Marketing 3343 Final Exam Review -Murdock 252-
What percentage of an order-getting salesperson's time is spent selling?
41 percent
What are some ways brand managers use Facebook to converse with a brand's fans?
A brand manager can create awareness for a product, service, or brand by creating a Facebook Page for it. So Facebook allows brand managers to request a range of user data like addresses and phone numbers—with the users' permission (an "opt-in" approach). To generate new customers and increase traffic to their Facebook Pages, brand managers can use paid ads and sponsored stories within the Facebook advertising platform. The marketing challenge for a Facebook Page is to post and create the content that will generate the best response. An advantage of a Facebook ad for a brand is that it can migrate into Facebook conversations among friends—to the delight of advertisers.
What is a break-even point?
A break-even point (BEP) is the quantity at which total revenue and total cost are equal.
business
A business describes the clear, broad, underlying industry or market sector of an organization's offering.
What is the principal distinction between a corporate vertical marketing system and an administered vertical marketing system?
A corporate vertical marketing system combines successive stages of production and distribution under a single ownership. An administered vertical marketing system achieves coordination by the size and influence of one channel member rather than through ownership.
What is the difference between a coupon and a deal?
A coupon provides a reduced price for an item based on redemption to encourage the trial of an offering. A deal is a short-term price reduction used to increase trial among potential customers or to retaliate against a competitor's actions.
What is the difference between a direct and an indirect channel?
A direct channel is one in which a producer of consumer or business products and services and ultimate consumers or industrial users deal directly with each other. An indirect channel has intermediaries that are inserted between the producer and ultimate consumers or industrial users and perform numerous channel functions.
What is the difference between a for-profit and a nonprofit organization?
A for-profit organization is a privately owned organization that serves its customers to earn a profit so that it can survive. A nonprofit organization is a nongovernmental organization that serves its customers but does not have profit as an organizational goal. Instead, its goals may be operational efficiency or client satisfaction.
How do high-learning and low-learning products differ?
A high-learning product requires significant customer education and there is an extended introductory period. A low-learning product requires little customer education because the benefits of purchase are readily understood, resulting in immediate sales.
What is the difference between a line extension and a brand extension?
A line extension uses a current brand name to enter a new market segment in its product class, whereas a brand extension uses a current brand name to enter a completely different product class.
What is meant by a marketing channel?
A marketing channel consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users.
What is the principal difference between a marketing channel and a supply chain?
A marketing channel consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users. A supply chain differs from a marketing channel in terms of membership. It includes suppliers who provide raw materials to a manufacturer as well as the wholesalers and retailers—the marketing channel—that deliver the finished goods to ultimate consumers.
What is the difference between a marketing dashboard and a marketing metric?
A marketing dashboard is the visual computer display of the essential information related to achieving a marketing objective. Each variable displayed in a marketing dashboard is a marketing metric, which is a measure of the quantitative value or trend of a marketing action or result.
What is the meaning of an organization's mission?
A mission is a clear, concise, meaningful, inspirational, and long-term statement of the organization's function in society, often identifying its customers, markets, products, and technologies. It is often used interchangeably with vision.
What is a news release?
A news release is a publicity tool that consists of an announcement regarding changes in the company or the product line.
Explain the role of packaging in terms of perception.
A package's shape, color, and graphics distinguish one brand from another, convey a brand's positioning, and build brand equity.
What is the difference between a panel and an experiment?
A panel is a sample of consumers or stores from which researchers take a series of measurements. An experiment involves obtaining data by manipulating factors under tightly controlled conditions to test cause and effect, such as changing a variable in a customer purchase decision (marketing drivers) and seeing what happens (increase/decrease in unit or dollar sales).
What is the difference between a product line and a product mix?
A product line is a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets, or fall within a given price range. The product mix consists of all the product lines offered by an organization.
What are some advantages and disadvantages of secondary data?
Advantages of secondary data are the time savings, the low cost, and the greater level of detail that may be available. Disadvantages of secondary data are that the data may be out of date, unspecific, or have definitions, categories, or age groupings that are wrong for the project.
What is the difference between aided and unaided recall posttests?
Aided recall involves showing an ad to respondents who then are asked if their previous exposure to it was through reading, viewing, or listening. Aided recall is used to determine the percentage of those (1) who remember seeing a specific magazine ad (noted), (2) who saw or read any part of the ad identifying the product or brand (seen-associated), (3) who read any part of the ad's copy (read some), and (4) who read at least half of the ad (read most). Unaided recall involves specifically asking respondents if they remember an ad without any prompting to determine if they saw or heard its message.
What is the principal difference between an order taker and an order getter?
An order taker processes routine orders or reorders for products that were already sold by the company. An order getter sells in a conventional sense and identifies prospective customers, provides customers with information, persuades customers to buy, closes sales, and follows up on customers' use of a product or service.
What are the two key characteristics of the marketing concept?
An organization should (1) strive to satisfy the needs of consumers while also (2) trying to achieve the organization's goals.
What is the difference between an organization's business and its goals?
An organization's business describes the clear, broad, underlying industry or market sector of an organization's offering. An organization's goals (or objectives) are statements of an accomplishment of a task to be achieved, often by a specific time.
What three attitude-change approaches are most common?
(1) Change beliefs about the extent to which a brand has certain attributes. (2) Change the perceived importance of these attributes. (3) Add new attributes to the product.
How does technology impact customer value?
(1) Consumers can now assess value on the basis of dimensions such as quality, service, and relationships due to the decline in the cost of technology. (2) Technology provides value through the development of new products.
What are the two primary forms of personal influence?
(1) Opinion leadership—persons considered to be knowledgeable about or users of particular products and services and (2) word of mouth—the influencing of people (friends, family, and colleagues) during conversations.
What two challenges must marketers overcome when marketing to Hispanic consumers?
(1) The diversity of nationalities among this subculture that affect product preferences and (2) the language barrier that can lead to misinterpretation or mistranslation of commercial messages when translated into Spanish.
The choice of a supply chain involves what three steps?
(1) Understand the customer. (2) Understand the supply chain. (3) Harmonize the supply chain with the marketing strategy.
What are the three main types of organizational buyers?
(1) industrial firms, which in some way reprocess a product or service they buy before selling it again to the next buyer; (2) resellers, which are wholesalers and retailers that buy physical products and resell them again without any reprocessing; and (3) government units, which are the federal, state, and local agencies that buy products and services for the constituents they serve.
What are the three types of buying situations or buy classes?
(1) new buy—the organization is a first-time buyer of the product or service; (2) straight rebuy—the organization reorders an existing product or service from a list of acceptable suppliers; and (3) modified rebuy—an organization's buying center changes the product's specifications, price, delivery schedule, or supplier.
In the marketing research for Tony's Pizza, what is an example of (a) a finding and (b) a marketing action?
(a) Figure 7-6A depicts annual sales from 2011 to 2014; the finding is that annual sales are relatively flat, rising only 5 million units over the 4-year period. (b) Figure 7-6D shows a finding (the decline in pizza consumption) that leads to a recommendation to develop an ad targeting children 6 to 12 years old (the marketing action).
business products
(also called B2B products or industrial products) are products organizations buy that assist in providing other products for resale.
apps
(or mobile apps or applications) are small, downloadable software programs that run on smartphones and tablet devices.
goals (objectives)
(terms used interchangeably in this book) are statements of an accomplishment of a task to be achieved, often by a specific time. Goals convert an organization's mission and business into long- and short-term performance targets.
What are apps and why are they important?
Apps are small, downloadable software programs that run on smartphones and tablet devices. They are speeding up the convergence of the real (physical) and digital (virtual) worlds. Many apps are related to social media, such as programs for (1) price-comparison searches, (2) loyalty programs, (3) location-based promotions, and (4) entertainment, such as video games, music, and others.
Describe three generational cohorts.
Baby boomers are the generation of 76 million among the U.S. population born between 1946 and 1964. These Americans are growing older and will all be 65 or older by 2030. (2) Generation X are those among the 15 percent of the U.S. population born between 1965 and 1976. These well-educated Americans, also known as the baby bust cohort because of declining birth rates, are supportive of racial and ethic diversity. (3) Generation Y, or millennials, are the 72 million Americans among the U.S. population born between 1977 and 1994. The rising birth rate of this "baby boomlet" cohort is the result of baby boomers having children.
Explain what bait and switch is and why it is an example of deceptive pricing.
Bait and switch is the practice of offering a very low price on a product (the bait) to attract customers to a store. Once in the store, the customer is persuaded to purchase a higher-priced item (the switch) using a variety of tricks, including (1) degrading the promoted item and (2) not having the promised item in stock or refusing to take orders for it.
Why are channels for business products typically shorter than channels for consumer products?
Business channels are typically shorter than consumer channels because business users are fewer in number, tend to be more concentrated geographically, and buy in larger quantities.
What is business portfolio analysis?
Business portfolio analysis is a technique that managers use to quantify performance measures and growth targets to analyze their firms' strategic business units (SBUs) as though they were a collection of separate investments. The purpose of this tool is to determine which SBU or offering generates cash and which one requires cash to fund the organization's growth opportunities.
What is the commercialization of a new product?
Commercialization, the most expensive stage for most new products, is the last stage of the new-product process that involves positioning and launching a new product in full-scale production and sales.
What are constraints, as they apply to developing a research plan?
Constraints in a decision are the restrictions placed on potential solutions to a problem, such as time and money. These set the parameters for the research plan—due dates, budget, etc.
Which trade promotion is used to encourage the local advertising efforts of resellers?
