FBLA Marketing

Targeted Marketing

(AKA Differentiated Marketing) -Choosing select groups of people and organizations to sell (newer)

Mass Marketing

(AKA Undifferentiated Marketing) -you blast out as many marketing messages as possible on every medium available as often as you can afford (involves selling the same product to everybody)

One-to-one marketing.

(Rifle with a scope analogy) 1. Establish short-term measures to evaluate your efforts. 2. Identify your customers. 3. Differentiate among your customers. 4. Interact with your customers, targeting your best ones. 5. Customize your products and marketing messages to meet their needs.

SAM

(SAM is a Federal Government owned and operated free web site that consolidates the capabilities in CCR/FedReg, ORCA, and EPLS) System for Award Management: The System for Award Management (SAM) is an official website of the U.S. government. There is no cost to use SAM. You can use this site for FREE to: 1) Register to do business with the U.S. government 2) Update or renew your entity registration 3) Check status of an entity registration 4) Search for entity registration and exclusion records

Rail Companies

Union Pacific, Burlington Northern and Santa Fe, CSX, Norfolk Southern

UPC

Universal product code

Brand Extension

A brand extension involves utilizing an existing brand name or brand mark for a new product category.

Business Market

1) Fewer customers, often geographically concentrated, with a small number accounting for most of the company's sales 2) Larger dollar amounts due to more transactions 3) Longer decision cycles 4) More reliance on personal selling 5) More-rigid product standards

Offering Development Process

1) Idea Generation 2) Idea Screening 3) Feature Specification 4) Development 5) Testing 6) Launch (Commercialization) 7) Evaluation

Consumer Market

1) Many customers, geographically dispersed 2) Smaller total dollar amounts due to fewer transactions 3) Shorter decision cycles 4) More reliance on mass marketing via advertising, Web sites, and retailing 5) Less-rigid product standards

Consumer Purchasing Process

1) Need recognition 2) Search for product information 3) Product Evaluation 4) Product Choice/Product 5) Post-purchase Use/Evaluation 6) Disposal of Product

Business Purchasing Process

1. A need is recognized. 2. The need is described and quantified. 3. Potential suppliers are searched for. 4. Qualified suppliers are asked to complete responses to requests for proposal (RFPs). 5. The proposals are evaluated and supplier(s) selected. 6. An order routine is established. 7. A post-purchase evaluation is conducted and the feedback provided to the vendor.

Brands

A brand is a name, picture, design, or symbol, or combination of those items, used by a seller to identify its offerings and to differentiate them from competitors' offerings.

Generation Y (Millenials)

1980- 2000 (Largest U.S. generation, Grew up with credit cards, Adept at multitasking, technology use is innate, Ignores irrelevant media)

Sales Promotion

3 Characteristics (short term, incentive, all channels) Ex: a sales promotion might be an offered discount

Marketing Mix

4 P's (Product, Promotion, Place, Price -> Offering, Communication, Distribution, Exchange)

CPA

A Certified Public Accountant is a member of an officially accredited professional body of accountants.

Career Portfolio (curriculum vitae.)

A visual representation of your abilities, skills, capabilities, knowledge, qualities - and it represents your potential. Physically, it's a collection of things - tangible materials - that represent work-related events in your life.

Gatekeepers

People who will decide if and when you get access to members of the buying center. These are people such as buying assistants, personal assistants, and other individuals who have some say about which sellers are able to get a foot in the door.

Brand manager

A brand manager is the person responsible for all business decisions regarding offerings within one brand. By business decisions, we mean making decisions that affect profit and loss, which include such decisions as which offerings to include in the brand, how to position the brand in the market, pricing options, and so forth.

Brand Mark

A brand mark is the symbol, such as Coke's wave or Apple Computer's multicolor apple (not to be confused with Apple Records' green apple), associated with a brand.

Brand Name

A brand name, like Apple, is the spoken part of a brand's identity

Corporation

A business comprised of many individuals who act as a single entity. Ex. Microsoft, JP Morgan

Capital Equipment Offering (B2B)

A capital equipment offering is any equipment purchased and used for more than one year and depreciated over its useful life. Machinery used in a manufacturing facility, for example, would be considered capital equipment.

Promotional Plan

A carefully arranged sequence of promotions designed around a common theme responsive to specific objectives

Category Killer

A category killer sells a high volume of a particular type of product and, in doing so, dominates the competition, or "category."

Category Manager

A category manager has responsibility for business decisions within a broad grouping of offerings. For example, a category manager at SC Johnson may have all home cleaning products, which would mean that brands such as Pledge, Vanish, Drano, Fantastik, Windex, Scrubbing Bubbles, and Shout would be that person's responsibility.

Commodity

A commodity is a basic good used in commerce that is interchangeable with other commodities of the same type; commodities are most often used as inputs in the production of other goods or services. The quality of a given commodity may differ slightly, but it is essentially uniform across producers. When they are traded on an exchange, commodities must also meet specified minimum standards, also known as a basis grade.

