Marketing Final

Customer Relationship levels

- Basic relationships > With low-margin customers - Full partnerships > With high-margin customers

Traditional Form of Marketing

- Making a sale - Abundance of products in the nearby shopping centers - Television, magazine, and direct-mail ads

Contemporary Form of Marketing

- Satisfying customer needs - Imaginative Web sites and mobile phone apps, blogs, online videos, and social media - Reach customers directly, personally, and interactively

Brands use Big Data and AI to:

-Gain deep customer insights - Personalize marketing offers - Improve customer engagements and service

Share of Customer is increased by

-Good customer relationship management -Offering greater variety to current customers -Creating programs to cross-sell and up-sell to existing customers

value-based pricing steps:

1. Assess customer needs and value perceptions 2. Set target price to match customer perceived value 3. Determine costs that can be incurred 4. Design product to deliver desired value at target price

Five types of Customer Markets

1. Consumer markets 2. Business markets 3. Reseller markets 4. Government markets 5. International markets

cost-based pricing steps:

1. Design a good product 2. Determine product costs 3. Set price based on cost 4. Convince buyers of product's value

The Marketing Process:

1. Understand the marketplace and customer needs and wants 2. Design a customer-driven marketing strategy 3. Construct an integrated marketing program that delivers superior value 4. Build profitable relationships and create customer delight 5. Capture value from customers to create profits and customer equity

Product

A __________ is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.

Discount

A straight reduction in price on purchases during a stated period of time or of larger quantities

contractual vertical marketing system

A(n) __________ consists of independent firms at different levels of production and distribution joining together through contracts.

administered vertical marketing system

A(n) __________ coordinates successive stages of production and distribution through the size and power of one of the parties.

horizontal marketing system

A(n) __________ is a channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity.

conventional distribution channel

A(n) __________ is a channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits, perhaps even at the expense of profits for the system as a whole.

vertical marketing system

A(n) __________ is a channel structure in which producers, wholesalers, and retailers act as a unified system.

Unsought product

A(n) __________ is a consumer product that the consumer either does not know about or knows about but does not normally consider buying.

shopping product

A(n) __________ is a consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style.

specialty product

A(n) __________ is a consumer product with unique characteristics of brand identification for which a significant group of buyers is willing to make a special purchase effort.

indirect marketing channel

A(n) __________ is a marketing channel containing one or more intermediary levels.

direct marketing channel

A(n) __________ is a marketing channel that has no intermediary level.

marketing channel

A(n) __________ is a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user.

aggressive

Companies who hire lobbyists to influence legislation affecting their industries are said to be taking __________ action to affect the publics and forces in their marketing environment.

Traditional direct marketing tools includes ________.

Direct-mail Marketing Catalog Marketing face-to-face selling kiosk marketing

Market Segmentation

Dividing the market into several sections of customers

Digital and Social Media Marketing

Engaging consumers via their digital devices using digital marketing tools

Brand Name Selection

Finding the best name is part of __________, and it begins with a careful review of the product and its benefits, the target market, and proposed marketing strategies.

Customer relationship Tools

Frequency marketing programs Loyalty rewards programs Club marketing programs

Maturity

Modifying the market, product offering, or marketing mix is a product strategy in the ________ phase.

permission-based email marketing

Most legitimate marketers now practice _____, sending email pitches only to customers who "opt in."

Growth

Offering product extensions, service, and warranty is a product strategy in the __________ phase.

Customer Value-drive Marketing Strategy

Once a company fully understands its consumers and the marketplace, it must decide which customers it will serve and how it will bring them value

Decline

Phasing out weak items is a product strategy in the __________ phase.

Four Ps of marketing (marketing mix)

Product, Price, Place, Promotion

Consistancy

Relativity of the various product lines in end-use, production requirements, distribution channels, or some other aspect

Technological Environment

The ________ is perhaps the most dramatic force now shaping our world.

Magnuson-Moss Warranty Act

The __________ authorizes the FTC to determine rules and regulations for consumer warranties and provides consumer access to redress, such as the class action suit.

