MKT 190 Final Exam
Courts accept tying agreements when:
- The supplier is the only firm able to provide products of a certain quality - The intermediary is free to carry competing products as well - A company has just entered the market
Communication Process
-Communication -Source -Coding Process -Communication Channel -Decoding Process -Noise -Feedback -Channel Capacity
Types of Publicity
-new release -feature article -captioned paragraph -press conference
Source
A person, group, or organization with a meaning it tries to share with a receiver or an audience
Category Killers
A very large specialty store concentrating on a major product category and competing on the basis of low prices and product availability
Step 1: Identifying and Analyzing the Target Audience
Advertisers research and analyze advertising targets to establish an information base for a campaign
Advocacy Advertising
Advertising that promotes a company's position on a public issue
Noise
Anything that reduces a communication's clarity and accuracy
Step 1: Prospecting
Developing a database of potential customers; most sales people prefer to use referrals recommendations from current customers to find prospects
Three Types of Product Modifications
Quality Functional Aesthetic
Customer Evaluation of Service Quality
Search Experience Credence The biggest obstacle for customers in evaluating service quality is the nature of the service; Except for the tangibles dimensions the criteria customers use to judge service quality are intangible
Off Price Retailers
Stores that buy manufacturers' seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts
Foundations of the Supply Chain
Supply chain Procurement Sourcing Purchasing Recycling Logistics management Operations management Supply chain management
Target Market for Nonprofits
Target Public Client Public General Public
Intangibility
The characteristic that a service is not physical and can not be perceived by the senses; is the major characteristic that distinguishes a service from a good
Product Adaption Process
The five-stage process of buyer acceptance of a product; Awareness, Interest Evaluation, Trial, Adoption
Growth Stage
The product life-cycle stage when sales rise rapidly, profits reach a peak, and then they start to decline; critical to a products survival
Decline Stage
The stage of a product's life cycle when sales fall rapidly
Public Relations
a broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders
Marketing Channel
a group of individuals and organizations that direct the flow of products from producers to customers within the supply chain
Test Marketing
a limited introduction of a product in geographic areas chosen to represent the intended market
Publiciity
a news story type of communication about an organization and or its products transmitted through a mass medium at no charge
Advertising
a paid non-personal communication about an organization and its products transmitted to a target audience through mass media
Step 5: Developing the Media Plan
a plan that specifies the media vehicles to be used and the schedule for running advertisements; the media planner's primary goal is to reach the largest number of people in the advertising target that the budget will allow; the secondary goal is to achieve the appropriate message reach and frequency for the target audience while staying within budget
New-Product Development Process
a seven phase process for introducing new products
Communication
a sharing of meaning through the transmission of information
Exclusive Deal
a situation in which a manufacturer forbids an intermediary from carrying products of competing manufacturers
Step 8: Evaluating Advertising Effectiveness
advertising can be evaluated before during and after the campaign, pretest, and posttest
Step 2: Defining the Advertising Objectives
advertising objectives guide campaign development and should be defined carefully; to provide precision and measurability advertising objectives should contain benchmarks; objectives can be defined on the basis of sales and communication
Institutional Advertising
advertising that promotes organizational images, ideas, and political issues
Product Advertsising
advertising that promotes the uses, features, and benefits of products
Pioneer Advertising
advertising that tries to stimulate demand for a product for a product category rather than a specific brand by informing potential buyers about the product
Retailing
all transactions in which the buyer intends to consumer the product through personal, family, or household use
Sales Promotion
an activity or material that acts as as direct inducement, offering added value or incentive for the product to resellers salespeople or customers
Tying Agreements
an agreement in which a supplier furnished a product to a channel member with the stipulation that they channel member must purchase other products as well
Step 3: Creating Advertising Platform
basic issues or selling points to be included in an advertising campaign
Step 2: Pre approach
before contacting acceptable prospects a salesperson finds and analyzes information about each prospect
Product Modification
changed in one or more characteristics of a product
Promotion Mix
combination of promotional methods used to promote a specific product; 4 elements include advertising, personal selling, public relations, and sales promotions
Coding Process
converting meaning into a series of signs or symbols
Decoding Process
converting signs and symbols into concepts and ideas
Product Development
determining if producing a product is technically feasible and cost-effective; often a lengthy and expensive process
Step 4: Making the Presentation