Customer Insight

A customer insight, or consumer insight, is an interpretation of trends in human behaviors which aims to increase effectiveness of a product or service for the consumer, as well as increase sales for mutual benefit. (Qualitative and Quantitative)

Customer profiles

A description of a customer or set of customers that includes demographic, geographic, and psychographic characteristics, as well as buying patterns, creditworthiness, and purchase history.

Differentiated Marketing

A differentiated marketing strategy is when a company creates campaigns that appeal to at least two market segments or target groups. For example, a store can promote a sale that appeals to people in at least two cities or locations, or a company can market a product that appeals to women in at least two age groups.

Business Ethics Scenario #2

A few years ago, Nike and a number of other apparel makers were lambasted when it came to light that the factories they contracted with were using child labor and keeping workers toiling for long hours under terrible conditions. Nike didn't own the factories, but it still got a bad rap. Today, Nike, Inc., uses a "balanced scorecard." When evaluating suppliers, it looks at their labor-code compliance along with measures such as price, quality, and delivery time.

Franchising

A franchisor usually has tighter operational controls and prescribes (with the use of an operations manual) how a franchisee operates their franchised business. Ex. Mc Donalds

Pop-up Stores

Pop-up stores are small temporary stores. They can be kiosks or temporarily occupy unused retail space. The goal is to create excitement and "buzz" for a retailer that then drives customers to their regular stores.

Horizontal Conflict

A horizontal conflict refers to a disagreement among two or more channel members at the same level.

Partnership (Limited vs General)

A legal form of business operation between two or more individuals who share management and profits. General: very broad people involved don't have to sign paperwork very loose partnership. Limited: Not broad. people have to sign documents.

Line Extension

A line extension occurs when a company comes out with another model (related product) based on the same platform and brand as one of its other products.

Monopolistic competition

A market where products or services don't really have a clear substitute. Sure things are different at different places but there is no clear subsititue for a certain good. Ex. The restaurant business Hotels and pubs General specialist retailing Consumer services, such as hairdressing

Perceptual map

A perceptual map is a two-dimensional graph that visually shows where your product stands, or should stand, relative to your competitors, based on criteria important to buyers. The criteria can involve any number of characteristics—price, quality, level of customer service associated with the product, and so on.

Technology Platform

A product's technology platform is the core technology on which it is built.

RFP

A request for proposal (RFP) is an invitation to submit a bid to supply the good or service. An RFP outlines what the vendor is able to offer in terms of its product—its quality, price, financing, delivery, after-sales service, whether it can be customized or returned, and even the product's disposal, in some cases.

Resume

A resume is a structured story of your career. It includes a history of your professional employment in reverse chronological order, plus a list of your academic degrees. If appropriate, it includes a bibliography of your publications, a list of honors you have received, and a list of professional associations in which you participate.

Sell-side Site

A site in which a single seller sells products to many different buyers.

Fluctuating Demand

A small change in demand by consumers can have a big effect throughout the chain of businesses that supply all the goods and services that produce it

Social class

A social class is a group of people who have the same social, economic, or educational status in society

Straight Re-buy

A straight re-buy is a situation in which a purchaser buys the same product in the same quantities from the same vendor. Nothing changes, in other words. Post-purchase evaluations are often skipped, unless the buyer notices an unexpected change in the offering such as a deterioration of its quality or delivery time.

Tagline

A tagline is a catchphrase designed to sum up the essence of a product. You perhaps have heard Wendy's tagline "It's better than fast food."

Trade Show (Expo)

A trade fair (trade show, trade exhibition, or expo) is an exhibition organized so that companies in a specific industry can showcase and demonstrate their latest products and services, meet with industry partners and customers, study activities of rivals, and examine recent market trends and opportunities.

Trademark

A trademark, trade mark, or trade-mark[1] is a recognizable sign, design, or expression which identifies products or services of a particular source from those of others,[2][3] although trademarks used to identify services are usually called service marks

Personality

A well-defined, enduring pattern of behavior

Unsought Good

Unsought Goods are goods that the consumer does not know about or does not normally think of buying

Positioning

Positioning involves tailoring your product so that it stands out from the competition and people want to buy it.

Sales Era

Post-Production Era (Push advertising)

Secondary Data

Secondary data refers to data that was collected by someone other than the user. Common sources of secondary data for social science include censuses, information collected by government departments, organizational records and data that was originally collected for other research purposes.

Secondary Packaging

Secondary packaging holds a single wholesale unit of a product. (pack of coke bottles)

Unsought Offerings

Unsought offerings are those that buyers do not generally want to have to shop for until they need them.

Physical Inventory

Actual count, weight, volume, measure, or sighting of items in an inventory.

Feasibility

Process feasibility is the degree to which the company can actually make and service the product. Process feasibility affects financial feasibility. If the product's costs cannot be controlled when it's being made or serviced, the firm's financial goals won't be met. Process feasibility also affects customer satisfaction.

Advergames

Advergames are electronic games sellers create to promote a product or service.

Advertising

Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. (time/space, format, sponsor)

Maturity (PLC)

After many competitors enter the market and the number of potential new customers declines, the sales of a product typically begin to level off. This indicates that a product has entered the maturity stage of its life cycle. Most consumer products are in the mature stage of their life cycle; their buyers are repeat purchasers versus new customers.

