Marketing test 3 ch. 8-11

define pioneering advertising

a type of product advertising that stimulates primary demand and occurs early in the PLC, when product categories are new and the goal of the advertising is to promote the category rather than a specific brand.

define competitive advertising

a tyype of product advertising. focuses on selective demand.

define services

actions or activities performed by the seller for the buyer.

define lagged effect

advertising now may have an effect on sales much later in time.

define innovation

an improvement in a product's ability to deliver its primary benefit to customers.

example of resource benefits?

an insulation company that persuades homeowners to purchase attic insulation under the promise that the purchase will pay for itself in future energy savings.

define the introduction stage of the PLC

begins with the launch of the first brand to compete in the category.

people do not buy products; they buy the _______________ that the products deliver

benefits

define sensory benefits

benefits that appeal to one or more of the five senses. products can look good, feel good, and so on.

define resource benefits

benefits that provide or save customers things that they value, primarily time and money.

define psychological benefits

benefits which affect how customers respond emotionally to product purchases.

examples of trade allowances?

buying allowances, off-invoice discounts, merchandise allowances, promotional allowances, cooperative advertising.

in the ___________ step, the processes of actually creating, producing, and selling the product are put into motion.

commercialization

define corporate image advertising

communicates an overall positive image for the firm in a broad and nonspecific sense. Ex.: general electric has an ad campaign that promotes GE's leadership in clean energy technology. while it is true that the company sells solar energy equipment, that's not the point of the ad campaign. instead, the goal is to communicate GE's environmentally beneficial activities.

define direct response advertising

companies use this advertising to promote directly to customers without involving the retailer by making customers an offer, providing supporting product information, and providing a method of response so customers can take the company up on the offer and complete an exchange. customers can respond directly to the company via web address, email, or phone, and companies can track results to determine effectiveness.

the 3 basic steps of the new product development process

conceptualization, planning, commercialization

marketers use 6 primary tools for consumer sales promotion. they are:

coupons, premiums, bonus packs, sampling, contests/sweepstakes, and price-off deals.

the 4 primary factors that influence prices:

customer perceptions or expectations, company costs, market characteristics, and competition.

how do marketers define products?

defined as a bundle of benefits.

define selective demand

demand for a particular brand within a product category rather than the product category itself.

define primary demand

demand for a product category without regard to brand.

define product concepts

detailed descriptions and illustrations of proposed new products

producers use __________ ________ supply chains when selling directly to consumers

direct retail

the 2 types of innovations

discontinuous and continuous innovations

examples of psychological benefits?

disney offers magic to its customers, volvo provides safety. the marine corps promotes benefits of pride, accomplishment, and exclusivity to attract recruits.

the level of availability for the product is referred to as __________ __________.

distribution intensity

the ___________ ______________ tends to be more risk averse than early adopters and chooses to wait until the bugs are worked out of product technology. these ppl. are often well-educated, and older than early adopters and innovators.

early majority

if a small price change has a large impact on how much people buy, the product is referred to as having ____________ demand

elastic

define trade promotion

encompasses a collection of incentives marketers use to induce business prospects or customers to buy now or to buy more.

define advocacy advertising

expresses a firm's involvement with some social issue or charity.

one of the most common types of contractual VMS is the _____________ ___________.

franchise agreement

conceptualization=

generating and screening ideas and concepts

define basic media planning problem

how to maximize exposure of the advertising message to the target audience while minimizing waste coverage.

the top of the supply chain, referred to as the ____________ ___________ ___________, are the companies involved in getting materials to the producer.

industrial supply chain

the primary way we distinguish services from goods lies in the concept of ______________.

intangibility

when producers wishto make their products easily obtainable and increase convenience, they select an ____________ __________ strategy

intensive distribution

define retailers

intermediaries who buy merchandise from producers or wholesalers and then re sell the merch. to final consumers.

define wholesalers

intermediaries whose primary function is to acquire goods from producers and then distribute those goods to retailers, or occasionally, other wholesalers.

define penetration pricing

introducing a new product at a relatively low price with the intention of establishing a large market share before competitors can establish themselves.