Robinson-Patman Act

The __________ empowers the FTC to establish limits on quantity discounts, forbid some brokerage allowances, and prohibit promotional allowances except when made available on proportionately equal terms.

Federal Food and Drug Act

The __________ forbids the manufacture or sale of adulterated or fraudulently labeled foods and drugs.

Marketing Concept

The __________ is a philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.

public

The __________ is any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives.

Economic Environment

The __________ is economic factors that affect purchasing power and spending patterns.

decline stage

The __________ is the PLC stage in which a product's sales fade away.

maturity stage

The __________ is the PLC stage in which a product's sales growth slows or levels off.

Marketing Environment

The __________ is the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers.

Microenvironment

The __________ is the actors close to the company that affect its ability to serve its customers—the company, suppliers, marketing intermediaries, customer markets, competitors, and public.

product concept

The __________ is the idea that consumers will favor products that offer the most quality, performance, and features; therefore, the organization should devote its energy to making continuous product improvements.

Selling Concept

The __________ is the idea that consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort.

Macroenvironment

The __________ is the larger societal forces that affect the microenvironment—demographic, economic, natural, technological, political, and cultural forces.

Political Environment

The __________ is the laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society.

natural environment

The __________ is the physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities.

Federal Trade Commission Act

The __________ monitors and remedies unfair trade methods.

Clayton Act

The __________ prohibits certain types of price discrimination, exclusive dealing, and tying clauses (which require a dealer to take additional products in a seller's line).

Sherman Antitrust Act

The __________ prohibits monopolies and activities (price-fixing, predatory pricing) that restrain trade or competition in interstate commerce.

Lanham Trademark Act

The __________ protects and regulates distinctive brand names and trademarks.

creating profits and customer equity

The marketing process captures value from customers by __________.

Market-skimming pricing

The new product pricing strategy of ______ means the initial price is set high.

Customer Lifetime Value

The value of the entire stream of purchases that the customer would make over a lifetime of patronage

Mobile Marketing

Using mobile channels to stimulate immediate buying, make shopping easier, and enrich the brand experience

psychological pricing

With ________, the price is used to say something about the product.

Gen Y

_______ are the 75 million (or more) children of the baby boomers born between 1981 and 1997.

Brand positioning

_______ can be done at three levels: product attributes, benefits, and beliefs and values.

Gen X

________ are the 55 million people born between 1965 and 1976 in the "birth dearth" following the baby boom.

Online advertising

__________ appears while consumers are browsing online, including display ads, search-related ads, online classifieds, and other forms.

Demands

__________ are human wants that are backed by buying power.

Market Offerings

__________ are some combination of products, services, information, or experiences offered to a market to satisfy a need or want.

Wants

__________ are the form human needs take as they are shaped by culture and individual personality.

Customer-centered new product development

__________ focuses on finding new ways to solve customer problems and create more customer-satisfying experiences.

Brand sponsorship

__________ includes private branding, licensing, and co-branding.

Team-based new product development

__________ involves various company departments working closely together, overlapping the steps in the product development process to save time and increase effectiveness.

Style

__________ is a basic and distinctive mode of expression.

Store brand

__________ is a brand created and owned by a reseller of a product or service.

Fashion

__________ is a currently accepted or popular style in a given field.

Product concept

__________ is a detailed version of a new product idea stated in meaningful consumer terms.

Channel level

__________ is a layer of intermediaries that performs some of the work in bringing the product and its ownership closer to the final buyer.

Price elasticity

__________ is a measure of the sensitivity of demand to changes in price.

A Fad

__________ is a temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity.

Phishing

__________ is a type of identity theft that uses deceptive emails and fraudulent online sites to fool users into divulging their personal data.

A Blog

__________ is an online journal where people post their thoughts, usually on a narrowly defined topic.

Value-added pricing

__________ is attaching features and services to differentiate a company's offers and charging higher prices.

Customer value-based pricing

__________ is based on a buyer's perceptions of value rather than on the seller's cost.

Direct marketing

__________ is connecting directly with carefully targeted segments or individual consumers, often on a one-to-one, interactive basis.

