed in terms of another
exporting producing goods in one country and selling them in another
indirect exporting a firm sells domestic produced products in a foreign country though a intermediary
direct exporting a firm sells domestic product produced firm sells its domestic goods in a foreign country with out intermidearies
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contact manufacturing us company may contract with a foreign firm to manufacture products according to stated specifications sold in a foreign country or back to the us
contract assembly us company may contact with a foreign firm to assemble not manufacture parts and components that have been shipped to that country
joint venture when a foreign company and a local firm invest together to create a local business
direct investment a domestic firm actually investing in and owning a foreign subsidiary or division
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product extension selling virtually the same product in other countries
product adaption changing in some way to make it more appropriate for a countries climate or consumer preferences is a product adaption strategy
product invention companies invest totally new product designed to satisfy common needs across countries
dumping a firm sells a product in a foreign country below its domestic price or actual cost
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gray market parallel importing products are sold through unauthorized channels of distribution
marketing research defining a marketing problem and opportunity systematically collecting and analyze info and recommending actions
decision a conscious choice from among two or more alternatives
measures of success criteria or standards used in evaluating proposed solutions to the problem
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constraints restrictions placed on potential solutions to a peoblem
concepts ideas about products or services
methods aproaches that can be used to solve all or part of the problem
data the facts and figures that have already been recorded
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secondary data facts and figures that have already been recorded
primary data facts and figures that are newly collected for the project
information technology operating computer networks that can store and process data
sales forecast total sales of a product a firm expects to sell during a specific period of time under specified environmental conditions and its own marketing efforts
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Definition
market people with both the desire and the ability to buy a specific offering
environmental forces social, economic, technological, competitive, regulatory
strategy an organization’s long-term course of action designed to deliver a unique customer experience while achieving its goals
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functional level where groups of specialists actually create value for the organization; where the strategic direction becomes the most specific and focused
market share ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself
marketing dashboard visual computer display of the essential information related to achieving a marketing objective-
marketing plan a road map for the marketing activities of an organization for a specified future time period, such as one year or five years
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diversification analysis tool that helps a firm search for growth opportunities from among current and new markets as well as current and new products
strategic marketing process whereby an organization allocates its marketing mix resources to reach its target markets
situation (SWOT) analysis taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization’s marketing plans and the external forces and trends affecting it; an organization’s appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats
market segmentation involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action
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marketing strategy the means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it
environmental scanning process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends
social forces the demographic characteristics of the population and its values
demographics describing a population according to selected characteristics such as age, gender, ethnicity, income, and occupation
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culture incorporates the set of values, ideas, and attitudes that are learned and shared among the members of a group
gross income total amount of money made in one year by one person, household, or family unit
disposable income money a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation
discretionary income the money that remains after paying for taxes and necessities
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market-product grid framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization
product positioning refers to the place a product occupies in consumers’ minds on important attributes relative to competitive
perceptual map 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 its own product or brand
product good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs and is received in exchange for money or something else of value
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product mix consists of all the product lines offered by an organization
new-product process seven stages an organization goes through to identify business opportunities and convert them to a salable good or service
new-product strategy development Definition
product item specific product that has a unique brand, size, or price
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product line group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets, or fall within a given price range
new-product strategy development stage of the new-product process that defines the role for a new product in terms of the firm’s overall objectives
idea generation develops a pool of concepts as candidates for new products, building upon the previous stage’s results
