Ch 11 - 13 : BA 1100
Production Orientation
-19th century -manufacturing efficiency
Sales Orientation
-early 20th century -supply exceeds demand; a need to "sell" products grew
Functions of Marketing (select all that apply) a. buying b. selling c. transporting d. storing e. grading f. financing g. research h. risk taking
abcdefgh (all of them)
Connectivity
ability for consumers to be connected with marketers along with other consumers
Interactivity
ability of customers to express their needs and wants directly to the firm in response to its marketing communications
The stages to developing a new product is: (put in order) a. new idea screening b. idea development c. test marketing d. business analysis e. commercialization f. product development
badfce
Trademark
brand registered with the U.S. Patent and Trademark Office and is thus legally protected from use by another firm
Retailers
buy products from manufacturers (or other intermediaries) and sell them to consumers for home and household use rather than for resale or for use in producing other products
Exchange
giving up money, credit, labor, or goods in return for goods, services, or ideas
Market
group of people who have a need, purchasing power, and the desire and authority to spend money on goods, services, and ideas
Reference Groups
groups with whom buyers identify and whose values or attitudes they adopt
Motivation
inner drive that directs a person's behavior toward goals
Crowdsourcing
involves using communities of interested consumers to gather input and feedback for marketing purposes
Brand Name
is the part of a brand that can be spoken and consists of letters, words, and numbers
Branding
process of naming and identifying products
Consumer Products
products intended for household or family use
Specialty Products
require greater consumer and shopping effort; consumers unwilling to accept substitute
Test Marketing
trial mini-launch of a product in limited areas that represent the potential market
Adults spend one of every five online minutes on social networking sites. (true/false)
true
One of the best ways to get someone's attention is to tell a story, and in the digital age, it is even more effective to tell that story in a short online video (true/false)
true
Price relates directly to revenue and profits and is a key element in the marketing mix (true/false)
true
Digital Marketing
uses all digital media, including the internet and mobile and interactive channels to develop communication and exchanges with customers
Promotional Posting
uses promotion to create and maintain an image of a product in buyers' minds
Pull Strategy
uses promotion to create consumer demand so consumers exert pressure on marketing channel members to make it available (the exclusive use of advertising is a pull strategy)
Social Network
web-based meeting place for friends, family, co-workers, and peers -build relationships -provide product info -learn about consumer needs -contact new target markets
Personal Selling
- directly, two-way communication with buyers and potential buyers -most flexible promotional method but expensive
Publicity
- non-personal communication transmitted through mass media but not paid fro directly by the firm -message presented on the news and company not seen as the originator of the message -public relations department usually deals with trying to gain favorable publicity and minimize the negative
Two factors sparked the increase in consumer generated info:
-a consumer can publish their thoughts, opinions, reviews, and product discussion -consumers' tendencies to trust other consumers over corporations
-a hybrid social networking and microblogging site that asks users one simple question: "what are you doing?" -allows 140 characters or less -approximately 23% of users report that they follow businesses on Twitter
Marketing Research
-a systematic, objective process of getting info about potential customers to guide marketing decisions -vital because the marketing concept cannot be implemented without info about customers
Buzz Marketing
-a variation of traditional advertising where marketers attempt to create a trend -related concept is viral marketing, which gets internet users to pass on ads and promotions to others
Podcasts
-an audio or video file that can be downloaded from the internet with a subscription that automatically delivers new content to listening devices or personal computers -good marketing tool for reaching the 18-34 demographic
Market Orientation
-approach requiring organizations to gather info about consumer needs, share the info throughout the firm, and use the info to help build long-term relationships with customers -began in the 1950s and continues today -new technologies are helping forms to improve communication and learn what customers want
Secondary Data
-compiled inside or outside an organization for some purpose other than changing the current situation -compiled by the U.S. Census Bureau and other government agencies, databases created by marketing research firms, as well as sales and other internal reports
Product Considerations
-digital media connectivity creates opportunities to add services and benefits to products -some products only available digitally which is easier, more accessibly, and trustable as you can read other customers reviews -fierce competition makes quality product and service offerings more important than ever
How Advertising and Publicity Differ
Purpose -advertising informative, persuasive; publicity informative Impact -advertising calls for action; publicity rarely does Cost -companies pay fro advertising; publicity is free Duration -advertising is repeated often; publicity appears once
Objectives of Promotion
Stimulate Demand -often through ads and sales promotion, particularly important when using a pull strategy Stablize Sales -decreasing sales call for sales promotions and ads Inform, reming and reinforce customers
Two major components for marketing strategies are? a. selecting a target market b. selecting a market c. developing an appropriate marketing mix
a & c
Product Line
a group of closely related products that are treated as a unit because of similar marketing strategy, production or end-use considerations
Advertising
a paid form of non-personal communication transmitted through a mass medium, such as tv commercials
Marketing Strategy
a plan of action for developing, pricing, distributing, and promoting products that meet the needs of specific customers
Social Classes
a ranking of people into higher or lower positions of respect
Push Strategy
an attempt to motivate intermediaries to push the product down to their customers (personal selling indicates a push strategy)
Business Analysis
analyze the products' affects o sales, costs, and profits
Costs
anything a buyer gives up to obtain products benefits
Benefits
anything a buyer receives in an exchange
Total-Market Approach
approach whereby a firm tries to appeal to everyone and assumes all buyers have similar needs
E-Business
carrying out the goals of business through utilization of the Internet
Learning
changes in a person's behavior based on info and experience
Control