Alibaba

Alibaba Group Holding Limited is a Chinese e-commerce company that provides consumer-to-consumer, business-to-consumer and business-to-business sales services via web portals.

Vertical Market

All customers such as these (retail, wholesale, and so forth) in a particular industry compose what's called a vertical market, and the managers of these markets are called vertical market managers. B2B companies organize in this way because buying needs and processes are likely to be similar within an industry. (similar communication too) (Marget segment)

Alpha Testing

Alpha testing ensures that the offering works like it's supposed to in a variety of different environments—that it meets its specifications, that is. (AKA Lab Testing)

Sales force automation (CRM)

Also known as sales force management, sales force automation is meant to prevent duplicate efforts between a salesperson and a customer. A CRM system can help achieve this by automatically tracking all contact and follow-ups between both sides.

Downsizing

Although not popular with consumers, many companies downsize (or decrease) the package sizes of their products or the amount of the product in the packages to save money and keep prices from rising too much.

OEM

An original equipment manufacturer (OEM) is a manufacturer or assembler of a final product. An OEM purchases raw materials, manufactured materials, and component parts and puts them together to make a final product.

Divesting

Another option for the company is divesting (dropping or deleting) the product from its offerings. The company might choose to sell the brand to another firm or simply reduce the price drastically in order to get rid of all remaining inventory.

Market Manager

Another option is to create a market manager, who is responsible for business decisions within a market. In this case, a market can be defined as a geographic market or region; a market segment, such as a type of business; or a channel of distribution.

Convenience Goods

Any good that is widely purchased and available

Merchandising

Any practice which contributes to the sale of products to a retail consumer mainly the production of products (product design, selection, packaging, pricing, etc)

Routine Response Behvaior

Automatic purchases based on limited information (often for low-involvement products)

Rolling Launch

The offering is made available to certain markets first and then other markets later. A rolling launch might make sense if the company's service technicians need training.

Branding

Branding is the set of activities designed to create a brand and position it in the minds of consumers.

B2B and B2C

Business to Business (Business to Customer)

B2G

Business-to- government (B2G) markets, or when companies sell to local, state, and federal governments, represent a major selling opportunity, even for smaller sellers. In fact, many government entities specify that their agencies must award a certain amount of business to small businesses, minority- and women- owned businesses, and businesses owned by disabled veterans.

Reverse Auctions

Buy-side auctions, by contrast, reverse the traditional auction formula, which is to help the seller get the highest price for the product. Instead, the buyer initiates the auction in order to find the cheapest supplier of a product. Sellers then bid against one another, offering the lowest prices they can for their products, in order to get the buyer's business.

Post-purchase Dissonance

Buyer's remorse (Reduce with money-back guarantee, troubleshooting services)

Buying Centers

Buying centers are groups of people within organizations who make purchasing decisions. (In some companies, they are simply referred to as buyers. In other companies, they are referred to as purchasing agents, purchasing managers, or procurement officers. Retailers often refer to their buyers as merchandisers.)

Long-ing

Buying stocks with the idea that the stocks will rise.

New Buy

By contrast, a new-buy selling situation occurs when a firm purchases a product for the first time. Generally speaking, all the buying stages we described in the last section occur. New buys are the most time consuming for both the purchasing firm and the firms selling to them. If the product is complex, many vendors and products will be considered, and many RFPs will be solicited.

Penetration Pricing Strategy

Low initial price to convince consumers to try a product

Variety buying

Low involvement but high brand recognition

Marketing Automation (CRM)

CRM tools with marketing automation capabilities can automate repetitive tasks to enhance marketing efforts to customers at different points in the lifecycle. For example, as sales prospects come into the system, the system might automatically send them marketing materials, typically via email or social media, with the goal of turning a sales lead into a full-fledged customer.

Canned Presentation

Canned presentation is a type of a detailed and structured presentation where the contents are presented in a systematic and well planned manner.

Cannibalization

Cannibalization occurs when a firm's new offering eats into the sales of one of its older offerings.

Evaluative Criteria

Certain characteristics are important to a customer (price, convenience, etc.)

Gray marketing

Collection of unauthorized sales channels

E-commerce

Commerce conducted electronically, such as over the Internet, has made locating near buyers less important

Method of handling a prospect's objection

Converting the objection into the form of a question

Publics

Communities of people at large (whether or not organized as groups) that have a direct or indirect association with an organization: customers, employees, investors, media, students, etc.

Volume Industry

Companies can gain only a few but large competitive advantages. (Profit is correlated with company size and market share)

Specialized Industry

Companies face many differentiation opportunities and each can have a high payoff (Ex: specialized machinery)

Fragmented Industry

Companies face many opportunities for differentiation but each advantage is small

CCR (Old system)

Companies that want to sell to the U.S. government should first register with the Central Contractor Registry.

Concept Questions

Concept testing involves running the idea of the offering by potential consumers. The purpose is to get early consumer feedback before investing too much money in an offering that won't work.