screening and evaluation internally and externally evaluates new-product ideas to eliminate those that warrant no further effort
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business analysis specifies the features of the product and the marketing strategy needed to bring it to the market and make financial projections
development stage of the new-product process that turns the idea on paper into a prototype
market testing involves exposing actual products to prospective customers under realistic purchase conditions to see if they will buy
commercialization positions and launches the new product in full-scale production and sales
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 product life cycleintroduction, growth, maturity, decline; the stages a product goes through in the marketplace
 product formpertains to variations within the product class (i.e. cassette tapes, CDs)

 product modification involves altering a product’s characteristic, such as its quality, appearance, performance, to increase the product’s value to customers and increase sales
 market modificationcompany tries to find, increase a product’s use among existing customers, or create new use situations
 brandingwhen an organization uses a name, phrase, design, symbols, or combination of these to identify its products and distinguish them from those of its competitors
 brand nameany word, device (design, sound, shape, or color), or combination of these used to distinguish a seller’s goods or services
 brand equitythe added value a brand name gives to a product beyond the functional benefits provided
 brand licensingcontractual agreement whereby one company (licensor) allows its brand name(s) or trademark(s) to be used with products or services offered by another company (licensee) for a royalty or a fee
 multiproduct brandingcompany uses one name for all its products in a product class
 multibrandinginvolves giving each product a distinct name (useful when each brand is intended for a different market segment
 private brandingcompany manufactures products but sells them under the brand name of a wholesaler or a retailer
 mixed brandingfirm markets products under its own name(s) and that of a reseller because the segment attracted to the reseller is different from its own market) types of branding
 packagingany container in which the product is offered for sale and on which label information is conveyed
 labelan integral part of the package and typically identifies the product or brand, who made it, where and when it was made, how it is to be used, and package contents and ingredients
 warrantystatement indicating the liability of the manufacturer for product deficiencies
 pricemoney or other considerations (including other products and services) exchanged for the ownership or use of a product or service
 valuethe ratio of perceived benefits to price
 value-pricingpractice of simultaneously increasing product or service benefits while maintaining or decreasing price
 profit equationProfit = Total Revenue – Total Cost

= (Unit Price x Quantity Sold) – (Fixed Cost + Variable Cost)
 pricing objectivesinvolve specifying the role of price in an organization’s marketing and strategic plans
 pricing constraintsfactors that limit the range of prices a firm may set
 demand curvea graph relating the quantity sold and price, which shows the maximum number of units that will be sold at a given price
 price elasticity of demandpercentage change in quantity demanded relative to a percentage change in price:
Price Elasticity of Demand = % change in quantity demanded/% change in price
 marginal analysisa continuing, concise trade-off of incremental costs against incremental revenues
 break-even analysistechnique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output
 break-even point (BEP)quantity at which total revenue and total cost are equal; profit then comes from all units sold beyond the BEP

BEP = Fixed Cost/(Unit Price – Unit Variable Cost)
 price warinvolves successive price cutting by competitors to increase or maintain their unit sales or market share
 quantity discountsreductions in unit costs for a larger order (used by firms at all levels in the marketing channel)
 promotional allowancessellers in the marketing channel can qualify for these for undertaking certain advertising or selling activities to promote a product
 price fixingconspiracy among firms to set prices for a product (illegal)
 price discriminationpractice of charging different prices to different buyers for goods of like grade and quality
 marketing channelconsists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users
 industrial distributorperforms a variety of marketing channel functions, including selling, stocking, delivering full product assortment, and financing
 electronic marketing channelsemploy the Internet to make goods and services available for consumption or use by consumers or business buyers
 direct marketing channelsallow consumers to buy products by interacting with various advertising media without a face-to-face meeting with a salesperson (i.e. catalogs, etc.)
 multichannel marketingblending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online
 dual distributionarrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product
 strategic channel alliancesone firm’s marketing channel is used to sell another firm’s products (popular in global marketing)
 merchant wholesalersindependently owned firms that take title to the merchandise they handle
 manufacturer’s agents(manufacturer’s representatives) work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory
 selling agentsrepresent a single producer and are responsible for the entire marketing function of the producer
 brokersindependent firms or individuals whose principal function is to bring buyers and sellers together to make sales
 vertical marketing systemsprofessionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact
 franchisingcontractual arrangement between a parent company (a franchisor) and an individual or firm (a franchisee) that allows the franchisee to operate a certain type of business under an established name and according to specific rules
