mngt 310 exam 3

captive pricing

setting the price for an item relatively low and then charging much higher prices for the expendables it uses

secondary research

an approach to research based on the use of existing information often from government, commercial, or academic databases and research efforts

chances are close

the customer asks to think about it and you say, "what are the chances you will buy later?'

Succinct Message

the key point in as few and as memorable words as possible

price lining

the practice of setting (usually) three price points: good quality, better quality, best quality

market segmentation

the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups

personal selling

the process of selling your products and services; includes prospect and evaluate, prepare, present, close and follow up

multi-channel marketer

the use of several different channels to reach your customers, for example a website, direct mail, and traditional retailing

primary research

an approach to researching based on the gathering of new information, using techniques such as interviewing, surveying, and observation

e-tailer

an electronic retailer; a store that exists only on the internet.

external reference price

an estimation of what a price should be based on information external to a consumer, such as advice, advertisements, or comparison shopping

wholesaler

an intermediary who sells to other intermediaries, usually to retailers; term usually applies to consumer markets

psychographic

another category for segmenting has to do with an individual's personality, attitudes, concerns, choices, and behaviors

service locations

at the client's location, mutually accessible location, remote location

core product

basic description of what a product is

trendiness

what is new and great

what will it take to close

what will it take to close this deal

trial close

which credit card would you like to use to pay for that

cognitive dissonance

doubt that occurs after a purchase has been made. an inconsistency between experience and belief

Good-Dominated Products

example car purchases

freight forward

firms specializing in arranging international shipments, packaging, transportation, and paperwork

Advantages of Personal Selling

flexible in your current schedule, find out the buyers main concerns and address them

Customer Relationship Management (CRM)

focuses on the longer-term monitoring and promotion of customer interest and loyalty

elasticity

from economics, the idea that the market's demand for a product or service is sensitive to changes in its price

product life cycle stages

introduction, growth, maturity, decline

Key performance indicators (KPIs)

measures or metrics that identify the outcomes that are most important to the success of a business.

services

nonphysical products

try before you buy

offer a trial period if your business can handle that

make a suggestion close

offer a waffling customer suggestions on why it is a good idea to buy

goods

physical products

three factors of newsworthiness

public regonition, public importance, and public interest

follow up

refers to the contacts you periodically make with customers in order to remind them of your business and your interest in their business

service-dominated

rental cars

periodic discounting

sales conducted at predictable intervals, such as before major holidays

value

second in order of importance to the pricing decisions

demographic segmentation

segmenting markets by age, gender, income, ethnic background, and family life cycle

influencer

a customer role describing a person or group who can make credible or recognized suggestions or recommendations to others regarding purchase choices

referral discount

a discount given to a customer who refers a friend to the business

customer retention

a general approach to keeping customers

hetergeneity

a quality of a service in which each time it is provided it will be slightly different from the previous time

random discounting

a sale run on a schedule that is unpredictable to the customer

Perishability

a service exhibits perishability in that if it is not used when offered, it cannot be saved for later use.

diversification

a strategy whose goal is growth based on adding new products or services to the firm's existing collection of offering

customer vector report

a type of CRM report that segments customers (or customer groups) on purchases or dates of purchase

geographic segmentation

segmenting markets by region of a country or the world, market size, market density, or climate

tangibility

an item's capability of being touched, seen, tasted, or felt

bundling

combining two or more products in one unit and pricing it less than if the units were sold separately

marketing process

connecting your customer and product 1. connecting through value position 2. applies the valur proposition to the mechanics of making the connection through the 4 p's

augmented product

core product plus features that tend to differentiate it from the competition

benefit

customers can be divided into groups based on what benefits they seek when making product or service decisions

ethnographic

data gathered by simple observation-seeing what consumers do, rather than asking them

decision maker

A customer role that describes a person in an organization who is responsible for choosing which product or service will be obtained.

purchaser

A customer role that describes an individual or institution that pays for or obtains a product or service.

end user

A customer role that describes the person who eventually makes actual use of a product or service in his or her personal or work life.

born international

A new firm that opens a website immediately, thus being exposed to customers from around the world

New Product Development Process

A seven-phase process for introducing products: idea generation, screening, concept testing, business analysis, product development, test-marketing, and commercialization

market expansion

A strategy whose goal is growth, based on selling in areas or to groups previously not served by the business.

retailer

An intermediary who sells to consumers

agent

an intermediary who negotiates transactions between two or more parties but does not take title to the goods being purchased or sold

indirect exporting

Exporting using intermediaries such as agents, export management companies, or export trading companies.

direct exporting

Exporting using no intermediaries

assumptive close

I'll just need your credit card for payment

direct sales

Methods of going directly to your customer in order to sell your product. Vending machines, door-to-door salespeople, leasing space at a craft fair, farmers markets, party sales, and most industrial sales are methods of direct selling

4 P's of Marketing

Product, Price, Place, Promotion

value proposition

Small business owners' unique selling points that will be used to differentiate their products and/or services from those of the competition.

prototypes

The name given to the first model of a product or service. Some prototypes may be functioning but built in a way that no consumer would buy it (e.g., with exposed wires and sharp edges) but shows the product can do what is promised.

internal reference price

a consumer's mental image of what a product's price should be

urgency close

this rate will end at the end of today

partitioned pricing

setting the price for a base item and then charging extra for each additional component

alternate choice close

would you prefer that standard or deluxe model