MKT 190 Final Exam

Courts accept tying agreements when:

- The supplier is the only firm able to provide products of a certain quality - The intermediary is free to carry competing products as well - A company has just entered the market

Communication Process

-Communication -Source -Coding Process -Communication Channel -Decoding Process -Noise -Feedback -Channel Capacity

Types of Publicity

-new release -feature article -captioned paragraph -press conference

Source

A person, group, or organization with a meaning it tries to share with a receiver or an audience

Category Killers

A very large specialty store concentrating on a major product category and competing on the basis of low prices and product availability

Step 1: Identifying and Analyzing the Target Audience

Advertisers research and analyze advertising targets to establish an information base for a campaign

Advocacy Advertising

Advertising that promotes a company's position on a public issue

Noise

Anything that reduces a communication's clarity and accuracy

Step 1: Prospecting

Developing a database of potential customers; most sales people prefer to use referrals recommendations from current customers to find prospects

Three Types of Product Modifications

Quality Functional Aesthetic

Customer Evaluation of Service Quality

Search Experience Credence The biggest obstacle for customers in evaluating service quality is the nature of the service; Except for the tangibles dimensions the criteria customers use to judge service quality are intangible

Off Price Retailers

Stores that buy manufacturers' seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts

Foundations of the Supply Chain

Supply chain Procurement Sourcing Purchasing Recycling Logistics management Operations management Supply chain management

Target Market for Nonprofits

Target Public Client Public General Public

Intangibility

The characteristic that a service is not physical and can not be perceived by the senses; is the major characteristic that distinguishes a service from a good

Product Adaption Process

The five-stage process of buyer acceptance of a product; Awareness, Interest Evaluation, Trial, Adoption

Growth Stage

The product life-cycle stage when sales rise rapidly, profits reach a peak, and then they start to decline; critical to a products survival

Decline Stage

The stage of a product's life cycle when sales fall rapidly

Public Relations

a broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders

Marketing Channel

a group of individuals and organizations that direct the flow of products from producers to customers within the supply chain

Test Marketing

a limited introduction of a product in geographic areas chosen to represent the intended market

Publiciity

a news story type of communication about an organization and or its products transmitted through a mass medium at no charge

Advertising

a paid non-personal communication about an organization and its products transmitted to a target audience through mass media

Step 5: Developing the Media Plan

a plan that specifies the media vehicles to be used and the schedule for running advertisements; the media planner's primary goal is to reach the largest number of people in the advertising target that the budget will allow; the secondary goal is to achieve the appropriate message reach and frequency for the target audience while staying within budget

New-Product Development Process

a seven phase process for introducing new products

Communication

a sharing of meaning through the transmission of information

Exclusive Deal

a situation in which a manufacturer forbids an intermediary from carrying products of competing manufacturers

Step 8: Evaluating Advertising Effectiveness

advertising can be evaluated before during and after the campaign, pretest, and posttest

Step 2: Defining the Advertising Objectives

advertising objectives guide campaign development and should be defined carefully; to provide precision and measurability advertising objectives should contain benchmarks; objectives can be defined on the basis of sales and communication

Institutional Advertising

advertising that promotes organizational images, ideas, and political issues

Product Advertsising

advertising that promotes the uses, features, and benefits of products

Pioneer Advertising

advertising that tries to stimulate demand for a product for a product category rather than a specific brand by informing potential buyers about the product

Retailing

all transactions in which the buyer intends to consumer the product through personal, family, or household use

Sales Promotion

an activity or material that acts as as direct inducement, offering added value or incentive for the product to resellers salespeople or customers

Tying Agreements

an agreement in which a supplier furnished a product to a channel member with the stipulation that they channel member must purchase other products as well

Step 3: Creating Advertising Platform

basic issues or selling points to be included in an advertising campaign

Step 2: Pre approach

before contacting acceptable prospects a salesperson finds and analyzes information about each prospect

Product Modification

changed in one or more characteristics of a product

Promotion Mix

combination of promotional methods used to promote a specific product; 4 elements include advertising, personal selling, public relations, and sales promotions

Coding Process

converting meaning into a series of signs or symbols

Decoding Process

converting signs and symbols into concepts and ideas

Product Development

determining if producing a product is technically feasible and cost-effective; often a lengthy and expensive process