 channel partnershipconsist of agreements and procedures among channel members for ordering and physically distributing a producer’s products through the channel to the ultimate consumer
 intensive distributiona firm tries to place its products and services in as many outlets as possible
 exclusive distributionextreme opposite of intensive distribution because only one retailer in a specifies geographical area carries the firm’s products
 channel conflictarises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals
 disintermediationconflict that arises when a channel member bypasses another member and sells or buys products direct
 channel captainchannel member that coordinates, directs, and supports other channel members (economic, expertise, identification, and legitimate right can be forms of influence)
 communicationprocess of conveying a message to others; requires six elements: (1) source, (2) message, (3) channel of communication, (4) receiver, (5) encoding, (6) decoding
 sourcecompany or person who has information to convey
 messageinformation sent by the source
 channel of communicationmeans by which the message is conveyed
 receiversconsumers who read, hear, or see the message
 encodingprocess of having the sender transform an idea into a set of symbols
 decodingprocess of having the receiver take a set of symbols, the message, and transform the symbols back into an idea
 field of experiencesimilar understanding and knowledge applied to the message by the sender and receiver
 responseimpact the message had on the receiver’s knowledge, attitudes, or behaviors
 feedbackthe sender’s interpretation of the response; indicates whether the message was decoded and understood as intended
 noiseincludes extraneous factors that can work against effective communication by distorting a message or the feedback received
 advertisingany paid form of nonpersonal communication about a organization, good, service, or idea by an identified sponsor
 personal sellingtwo-way communication between a buyer and seller designed to influence a person’s or group’s purchase decision
 public relationsform of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services
 publicitynonpersonal, indirectly paid presentation of an organization, good, or service
 sales promotiona short-term inducement of value offered to arouse interest in buying a good or service
 direct marketinguses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet
 push strategydirecting the promotional mix to channel members to gain their cooperation in ordering and stocking the product
 pull strategydirecting promotional mix at ultimate consumers to encourage them to ask the retailer for a product
 profit equationtr-tc
(Unit contribution x quantity sold)-fixed costs
 Break Even Quanitiy Equation Quantity= Fixed Cost/ Unit Contribution
 Quantity Sold equation based on market shareIndustry sales x market share
 Break even Market ShareBEQ/Industry Sales
 Profit Goal(Fc+Profit Goal)/ Unit Contribution
 EthicsMoral principals and values that govern the actions and decisions of an individual or group
 LawsSocietys values and standards that are enforceable in the courts
 Culturea set of values ideas and attitudes learned and shared among members of the group
 Business CultureCompromise the effective rules of the game, boundaries between competitive and unethical behavior and codes of conduct in business dealing
 Cave at EmptorLet Buyer beware
 a consumer bill of rightscodified the ethics of exchange between buyers and sellers
 economic espionageclandestine collection of trade secrets or proprietary information about a company competitor
 codes of ethicsa formal statement of ethical principles and rules of conduct
 whistle blowersemployees who report unethical or illegal action of their employers
 moral idealism a personal moral philosophy that considers certain individual rights or duties as universal regardless of the outcome
 utilitarianismthe greatest good for the greatest number by assessing costs and benefits of consequences
 social responsibility organizations are part of a larger society and are accountable to that society for their actions
 profit responsibility Companies duty to maximize profit for their stockholders or owner
 stakeholder responsibility obligations an organization has to those who can affect achievement of objectives
 societal responsibility obligation to the preservation of ecological environment and the general public
 triple bottom linerecognition of the need for organization to improve the state of the people planet and profit simultaneously if they are to achieve sustainable long term growth
 Green Marketingto produce promote and reclaim environmentally sensitive
 cause marketingcharitable contributions of a firm are tied directly to customer revenue produced through the promotion of one of its products
 Social Auditsystematic assessment of a firms objectives strategies and performance in terms of social responsibility
 sustainable development conducting business in a way that protects the natural environment while making economic progress
 green washing making an unsubstantiated or misleading claim about environmental benefits of a product service technology or company
 consumer behavior the actions a person takes in purchasing and using products and services including the mental and social process that come up before these actions
 problem recognitionperceiving a difference between a persons ideal and actual situations big enough to trigger a decision
 internal searchscan memory for previous experience with brands or products
 external searchwhen past expierence isnt enough. risk of making a wrong decsion is high cost of gathering info is low
 personal sourcesconsumer reports government agencey tv consumer programs
 marketer dominated sourcesinfo from sellers advertising company websites sales people
 evaluate criteria info provided inadequate, represents both the objective attributes of a brand and subjective you use to compare different product or brands
 consideration setgroup of brands a consumer considers acceptable from among all the brands if which they are ware in the product class
 cognitive dissonancepost purchase psychological tension or anxiety
 involvementpersonal social and economic significant