customer's ability to regulate the info they view as well as the rate and exposure to that info
Advertising Campaign
designing a series of advertisements and placing them in various media to reach a particular target mark
Digital Media
digital codes delivered via computers, cellular phones, smart phones, and other digital devices
Sales Promotion
direct inducements offering added value or some other incentives for buyers to enter into an exchange
Marketer spent $1.4 B on mobile marketing in 2011 (true/false)
false ($1.2 B)
E-Commerce sales on smart phones totaled $6 B in 2011 (true/false)
false ($5 B)
Decline Stage
firms may eliminate models, cut costs, and finally phase out products
Commercialization
full introduction of a complete marketing strategy and the launch of the product for commercial success
Convenience Products
items bought frequently with no planning, such as eggs, milk, bread, and newspapers
Attitude
knowledge and positive or negative feelings about somthing
New Idea Screening
management looks at company's resources and ability to produce and market the product (most ideas are rejected in this phase)
Introductory Stage
marketers focus on making consumers aware of the product and its benefits
Viral Marketing
marketing tool that uses the internet, particularly social networking and video sharing sites, to spread a message and create brand awareness
Idea Development
new ideas come internally from marketing research or employees and from external sources such as advertisement agencies, consultants, and customers
Personality
organization of distinguishing character traits, attitudes, or habits
Brand Mark
part of a brand that is a distinctive sign
Shopping Products
purchased after consumer has "shopped around"
Social Roles
set of expectations for individuals based on some position they occupy
Maturity Stage
severe competition and heavy costs
Target Market
specific group of consumers on whose needs and wants a company focuses its marketing efforts
Pricing Objectives
specify the role of price in an organization's marketing mis and strategy
Discounts
temporary price reductions often employed to boost sales -quantity discounts -seasonal discounts -promotional discounts
Addressibility
the ability of the marketer to identify customers before they make a purchase
Product Development
the few products to reach this stage get prototypes and the development of a marketing strategy
Growth Stage
the firm tries to strengthen its market position by emphasizing benefits
Culture
the integrated, accepted pattern of human behavior, including thought, speech, beliefs, actions, and artifacts
Perception
the process by which a person selects, organizes, and interprets info received from his/her senses
Four Common Pricing Objectives are: maximizing profits, boosting market share, maintaining the status quo, and survival (true/false)
true
Three Categories of a Salesperson: order takers, creative salesperson, and supportive salesperson. (true/false)
true
U.S. Federal Trade Commission (FTC) compiles an annual list of consumer complaints related to the internet and digital media. (true/false)
true
Reference Pricing
type of psychological pricing in which a lower-priced item is compared to a more expensive brand in hopes that the consumer will use the higher price as a comparison price
Business Products
used directly or indirectly in the operation or manufacturing processes of business
Product Mix
all the products offered by an organization
Promotional Considerations
-increasing brand awareness and connecting with consumers -taking advantage of social networks to form relationships and generate positive publicity about products -online promotion allows consumers to read consumer-generated content before making purchasing decisions -one of the best ways businesses can utilize digital media
Wholesalers
-intermediaries who buy from producers or from other wholesalers and sell to retailers -wholesalers help consumers and retailers by buying in larger quantities, then selling to retailers in smaller quantities
Pricing Considerations
-most flexible element of the marketing mix -digital marketing can enhance a products' value by providing service, info, and convenience quickly and allowing customers to compare prices -offering buying incentives generate consumer demand for products -to compete on price, digital marketing provides unlimited opportunities
-most popular social networking site in the world -appeals to a broad demographic -fastest-growing demographic is consumers 55 and up -encourages consumer interaction with companies and products
Primary Data
-observed, recorded, or collected directly from respondents -"mystery shoppers", surveys, and focus groups -passive observation of consumer behavior and open-ended questions techniques
Selective Distribution
-only a small number of all available outlets are used to expose products -used most often when consumers buy only after sopping and comparing price, quality, and style
The Marketing Mix
-part of the marketing strategy that involves decisions regarding controllable variables -after selecting a target market, marketers develop and manage the dimensions of the marketing mix to give their firm an advantage over competitors
Intensive Distribution
-product made available in as many outlets as possible -used for frequently purchased items
Exclusive Distribution
-the awarding by a manufacturer to an intermediary of the sole right to sell a product in a defined geographic territory -includes high-quality merchandise
Distribution Considerations
-the internet is a new distribution channel for making products available at the right time, place, and quantities -processing orders electronically can reduce inefficiencies, costs, and redundancies while speeding up the marketing channel and offering low shipping costs
Niche Marketing
A narrow market segment focus when efforts are on one small, well-defined group that has a unique, specific set of needs
Assessing what consumers _____ is complicated by trends, fashions, and tastes a. wants b. needs
a. wants
Several Factors that Affect Campaign include (choose all that apply) a. product features b.choice of media use c. target market d. marketing objectives e. idea development
abcd
Stages of the Product Life Cycle include: (choose all that apply) a. introductory stage b. growth stage c. decline stage d. maturity stage e. pricing stage
abcd
The internet and social networks have generated legal and social issues such as: (choose all that apply) a. privacy concerns b. risk of identity theft c. risk of online fraud d. need to protect intellectual property
abcd
Companies segment markets on the basis of several variable including (select all that apply) a. demographic b. geographic c. psychographic d. behavioristic
abcd (all of them)
Importance of Marketing to Business and Society (select all that apply) a. necessary function to reaching consumers, establishing relationships, and driving sales b. essential in communicating the value of products and services c. spread awareness and achieve desired outcomes d. reach their target markets, communicate their offerings, and establish high-quality services
abcd (all of them)
Accesssibility
ability to marketers to obtain digital info
