Marketing 210 Final

price elasticity of demand

% change in quantity demanded over % change in price

Which of the following is true with regard to price?

Price is the sum of the values that customers give up to gain the benefits of having the product

market follower

a runner-up firm that wants to hold its share without rocking the boat

personal charateristics

age, life cycle stage, occupation, economic situation, lifestyle, personality, and self-concept; determines buyer decisions

FOB-origin pricing

an expensive alternative for customers in distant locations

first stage of buyer readiness

awareness

experimental research

best suited for gathering casual info

the differential effect that knowing the brand name has on customer response to the product and its marketing.

brand equity

involves the use of a successful brand name for new or modified products in a new category.

brand extension

Target return pricing is a variation of which of the following cost-oriented pricing strategies?

break-even pricing

marketing mix planning begins with _____

building an offering that brings value to target customers

The major activity in strategic planning; management evaluates the products and businesses that make up the company

business portfolio analysis

part of the buyer's black box

buyer's decision process

In conventional distribution channels

channel members seek to max their own profits

market penetration pricing

companies set a low price for a new product in order to attract a large number of buyers and a large market share

prospecting

company identifies qualified potential customers

nicher

company with unique product; usually has smallest share of market

the first step to initiating competitive marketing strategies is to

conduct competitor analysis

horizontal conflict

conflict that occurs among firms the the same level of the marketing channel

C-to-C

consumer to consumer ex) Ebay

The most basic level of customer value which addresses the question, "What is the buyer really buying?"

core customer value

total combined customer lifetime value of all of the company's current and potential customers

customer equity

determined by a customer's evaluation of the benefits and costs of a market offering relative to those of competing offers

customer perceived value

when customers weigh the benefits against the monetary and other costs they are acting upon

customer perceived value

Comparing the perception of a product to expectations measures level of

customer satisfaction

the extent to which a product's perceived performance exceed's buyer's expectations

customer satisfaction

an example of secondary data would be:

data collected from the internet

media decisions

decisions about reach frequency and impact of an ad

if demand hardly changes with a small change in price:

demand is ineleastic

When backed by buying power wants become

demands

belief

descriptive thought someone has about something

Market segmentation can be best described as the process of

dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs

Territorial sales force

each salesperson is assigned to an exclusive geographic area and sells the company's full line to all customers in that region

An American airline company started a grocery chain in Australia. This is an example of product development.

false

market challenger strategy

full frontal attack and indirect attack

Which of the following stages of the PLC is characterized with the same level or slightly higher level of promotional expenditures in an attempt to respond to increasing competition?

growth

complex buying behavior

highly involved with the purchase of an expensive product and see significant differences between brands

most important thing for product designers to consider while developing the product

how would customers use and benefit from the product?

primary data

info collected for a specific purpose at hand

inside sales force

inside salespeople provide support for the outside sales force freeing them to spend more time selling to major accounts and finding new prospects

ethnographic research

interacting with customers in their natural environments in order to gain deeper insights on customer needs

cost plus pricing

involves pricing that accurately reflects production costs

survey research

is the most widely used method for gathering primary data

A segment is less attractive if ________.

it already contains many strong and aggressive competitors

a disadvantage to secondary data is:

it can be difficult to locate

variety-seeking behavior

low involvement with purchase but see significant differences between brands

Supply chain management

management of upstream and downstream value-added flows of materials, final goods, and related info among suppliers, the company, resellers, and final customers

the set of actual and potential buyers of a product or service

market

monopolistic competition

market consists of many buyers and sellers who trade over a range of prices rather than a single market price

Some combination of products, services, information, or experiences provided to consumers to satisfy a need or want

market offering

Teenagers are expected to respond in a similar way to a set of marketing efforts. In other words, this group represents a

market segment

an organic farmer has identified 3 distinct groups that might be interested in his products. These groups are

market segments

The marketing management philosophy that holds, that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than do competitors

marketing concept

the set of marketing tools a firm uses to implement is marketing strategy

marketing mix

stage in the PLC normally lasts longest and poses strong challenges to marketing managers

maturity

reach

measure of percentage of people in the target market that saw the ad

online surveys

most cost effective way to gather data; high speed and low cost

sampling

most effective but most expensive way to introduce a new product or create excitement for an existing one