Cooperative advertising, a promotion program by which a manufacturer pays a percentage of a retailer's advertising expense, is used to encourage both better quality and greater quantity in the local advertising efforts of resellers.
are responsible for creating the text portion of the messages in advertisements.
Copywriters
What does "creating a new use situation" mean in managing a product's life cycle?
Creating a new use situation means finding new uses or applications for an existing product.
eight-second rule
Customers will abandon their efforts to enter and navigate a website if download time exceeds eight seconds. Furthermore, the more clicks and pauses between clicks required to access information or make a purchase, the more likely it is a customer will exit a website.
What is the difference between the demographic and behavioral bases of market segmentation?
Demographic segmentation is based on some objective physical (gender, race), measurable (age, income), or other classification attribute (birth era, occupation) of prospective customers. Behavioral segmentation is based on some observable actions or attitudes by prospective customers—such as where they buy, what benefits they seek, how frequently they buy, and why they buy.
How does the development stage of the new-product process involve testing the product inside and outside the firm?
Development is the stage of the new-product process that turns the idea on paper into a prototype, which results in a demonstrable, producible product that can be efficiently manufactured. Internally, laboratory tests are done to see if the product achieves the physical, quality, and safety standards set for it. Externally, market testing is done to expose actual products to prospective consumers under realistic purchase conditions to see if they will buy.
Where are direct selling retail sales growing? Why?
Direct-selling retailers are (1) expanding into global markets outside the United States and (2) reaching consumers who prefer one-on-one customer service and a social shopping experience rather than shopping online or at big discount stores.
Marketing focuses on ______ and ______ consumer needs.
Discovering; satisfying.
What is the difference between a consumer's disposable and discretionary income?
Disposable income is the money a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation. Discretionary income is the money that remains after paying for taxes and necessities and is usually spent on luxury items.
What is dumping?
Dumping is when a firm sells a product in a foreign country below its domestic price or below its actual cost to produce.
What are e-marketplaces?
E-marketplaces are online trading communities that bring together buyers and supplier organizations to make possible the real-time exchange of information, money, products, and services.
What factor is estimated or measured for each of the cells in a market-product grid?
Each cell in the grid can show the estimated market size of a given product sold to a specific market segment.
Economic espionage includes what kinds of activities?
Economic espionage is the clandestine collection of trade secrets or proprietary information about a company's competitors. This practice includes trespassing, theft, fraud, misrepresentation, wiretapping, searching competitors' trash, and violations of written and implicit employment agreements with noncompete clauses.
What are environmental forces?
Environmental forces are the uncontrollable forces that affect a marketing decision. They consist of social, economic, technological, competitive, and regulatory forces.
pricing constraints
Factors that limit the range of prices a firm may set
observational data
Facts and figures obtained by watching, either mechanically or in person, how people actually behave
What is the difference between fixed costs and variable costs?
Fixed cost is the sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold. Variable cost is the sum of the expenses of the firm that vary directly with the quantity of a product that is produced and sold.
Explain the differences between a push strategy and a pull strategy.
In a push strategy, a firm directs the promotional mix to channel members to gain their cooperation in ordering and stocking the product. In a pull strategy, a firm directs the promotional mix at ultimate consumers to encourage them to ask retailers for the product, who then order it from wholesalers or the firm itself.
How do internal and external screening and evaluation approaches differ?
In internal screening, company employees evaluate the technical feasibility of new-product ideas to determine whether they meet the objectives defined in the new-product strategy development stage. For services, employees are assessed to determine whether they have the commitment and skills to meet customer expectations and sustain customer loyalty. In external screening, evaluation consists of preliminary concept testing of the new-product idea (not the actual product itself) using written descriptions, sketches, mockups, or promotional literature with consumers.
opinion leaders
Individuals who exert direct or indirect social influence over others.
four I's of services
Intangibility Being intangible, services can't be touched or seen before the purchase decision. Instead, services tend to be a performance rather than an object, which makes them much more difficult for consumers to evaluate. To help consumers assess and compare services, marketers try to make them tangible or show the benefits of using the service. For example, American Airlines attempts to make the benefits of flying on its airline more tangible by running an ad showing and emphasizing the comfort of its reclining seats. Inconsistency Services depend on the people who provide them. As a result, their quality varies with each person's capabilities and day-to-day job performance. Inconsistency is more of a problem in services than it is with tangible goods. Tangible products can be good or bad in terms of quality, but with modern production lines, their quality will at least be consistent. On the other hand, the Philadelphia Phillies baseball team may have great hitting and pitching one day and the next day lose by 10 runs. Organizations attempt to reduce inconsistency through standardization and training. Inseparability means that the consumer cannot distinguish the service provider from the service itself. For example, the quality of large lectures at your university or college may be excellent, but if you don't get your questions answered, find the counseling services poor, or do not receive adequate library assistance, you may not be satisfied with the entire educational experience delivered. Therefore, you probably won't separate your perception of the "educational experience"—the service itself—from all the people delivering the educational services for that institution. Inventory:Many goods have inventory handling costs that relate to their storage, perishability, and movement. With services, these costs are more subjective and are related to idle production capacity, which is when the service provider is available but there is no demand for the service. For a service, inventory cost involves paying the service provider along with any needed equipment. If a physician is paid to see patients but no one schedules an appointment, the idle physician's salary must be paid regardless of whether the service was performed. In service businesses that pay employees a commission, such as a part-time clerk at Sears, the sales clerk's work hours can be reduced to lower Sears's idle production capacity.
What are the three basic functions performed by intermediaries?
Intermediaries perform transactional, logistical, and facilitating functions.
Describe the promotional objective for each stage of the product life cycle.
Introduction—to inform; Growth—to persuade; Maturity—to remind; and Decline—to phase out.
What does lifestyle mean?
Lifestyle is a mode of living that is identified by how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them.
How are important values such as sustainability reflected in the marketplace today?
Many Americans desire and practice sustainability to preserve the environment. Specifically, these consumers buy products such as hybrid gas-electric cars. Consumers also prefer brands that have a strong link to social action (like Ben & Jerry's—see Chapter 2). Companies are responding to this consumer trend by producing products that use renewable energy and less packaging.
What is marketing?
Marketing is the activity for creating, communicating, delivering, and exchanging offerings that benefit customers, the organization, its stakeholders, and society at large.
What is marketing research?
Marketing research is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions to reduce the risk of and thereby improve marketing decisions.
How are marketing and product synergies different in a market-product grid?
Marketing synergies run horizontally across a market-product grid. Each row represents an opportunity for efficiency in the marketing efforts to a market segment. Product synergies run vertically down the market-product grid. Each column represents an opportunity for efficiency in research and development (R&D) and production. Marketing synergies often come at the expense of product synergies because a single customer segment will likely require a variety of products, each of which will have to be designed and manufactured. The company saves money on marketing but spends more on production. Conversely, if product synergies are emphasized, marketing will have to address the concerns of a wide variety of consumers, which costs more time and money.
What is the difference between merchant wholesalers and agents?
Merchant wholesalers are independently owned firms that take title to the merchandise they handle and make their profit from the sale of merchandise they own. Agents do not take title to merchandise, typically perform fewer channel functions, and make their profit from commissions or fees paid for their services.
What is meant by moral idealism?
Moral idealism is a personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome.
Why are many companies developing multicultural marketing programs?
Multicultural marketing programs consist of combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races and ethnic groups. The reason for developing these programs is that the racial and ethnic diversity of the U.S. is changing rapidly due to the increases in the African American, Asian, and Hispanic populations, which increases their economic impact.
What is the difference between a multidomestic marketing strategy and a global marketing strategy?
Multinational firms view the world as consisting of unique markets. As a result, they use a multi-domestic marketing strategy because they have as many different product variations, brand names, and advertising programs as countries in which they do business. Transnational firms view the world as one market. As a result, they use a global marketing strategy, which involves standardizing marketing activities when there are cultural similarities and adapting them it when cultures differ.
What are some examples of new forms of self-service retailers?
New forms of self-service are being developed at convenience stores, fast-food restaurants, and even coffee shops.
What is the new-product strategy development stage in the new-product process?
New-product strategy development is the first stage of the new-product process that defines the role for a new product in terms of the firm's overall objectives. During this stage, the firm uses both a SWOT analysis and environmental scanning to assess its strengths and weaknesses relative to the trends it identifies as opportunities or threats. The outcome not only defines the vital "protocol" for each new-product idea but also identifies the strategic role it might serve in the firm's business portfolio.
What is the difference between observational data and questionnaire data?
Observational data are facts and figures obtained by watching, either mechanically or in person, how people actually behave. Questionnaire data are facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors.
What did the Carmex team do to exploit its incredible good fortune after seeing Michael Drysch make his "Half-Court Hero" shot?
On January 25, 2013, at a Miami Heat-Detroit Pistons game, Michael Drysch did the impossible and made Carmex's Half-Court Hero basketball shot. LeBron James came running out of his Miami Heat huddle—congratulating Michael with a bear hug. Instantly, the footage of Half-Court Hero winner Michael Drysch's incredible hook shot and the celebratory bear hug from LeBron James went viral online. The Carmex brand team immediately arranged a public relations tour for Drysch that included four Miami area news stations and a trip to New York City for appearances on several TV and radio shows. Meanwhile, the Carmex marketing team kept Carmex's social media accounts and website updated throughout the weekend with Twitter and Facebook posts from the public relations tour. Within three months, Carmex's Half-Court Hero shot had been seen by over 20 million YouTube viewers.