during the sales presentation, the salesperson must attract and hold the prospect's attention, stimulate interest, and spark a desire for the product
Odd Even Pricing
ending the price with certain number to influence buyers perception of the price or product
Business Analysis
evaluating the potential impact of a product idea on the firms sales, costs, and profits
Step 7: Executing the Campaign
execution of an advertising campaign requires extensive planning and coordination because many tasks must be completed on time with several people and firms involved
Client Based Relationships
interactions that result in satisfied customers who use a service repeatedly over time
Marketing Intermediaries
middlemen that link producers to other intermediaries or ultimate consumers through contractual arrangements or through the purchase and resale of products
Step 5: Overcoming Objections
one of the best ways to overcome objections is to anticipate and counter them before the prospect raises them; if possible the sales person should handle objections as they raise
Bundle Pricing
packaging together two or more complementary products and selling them at a single price
Multiple Unit Pricing
packaging together two or more identical products and selling them at a single price
Advertsising
paid non personal communication about an organization and its products transmitted to a target audience through mass media
Personal Selling
paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation
Refrence Pricing
pricing a product at a moderate level and displaying it next to a more expensive model or brand
Customary Pricing
pricing on the basis of tradition
Everyday Low Prices
pricing products low on a consistent basis
Refusal to Deal
producers have the right to choose or reject the channel members with which they will do business
Commercialization
refining and finalizing plans and budgets for full-scale manufacturing and marketing of a product; products enter a market during this phase; products are not usually introduced nationwide overnight but are introduced in stages through a process called a rollout
Variables that Affect the Intensity of Marketing Coverage
replacement rate product adjustment duration of consumption time required to find the product
Concept Testing
seeking a sample of potential buyers responses to a product idea
Idea Generation
seeking product ideas to achieve organizational objectives
Screening
selecting the ideas with the greatest potential for further review
Prestige Pricing
setting prices at an artificially high level to convey prestige or a quality image
Traditional Retailers
stores that carry a narrow product mix with deep product lines
Step 4: Determining the Advertising Appropriation
the advertising budget for a specific period; objective and task approach; percent of sales approach; competition matching approach; arbitrary approach
Step 6: Creating the Advertising Message
the basic content and form of an advertising message are a function of several factors -product features, uses, and benefits -the intensity of the advertising -the characteristics of people in the target audience -the advertising campaign's objective and platform -choice of media
Warehousing
the design and operation of facilities for storing and moving goods
Perishability
the inability of unused service capacity to be stored for future use
Introduction Stage
the initial stage of a products life cycle; its first appearance in the marketplace when sales start at zero and profits are negative
Customer Contact
the level of interaction between provider and customer needed to deliver the service; employee satisfaction is one of the most important factors in providing high service quality to customers
Channel Capacity
the limit on the volume of information a communication channel can handle effectively
Step 3: Approach
the manner in which a salesperson contacts potential customers; creating a favorable impression and building rapport with prospective clients are important tasks in the approach because the prospect's first impressions of the sales person are usually lasting ones
Communication Channel
the medium of transmission that carries coded messages from the source to the receiver
Intensity of Market Coverage
the number and kinds of outlets in which a product will be sold
Product Life Cycle
the progression of a product through 4 stages: introduction, growth, maturity, and decline
Inseparability of Production and Consumption
the quality of being produced and consumed at the same time; the customer must be present
Feedback
the receiver's response to a decoded message
Step 7: Following Up
the salesperson determines whether the order was delivered on time and installed properly; is also used to determine customers future product needs
Step 6: Closing the Sale
the stage in the personal selling process when the salesperson asks the prospects to buy the product
Maturity Stage
the stage of a products life cycle when the sales curve peaks and starts to decline and profits continue to fall
Restriced Territories
to tighten control over product distribution a manufacturer may try to prohibit intermediaries from selling outside of designated sales territories; courts have conflicting positions in regard to restricted sales territories
Competitive Advertising
tries to simulate demand for a specific brand by promoting its features, uses, and advantages relative to competing brands
Exclusive Distribution
using a single outlet in a fairly large geographic area to distribute a product
Intensive Distribution
using all available outlets to distribute a product
Selective Distribution
using only some available outlets in an area to distribute a product
Heterogeneity
variation in quality; usually increases as the degree of labor intensiveness increases