Perpetual Inventory

Constant Updating

Emergency Goods

Consumer goods that are bought quickly when they are urgently needed in times of crisis. Emergency goods are typically distributed at a variety of retail stores so they will be readily available when needed. Examples might include snow shovels, umbrellas, tarps, tents, flashlights, lighters and candles.

Trade credit

Credit offered by suppliers (pay back later)

Segmentation bases,

Criteria to classify buyers (Some commonly used bases include age, gender, income, geographical area, and buying behavior.)

Culture

Culture refers to the shared beliefs, customs, behaviors, and attitudes that characterize a society

CLV (CLTV)

Customer Lifetime Value is a prediction of the net profit attributed to the entire future relationship with a customer.

CRM System

Customer relationship management (CRM) is a term that refers to practices, strategies and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle, with the goal of improving business relationships with customers, assisting in customer retention and driving sales growth. CRM systems are designed to compile information on customers across different channels -- or points of contact between the customer and the company -- which could include the company's website, telephone, live chat, direct mail, marketing materials and social media. CRM systems can also give customer-facing staff detailed information on customers' personal information, purchase history, buying preferences and concerns.

Lead users

Customers who are good at generating new product ideas or applications of products are called lead users. (Lead users are users of a product or service that currently experience needs still unknown to the public and who also benefit greatly if they obtain a solution to these needs.) (Innovators)

Disintermediation

Cutting off your intermediaries

Operational Planning

Day to day (really specific)

Planned Obsolescence

Deliberately make a product unusable over time (Ex: New software is incompatible with old software - customers will buy the new)

Depth Interviews

Depth interviews, in which individuals are presented with the concept and can react to it individually

Derived Demand

Derived demand is demand that springs from, or is derived from, a source other than the primary buyer of a product. When it comes to B2B sales, that source is consumers. If consumers aren't demanding the products produced by businesses, the firms that supply products to these businesses are in big trouble.

Descriptive Research

Descriptive research is a study designed to depict the participants in an accurate way. More simply put, descriptive research is all about describing people who take part in the study. (Observational, defined as a method of viewing and recording the participants Case study, defined as an in-depth study of an individual or group of individuals Survey, defined as a brief interview or discussion with an individual about a specific topic)

Contact center automation (CRM)

Designed to reduce tedious aspects of a contact center agent's job, contact center automation might include pre-recorded audio that assists in customer problem-solving and information dissemination. Various software tools that integrate with the agent's desktop tools can handle customer requests in order to cut down the time of calls and simplify customer service processes.

Direct Marketing

Direct marketing is a form of advertising which allows businesses and nonprofit organizations to communicate directly to customers through a variety of media including cell phone text messaging, email, websites, online adverts, database marketing, fliers, catalog distribution, promotional letters and targeted television, newspaper and magazine advertisements as well as outdoor advertising.

Intensive Distribution

Distribute through as many outlets as possible

Drop Shipping

Drop shipping is a supply chain management method in which the retailer does not keep goods in stock but instead transfers customer orders and shipment details to either the manufacturer, another retailer, or a wholesaler, who then ships the goods directly to the customer.

Beta Testing

During beta testing, actual customers make sure the offering works under real-world conditions. Beta testing not only tests whether the offering works as advertised but also tests the offering's delivery mechanisms, service processes, and other aspects of marketing the product. (Potentially expensive)

B2B exchanges

E-commerce sites where multiple buyers and sellers go to find and do business with one another. Sites such as these make their money by charging buyers and sellers a fee when they conduct transactions with one another.

EDI

Electronic Data Interchange (EDI) is the computer-to-computer exchange of business documents in a standard electronic format between business partners.

Complex Buying

Expensive, infrequent purchase with high buyer participation but high perceived differences

Dissonance-reducing Buying Behavior

Expensive, infrequent purchase with high buyer participation but low perceived differences

Facilitating Offerings

Facilitating offerings include products and services that support a company's operations but are not part of the final product it sells. Marketing research services, banking and transportation services, copiers and computers, and other similar products and services fall into this category.

Family Life Cycle

Family life cycle refers to the stages families go through over time and how it affects people's buying behavior.

FTC

Federal Trade Commission - Its principal mission is the promotion of consumer protection and the elimination and prevention of anticompetitive business practices, such as coercive monopoly. The U.S. Federal Trade Commission (FTC) often plays a role when it comes to B2B laws and regulations. The FTC regulates companies in an effort to prevent them from engaging in unfair trade practices that can harm consumers and hamper competition.

Quota

Fixed Number

Vertical Marketing

Focus on specific group of people (make all the stuff)

Lobbying

Form of advocacy with the intention of influencing decisions made by the government

FOB Pricing

Free on Board (or Freight on Board). This basically means that the cost of delivering the goods to the nearest port is included but YOU, as the buyer, are responsible for the shipping from there and all other fees associated with getting the goods to your country/address.