Why do marketers use perceptual maps in product positioning decisions?
Perceptual maps are a means of displaying in two dimensions the location of products or brands in the minds of consumers. Marketers use perceptual maps to see how consumers perceive competing products or brands as well as their own product or brand. Then they can develop marketing actions to move their product or brand to the ideal position.
What is personal selling?
Personal selling involves the two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person's or group's purchase decision.
What is the difference between pioneering and competitive ads?
Pioneering (or informational) ads, used in the introductory stage of the product life cycle, tell people what a product is, what it can do, and where it can be found. The key objective of a pioneering ad is to inform the target market. Competitive (or persuasive) ads promote a specific brand's features and benefits to persuade the target market to select the firm's brand rather than that of a competitor.
What are points of difference and why are they important?
Points of difference are those characteristics of a product that make it superior to competitive substitutes—offerings the organization faces in the marketplace. They are important factors in the success or failure of a new product.
What are some criteria used to decide which segments to choose for targets?
Possible criteria include market size, expected growth, competitive position, cost of reaching the segment, and compatibility with the organization's objectives and resources.
Explain the difference between pretesting and posttesting advertising copy.
Pretests are conducted before ads are placed in any medium to determine whether they communicate the intended message or to select among alternative versions of the ad. Posttests are conducted after the ads are shown to the target audience to determine whether they accomplished their intended purpose.
What is the difference between pricing objectives and pricing constraints?
Pricing objectives specify the role of price in an organization's marketing and strategic plans. Pricing constraints are factors that limit the range of prices a firm may set.
Under what circumstances do producers assume wholesaling functions?
Producers assume wholesaling functions when there are no intermediaries to perform these activities, customers are few in number and geographically concentrated, or orders are large or require significant attention.
What is the difference between product positioning and product repositioning?
Product positioning refers to the place a product occupies in consumers' minds based on important attributes relative to competitive products. Product repositioning involves changing the place a product occupies in a consumer's mind relative to competitive products.
seven Ps of services marketing
Product, Price, Place, Promotion, People, Physical Environment, Process
What are the four marketing mix elements that make up the organization's marketing program?
Product, Price, Promotion, and Place.
Products may be sold globally in three ways. What are they?
Products can be sold: (1) in the same form as in their home market (product extension); (2) with some adaptations (product adaptation); and (3) as totally new products (product invention).
What is protectionism?
Protectionism is the practice of shielding one or more industries within a country's economy from foreign competition through the use of tariffs or quotas.
What is the purpose of (a) quantity discounts and (b) promotional allowances?
Quantity discounts are used to encourage customers to buy larger quantities of a product. Promotional allowances are used to encourage sellers in the channel of distribution to undertake certain advertising or selling activities to promote a product.
You see the same ad in Time and Fortune magazines and on billboards and TV. Is this an example of reach or frequency?
Reach—using more of the same media type (magazines) as well as using more of different types of media (magazines, billboards, and TV)—is an attempt to maximize the number of individuals in a target market that are exposed to the advertisement. Frequency uses the same medium/media more than once to present the advertising message.
What is involved in sales management?
Sales management involves planning the selling program and implementing and evaluating the personal selling effort of the firm.
What is the difference between secondary and primary data?
Secondary data are facts and figures that have already been recorded prior to the project at hand, whereas primary data are facts and figures that are newly collected for the project.
How do service businesses use off-peak pricing?
Service businesses charge different prices during different times of the day or days of the week to reflect variations in demand for the service.
The ______ Act forbids actual monopolies, whereas the ______ Act forbids actions that are likely to lessen competition.
Sherman Antitrust; Clayton
showrooming
Showrooming occurs when a shopper visits a retail store to inspect merchandise but then purchases the merchandise online. While obtaining a lower price is the primary motivator for showrooming, shoppers also engage in this practice to gather additional merchandise information, look for online promotions or deals, and check merchandise reviews and ratings.
Explain the difference between advertising and publicity when both appear on television.
Since advertising space on TV is paid for, a firm can control what it wants to say and to whom and how often the message is sent. Since publicity is an indirectly paid presentation of a message, the firm has little control over what is said to whom or when. Instead, it can only suggest to the TV medium that it run a favorable story on the firm or its offerings.
What circumstances in pricing a new product might support skimming or penetration pricing?
Skimming pricing is an effective strategy when: (1) enough prospective customers are willing to buy the product immediately at the high initial price to make these sales profitable; (2) the high initial price will not attract competitors; (3) lowering the price has only a minor effect on increasing the sales volume and reducing the unit costs; and (4) customers interpret the high price as signifying high quality. These four conditions are most likely to exist when the new product is protected by patents or copyrights or its uniqueness is understood and valued by consumers. The conditions favoring penetration pricing are the reverse of those supporting skimming pricing: (1) many segments of the market are price sensitive; (2) a low initial price discourages competitors from entering the market; and (3) unit production and marketing costs fall dramatically as production volumes increase. A firm using penetration pricing may (1) maintain the initial price for a time to gain profit lost from its low introductory level or (2) lower the price further, counting on the new volume to generate the necessary profit.
What is meant by social responsibility?
Social responsibility means that organizations are part of a larger society and are accountable to that society for their actions. It comprises three concepts: (1) profit responsibility—maximizing profits for the organization's shareholders; (2) stakeholder responsibility—the obligations an organization has to those who can affect the achievement of its objectives; and (3) societal responsibility—the obligations an organization has to preserve the ecological environment and to the general public.
How have advertising agencies changed to facilitate the use of IMC programs?
Some agencies have adopted: (1) a total communications solutions approach that includes all forms of promotion; (2) an IMC audit to analyze the internal communication network of their clients; and (3) the use of both pretesting and posttesting to improve the effectiveness of IMC programs.
How are retailers increasing the number of online shoppers who make it through "checkout"?
Some retailers now offer the ability to compare competitors' offerings. In addition, retailers are building websites that are easy to use, customizable, and facilitate interaction.
subcultures
Subgroups within the larger, or national, culture with unique values, ideas, and attitudes.
What is sustainable development?
Sustainable development involves conducting business in such a way that protects the natural environment while making economic progress. Green marketing is an ecological example of such an initiative.
An organization can't satisfy the needs of all consumers, so it must focus on one or more subgroups, which are its...
Target Market.
What is a test market, and what are the three kinds?
Test marketing involves offering a product for sale on a limited basis in a defined area for a specific time period. The three main kinds of test markets are: (1) standard, (2) controlled, and (3) simulated. In a standard test market, a city (or cities) is selected that is viewed as being demographically representative of the markets targeted for the new product and has both cable TV systems that can deliver different ads to different homes and retailers with checkout counter scanners to measure sales results. In a controlled test market, the firm contracts the entire test program to an outside service, which pays retailers for shelf space to guarantee a specified percentage of the test product's potential distribution volume. In a simulated (or laboratory) test market (STM), the firm attempts to replicate a full-scale test market by creating a fictitious storefront in a shopping mall and exposing prospective customers to the product (or concept) and ads from both it and its competitors to see if they will buy.
How does the Better Business Bureau encourage companies to follow its standards for commerce?
The Better Business Bureau (BBB) uses moral suasion to get members to comply with its standards.
Why has the Internet become a popular advertising medium?
The Internet offers a visual message, can use both audio and video, is interactive through rich media, and tends to reach younger consumers.
What is the North American Industry Classification System (NAICS)?
The NAICS provides common industry definitions for Canada, Mexico, and the United States, which makes it easier to measure economic activity in the three member countries of the North American Free Trade Agreement (NAFTA).
The North American Free Trade Agreement was designed to promote free trade among which countries?
The United States, Canada, and Mexico
Stated simply, how can an advertiser on Facebook expect to generate sales?
The brand manager composes title, copy, and images or photos for an ad to be placed on Facebook. A website address links the ad to the brand's website or its Facebook Page. To encourage and produce new sales that can be tracked, the brand manager might also link the ad to a coupon code or some other promotional offer.
promotional mix
The combination of one or more communication tools including advertising, personal selling, sales promotion, public relations, and direct marketing.
What is an example of how the real (physical) and digital (virtual) worlds are converging?
The convergence of real and digital worlds is the result of a proliferation of interlinked smartphones, tablet devices, sensors, special identification tags, databases, algorithms, apps, and other elements. For example, GPS-enabled smartphones give mobile consumers access to online ads, local restaurant promotions, and time-sensitive discounts at retailers. In addition, apps for smartphones are accelerating the convergence of the real and digital worlds as they make the devices more productive and provide users with entertainment. Finally, marketers can tailor specific messages to targeted users by using their personal data and preferences so that they can order products and services as a result of receiving these offers.
Can personal privacy become a problem as the real and digital worlds converge with smart systems?
The convergence of social media, smartphones, tablet devices, and new apps will lead to companies having a more dynamic interaction with their customers. This convergence allows for the collection of users' personal data, preferences, and behaviors, which allows marketers to tailor offerings based on these data. A recent analysis of Facebook users revealed that the "likes" they posted can reveal their political and religious views, drug use, and marital status. The issue is, do we want others to know all this information about us?
What are the stages of the hierarchy of effects?
The five stages of the hierarchy of effects are awareness, interest, evaluation, trial, and adoption.
What is the five-step marketing research approach?
The five-step marketing research approach provides a systematic checklist for making marketing decisions and actions. The five steps are: (1) define the problem; (2) develop the research plan; (3) collect relevant information (data); (4) develop findings; and (5) take marketing actions.
What are the 4 I's of services?