 situational influencesa purchase task, social surroundings, physical surroundings, temeperol effects (time of day, time available) , antecedent states
 motivationenergizing force that stimulates behavior to satisfy a need
 personalitya persons consistent behavior or responses to recurring situation
 key traits enduring characteristics with in a person or in his or her relationship with others
 selective perceptionfiltering of exposure, comprehension and retension
 self conceptthe way people see themselves and the way they belive others see them
 perceptionprocess an individual selects organizes and interprets info that creat a meaningful picture of the world
 selective perceptionfiltering of exposure compreension and retension
 selective comprehensioninterpreting info so its consistent with attitudes and beliefs
 selective retentionconsumers dont remember all info they see read or hear even min after exposure
 subliminal perceptionsee or hear messages with out being aware of them
 perceived riskanxiety felt because consumer cannot anticipate the outcomes of a purchase but believes here may be negative consequences
 learningbehaviors that result from repeated experience and reasoning
 behavioral learningthe process developing auto responses to a situation built up through repeated exposure to it
 stimulus generalization response one stimulus generalized to another stimulus Ie Tylenol different types
 stimulus discrimination precive difference in stimuli
 cognitive learningmaking connections between two or more ideas or observation outcomes of other behaviors and adjusting your own accordingly
 brand loyalty favorable attitude toward and consistent purchase of a single brand overtime
 attitudelearned predisposition to respond to an object or class of objects in a consistently favorable way
 beliefs consumers subjective perception of how a produce or brand preforms on different attributes
 life stylemode of living that is identified by how peopel spend their time and resources what they consider importnat in their ifestyle what they think of themselves and the world aroudn them
 pschographicsanalysis of consumer lifestyle that provides insights into consumers needs and wants
 opion leadershippeople who exert direct or indirec social influence over others
 word of mouthinfluencing of people during conversations
 buzzpopularity created by consumer word of mouth
 reference groupspoeple whom other people look as a basis for self appraisal or as a source of personal standards
 consumer socializationprocess by which people quire skills knolege and attitudes necessary to function as consumers
 family life cycledistinct phases a family progresses through from formation to retirement
 social classrealitivly permanent homogeneous divisions in a society into which people sharing similar values interest and behaviors
 subculturessub groups with in a larger or national culture with unique values ideas and attitudes
 countertradepractice of using boarder rather then money for making global
 trade feed back effectexports increase national output and income up. which leads to a rise in demand for imports. this stimulates exports of other countries which raise income stimulates demand for imports
 gross domestic productmonetary value of all goods and services produced in a country during one year
 balance of tradethe differnece between monetary value of a nations exports and imports
 factor conditions nations ability to turn its natural resources education and infrastructure into a competitive advantage.
 demand conditionsnumber and sophistication of domestic customers for an industry product
 economic espionage act (1996)the theft of trade secrets by foreign entities a federal crime in us 15 years in prison fines up to 500,000
 protectionismthe practice of shielding one or more industries with in a countries economy
 tariffsA tariff is a tax levied on imports or exports
 quotarestriction placed on amount of product allowed to enter or leave a country
 word trade organizationaddress an array of world trade issues. sets rules governing trade between members and issue binding decisions.
 global competitionfirms originate produce and market their products and services world wide
 strategic alliancesagreements among two or more independent firms to cooperate for the purpose of achieving common goals
 international firmviews the world as consisting of nique parts and markets to each differently
 multidomestic marketing strategyhave as many different product variations brand names and ad programs as countries in which they do business
 transitional firmviews world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants more then differences
 global marketing strategy practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ
 global brandbrand marketed under the same name in multipule countries with similar and centrally coordinated marketing programs
 global consumersconsist of consumer groups living in many countries or regions of the world who have similar needs or seek similar gestures and benefits from products or services
 cross cultural analysisthe study of similarities and differences among consumers in two more more nations or societies
 valuesrepresent personally or socially preferable modes of conduct or states of existence that tend to persist over time
 customs what is considered normal and expected about the way people do things in a specific country
 foreign corrupt practices acta crime for us corporation to bribe an official of a foreign government or political party to obtain or retain business in a foreign country
 cultural symbolsthings that represent ideas and concepts
 semiotics examines the corispondence between symbols and their role in the assignment of meaning for poeple
 back translationtranslate word or phrase is re translated into the original language by a different interpreter to catch errors
 cultural ethnocentric the belief that aspect of one culture and are superior to another
 bottom of the pyramidlarest but poorest socioeconomic group of people in the world
 economic infrastructurea countries communication transportation financial and distribution system
 currency exchange ratesprice of one countries currecy expressed in terms of another