Demographics

General Status (age, gender, etc)

Geocoding

Geocoding is a process that takes data such as this and plots it on a map. Geocoding can help businesses see where prospective customers might be clustered and target them with various ad campaigns, including direct mail, for example. (One of the most popular geocoding software programs is PRIZM NE, which is produced by a company called Claritas. PRIZM NE uses zip codes and demographic information to classify the American population into segments. The idea behind PRIZM is that "you are where you live.")

Geodemographic segmentation

Geodemographic segmentation refers to a range of methods used for classifying and characterizing neighborhoods or localities based on the principal that residents living near each other are likely to have similar demographic, socio-economic and lifestyle characteristics.

Product Line

Group of related offerings

Harvesting

Harvesting the product entails gradually reducing all costs spent on it, including investments made in the product and marketing costs. By reducing these costs, the company hopes that the profits from the product will increase until their inventory runs out.

Most-Favored Nation Principle

Helps achieve lower tariffs among nations. Treating other people equally Under the WTO agreements, countries cannot normally discriminate between their trading partners. Grant someone a special favour (such as a lower customs duty rate for one of their products) and you have to do the same for all other WTO members.

High-involvement Products

High risk if a bad purchase is made (complex, high price tag)

Conscientiousness

How diligent you are

Agreeableness

How easy you are to get along with

Line depth

How many offerings are in a product line

Cognitive Age

How old you perceive yourself to be

Openness

How open you are to new experiences

Extraversion

How outgoing or shy you are

Neuroticism

How prone you are to negative mental states

Self-concept

How you see yourself

Ideal-self

How you would like to see yourself (companies want their buyers to approach their ideal selves)

Development Cycle

Idea Generation/Screening > Concept Development > Business Analysis > Beta Testing/Marketing > Technical Implementation > Pricing > Launch

Bidding Process

Identify needs -> RFP -> Assess bidder -> Selects/Negotiates

Manufactured Product

If iron is turned into sheets of steel, it is called a manufactured material because it has been processed into a finished good but is not a stand-alone product; it still has to be incorporated into something else to be usable.

Decline (PLC)

In the decline stage, changes in consumer preferences, technological advances, and alternatives that satisfy the same need can lead to a decrease in demand for a product.

Administered VMS

In this concept, all the significant members of the product supply chain, i.e. the producer, the wholesaler and the retailer - work in unity to satisfy customer demand in a more profitable and cost beneficial manner.

Shoplifting/improper returns/product liability claims effect on pricing

Increases consumer prices

Purchase Order

Indicates what you want to buy

Perceptions

Individual processes that ultimately give meaning to stimuli that confront consumers

Low-involvement Products

Inexpensive + pose little risk if a mistake is made with the purchase

Routine buying

Inexpensive/Frequent

Influencers

Influencers are people who may or may not use the product but have experience or expertise that can help improve the buying decision. For example, an engineer may prefer a certain vendor's product platform and try to persuade others that it is the best choice.

Product diffusion process

Innovators > early adopters > early majority > late majority > laggards

Institutional markets

Institutional markets include nonprofit organizations such as the American Red Cross, churches, hospitals, charitable organizations, private colleges, civic clubs, and so on.

Product Lifecycle (PLC)

Introduction > Growth > Maturity > Decline

Personal Selling

Involves selling in person (face to face)

Behavioral segmentation

It divides people and organization into groups according to how they behave with or act toward products. - Benefits sought from the product, How often the product is used (usage rate), Usage situation (daily use, holiday use, etc.), Buyer's status and loyalty to product (nonuser, potential user, first-time users, regular user)

Focus Group

It is a form of qualitative research consisting of interviews in which a group of people are asked about their perceptions, opinions, beliefs, and attitudes towards a product, service, concept, advertisement, idea, or packaging.

Market Analysis

It looks into the size of the market both in volume and in value, the (various customer segments) and buying patterns, the competition, and the economic environment in terms of barriers to entry and regulation

Exploratory Research

Its focus is on the discovery of ideas and insights as opposed to collecting statistically accurate data. That is why exploratory research is best suited as the beginning of your total research plan.

Joint Demand

Joint demand occurs when the demand for one product increases the demand for another. For example, when a new video console like the Xbox comes out, it creates demand for a whole new crop of video games.

Exclusive Distribution

Just one or two outlets

Short Range Sales Forecasts

Less than 6 months

Psychographics

Lifestyle Segmentation (Attitudes, aspirations, values, goals, etc.)

Selective Distribution

Limited number of outlets (between intensive/extensive)

MRO Offerings

Maintenance, repair, and operations (MRO) offerings refer to products and services used to keep a company functioning. Janitorial supplies are MRO offerings as is hardware used to repair any part of a building or equipment.

Typical Channel for Consumer Goods

Manufacturer -> Wholesaler -> Retailer -> Consumer

Intermediaries (Middlemen, resellers)

Many products and services pass through multiple organizations before they get to you. These organizations are called intermediaries

Experimental Research

Marketing experimentation is a research method which can be defined as "the act of conducting such an investigation or test". It is testing a market that is segmented to discover new opportunities for organizations. (It can be understood as a collection of research designs to understand different causal processes through manipulation and controlled testing.)