Marketing strategy development

__________ is designing an initial marketing strategy for a new product based on the product concept.

Product development

__________ is developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering.

Catalog marketing

__________ is direct marketing through print, video, or digital catalogs that are mailed to select customers, made available in stores, or presented online.

Online marketing

__________ is efforts to market products and services and build customer relationships over the Internet.

Brand extension

__________ is expanding an existing brand name of new product categories.

Exclusive distribution

__________ is giving a limited number of dealers the exclusive right to distribute the company's products in their territories.

Social Media

__________ is independent and commercial online communities where people congregate, socialize, and exchange views and information.

Crowdsourcing

__________ is inviting broad communities of people—customers, employees, independent scientists and researchers, and even the public at large—into the new product innovation process.

Supply chain management

__________ is managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers.

Mobile marketing

__________ is marketing messages, promotions, and other content delivered to on-the-go consumers through mobile phones, smartphones, tablets, and other mobile devices.

Direct-mail marketing

__________ is marketing that occurs by sending an offer, announcement, reminder, or other item directly to a person at a particular address.

Direct-response television marketing

__________ is marketing via television, including infomercials and interactive television advertising.

Good-value pricing

__________ is offering just the right combination of quality and good service at a fair price.

Marketing logistics

__________ is planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customers' requirements at a profit.

Idea screening

__________ is scanning new product ideas to spot good ideas and drop poor ones as soon as possible.

Marketing channel management

__________ is selecting, managing, and motivating individual channel members and evaluating their performance over time.

Email marketing

__________ is sending highly targeted, highly personalized, relationship-building marketing messages via email.

Market-penetration pricing

__________ is setting a low price for a new product in order to attract a large number of buyers and a large market share.

Captive-product pricing

__________ is setting a price for products that must be used along with a main product, such as blades for a razor and games for a video-game console.

Cost-based pricing

__________ is setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk.

Product line pricing

__________ is setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors' prices.

Intensive distribution

__________ is stocking the product in as many outlets as possible.

The Introduction Stage

__________ is the PLC stage in which a new product is first distributed and made available for purchase.

The Growth Stage

__________ is the PLC stage in which a product's sales start climbing quickly.

Exchange

__________ is the act of obtaining a desired object from someone by offering something in return.

Marketing management

__________ is the art and science of choosing target markets and building profitable relationships with them.

Product quality

__________ is the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.

Customer-perceived value

__________ is the customer's evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.

Disintermediation

__________ is the cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries.

New product development

__________ is the designing of original products, product improvements, product modifications, and new brands through the firm's own efforts.

Customer satisfaction

__________ is the extent to which a product's perceived performance matches a buyer's expectations.

Designing products to deliver the desired value at a target price

__________ is the fourth step in value-based pricing.

Viral marketing

__________ is the internet version of word-of-mouth marketing: a website, video, email message, or other marketing event that is so infectious that customers will seek it out or pass it along to friends.

Integrated logistics management

__________ is the logistics concept that emphasizes teamwork—both inside the company and among all the marketing channel organizations—to maximize the performance of the entire distribution system.

Marketing Myopia

__________ is the mistake of paying more attention to the specific product a company offers than to the benefits and experiences produced by these products.

Share of customer

__________ is the portion of the customer's purchasing that a company gets in its product categories.

Co-branding

__________ is the practice of using the established brand names of two different companies on the same product.

Setting a target price to match the customer's perceived value

__________ is the second step in value-based pricing.

Product mix

__________ is the set of all products and items that a particular seller offers for sale.

Idea generation

__________ is the systematic search for new product ideas.

Determining costs that can be incurred

__________ is the third step in value-based pricing.

Customer equity

__________ is the total combined values of all of the company's customers.

Selective distribution

__________ is the use of more than one but fewer than all of the intermediaries who are willing carry the company's products.