The four I's of services are: (1) intangibility, which means that they can't be held, touched, or seen; (2) inconsistency, which means that their quality varies with each person's capabilities and day-to-day job performance; (3) inseparability, which means that the consumer cannot (and does not) separate the deliverer of the service from the service itself; and (4) inventory, which means that inventory carrying costs are more subjective and are related to idle production capacity—when the service provider is available but there is no demand for the service.
What are the four approaches to setting the promotion budget?
The four approaches to setting the promotion budget are percentage of sales, competitive parity, all you can afford, and objective and task.
A manager's key task is to balance which four customer service factors against which six logistics cost factors?
The four customer service factors are time, dependability, communication, and convenience. The logistics cost factors are transportation costs, materials handling and warehousing costs, inventory costs, stockout costs (being out of inventory), order processing costs, and return products handling costs.
What four factors are needed for marketing to occur?
The four factors are: (1) two or more parties (individuals or organizations) with unsatisfied needs; (2) a desire and ability on their part to have their needs satisfied; (3) a way for the parties to communicate; and (4) something to exchange.
Explain the four market-product strategies in diversification analysis.
The four market-product strategies in diversification analysis are: (1) Market penetration, which is a marketing strategy to increase sales of current products in current markets. There is no change in either the basic product line or the markets served. (2) Market development, which is a marketing strategy to sell current products to new markets. (3) Product development, which is a marketing strategy of selling new products to current markets. (4) Diversification, which is a marketing strategy of developing new products and selling them in new markets.
What are examples of a functional level in an organization?
The functional level in an organization is where groups of specialists from the marketing, finance, manufacturing/operations, accounting, information systems, research & development, and/or human resources departments focus on a specific strategic direction to create value for the organization.
Market segmentation involves aggregating prospective buyers into groups that have two key characteristics. What are they?
The groups (1) should have common needs and (2) will respond similarly to a marketing action.
What is the implementation phase of the strategic marketing process?
The implementation phase carries out the marketing plan that emerges from the planning phase and consists of: (1) obtaining resources; (2) designing the marketing organization; (3) defining precise tasks, responsibilities, and deadlines; and (4) executing the marketing program designed in the planning phase.
What marketing metric might you use in a marketing dashboard to discover which states have weak sales?
The marketing metric—annual percentage change in unit volume by state—will help identify those states that are underperforming.
Which presentation format is most consistent with the marketing concept? Why?
The need-satisfaction presentation format emphasizes probing and listening by the salesperson to identify the needs and interests of prospective buyers and then tailors the presentation to the prospect and highlights product benefits, which is consistent with the marketing concept and its focus on relationship building.
How does original markup differ from maintained markup?
The original markup is the difference between retailer cost and initial selling price, whereas maintained markup is the difference between the final selling price and retailer cost, which is also called the gross margin.
How do the goals set for a marketing program in the planning phase relate to the evaluation phase of the strategic marketing process?
The planning phase goals or objectives are used as the benchmarks with which the actual performance results are compared in the evaluation phase to identify deviations from the written marketing plans and then exploit positive ones or correct negative ones.
environmental scanning
The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends.
retail life cycle
The process of growth and decline that retail outlets, like products, experience.
Why can an "insignificant point of difference" lead to new-product failure?
The product must have superior characteristics that deliver unique benefits to the user compared to those of competitors that must be sufficient enough to motivate a change in consumption behavior. Without these points of difference, the product will probably fail.
What is the purpose of an institutional advertisement?
The purpose of an institutional advertisement is to build goodwill or an image for an organization rather than a specific offering.
What rights are included in the Consumer Bill of Rights?
The rights to safety, to be informed, to choose, and to be heard.
What are the seven website design elements that companies use to produce a customer experience?
The seven website design elements are: context, content, community, customization, communication, connection, and commerce.
What six elements are required for communication to occur?
The six elements required for communication to occur are: a source, a message, a channel of communication, a receiver, and the processes of encoding and decoding.
What are the six reasons consumers prefer to shop and buy online?
The six reasons why consumers prefer to shop and buy online are: convenience, choice, customization, communication, cost, and control.
What are the six stages in the personal selling process?
The six stages in the personal selling process are: (1) prospecting, (2) preapproach, (3) approach, (4) presentation, (5) close, and (6) follow-up.
Describe three approaches to scheduling advertising.
The three approaches to scheduling advertising are: (1) a continuous (steady) schedule, which is when advertising is run at a continuous or steady schedule throughout the year because seasonal factors are unimportant; (2) a flighting (intermittent) schedule, which is when periods of advertising are scheduled between periods of no advertising to reflect seasonal demand; and (3) a pulse (burst) schedule, which is when a flighting schedule is combined with a continuous schedule because of increase in demand, heavy periods of promotion, or introduction of a new product.
Describe three common forms of advertising appeals.
The three common forms of advertising appeals are: (1) fear appeals, which suggest to the consumer that he or she can avoid some negative experience through the purchase and use of a product or service, a change in behavior, or a reduction in the use of a product; (2) sex appeals, which suggest to the audience that the product will increase the attractiveness of the user; and (3) humorous appeals, which imply either directly or subtly that the product is more fun or exciting than competitors' offerings.
In terms of market segments and products, what are the three market segmentation strategies?
The three market segmentation strategies are: (1) one product and multiple market segments; (2) multiple products and multiple market segments; and (3) "segments of one," or mass customization—the next step beyond build-to-order.
What are the three questions marketing executives consider when choosing a marketing channel and intermediaries?
The three questions to consider when choosing a marketing channel and intermediaries are: (1) Which will provide the best coverage of the target market? (2) Which will best satisfy the buying requirements of the target market? (3) Which will be the most profitable?
What are the three steps of the planning phase of the strategic marketing process?
The three steps of the planning phase of the strategic marketing process are: (1) Situation analysis, which involves taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization's marketing plans and the external forces and trends affecting it. (2) Market-product focus and goal setting, which determines what products an organization will offer to which customers. (3) Marketing program, which is where an organization develops the marketing mix elements and budget for each offering.
What are the three types of selling objectives?
The three types of selling objectives are: (1) output-related (dollars or unit sales, new customers, profit); (2) input-related (sales calls, selling expenses); and (3) behavioral-related (product knowledge, customer service, selling and communication skills).
In evaluating marketing actions, what are the two dimensions on which they should be evaluated?
There are two aspects marketers use to evaluate the results of marketing actions: (1) evaluate the decision itself, which involves monitoring the marketplace to determine if action is necessary in the future and (2) evaluate the decision process used to determine whether (a) the marketing research and analysis used to develop the recommendations was effective or flawed in some way and (b) the process could be improved for similar situations in the future.
What are the three types of responses generated by direct marketing activities?
They are direct orders, lead generation, and traffic generation.
What are the four main types of consumer products?
They are: (1) convenience products—items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort; (2) shopping products—items for which the consumer compares several alternatives on criteria such as price, quality, or style; (3) specialty products—items that the consumer makes a special effort to search out and buy; and (4) unsought products—items that the consumer does not know about or knows about but does not initially want.
What are the three kinds of sales forecasting techniques?
They are: (1) judgments of the decision maker who acts on the results of a sales forecast; (2) statistical methods such as trend extrapolation, which involves extending a pattern observed in past data into the future; and (3) surveys of knowledgeable groups, those who are likely to know something about future sales.
What are the three steps in setting a final price?
They are: (1) select an appropriate price level; (2) set the list or quoted price; and (3) make special adjustments to the list or quoted price.
Marketers are concerned with which types of reference groups?
Three reference groups have clear marketing implications: (1) associative groups—ones to which a person actually belongs, such as a brand community that consists of a specialized group of consumers with a structured set of relationships involving a particular brand; (2) aspiration groups—ones that people wish to be a member of or identified with; and (3) dissociative groups—ones that people wish to maintain a distance from because of differences in values or behaviors.
How do you make a lost-horse forecast?
To make a lost-horse forecast, begin with the last known value of the item being forecast, list the factors that could affect the forecast, assess whether they have a positive or negative impact, and then make the final forecast.
Explain the difference between trading up and trading down in product repositioning.
Trading up involves adding value to the product (or line) through additional features or higher-quality materials. Trading down involves reducing the number of features, quality, or price or downsizing—reducing the content of packages without changing package size and maintaining or increasing the package price.
Compare traditional media and social media in terms of time required to deliver the communication.
Traditional media can involve days or even months of continuing effort to deliver the communication, and time lags can be extensive. In contrast, individuals using social media can post virtually instantaneous content.
What is the difference between and marketing significance of a "passive receiver" for conventional media and an "active receiver" for social media?
Traditional media, like magazine or TV ads, generally use one-way communication from the sender to the receiver, whom the marketer hopes will buy the product advertised. A little word-of-mouth chatting may occur among the consumer "passive receivers," but communications generally end with the receiver. Social media deliberately seek to ensure that the message does not end with an individual receiver. Instead, the goal is to reach "active receivers," those who will become "influentials" and be "delighted" with the brand advertised. These will then become "evangelists," who will send messages—user-generated content—to their online friends and then back to the advertiser about the joys of using the brand. So success in social media marketing relies heavily on the ability of a marketing program to convert passive "receivers" of the message to active "evangelists" who will spread favorable messages about the brand.
What is the difference between ultimate consumers and organizational buyers?
Ultimate consumers are the people who use the products and services purchased for a household. Organizational buyers are those manufacturers, wholesalers, retailers, and government agencies that buy products and services for their own use or for resale.
How does licensing differ from a joint venture?