Comparitive Parity

Match your competitors (promotion budget)

Attitudes

Mental positions about certain products (emotions towards specific institutions - hard to change)

Merchant Wholesalers

Merchant wholesalers are wholesalers that take title to the goods. (distributors, dealers, and jobbers) The category includes both full-service wholesalers and limited-service wholesalers. Full-service wholesalers perform a broad range of services for their customers, such as stocking inventories, operating warehouses, supplying credit to buyers, employing salespeople to assist customers, and delivering goods to customers. Limited-service wholesalers offer fewer services to their customers but lower prices.

Percentage of Sales

Method to sell (projected sales)

Search Advertising

Monitoring web patterns (ads are seen after a search, aimed a specific customers)

Licensing

Much less control than Franchising. Person has little to no operational control as to how a licensee markets and distributes or utilizes the licensed product. Ex. Disney Princess toys are licensed

Flexible Pricing

Negotiable Prices

OEM Offerings/Components

OEM offerings or components, like an on/off switch, are components, or parts, sold by one manufacturer to another that get built into a final product without further modification. If you look at that picture of the Natuzzi couch, you may notice that it sits on metal feet. The metal feet are probably made by a manufacturer other than Natuzzi, making the feet an OEM component.

Behavior

Observed (customer loyalty, first time buyer, etc.)

Buy-side Site

One in which a business buys products from multiple sellers that go there to do business with the firm.

Just-in-time (Inventory)

Only receive needed goods (reduce waste) (an inventory strategy)

Exclusive Retailers

Only specific retailers can sell

Big Five Personality Traits

Openness, Conscientiousness, Extraversion, Agreeableness, Neuroticism

Opinion Leaders

Opinion leaders are people with expertise in certain areas. Consumers respect these people and often ask their opinions before they buy goods and services. An information technology specialist with a great deal of knowledge about computer brands is an example.

Oracle Coporation

Oracle Corporation is a multinational computer technology corporation, headquartered in Redwood Shores, California. The company specializes primarily in developing and marketing database software and technology, cloud engineered systems and enterprise software products — particularly its own brands of database management systems. In 2015 Oracle was the second-largest software maker by revenue, after Microsoft.

Cash and carry wholesale

Pay in cash and transport the goods themselves. (Self-service or on the basis of samples)

Liability Insurance

Pays for damage caused to other people or their property

Atmospherics

Physical factors that a firm can control (layout of store, music, lighting, temperature)

Maslow's Hierarchy of Needs

Physiological > Safety > Social > Esteem > Self-Actualization

Geographic

Places

Dumping

Predatory pricing typically in the context of international markets. (The sale of products in foreign markets at prices lower than those charged in the home country)

Zone Pricing

Price increases as shipping distance increases

Price Lining

Price lining, also referred to as product line pricing, is a marketing process wherein products or services within a specific group are set at different price points. The higher the price, the higher the perceived quality to the consumer. However, while price lining can be profitable, it relies on a number of factors to make it work and is not always the best pricing option for every product or service.

Price Skimming

Price skimming is a pricing strategy in which a marketer sets a relatively high initial price for a product or service at first, then lowers the price over time. It is a temporal version of price discrimination/yield management.

Primary Data

Primary data is original research that is obtained through first-hand investigation. Primary data includes information collected from interviews, experiments, surveys, questionnaires, focus groups and measurements.

Primary Packaging

Primary packaging holds a single retail unit of a product. (single coke bottle)

Producers

Producers are companies that purchase goods and services that they transform into other products. They include both manufacturers and service providers. Procter & Gamble, General Motors, McDonald's, Dell, and Delta Airlines are examples.

Product Mix

Product Assortment -> [Width (number of product lines), Length (total number of products), Depth (variations for each product), Consistency (how closely related products/lines are to each other)]

Consumer Bill of Rights

Promote Growth of Consumerism (Kennedy Speech on 4 rights) safety, informed, choose, heard

Selling Process

Prospecting/Qualifying > Pre-approach > Approach > Presentation/Demonstration > Handling Objections > Closing > Follow-up

Proximity Marketing

Proximity marketing is the localized wireless distribution of advertising content associated with a particular place. Transmissions can be received by individuals in that location who wish to receive them and have the necessary equipment to do so.

odd-even pricing

Psychological pricing like putting stuff at 9.99

Publicity

Publicity involves placing newsworthy information about a company, product, or person in the media.

Impulse Buying

Purchasing without thought

QFD

Quality function deployment (QFD) is a process whereby a company begins with the customer's desired benefits and then designs an offering that delivers those benefits.

RFID

Radio-frequency identification (RFID) uses electromagnetic fields to automatically identify and track tags attached to objects.

Raw materials offerings (B2B)

Raw materials offerings are materials firms offer other firms so they can make a product or provide a service. Raw materials offerings are processed only to the point required to economically distribute them. Lumber is generally considered a raw material, as is iron, nickel, copper, and other ores.