_____________ make up the remaining 10% to 15% of adopters.tend to adopt innovations as a matter of necessity, often when the prior technology is becoming difficult to find. tend to be older.

laggards

define department stores

large stores that feature apparel and home furnishings, but are usually smaller than mass merchandisers. tend to feature nicer interior spaces than the typical mass merchandiser. Ex.: kohl's, belk

the ____________ ____________ tends to be skeptical of change.

late majority

define product innovation ideas

loosely worded statements expressed in terms of improvements to existing products or in terms of entirely new products, and should focus on meeting customer needs.

define the decline stage of the PLC

many consumers have moved on to the new technology.

define the growth stage of the PLC

marks the start of very rapid sales growth in the product category.

define reverse supply chains

merchandise that sometimes flows backwards through supply chains from consumer to producer.

define specialty stores

much smaller in space than mass merchandisers and department stores. they carry narrow and deep inventories and usually feature high levels of customer service.

define non-sales behavioral objectives

objectives based on behaviors other than sales. variables include: store traffic counts, phone inquiries, contest entries, website hits, and social media likes. these objectives allow marketers to measure results that eventually could lead to sales.

define communication objectives

objectives that focus on how well a promotional activity conveys information and meaning to a target market. objectives are based on the assumption that conveying information and meaning will eventually produce sales.

define waste coverage

occurs when people outside of the target audience are exposed to advertising messages not intended for them or when the target audience itself is overexposed or underexposed to the advertising message.

what are the tools of public relations in marketing?

pg.216

define intensive distribution

placing a brand in as many retail outlets as agree to stock them.

define exclusive distribution

placing a product in few outlets.

the ___________ step begins when viable product concepts are considered through the lens of marketing strategy.

planning

what are the tools of public relations in marketing?

press releases, media kits, digital media content, press conferences,institutional advertising, and special events.

what is the relationship between price and customer cost?

price is a measure of the relative value of an item for both the customer and the seller

at the end of the industrial supply chain is the _________ or ___________.

producer; manufacturer

define the maturity stage of the PLC

product category sales begin to level off.

ideas that make it past the screening process must be turned into ______________ ______________

product concepts

define functional benefits

products (benefits) that perform an intended task effectively and efficiently.

__________________ benefits can be among the most powerful at developing bonds between customers and brands.

psychological

define the development stage of the PLC(product life cycle)

represents the investments that are made in a product by the pioneering company prior to the launch of the first brand in the category.

when producers utilize ___________ _____________, they place their brands in many but not all possible outlets

selective distribution.

what accounts for 75% of the U.S. GDP?

services

define perishability

services are consumed as they are produced

___________ are intangible in the sense that they cannot be touched, and therefore cannot be inspected prior to purchase.

servicess

define sales-related objectives

set sales targets during and after a promotional campaign and may be expressed in either absolute terms, such as unit or dollar sales, or relative terms, such as percent growth or market share. when managers use these objectives, they must be confident in the direct connection between promotional efforts and product sales.

define prestige pricing

setting a relatively high price to specifically enhance the brand image as higher value.

define skimming strategy

setting an initially high price and using gradual, timed price drops to make as much profit as possible over time by maximizing how much you make from each sale.

define predatory pricing

setting prices extremely low for an item specifically to run competitors out of business.

define continuous innovations

smaller incremental improvements to products' benefit-delivery capabilities. Ex.: cell phones gradually getting improved

define pull strategy

strategy in which a producer goes directly to the consumer, usually by advertising, and attempts to build demand for its brands.

define push strategy

strategy in which the producer uses its sales force and perhaps promotional incentives to convince wholesalers and retailers to carry the producers products.

define relational exchange

supply chain members that take a long-term view of their business interactions. members trust each other.

example of lagged effect?

suppose a consumer reads a magazine advertisement for athletic shoes and decides that, once her current shoes wear out, she will try the new brand. if that purchase comes 3, 4, or 6 months after the magazine ad was printed, then the link between the ad and later shoe sales cannot be reliably established.