Pure competition

no single buyer or seller has much effect on the going market price

exploratory research

objective is to gather preliminary info that will help define the problem and suggest hypotheses

exclusive distribution

only a limited number of dealers have the right to distribute the product in their territories. ex) luxury cars

internal factor that impacts pricing decisions of a company

overall marketing strategy of the company

Promotional allowance

payments or price reductions that reward dealers for participating in ad and sales support programs

opinion leaders

people within a reference group who exert influence on others

shows consumer perceptions of a company's brands versus competing products on important buying dimensions.

perceptual positioning maps

states the product's membership in a category and then shows its point of difference from other members of the category

positioning statement

dynamic pricing

price can easily be adjusted to meet changes in demand

cash discount

price reduction to buyers who pay their bills promptly

Reference prices

prices that buyers carry in the back of their minds and check with when they look at a given product

optional product pricing

pricing accessory products with the main product

product bundle pricing

pricing multiple products to be sold together

store brands are also known as

private brands

intensive distribution

producers of convenience products and raw materials stock their product in as many outlets as possible

vertical marketing systems consist of

producers, wholesalers, and retailers acting as a unified system

the lowest level on which marketers can position their brands in target customers' minds

product attributes

What sets product floor prices?

product costs

involves adding more items within the present range of the product line

product line filling

Which of the following marketing management orientations focuses primarily on improving efficiencies along the supply chain?

production concept

allowance

promotional money paid by manufacturers to retailers in return for an agreement to feature their product

segment their markets by consumer lifestyles and base their marketing strategies on lifestyle appeals.

psychographic segmentation

measures the profits or other company value generated by investments in marketing activities.

return on marketing invetment

in higher sales commission plans:

salespeople tend to become pushy which affects customer relationships

qualifying

salesperson identifies the good leads and screens out the poor ones

predatory pricing

selling numerous products below cost with the intention of punishing small competitors and gaining higher long run profits by putting them out of business

the portion of the customer's purchasing that a company gets in its products categories

share of customer

Sales promotion

short-term incentives to encourage the purchase of a product or service

disadvantage of focus groups:

small samples make it hard to generalize

social classes

society's relatively permanent and ordered divisions whose members share similar values interests and behviors

When the size, purchasing power, and profiles of a market segment can be calculated, the market is

substantial

Once the marketer has developed the appropriate segmentation bases for analyzing the overall market potential, the next step, _________, is critical because it assists in focusing the firm's limited resources on providing value to a select group of customers.

targeting

culture

the most basic determinant of a person's wants and behavior

product line pricing

the price steps take cost differences between products in the line into account

buyers are less price sensitive when:

the product they are buying is unique

trade promotion

the sales promotion tools used to persuade resellers to carry a brand, give it shelf space, promote it in ads, and push it to customers

Sales quota

the standard that establishes the amount each salesperson should sell and how sales should be divided among products

by-product pricing

turn trash into cash allowing companies to make the price of their main product more competitive

________ refers to a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer

undifferentiated marketing

Personality

unique psychological characteristics that distinguish an individual

Human needs that are shaped by culture and individual personality

wants

operational excellence

when a company provides superior value by leading its industry in price and convenience

promotional pricing

when a company temporarily prices its product below the list price to create buying excitement and urgency

product leadership

when a company's aim is to make its own and competing products obsolete and serve customers who want state-of -the-art products and services

disintermadiation

when a product or service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones

exclusive dealing

when a seller requires its dealers to abstain from handling competitor's products

Market Skimming

when a seller states a price savings that are not actually available yo consumers

price-fixing

when sellers set prices after talking to competitors and engaging in collusion

the breakeven point

where total revenue equals total cost