Under licensing, a company offers the right to a trademark, patent, trade secret, or other similarly valued item of intellectual property in return for a fee or royalty. In a joint venture, a foreign company and a local firm invest together to create a local business to produce some product or service. The two companies share ownership, control, and profits of the new entity.
How is user-generated content presented by someone using Facebook?
User-generated content (UGC) refers to the various forms of online media content that are publicly available and created by end users. Facebook users create a personal profile, add other users as friends, and exchange comments, photos, videos, and "likes" with them. Additionally, users may chat with friends and create and join common-interest groups.
What is viral marketing?
Viral marketing is an Internet-enabled promotional strategy that encourages individuals to forward marketer-initiated messages to others via e-mail.
How can brand managers use YouTube to converse with customers?
YouTube allows brand managers to create an actual brand channel to host its advertisements and other video clips that can explain or demonstrate complex products. YouTube can also link to a brand's website. YouTube, because it is a visual medium, allows a brand manager to entertain as well as inform users about the brand. YouTube traffic goes directly to the video; a hyperlink is needed to get users back to the brand's website.
attitude
a "learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way."
global brand
a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs.
80/20 rule
a concept that suggests 80 percent of a firm's sales are obtained from 20 percent of its customers. The percentages in the 80/20 rule are not really fixed at exactly 80 percent and 20 percent, but they suggest that a small fraction of customers provides most of a firm's sales.
beliefs
a consumer's subjective perception of how a product or brand performs on different attributes. Beliefs are based on personal experience, advertising, and discussions with other people.
blog
a contraction of "web log"—is a web page that serves as a publicly accessible personal journal and online forum for an individual or organization. Companies like Hewlett-Packard and Frito-Lay routinely monitor blogs to gain insights into customer complaints and suggestions.
brand loyalty
a favorable attitude toward and consistent purchase of a single brand over time.
public relations
a form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services.
code of ethics
a formal statement of ethical principles and rules of conduct. It is estimated that 86 percent of U.S. companies have some sort of ethics code and one of every four large companies has corporate ethics officers.
market-product grid
a framework to relate the market segments of potential buyers to products offered or potential marketing actions.
product
a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value.
demand curve
a graph that relates the quantity sold and price, showing the maximum number of units that will be sold at a given price.
consumerism
a grassroots movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with institutions.
product line
a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets, or fall within a given price range.
Using the wheel of retailing, describe the characteristics of a new retail form that has just entered the market.
a low-status, low-margin, low-price outlet
publicity
a nonpersonal, indirectly paid presentation of an organization, product, or service. It can take the form of a news story, editorial, or product announcement. A difference between publicity and both advertising and personal selling is the "indirectly paid" dimension. With publicity a company does not pay for space in a mass medium (such as television or radio) but attempts to get the medium to run a favorable story on the company. In this sense, there is an indirect payment for publicity in that a company must support a public relations staff.
moral idealism
a personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome.
utilitarianism
a personal moral philosophy that focuses on "the greatest good for the greatest number" by assessing the costs and benefits of the consequences of ethical behavior. If the benefits exceed the costs, then the behavior is ethical. If not, then the behavior is unethical.
Marketing Program
a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.
reverse logistics
a process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal. The effect of reverse logistics can be seen in the reduced waste in landfills and lowered operating costs for companies.
brand personality
a set of human characteristics associated with a brand name. Research shows that consumers assign personality traits to products—traditional, romantic, rugged, sophisticated, rebellious—and choose brands that are consistent with their own or desired self-image.
sales promotion
a short-term inducement of value offered to arouse interest in buying a product or service. Used in conjunction with advertising or personal selling, sales promotions are offered to intermediaries as well as to ultimate consumers.
brand community
a specialized group of consumers with a structured set of relationships involving a particular brand, fellow customers of that brand, and the product in use.
product item
a specific product that has a unique brand, size, or price. For example, Ultra Downy softener for clothes comes in different forms (liquid for the washer and sheets for the dryer) and load sizes (40, 60, etc.). Each of the different product items represents a separate stock keeping unit (SKU), which is a unique identification number that defines an item for ordering or inventory purposes.
sales plan
a statement describing what is to be achieved and where and how the selling effort of salespeople is to be deployed. Sales plan formulation involves three tasks: (1) setting objectives, (2) organizing the salesforce, and (3) developing account management policies.
mission
a statement of the organization's function in society that often identifies its customers, markets, products, and technologies.
break-even analysis
a technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output.
back translation
a translated word or phrase is retranslated into the original language by a different interpreter to catch errors.
retailing mix
activities related to managing the store and the merchandise in the store. The retailing mix is similar to the marketing mix and includes retail pricing, store location, retail communication, and merchandise
Environmental Forces
affect a marketing decision, which consist of social, economic, technological, competitive, and regulatory forces.
market segmentation
aggregating prospective buyers into groups that (1) have common needs and (2) will respond similarly to a marketing action.
retailing
all activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use.
product mix
all of the product lines offered by an organization.
SWOT analysis
an acronym describing an organization's appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats.
dual distribution
an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product. For example, GE sells its large appliances directly to home and apartment builders but uses retail stores, including Lowe's home centers, to sell to consumers.
marketspace
an information- and communication-based electronic exchange environment mostly occupied by sophisticated computer and telecommunication technologies and digitized offerings.
choiceboard
an interactive, Internet-enabled system that allows individual customers to design their own products and services by answering a few questions and choosing from a menu of product or service attributes (or components), prices, and delivery options.
A cross-channel shopper is .
an online consumer who researches products online and then purchases them at a retail store.
cross-channel shopper
an online consumer who researches products online and then purchases them at a retail store.21 Recent research shows that 95 percent of U.S. online consumers are cross-channel shoppers. These shoppers represent both genders equally and are only slightly younger, on average, than online consumers.
advertising
any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor. The paid aspect of this definition is important because the space for the advertising message normally must be bought. An occasional exception is the public service announcement, where the advertising time or space is donated.
tariffs
are a government tax on products or services entering a country, primarily serve to raise prices on imports.
institutional advertisements
are created and used to build goodwill or an image for an organization rather than promote a specific product or service.
measures of success
are criteria or standards used in evaluating proposed solutions to the problem. Different research outcomes, based on the measure of success, lead to different marketing actions.
marketing tactics
are detailed day-to-day operational marketing actions for each element of the marketing mix that contribute to the overall success of marketing strategies. Writing ads and setting prices for new product lines are examples of marketing tactics.
pretests
are efforts to measure the effectiveness of an advertisement conducted before the advertisement isplaced in any medium: Portfolio Tests Portfolio tests are used to test copy alternatives. The test ad is placed in a portfolio with several other ads and stories, and consumers are asked to read through the portfolio. Afterward, subjects are asked for their impressions of the ads on several evaluative scales, such as from "very informative" to "not very informative." Jury Tests Jury tests involve showing the ad copy to a panel of consumers and having them rate how they liked it, how much it drew their attention, and how attractive they thought it was. This approach is similar to the portfolio test in that consumer reactions are obtained. However, unlike the portfolio test, a test advertisement is not hidden within other ads. Theater Tests Theater testing is the most sophisticated form of pretesting. Consumers are invited to view new television shows or movies in which test commercials are also shown. Viewers register their feelings about the advertisements either on handheld electronic recording devices used during the viewing or on questionnaires afterward.
posttests
are measurements of the effectiveness of an advertisement after it has been shown to an audience and take five primary forms: Aided Recall After being shown an ad, respondents are asked whether their previous exposure to it was through reading, viewing, or listening. The Starch test shown in the accompanying photo uses aided recall to determine the percentage of those who (1) remember seeing a specific ad (noted), (2) saw or read any part of the ad identifying the product or brand (seen-associated), (3) read any part of the ad's copy (read some), and (4) read at least half of the ad (read most). Elements of the ad are then tagged with the results, as shown in the photo. Unaided Recall The unaided recall approach involves asking respondents a question such as, "What ads do you remember seeing yesterday?" without any prompting to determine whether they saw or heard advertising messages. Attitude Tests Attitude tests involve asking respondents questions to measure changes in their attitudes after an advertising campaign. For example, they might be asked whether they now have a more favorable attitude toward the product advertised. Recent research suggests that attitudes can be influenced by many factors, including the increasingly popular use of co-creation to develop consumer-generated ads. Inquiry Tests Inquiry tests involve offering additional product information, product samples, or premiums to an ad's readers or viewers. Ads generating the most inquiries are presumed to be the most effective. Sales Tests Sales tests involve studies such as controlled experiments (e.g., using radio ads in one market and newspaper ads in another and comparing the results) and consumer purchase tests (measuring retail sales that result from a given advertising campaign). The most sophisticated experimental methods today allow a manufacturer, a distributor, or an advertising agency to manipulate an advertising variable (such as schedule or copy) through cable systems and observe subsequent sales effects by monitoring data collected from checkout scanners in supermarkets.
order taker
are people who processes routine orders or reorders for products that were already sold by the company. The primary responsibility of order takers is to preserve an ongoing relationship with existing customers and maintain sales. Two types of order takers exist. Outside order takers visit customers and replenish inventory stocks of resellers, such as retailers or wholesalers. Inside order takers, also called order clerks or salesclerks, typically answer simple questions, take orders, and complete transactions with customers.
Market Segments
are relatively homogeneous groups of prospective buyers that (1) have common needs and (2) will respond similarly to a marketing action.
consumer-oriented sales promotions
are sales tools used to support a company's advertising and personal selling and can include coupons, deals, premiums, contests, sweepstakes, samples, loyalty programs, point-of-purchase displays, and rebates.
core values
are the fundamental, passionate, and enduring principles that guide its conduct over time. A firm's founders or senior management develop these core values, which are consistent with their essential beliefs and character.