Step 4: Making the Presentation

during the sales presentation, the salesperson must attract and hold the prospect's attention, stimulate interest, and spark a desire for the product

Odd Even Pricing

ending the price with certain number to influence buyers perception of the price or product

Business Analysis

evaluating the potential impact of a product idea on the firms sales, costs, and profits

Step 7: Executing the Campaign

execution of an advertising campaign requires extensive planning and coordination because many tasks must be completed on time with several people and firms involved

Client Based Relationships

interactions that result in satisfied customers who use a service repeatedly over time

Marketing Intermediaries

middlemen that link producers to other intermediaries or ultimate consumers through contractual arrangements or through the purchase and resale of products

Step 5: Overcoming Objections

one of the best ways to overcome objections is to anticipate and counter them before the prospect raises them; if possible the sales person should handle objections as they raise

Bundle Pricing

packaging together two or more complementary products and selling them at a single price

Multiple Unit Pricing

packaging together two or more identical products and selling them at a single price

Advertsising

paid non personal communication about an organization and its products transmitted to a target audience through mass media

Personal Selling

paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation

Refrence Pricing

pricing a product at a moderate level and displaying it next to a more expensive model or brand

Customary Pricing

pricing on the basis of tradition

Everyday Low Prices

pricing products low on a consistent basis

Refusal to Deal

producers have the right to choose or reject the channel members with which they will do business

Commercialization

refining and finalizing plans and budgets for full-scale manufacturing and marketing of a product; products enter a market during this phase; products are not usually introduced nationwide overnight but are introduced in stages through a process called a rollout

Variables that Affect the Intensity of Marketing Coverage

replacement rate product adjustment duration of consumption time required to find the product

Concept Testing

seeking a sample of potential buyers responses to a product idea

Idea Generation

seeking product ideas to achieve organizational objectives

Screening

selecting the ideas with the greatest potential for further review

Prestige Pricing

setting prices at an artificially high level to convey prestige or a quality image

Traditional Retailers

stores that carry a narrow product mix with deep product lines

Step 4: Determining the Advertising Appropriation

the advertising budget for a specific period; objective and task approach; percent of sales approach; competition matching approach; arbitrary approach

Step 6: Creating the Advertising Message

the basic content and form of an advertising message are a function of several factors -product features, uses, and benefits -the intensity of the advertising -the characteristics of people in the target audience -the advertising campaign's objective and platform -choice of media

Warehousing

the design and operation of facilities for storing and moving goods

Perishability

the inability of unused service capacity to be stored for future use

Introduction Stage

the initial stage of a products life cycle; its first appearance in the marketplace when sales start at zero and profits are negative

Customer Contact

the level of interaction between provider and customer needed to deliver the service; employee satisfaction is one of the most important factors in providing high service quality to customers

Channel Capacity

the limit on the volume of information a communication channel can handle effectively

Step 3: Approach

the manner in which a salesperson contacts potential customers; creating a favorable impression and building rapport with prospective clients are important tasks in the approach because the prospect's first impressions of the sales person are usually lasting ones

Communication Channel

the medium of transmission that carries coded messages from the source to the receiver

Intensity of Market Coverage

the number and kinds of outlets in which a product will be sold

Product Life Cycle

the progression of a product through 4 stages: introduction, growth, maturity, and decline

Inseparability of Production and Consumption

the quality of being produced and consumed at the same time; the customer must be present

Feedback

the receiver's response to a decoded message

Step 7: Following Up

the salesperson determines whether the order was delivered on time and installed properly; is also used to determine customers future product needs

Step 6: Closing the Sale

the stage in the personal selling process when the salesperson asks the prospects to buy the product

Maturity Stage

the stage of a products life cycle when the sales curve peaks and starts to decline and profits continue to fall

Restriced Territories

to tighten control over product distribution a manufacturer may try to prohibit intermediaries from selling outside of designated sales territories; courts have conflicting positions in regard to restricted sales territories

Competitive Advertising

tries to simulate demand for a specific brand by promoting its features, uses, and advantages relative to competing brands

Exclusive Distribution

using a single outlet in a fairly large geographic area to distribute a product

Intensive Distribution

using all available outlets to distribute a product

Selective Distribution

using only some available outlets in an area to distribute a product

Heterogeneity

variation in quality; usually increases as the degree of labor intensiveness increases