Horizontal Marketing

Reach many consumers (general stuff)

Business Ethics Scenario

Recently, Dean Foods, which manufactures the Silk brand of soy milk, experienced a lot of negative press after the company changed the word "organic" to "natural" on the labels of its milk, and quietly switched to conventional soybeans, which are often grown with pesticides. But Dean didn't change the barcode for the product, the packaging of the product, or the price much. So stores kept ordering what they thought was the same product—making a straight rebuy—but it wasn't. Many stores and consumers felt as though they had been duped. Some grocers dropped the entire Silk lineup of products.

Reference Groups

Reference groups are groups a consumer identifies with and wants to join.

Repositioning

Repositioning is an effort to "move" a product to a different place in the minds of consumers.

SEO

Search engine optimization is a methodology of strategies, techniques and tactics used to increase the amount of visitors to a website by obtaining a high-ranking placement in the search results page of a search engine (SERP) -- including Google, Bing, Yahoo and other search engines.

RFP

Request for Proposal (bidding)

Shopping Products

Requires comparisons to be made by the consumer.

Resellers

Resellers are companies that sell goods and services produced by other firms without materially changing them. They include wholesalers, brokers, and retailers. Walmart and Target are two big retailers you are familiar with. Large wholesalers, brokers, and retailers have a great deal of market power. If you can get them to buy your products, your sales can exponentially increase.

Operant Conditioning

Rewarding customers (prizes in Cracker Jack bags, free washes with a punch card)

Accounts Receivable

Sales for which the company has not yet been paid

Sell-side auctions

Sell-side auctions are sometimes referred to as forward auctions.

Shorting

Selling stocks against interests of the country. (Making profit off of the stocks falling).

Communication Model

Sender > Encode > Message (hit by noise) > Decode > Receiver > Feedback

Receiving Records

Serial number records of what one recieved

Limited Problem Solving

Shortened Process (Already have some information - an inbetween)

Sole-proprietorship

Simplest form in which someone can operate a business. A business that has legally no separate existence from it's owner. 73 percent of all small businesses are sole0proprietorships.

Geolocation technology, or location-based services (CRM)

Some CRM systems include technology that can create geographic marketing campaigns based on customers' physical locations, sometimes integrating with popular location-based GPS apps. Geolocation technology can also be used as a networking or contact management tool in order to find sales prospects based on location.

Market Test

Some companies test the complete launch of a product's marketing plan to ensure that it reaches buyers, gets positive feedback, and generates sales of the product or service.

Product manager

Someone with business responsibility for a particular product or product line. Like the brand manager, the product manager must make many business decisions, such as which offerings to include, advertising selection, and so on.

Specialty Offerings

Specialty offerings are highly differentiated offerings, and the brands under which they are marketed are very different across companies, too.

Objective and Task

Spend enough money to accomplish your goal (promotion-not good method)

Extended Problem Solving

Spend time comparing products, prices, warranties, etc. (companies must offer a lot of information to stay competitive)

Stalemated Industry

There are few potential competitive advantages and each is small (Profitability is unrelated to company market share)

Subliminal Advertising

Stealthily embed stimuli (someone in a movie uses a certain brand)

Action Plan

Steps to reach goal (a. responsibilities for marketing activities. b. responsibilities for risk reduction. c. responsibilities for the marketing strategy)

Off-price retailers

Stores that sell a variety of discount merchandise that consists of seconds, overruns, and the previous season's stock other stores have liquidated

Limited Line Stores

Stores that specialize in certain lines of related products rather than a wide assortment

Shock Advertising

Surprising stimuli (increased attention, memory, positive behavior)

Cold-calling

Telemarketers (unsolicited calls to sell)

Tertiary packaging

Tertiary packaging is packaging designed specifically for shipping and efficiently handling large quantities. When a Coca-Cola bottler ships cases of Cokes to a grocery store, they are stacked on pallets (wooden platforms) and then wrapped in plastic.

Better Business Bureau (BBB)

The Better Business Bureau (BBB), founded in 1912, is a nonprofit organization focused on advancing marketplace trust. - It collects and provides free business reviews on more than 4 million businesses to over 123 million requests from consumers in 2013, helping make the BBB's website rank among the top 1,000 most-visited websites in the United States.[4] - The BBB serves as an intermediary between consumers and businesses, handling over 885,000 consumer disputes against businesses in 2013, of which close to 78% were settled

BMA

The Business Marketing Association has also developed a code of ethics that discourages bribery and other practices, such as disparaging a competitor's products unfairly, and encourages treating one's suppliers equitably.

FCC

The Federal Communications Commission (FCC) is an independent agency of the United States government that regulates interstate communications by radio, television, wire, satellite, cable, etc.

GSA

The General Services Administration (GSA) is an independent agency of the United States government, established in 1949 to help manage and support the basic functioning of federal agencies. The GSA supplies products and communications for U.S. government offices, provides transportation and office space to federal employees, and develops government-wide cost-minimizing policies, and other management tasks.

SBA

The Small Business Administration (SBA) is a United States government agency that provides support to entrepreneurs and small businesses. The mission of the Small Business Administration is "to maintain and strengthen the nation's economy by enabling the establishment and viability of small businesses and by assisting in the economic recovery of communities after disasters". The agency's activities are summarized as the "3 Cs" of capital, contracts and counseling.