Ultimate Consumers
are the people—whether 80 years or eight months old—who use the products and services purchased for a household.
constraints
are the restrictions placed on potential solutions to a problem. Examples include the limitations on the time and money available to solve the problem.
cultural symbols
are things that represent ideas and concepts in a specific culture. Symbols and symbolism play an important role in cross-cultural analysis because different cultures attach different meanings to things.
points of difference
are those characteristics of a product that make it superior to competitive substitutes. Just as a competitive advantage is a unique strength of an entire organization compared to its competitors, points of difference are unique characteristics of one of its products that make it superior to competitive products it faces in the marketplace.
Organizational Buyers
are those manufacturers, wholesalers, retailers, and government agencies that buy products and services for their own use or for resale.
customs
are what is considered normal and expected about the way people do things in a specific country.
category management
assigns a manager the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other, with the objective of maximizing sales and profits in the category.
What is a popular approach to managing the assortment of merchandise in a store?
category management
product repositioning
changing the place a product occupies in a consumer's mind relative to competitive products.
off-peak pricing
charging different prices during different seasons of the year and different times of the day or days of the week to reflect variations in demand for the service. Airlines offer seasonal discounts and movie theaters offer matinee prices.
Consumer Bill of Rights
codified the ethics of exchange between buyers and sellers. These were the right (1) to safety, (2) to be informed, (3) to choose, and (4) to be heard. Consumers expect and often demand that these rights be protected, as have American businesses.
What is the term for post purchase anxiety?
cognitive dissonance
multicultural marketing
combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races and ethnic groups.
spam
communications that takes the form of electronic junk mail or unsolicited e-mail,
The problem with the Toro Snow Pup was an example of selective .
comprehension—consumers perceived the name to mean that Snow Pup was a toy that was too light to do any serious snow removal.
cookies
computer files that a marketer can download onto the computer and mobile phone of an online shopper who visits the marketer's website. Cookies allow the marketer's website to record a user's visit, track visits to other websites, and store and retrieve this information in the future. Cookies also contain visitor information such as expressed product preferences, personal data, passwords, and credit card numbers.
The brands a consumer considers buying out of the set of brands in a product class of which the consumer is aware are collectively called the .
consideration set
regulation
consists of restrictions state and federal laws place on business with regard to the conduct of its activities. Regulation exists to protect companies as well as consumers. Much of the regulation from the federal and state levels is the result of an active political process and has been passed to ensure competition and fair business practices.
personal selling process
consists of six stages: (1) prospecting, (2) pre-approach, (3) approach, (4) presentation, (5) close, and (6) follow-up
global consumers
consumer groups living in many countries or regions of the world who have similar needs or seek similar features and benefits from products or services.
What three key factors are necessary when estimating consumer demand?
consumer tastes, price and availability of similar products, and consumer income.
What kind of innovation would an improved electric toothbrush be?
continuous innovation—no new learning is required by consumers
Centralized decision making and purchasing are an advantage of ownership
corporate chain
The ability to design and use direct marketing programs has increased with the availability of and .
customer information databases; new printing technologies
A shop for big men's clothes carries pants in sizes 40 to 60. Would this be considered a broad or deep product line?
deep product line; the range of sizes relates to the assortment of a product item (pants) rather than the variety of product lines (pants, shirts, shoes, etc.)
wheel of retailing
describes how new forms of retail outlets enter the market.47 Usually they enter as low-status, low-margin stores such as a drive-in hamburger stand with no indoor seating and a limited menu (Figure 13-4, box 1). Gradually these outlets add fixtures and more embellishments to their stores (in-store seating, plants, and chicken sandwiches as well as hamburgers) to increase the attractiveness for customers. With these additions, prices and status rise (box 2). As time passes, these outlets add still more services and their prices and status increase even further (box 3). These retail outlets now face some new form of retail outlet that again appears as a low-status, low-margin operator (box 4), and the wheel of retailing turns as the cycle starts to repeat itself.
family life cycle
describes the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors.
product life cycle
describes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline
demographics
describing a population according to selected characteristics such as age, gender, ethnicity, income, and occupation.
pull strategy
directing its promotional mix at ultimate consumers to encourage them to ask the retailer for a product. Seeing demand from ultimate consumers, retailers order the product from wholesalers and thus the item is pulled through the intermediaries. Pharmaceutical companies, for example, now spend more than $3.4 billion annually on direct-to-consumer prescription drug advertising, to complement traditional personal selling and free samples directed only at doctors.
push strategy
directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product. In this approach, personal selling and sales promotions play major roles.
bots
electronic shopping agents or robots that comb websites to compare prices and product or service features.
global competition
exists when firms originate, produce, and market their products and services worldwide. The automobile, pharmaceutical, apparel, electronics, aerospace, and telecommunication fields represent well-known industries with sellers and buyers on every continent.
questionnaire data
facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors.
primary data
facts and figures that are newly collected for the project. Figure 7-2 shows that primary data can be divided into observational data, questionnaire data, and other sources of data.
secondary data
facts and figures that have already been recorded prior to the project at hand. As shown in Figure 7-2, secondary data are divided into two parts—internal and external secondary data—depending on whether the data come from inside or outside the organization.
A difficulty for U.S. companies advertising in international markets is that the audience does not share the same.
field of experience
consultative selling
focuses on problem identification, where the salesperson serves as an expert on problem recognition and resolution. With consultative selling, problem solution options are not simply a matter of choosing from an array of existing products or services. Rather, novel solutions often arise, thereby creating unique value for the customer.
When Ralph Lauren makes shirts to a customer's exact preferences, what utility is provided?
form utility—involves the production or alteration of a product
What three factors are used to structure sales organizations?
geography; customer; product/service
Marketing efforts to produce, promote, and reclaim environmentally sensitive products are called .
green marketing
perceived risk
he anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes there may be negative consequences.
The process of segmenting and targeting markets is a bridge between which two marketing activities?
identifying market needs and executing the marketing program.
total logistics cost
includes expenses associated with transportation, materials handling and warehousing, inventory, stockouts (being out of inventory), order processing, and return products handling. Note the emphasis on the word "total" because many of these costs are interrelated so that changes in one will impact the others.
Generation X
includes the 50 million people born between 1965 and 1976. This period is also known as the baby bust, because during this time the number of children born each year was declining. This is a generation of consumers who are self-reliant, supportive of racial and ethnic diversity, and better educated than any previous generation. They also have become the largest segment of business travelers.
brokers
independent firms or individuals whose principal function is to bring buyers and sellers together to make sales. Brokers, unlike agents, usually have no continuous relationship with the buyer or seller but negotiate a contract between two parties and then move on to another task.
merchant wholesalers
independently owned firms that take title to the merchandise they handle. They go by various names, including industrial distributor. Most firms engaged in wholesaling activities are merchant wholesalers.
What mode of entry could a company follow if it has no previous experience in global marketing?
indirect exporting through intermediaries
word of mouth
influencing of people during conversations.
services
intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value. Examples of services are having a dental exam or watching a movie.
What are the three degrees of distribution density?
intensive; exclusive; selective
Advertising plays a major role in the stage of the product life cycle, and plays a major role in maturity.
introductory; product differentiation
pricing objectives
involve specifying the role of price in an organization's marketing and strategic plans. To the extent possible, these pricing objectives are carried to lower levels in the organization, such as in setting objectives for marketing managers responsible for an individual brand.
account management policies
involve specifying whom salespeople should contact, what kinds of selling and customer service activities should be engaged in, and how these activities should be carried out. These policies might state which individuals in a buying organization should be contacted, the amount of sales and service effort that different customers should receive, and the kinds of information salespeople should collect before or during a sales call.
product differentiation
involves a firm using different marketing mix actions, such as product features and advertising, to help consumers perceive the product as being different and better than competing products. The perceived differences may involve physical features, such as size or color, or nonphysical ones, such as image or price.
adaptive selling
involves adjusting the presentation to fit the selling situation, such as knowing when to offer solutions and when to ask for more information. Sales research and practice show that knowledge of the customer and sales situation are key ingredients for adaptive selling.
market segmentation
involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action. This enables an organization to focus specific marketing programs on its target market segments.
multi-branding
involves giving each product a distinct name. Multibranding is a useful strategy when each brand is intended for a different market segment.
sales management
involves planning the selling program and implementing and evaluating the personal selling effort of the firm. The tasks involved in managing personal selling include setting objectives; organizing the salesforce; recruiting, selecting, training, and compensating salespeople; and evaluating the performance of individual salespeople.
cross-cultural analysis
involves the study of similarities and differences among consumers in two or more nations or societies.13 A thorough cross-cultural analysis involves an understanding of and an appreciation for the values, customs, symbols, and language of other societies.
personal selling
involves the two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person's or group's purchase decision. However, with advances in telecommunications, personal selling also takes place over the telephone and through video teleconferencing and Internet-enabled links between buyers and sellers.
interactive marketing
involves two-way buyer-seller electronic communication in a computer-mediated environment in which the buyer controls the kind and amount of information received from the seller. Interactive marketing is characterized by sophisticated choiceboard and personalization systems that transform information supplied by customers into customized responses to their individual needs.
is a business-oriented website that lets users post their professional profiles to connect to a network of businesspeople. These businesspeople are also called connections. This social network has over 275 million registered members who conduct 6 billion professionally oriented searches annually. Because of its popularity, over 3 million companies have LinkedIn Company Pages to post news and job openings. LinkedIn's international presence, too, is staggering, used in over 200 countries and 20 languages.