Customer lifetime value

__________ is the value of the entire stream of purchases a customer makes during a lifetime of patronage.

Spam

__________ is unsolicited, unwanted commercial email messages.

Telemarketing

__________ is using the telephone to sell directly to customers.

Fixed costs

__________ is/are costs that do not vary with production or sales level.

Variable costs

__________ is/are costs that vary directly with the level of production.

Target costing

__________ is/are pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met.

Total costs

__________ is/are the sum of the fixed and variable costs for any given level of production.

service profit chain

__________ links service firm profits with employee and customer satisfaction.

Service inseparability

__________ means that services are produced and consumed at the same time and cannot be separated from their providers.

Service perishability

__________ means that services cannot be stored for later sale or use.

Service variability

__________ means that the quality of services may vary greatly depending on who provides them and when, where, and how they are provided.

A third-party logistics provider

__________ performs any or all of the functions required to get a client's product to market.

A product line

__________ refers to a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges.

A demand curve

__________ shows the number of units the market will buy in a given time period, at different prices that might be charged.

A multichannel distribution system

__________ uses a single firm to set up two or more marketing channels to reach one or more customer segments.

An industrial product is

a product bought by individuals and organizations for further processing or for use in conducting a business

Cost-plus pricing (markup pricing)

adding a standard markup to the cost of the product

Dynamic Pricing

adjusting prices continually to meet the characteristics and needs of individual customers and situations

International Pricing

adjusting prices for international markets

Geographical Pricing

adjusting prices to account for the geographic location of customers

Segmented Pricing

adjusting prices to allow for differences in customers, products, or locations

Consumer-generated marketing

brand exchanges created by consumers themselves - both invited and uninvited - by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers

Product Bundle pricing

combining several products and offering the bundle at a reduced price

Direct marketing is ________.

connecting directly with carefully targeted segments or individual consumers, often on a one-to-one, interactive basis

A convenience product is a

consumer product that customers usually buy frequently, immediately, and with minimal comparison and buying effort

marketing intermediaries

firms that help the company to promote, sell, and distribute its goods to final buyers

Internet fraud includes __________.

identity theft and financial scams

Customer-engagement marketing

making the brand a meaningful part of consumers' conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations, experiences, and community

Mobile marketing is __________.

messages, promotions, and other content delivered to on-the-go consumers through mobile phones, smartphones, tablets, and other mobile devices

Width

number of different product lines the company carries

Depth

number of versions offered for each product in the line

By-product pricing

pricing low-value by-products to get rid of or make money on them

optional-product pricing

pricing optional or accessory products sold with the main product

Allowance

promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way

Discount and Allowance Pricing

reducing prices to reward customer responses such as paying early or promoting the product

Target Marketing

refers to which segments to go after

Marketing channel management is _____.

selecting, managing, and motivating individual channel members and evaluating their performance over time

Break-even pricing (target return pricing)

setting price to break even on the costs of making and marketing a product, or setting price to make a target return

competition-based pricing

setting prices based on competitors' strategies, prices, costs, and market offerings

A demand curve __________.

shows the number of units the market will buy in a given time period, at different prices that might be charged

Needs are __________.

states of felt deprivation

Promotional Pricing

temporarily reducing prices to spur short-run sales

Concept testing is __________.

testing new product concepts with a group of target consumers to find out if the concepts have strong consumer appeal

Baby boomers are ________.

the 74 million people born during the years following World War II and lasting until 1964.

Price is __________.

the amount of money charged for a product or service, or the sum of the values that customers exchange for the benefits of having or using the product or service

Brand equity is __________.

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

The societal marketing concept is __________.

the idea that a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests

The production concept is __________.

the idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency

Customer relationship management is __________.

the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

Marketing is __________.

the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return

Demography

the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics

value proposition

the unique value that a product or service provides to its customers and how it is better than and different from those of competitors

Product Image

the way consumers perceive an actual or potential product.

Length

total number of items a company carries within its product lines

Partner Relationship Management

working closely with partners in other company departments and outside the company to jointly bring greater value to customers