define retailer reach

the ability of a retailer to attract consumers in a producer's target market or markets.

define frequency

the average number of times members of the target audience see the advertisement.

define core product

the essential motivating benefit the customer is purchasing. its what the customer wants to get most. Ex.: the fun, relaxation, adventure, and family time of a great vacation.

define administered VMS(vertical marketing system)

the first and most common type of VMS; an arrangement in which supply chain members work closely and cooperatively with each other but have little in the way of formal agreements linking them. they choose to work closely together.

define institutional advertising

the first broad category of advertising. marketers use this advertising to build the general reputation of the organization and create goodwill toward the company and its brands. this type of advertising promotes organizations as good members of society. there are 2 types of this advertising that help organizations accomplish this reputation building goal: corporate image and advocacy advertising.

what are innovators?

the first group of people to buy a new product. tend to be younger people

define the diffusion of innovation

the idea that new technology and the products that utilize the technology spread through markets over time.

define discontinuous innovations

the large jumps in a product's benefit-delivering abilities. Ex.: suppose the primary benefit we sought was long-distance communication. prior to the telegraph, communication was in the form of letters and documents delivered by hand or on horseback. then the telegraph came along, providing a huge jump in the ability to deliver messages by long distance. following that, the telephone came out, another discontinuous innovation.

define infomercials

the most common and also the most controversial method of direct response advertising. extended ads that involve dramatic product demonstrations with a response method. useful for products that require more involved purchase decisions or that require active demonstrations to persuade customers of the products benefits and value.

what are early adopters?

the next roughly 15% to adopt an innovation. have high levels of opinion leadership. tend to be young and well-educated.

define the product life cycle

the pattern of growing and declining sales in a product category over time.

define reach

the percentage of a target audience that sees and advertisement at least once during a given period of time(usually a week).

define actual product

the physical and intangible properties or characteristics the product takes on. this can include attributes such as the materials, styling, and branding. its what the customer actually gets to satisfy what they wanted most. Ex.: a carnival cruise lines family cruise package.

define product advertising

the second broad category of advertising. promotes the advertiser's specific products. marketers spend the bulk of their advertising budget on product advertising.

define contractual VMS

the second type of VMS; companies sign contracts that specify the responsibilities and rewards of the relationships and bind each other to working closely together.

define the retail supply chain

the series of companies and exchanges required to get goods from the producer to the consumer.

define supply chains

the total series of companies, exchanges, and transactions that produce goods and make them physically and commercially available to consumers.

define augmented product

these are extra attributes and features that are not part of the actual product but may be offered to make the offering more attractive, to speed purchase decisions, and to match or differentiate the actual product from competitors. Ex.: deep discounts on airfare to the cruise port, hotel accommodations the night before departure, preferred boarding and check-in.

what do indirect supply chains do?

they utilize one or more marketing intermediaries to get products from the producer to the consumer.

the most common trade promotion tools:

trade allowances, training programs, sales contests and incentives, and trade shows.

define discrete transactions

transactions that occur when 2 parties conduct business on a one-time basis with no set expectations of future business. the parties to the transaction only share the information necessary to complete the transaction and typically view each other somewhat distrustfully, each fearing that they may be taken advantage of by the other if they're not careful.

define core values

values that refer to deeply held beliefs and priorities that guide customer decision making.

___________ costs change with quantity sold and are generally tied to the product sold.

variable

define mass merchandisers

very large retail stores that specialize in selling large volumes of merchandise at low prices. usually have unadorned stores, a wide range of products in different categories, large quantities of merchandise, and limited levels of service.

bundle of benefits example?

when people buy cars, get a haircut. the multiple benefits of having a car or a new haircut.

example of functional benefits?

when you enter bill pay information into your bank's website and then the bank sends the payments as you scheduled them.

define corporate VMS

where all levels of a supply chain fall under common ownership. gives companies absolute control over all aspects of the supply chain.

marketing intermediaries=

wholesalers and retailers.