Customer Value Proposition
is a cluster of benefits that an organization promises customers to satisfy their needs.
Product
is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value.
marketing metric
is a measure of the quantitative value or trend of a marketing action or result.
World Trade Organization (WTO)
is a permanent institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions.
order getter
is a person who sells in a conventional sense and identifies prospective customers, provides customers with information, persuades customers to buy, closes sales, and follows up on customers' use of a product or service. Like order takers, order getters can be inside (an automobile salesperson) or outside (a Xerox salesperson).
collaborative filtering
is a process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases. You experience collaborative filtering when you make an online purchase and then receive a message that says, "Others who bought this item also purchased this/these other items..."
quota
is a restriction placed on the amount of a product allowed to enter or leave a country. Quotas can be mandated or voluntary and may be legislated or negotiated by governments. Import quotas seek to guarantee domestic industries access to a certain percentage of their domestic market.
marketing plan
is a road map for the marketing actions of an organization for a specified future time period, such as one year or five years. The planning phase of the strategic marketing process usually results in a marketing plan that directs the marketing actions of an organization.
diversification analysis
is a technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products. For any market, there is both a current product (what the firm now sells) and a new product (what the firm might sell in the future). And for any product there is both a current market (the firm's existing customers) and a new market (the firm's potential customers).
business portfolio analysis
is a technique that managers use to quantify performance measures and growth targets to analyze their firms' strategic business units (SBUs) as though they were a collection of separate investments. The purpose of this tool is to determine which SBU or offering generates cash and which one requires cash to fund the organization's growth opportunities.
YouTube
is a video-sharing website in which users can upload, view, and comment on videos. YouTube uses streaming video technology to display user-generated video content that includes movie and TV clips, music videos, and original videos developed by amateurs.
is a website that enables users to send and receive tweets, messages up to 140 characters long. Twitter is based on the principle of "followers." So when you choose to follow another Twitter user, that user's tweets appear in reverse chronological order on your Twitter page.
is a website where users may create a personal profile, add other users as friends, and exchange comments, photos, videos, and "likes" with them. Facebook users today can keep friends and family updated on what they are thinking, doing, and feeling. In addition, users may chat with friends and create and join common-interest groups organized by workplace, high school, college, and Pages—some of the latter maintained by organizations as a means of advertising. Facebook is open to anyone age 13 and older.
viral marketing
is an Internet-enabled promotional strategy that encourages individuals to forward marketer-initiated messages to others via e-mail, social networking websites, and blogs.
strategy
is an organization's long-term course of action designed to deliver a unique customer experience while achieving its goals. All organizations set a strategic direction.
Market
is people with both the desire and the ability to buy a specific offering. All markets ultimately are people. Even when we say a firm bought a Xerox copier, we mean one or several people in the firm decided to buy it.
exporting
is producing products in one country and selling them in another country.
situation analysis
is taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization's marketing plans and the external forces and trends affecting it.
Marketing
is the activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large." This definition shows that marketing is far more than simply advertising or personal selling.
economic espionage
is the clandestine collection of trade secrets or proprietary information about competitors. This practice is common in high-technology industries such as electronics, specialty chemicals, industrial equipment, aerospace, and pharmaceuticals, where technical know-how and trade secrets separate global industry leaders from followers.
Marketing Mix
is the four P's... These four elements are the controllable factors—product, price, promotion, and place—that can be used by the marketing manager to solve a marketing problem.
marketing strategy
is the means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it. The term implies both the end sought (target market) and the means or actions to achieve it (marketing program).
profit
is the money left after a for-profit organization subtracts its total expenses from its total revenues and is the reward for the risk it undertakes in marketing its offerings.
currency exchange rate
is the price of one country's currency expressed in terms of another country's currency, such as the U.S. dollar expressed in Japanese yen, euros, or Swiss francs.
marketing research
is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions.
market share
is the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself.
Exchange
is the trade of things of value between a buyer and a seller so that each is better off after the trade.
Customer Value
is the unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price.
marketing dashboard
is the visual computer display of the essential information related to achieving a marketing objective.
In pure competition there are a number of sellers.
large
When foreign currencies can buy more U.S. dollars, are U.S. products more or less expensive for a foreign consumer?
less expensive
channel conflict
lies between these two extremes and means that a firm selects a few retailers in a specific geographical area to carry its products. Selective distribution weds some of the market coverage benefits of intensive distribution to the control over resale evident with exclusive distribution
selective distribution
lies between these two extremes and means that a firm selects a few retailers in a specific geographical area to carry its products. Selective distribution weds some of the market coverage benefits of intensive distribution to the control over resale evident with exclusive distribution
Relationship Marketing
links the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit. Relationship marketing involves a personal, ongoing relationship between the organization and its individual customers that begins before and continues after the sale.
Foreign Corrupt Practices Act (1977)
makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country.
green marketing
marketing efforts to produce, promote, and reclaim environmentally sensitive products.
Market share is usually fought out before the stage of the retail life cycle.
maturity
Market Orientation
means an organization focuses its efforts on (1) continuously collecting information about customers' needs, (2) sharing this information across departments, and (3) using it to create customer value.
intensive distribution
means that a firm tries to place its products and services in as many outlets as possible. Intensive distribution is usually chosen for convenience products or services such as candy, fast food, newspapers, and soft drinks.
social forces
means that organizations are part of a larger society and are accountable to that society for their actions.
multi-domestic marketing strategy
means that they have as many different product variations, brand names, and advertising programs as countries in which they do business.
A misprint in a newspaper ad is an example of .
noise
publicity tools
nonpersonal presentation of an organization, product, or service without direct cost, using such tools as news releases, news conferences, public service announcements, or appearances on various media.
disintermediation
occurs when a channel member bypasses another member and sells or buys products direct
joint venture
occurs when a foreign company and a local firm invest together to create a local business. In many countries, a percentage of local ownership is required for a foreign firm to open a business.
traditional auction
occurs when a seller puts an item up for sale and would-be buyers are invited to bid in competition with each other. As more would-be buyers become involved, there is an upward pressure on bid prices.
cause marketing
occurs when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products.
idle production capacity
occurs when the service provider is available but there is no demand for the service.
scrambled merchandising
offering several unrelated product lines in a single store, is common. For example, the modern drugstore carries food, camera equipment, magazines, paper products, toys, small hardware items, and pharmaceuticals.
Target Market
one or more specific groups of potential consumers toward which an organization directs its marketing program.
social media
online media where users submit comments, photos, and videos—often accompanied by a feedback process to identify "popular" topics.4 Most social media involve a genuine online conversation among people about a subject of mutual interest, one built on their personal thoughts and experiences.
information technology
operating computer networks that can store and process data. Today, information technology can extract hidden information from large databases, such as those containing retail sales collected through barcode scanners at checkout counters and households' product purchases and TV viewing behavior.
major account management
or key account management—the practice of using team selling to focus on important customers so as to build mutually beneficial, long-term, cooperative relationships. Key account management involves teams of sales, service, and often technical personnel who work with purchasing, manufacturing, engineering, logistics, and financial executives in customer organizations.
manufacturer's agents
or manufacturer's representatives, work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory. Manufacturer's agents act as a producer's sales arm in a territory and are principally responsible for the transactional channel functions, primarily selling. They are used extensively in the automotive supply, footwear, and fabricated steel industries.
Generation Y
or millennials, includes the 72 million Americans born between 1977 and 1994. This was a period of increasing births, which resulted from baby boomers having children, and it is often referred to as the echo-boom or baby boomlet.
trade-oriented sales promotions
or simply trade promotions, are sales tools used to support a company's advertising and personal selling directed to wholesalers, distributors, or retailers. Some of the sales promotions just reviewed are used for this purpose, but three other common approaches are targeted uniquely to these intermediaries: (1) allowances and discounts, (2) cooperative advertising, and (3) training of distributors' salesforces.
reference groups
people to whom an individual looks as a basis for self-appraisal or as a source of personal standards.
Which type of survey provides the greatest flexibility for asking probing questions: mail, telephone, or personal interview?
personal interview (or individual/depth interview)
Cost per contact is high with the element of the promotional mix.
personal selling
The consumer-initiated practice of generating content on a marketer's website that is custom tailored to an individual's specific needs and preferences is called .
personalization
economy
pertains to the income, expenditures, and resources that affect the cost of running a business and household.
A huge shopping strip mall with multiple anchor stores is a center.
power
What is the first stage in the consumer purchase decision process?
problem recognition—perceiving a need
consumer products
products purchased by the ultimate consumer
vertical marketing systems
professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact.
infomercials
program-length (30-minute) advertisements that take an educational approach to communication with potential customers.
cooperative advertising
programs by which a manufacturer pays a percentage of the retailer's local advertising expense for advertising the manufacturer's products.
North American Industry Classification System (NAICS)
provides common industry definitions for Canada, Mexico, and the United States, which makes it easier to measure economic activity in the three member countries of the North American Free Trade Agreement (NAFTA).