Price discimination

The act of selling the same product for different prices to different people. Ex. selling a toothbrush to poor people for 1 dollar but to rich for 10

Labor Intenseness

The amount of human effort required to deliver a service is

Deciders

The decider is the person who makes the final purchasing decision. The decider might or might not be the purchasing manager. Purchasing managers are generally solely responsible for deciding upon routine purchases and small purchases.

Price Lines

The distinct categories within which products are organized based on differences in price, quality, and features

Packing List

The document sent with the merchandise that identifies the products that are being shipped

Channel Members

The firms a company partners with to actively promote and sell a product as it travels through its marketing channel to users are referred to by the firm as its channel members

Growth (PLC)

The growth stage is characterized by increasing sales, more competitors, and higher profits. Unfortunately for the firm, the growth stage attracts competitors who enter the market very quickly.

Introduction (PLC)

The introduction stage is the same as commercialization, or the last stage of the new product development process. Marketing costs are typically higher in this stage than in other stages. Communication (promotion) is needed to generate awareness of the product and persuade consumers to try it, and placement alternatives and supply chains are needed to deliver the product to the customers. (Low Profit)

social class

The lifestyle, values, and beliefs that are common to a group of people

Investment Risk

The possibility that the company will fail to earn the appropriate return on the money and effort (the investment) it puts into the new product

Opportunity

The risk that there is a better idea that gets ignored because the firm has invested in the idea at hand.

Promotion MIx

The specific blend of advertising, public relations, personal selling, sales promotion, and direct-marketing tools that the company uses to persuasively communicate customer value and build customer relationships.

Squeeze

The term squeeze is used to describe many financial and business situations. In business, it is a period when borrowing is difficult or a time when profits decline due to increasing costs or decreasing revenues.

TCO

The total cost of ownership (TCO), then, is the total amount someone pays to own, use, and eventually dispose of a product.

Copyright

These are for intellectual property. SO like movies and books and stuff Copy rights last 95 years

Patents

They are used for inventions and prevent other businesses or people from creating clones of patented inventions. Ex. Henry patents time machine. No one can make time machine clone that is the same type without asking Henry for permission. Patents last 20 years

Small Businesses

They make up over 90% of all businesses. b. They employ nearly 40% of workers in high-tech occupations. c. They provide about 75% of the all-new jobs.

Production Era

This is the era where people thought "if you build it, they will come" (few alternative product options - industrial revolution)

Economic Downturn Approach (Backroads 2009)

This is the situation in which the adventure-based travel firm Backroads found itself in 2009. The California-based company increased its revenues by creating a personalized marketing campaign for people who had done business with Backroads in the past. The firm looked at information such as customers' past purchases, the seasons in which they took their trips, the levels of activity associated with them, and whether or not the customers tended to vacation with children. The company then created three relevant trip suggestions for each customer based on the information. The information was sent to customers via postcards and e-mails with links to customized Web pages reminding them of the trips they had previously booked with Backroads and suggesting new ones. "In terms of past customers, it was like off-the-charts better [than past campaigns]," says Massimo Prioreschi, the vice president of Backroads' sales and marketing group.

TQM

Total Quality Management (Reduce/eliminate errors)

Trial Close

Trial close is a sales technique wherein the sales staff uses certain variety of questions and observations using which they then try to find out the mood of the buyer regarding the product, whether he is interested in buying the product or not.

Users

Users are the people and groups within the organization that actually use the product. Frequently, they initiated the purchase in the first place in an effort to improve what they produce or how they produce it.

Vertical Conflict

Vertical conflicts involve a disagreement between two channel members on consecutive levels.

Volume of Sales

Volume = number of brand users x usage rate per user

Walmart Info

Walmart has developed a scorecard to rate its suppliers on how their packaging of products affects the environment. Walmart does so because its customers are becoming more conscious of environmental damage and see value in products that are produced in as environmentally friendly a way as possible.

B2B auctions

Web-based auctions that occur between businesses. The auctions can be either sell side or buy side. An example of a sell-side auction is a B2B auction that occurs on eBay or a site like AssetAuctions.com where surplus industrial equipment is sold.

Benefit

When an offering's features satisfy a need or want

Line Extension

When new offerings are added to a product line

Chronological Age

Your actual age

Collusion in business

When two rival companies cooperate for mutual benefit.

Line Width

Width is a function of how many different, or distinct, product lines a company has.

Subsidy

a sum of money granted by the government or a public body to assist an industry or business so that the price of a commodity or service may remain low or competitive.

Personal Survey

collects data of a complex or emotional nature

Deficit Spending

government spending, in excess of revenue, of funds raised by borrowing rather than from taxation.

Subculture

group of people within a culture who are different from the dominant culture but have something in common with one another

E-Commerce Process

information, interaction, integration

Sherman Anti-Trust Act

limits price fixing

7 market functions

pricing, Product/Service Management, distribution, financing, market information management, selling, promotion

Prestige Pricing

the practice of pricing goods at a high level in order to give the appearance of quality.