 exporting producing goods in one country and selling them in another
 indirect exporting a firm sells domestic produced products in a foreign country though a intermediary
 direct exportinga firm sells domestic product produced firm sells its domestic goods in a foreign country with out intermidearies
 contact manufacturingus company may contract with a foreign firm to manufacture products according to stated specifications sold in a foreign country or back to the us
 contract assemblyus company may contact with a foreign firm to assemble not manufacture parts and components that have been shipped to that country
 joint venturewhen a foreign company and a local firm invest together to create a local business
 direct investmenta domestic firm actually investing in and owning a foreign subsidiary or division
 product extensionselling virtually the same product in other countries
 product adaptionchanging in some way to make it more appropriate for a countries climate or consumer preferences is a product adaption strategy
 product inventioncompanies invest totally new product designed to satisfy common needs across countries
 dumping a firm sells a product in a foreign country below its domestic price or actual cost
 gray marketparallel importing products are sold through unauthorized channels of distribution
 marketing researchdefining a marketing problem and opportunity systematically collecting and analyze info and recommending actions
 decisiona conscious choice from among two or more alternatives
 measures of success criteria or standards used in evaluating proposed solutions to the problem
 constraints restrictions placed on potential solutions to a peoblem
 concepts ideas about products or services
 methods aproaches that can be used to solve all or part of the problem
 datathe facts and figures that have already been recorded
 secondary datafacts and figures that have already been recorded
 primary datafacts and figures that are newly collected for the project
 information technologyoperating computer networks that can store and process data
 sales forecast total sales of a product a firm expects to sell during a specific period of time under specified environmental conditions and its own marketing efforts
  Definition
 marketpeople with both the desire and the ability to buy a specific offering
 environmental forcessocial, economic, technological, competitive, regulatory
 strategyan organization’s long-term course of action designed to deliver a unique customer experience while achieving its goals
 functional levelwhere groups of specialists actually create value for the organization; where the strategic direction becomes the most specific and focused
 market shareratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself
 marketing dashboardvisual computer display of the essential information related to achieving a marketing objective-
 marketing plana road map for the marketing activities of an organization for a specified future time period, such as one year or five years
 diversification analysistool that helps a firm search for growth opportunities from among current and new markets as well as current and new products
 strategic marketing processwhereby an organization allocates its marketing mix resources to reach its target markets
 situation (SWOT) analysistaking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization’s marketing plans and the external forces and trends affecting it; an organization’s appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats
 market segmentationinvolves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action
 marketing strategythe means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it
 environmental scanningprocess of continually acquiring information on events occurring outside the organization to identify and interpret potential trends
 social forcesthe demographic characteristics of the population and its values
 demographicsdescribing a population according to selected characteristics such as age, gender, ethnicity, income, and occupation
 cultureincorporates the set of values, ideas, and attitudes that are learned and shared among the members of a group
 gross incometotal amount of money made in one year by one person, household, or family unit
 disposable incomemoney a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation
 discretionary incomethe money that remains after paying for taxes and necessities
 market-product gridframework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization
 product positioningrefers to the place a product occupies in consumers’ minds on important attributes relative to competitive
 perceptual mapmeans 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 its own product or brand
 productgood, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs and is received in exchange for money or something else of value
 product mixconsists of all the product lines offered by an organization
 new-product processseven stages an organization goes through to identify business opportunities and convert them to a salable good or service
 new-product strategy developmentDefinition
 product itemspecific product that has a unique brand, size, or price
 product linegroup of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets, or fall within a given price range
  new-product strategy developmentstage of the new-product process that defines the role for a new product in terms of the firm’s overall objectives
 idea generationdevelops a pool of concepts as candidates for new products, building upon the previous stage’s results
 screening and evaluationinternally and externally evaluates new-product ideas to eliminate those that warrant no further effort
 business analysisspecifies the features of the product and the marketing strategy needed to bring it to the market and make financial projections
 developmentstage of the new-product process that turns the idea on paper into a prototype
 market testinginvolves exposing actual products to prospective customers under realistic purchase conditions to see if they will buy
 commercializationpositions and launches the new product in full-scale production and sales
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