What type of publicity tool is used most often by nonprofit organizations?
public service announcements (PSAs)
What one department is almost always represented by a person in the buying center?
purchasing department
personality
refers to a person's consistent behaviors or responses to recurring situations.
technology
refers to inventions or innovations from applied science or engineering research. Each new wave of technological innovation can replace existing products and companies.
sales forecast
refers to the total sales of a product that a firm expects to sell during a specified time period under specified environmental conditions and its own marketing efforts.
user-generated content (UGC)
refers to the various forms of online media content that are publicly available and created by end users.
values
represent personally or socially preferable modes of conduct or states of existence that tend to persist over time
multichannel retailers
retailers who use a combination of traditional store formats and nonstore formats such as catalogs, television, home shopping, and online retailing.
Which promotional element should be offered only on a short-term basis?
sales promotion
Cross-cultural analysis involves the study of.
similarities and differences among consumers in two or more nations or societies.
multichannel marketing
sometimes called omnichannel marketing, is the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online.
Successful catalog retailers often send catalogs to markets identified in their databases.
specialty; niche
sales quota
specific goals assigned to a salesperson, sales team, branch sales office, or sales district for a stated time period. Dollar or unit sales volume, last year/current year sales ratio, sales of specific products, new accounts generated, and profit achieved are typical goals. The time period can range from one month to one year.
product advertisements
take three forms: (1) pioneering (or informational), (2) competitive (or persuasive), and (3) reminder.
customer service
the ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience.
consumer behavior
the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions.
brand equity
the added value a brand name gives to a product beyond the functional benefits provided.
competition
the alternative firms that could provide a product to satisfy a particular market's need.
strategic marketing process
the approach by which an organization allocates its marketing mix resources to reach its target markets.
Utility
the benefits or customer value received by users of the product. This utility is the result of the marketing exchange process and the way society benefits from marketing.
integrated marketing communications (IMC)
the concept of designing marketing communications programs that coordinate all promotional activities—advertising, personal selling, sales promotion, public relations, and direct marketing—to provide a consistent message across all audiences
personalization
the consumer-initiated practice of generating content on a marketer's website that is custom tailored to an individual's specific needs and preferences.
organizational buying behavior
the decision-making process that organizations use to establish the need for products and services and identify, evaluate, and choose among alternative brands and suppliers.
motivation
the energizing force that stimulates behavior to satisfy a need.
data mining
the extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patterns and marketing actions.
exclusive distribution
the extreme opposite of intensive distribution because only one retailer in a specific geographical area carries the firm's products. Exclusive distribution is typically chosen for specialty products or services, such as some women's fragrances and men's and women's apparel and accessories.
data
the facts and figures related to the project, are divided into two main parts: secondary data and primary data.
purchase decision process
the five stages shown in Figure 4-1: (1) problem recognition, (2) information search, (3) alternative evaluation, (4) purchase decision, and (5) post-purchase behavior.
baby boomers
the generation of children born between 1946 and 1964—are growing older. Baby boomers are retiring at a rate of 10,000 every 24 hours, and they will all be 65 or older by 2030.5
Marketing Concept
the idea that an organization should (1) strive to satisfy the needs of consumers while also (2) trying to achieve the organization's goals.
marketing channel
the individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users.
price
the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service.
traffic generation
the outcome of an offer designed to motivate people to visit a business. Home Depot, for example, uses an opt-in e-mail alert to announce special sales that attract consumers to the store.
price elasticity of demand
the percentage change in quantity demanded relative to a percentage change in price.
Price elasticity of demand is.
the percentage change in the quantity demanded relative to a percentage change in price.
involvement
the personal, social, and economic significance of the purchase to the consumer.
product positioning
the place a product occupies in consumers' minds based on important attributes relative to competitive products. By understanding where consumers see a company's product or brand today, a marketing manager can seek to change its future position in their minds.
relationship selling
the practice of building ties to customers based on a salesperson's attention and commitment to customer needs over time. Relationship selling involves mutual respect and trust among buyers and sellers. It focuses on creating long-term customers, not a one-time sale.
dynamic pricing
the practice of changing prices for products and services in real time in response to supply and demand conditions. As described in Chapter 11, dynamic pricing is a form of flexible pricing and can often result in lower prices. It is typically used for pricing time-sensitive items such as airline seats, scarce items found at art or collectible auctions, and out-of-date items such as last year's models of computer equipment and accessories.
protectionism
the practice of shielding one or more industries within a country's economy from foreign competition through the use of tariffs or quotas.
global marketing strategy
the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ.
perception
the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.
multiproduct branding
the process of a company using one name for all its products in a product class.
branding
the process of an organization using a name, phrase, design, symbols, or combination of these to identify its products and distinguish them from those of competitors.
communication
the process of conveying a message to others, and it requires six elements: a source, a message, a channel of communication, a receiver, and the processes of encoding and decoding
customer experience management (CEM)
the process of managing the entire customer experience within the company. Marketers must consider employees' interactions with customers so that the new services are consistently delivered and experienced.
usage rate
the quantity consumed or patronage—store visits—during a specific period. It varies significantly among different customer groups. the quantity consumed or patronage—store visits—during a specific period. It varies significantly among different customer groups.
value
the ratio of perceived benefits to price
Value is...
the ratio of perceived benefits to price; or Value = (Perceived benefits ÷ Price)
market segments
the relatively homogeneous groups of prospective buyers that result from the market segmentation process. Each market segment consists of people who are relatively similar to each other in terms of their consumption behavior
lead generation
the result of an offer designed to generate interest in a product or service and a request for additional information.
direct orders
the result of offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction.
hierarchy of effects
the sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action (either trial or adoption of the product).19 The five stages are: • Awareness—the consumer's ability to recognize and remember the product or brand name. • Interest—an increase in the consumer's desire to learn about some of the features of the product or brand. • Evaluation—the consumer's appraisal of the product or brand on important attributes. • Trial—the consumer's actual first purchase and use of the product or brand. Adoption—through a favorable experience on the first trial, the consumer's repeated purchase and use of the product or brand.
culture
the set of values, ideas, and attitudes that are learned and shared among the members of a group. Because many of the elements of culture influence consumer buying patterns, monitoring national and global cultural trends is important for marketing.
organizational culture
the set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization.
new-product process
the seven stages an organization goes through to identify opportunities and convert them into salable products or services. 1. New product strategy development 2. Idea generation 3. Screening and evaluation 4. Business analysis 5. Development 6. Market testing 7. Commercialization
permission marketing
the solicitation of a consumer's consent (called opt-in) to receive e-mail and advertising based on personal data supplied by the consumer. Permission marketing is a proven vehicle for building and maintaining customer relationships, provided it is properly used.
total cost
the sum of their fixed costs and variable costs—to exceed their total revenues over an extended period of time.
vendor-managed inventory (VMI)
the supplier determines the product amount and assortment a customer (such as a retailer) needs and automatically delivers the appropriate items.
Two measures of the impact of retailing in the global economy are and
the total annual sales—four of the 40 largest businesses in the United States are retailers; the number of employees working at large retailers
total revenue
the total money received from the sale of a product.
personal selling
the two-way flow of communication between a buyer and seller designed to influence a person's or group's purchase decision.
Promotional programs can be directed to _____, _____, or both.
the ultimate consumer; an intermediary (retailer, wholesaler, or industrial distributor)
shopper marketing
the use of displays, coupons, product samples, and other brand communications to influence shopping behavior in a store.
salesforce automation (SFA)
the use of these technologies to make the sales function more effective and efficient. SFA applies to a wide range of activities, including each stage in the personal selling process and management of the salesforce itself.
supply chain
the various firms involved in performing the activities required to create and deliver a product or service to consumers or industrial users. It differs from a marketing channel in terms of the firms involved. A supply chain includes suppliers that provide raw material inputs to a manufacturer as well as the wholesalers and retailers that deliver finished products to consumers.
Societal Marketing Concept
the view that an organization should discover and satisfy the needs of its consumers in a way that also provides for society's well-being.
logistics
those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost.
learning
those behaviors that result from (1) repeated experience and (2) reasoning.
organizational buyers
those manufacturers, wholesalers, retailers, and government agencies that buy products and services for their own use or for resale.
In general, which type of online auction creates upward pressure on bid prices and which type creates downward pressure on bid prices?
traditional auction; reverse auction.
Channel conflict between manufacturers and retailers is likely to arise when manufacturers use websites.
transactional
The Federal Trade Commission (FTC) monitors .
unfair business practices
product placement
uses a brand-name product in a movie, television show, video game, or commercial for another product so that the product is displayed prominently for exposure to the audience.
direct marketing
uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet. The communication can take many forms, including face-to-face selling, direct mail, catalogs, telephone solicitations, direct response advertising (on television and radio and in print), and online marketing.
behavorial targeting
uses information provided by cookies for directing online advertising from marketers to those online shoppers whose behavioral profiles suggest they would be interested in such advertising. A controversy surrounding cookies is summed up by an authority on the technology: "At best cookies make for a user-friendly web world: like a salesclerk who knows who you are. At worst, cookies represent a potential loss of privacy."
telemarketing
using the telephone to interact with and sell directly to consumers. Compared with direct mail, telemarketing is often viewed as a more efficient means of targeting consumers. Insurance companies, brokerage firms, and newspapers have often used this form of retailing as a way to cut costs but still maintain access to their customers.
web communities
websites that allow people to congregate online and exchange views on topics of common interest. For instance, Coca-Cola hosts MyCoke.com, and iVillage.com is an independent web community for women and includes topics such as career management, personal finances, parenting, relationships, beauty, and health.
self-regulation
where an industry attempts to police itself. The major television networks, for example, have used self-regulation to set their own guidelines for TV ads for children's toys. There are two problems with self-regulation, however: noncompliance by members and enforcement.
reverse auction
works in the opposite direction from a traditional auction when a buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other.
