MARKETING 300 FINAL STUDY GUIDE

CH 11: Inventory:

Amount of goods being stored - Need to focus on how much inventory is too much to make sure firm is making a profit and isn't experiencing unnecessary losses

CH 4: Define Segmenting:

An aggregating process of clustering people with similar needs into a "market segment" Segments are based on: - Geographic (size of city, location) - Demographics (income, sex, age, family size, social class) - Behavior/Psychographic (needs, wants, usage, attitudes, lifestyles)

CH 5: What is a response?

An effort to satisfy a drive. - The specific response chosen depends on the cues and a person's past experiences

CH 9: What is a fad?

An idea that is fashionable only to certain groups who are enthusiastic about it. (Silly Bandz) - Do well during short life cycle

CH 7: Define Marketing Research [DAGIS] -- 2. Analyze the Situation:

An informal study of what info is already available in the problem area and how it will affect the target market, marketing mix, competition, and other external factors

CH 3: Define Competitive Analysis:

An organized approach for evaluating the strengths and weaknesses of current or potential competitors marketing strategies - Compare strengths and weaknesses of your current target market and marketing mix with what competitors are currently doing

CH 13: Publicity:

Any UNPAID form of non-personal presentation of ideas, goods and services - Publicity people are paid, but try to attract attention without paying media costs - Ex: company website, viral videos, word of mouth, social media, press

CH 10: Channel of Distribution:

Any series of firms of individuals who participate in the flow of products from producer to final user

CH 12: Fast Fashion:

Approach to design, creation and marketing of clothing fashions that emphasizes making fashion trends quickly and cheaply available to customers - Fashionable clothes at low prices

CH 1: Define Economies of Scale:

As a company produces larger numbers of a particular product, the cost of each unit of the product goes down - Allows firms to take advantage of mass production - "Discrepancies of quantity" and "discrepancies of assortment" between consumers and producers because most consumers want to buy only a small quantity but a wide assortment of goods and services

CH 13: AIDA Model:

Awareness --> Interest --> Desire --> Action - Acknowledges cognitive stages an individual goes through during the buying process for a product or service: 1. AWARENESS: - Creating brand awareness or affiliation with your product or service 2. IINTEREST: - Generating interest in the benefits of your product or service and sufficient interest to encourage the buyer to start research further 3. DESIRE: - For your product or service through an emotional connection, showing your brand personality. Move the consumer from liking to wanting it 4. ACTION: - Move the buyer to interacting with your company and taking the next step

CH 11: Storing:

Marketing function of holding goods so they are available when they are needed - Store it and smooth out sales and increase profits and consumer satisfaction - Storing necessary when production of goods does not match consumption **Common with mass production

CH 11: Transporting:

Marketing function of moving goods - Cost is less than value added to products by moving them, or there would be no reason to ship in the first place

CH 1: Describe the Evolution of Marketing over the Years -- Market Company Era:

Marketing people develop short-run and long-run marketing planning - 1960-1990

CH 18: What is a markup?

Markup (percent) means the percentage of selling price that is added to the cost to get the selling price.

CH 1: What does a Tripple-Bottom-Line measure?

Measures an organization's economic, social, and environmental outcomes -- as a measure of long-term success - Takes into account environmental responsibility - Sometimes referred to as measures of people, planet, and profit

CH 2: What is Diversification?

Moving into totally different lines of business -- perhaps entirely unfamiliar products, markets, or even levels in the production-marketing system (New products --> new customers). - Tactic: Leverage existing tech/infrastructure to launch new product in a new market

CH 5: Define Needs vs Wants

NEEDS: The basic forces that motivate a person to do something - Involves a person's physical well-being - The individual's self-view and relationship with others **more basic than wants WANTS: - "Needs" that are learned during a person's life

CH 17: What does NET mean and 2/10 NET 30?

Net​ means that payment for the face value of the invoice is due immediately 2/10, Net 30​ means the buyer can take a 2 percent discount off the face value of the invoice if the invoice is paid within 10 days. - Otherwise, the full face value is due within 30 days.

CH 13: Brand Navigator:

New breed of marketing advisory, efficiently connecting market intelligence in all its forms with decision making and strategy

CH 12: Wheel of Retailing Theory:

New types of retailers enter markets as low status, low margin, low price operations - Then if successful, they evolve into more conventional retailers, offering more services with higher operating costs and higher prices - Then they are threatened by new low status, low margin, low price retailers

CH 7: Define Marketing Research [DAGIS] -- 1. Define the Problem

Objectives and research have to be clearly defined; make sure you have a problem, not a symptom

CH 3: Define Monopoly:

Occurs when a firm completely controls broad product market - Often faces a great deal of government regulation

CH 10: Types of Distribution -- 4. Multichannel Distribution:

Occurs when a producer uses several competing channels to reach the same target market *Often used when intermediaries alone aren't working

CH 2: What is Product Development?

Offering new or improved products for present markets (Introducing new product to same customer base) - Tactic: family branding --> brand extension

CH 8: Business Products -- 6 main categories (instillations, accessories, raw materials, components, supplies, professional services) -- Accessories:

Short-lived capital items—tools and equipment used in production or office activities—such as copy machines

CH 13: Terms related to Adoption -- Adoption Curve:

Shows when different groups accept ideas - Emphasizes relation among groups --> some leaders

CH 7: Confidence Intervals:

The range on either side of an estimate that is likely to contain the true value for the whole population

CH 2: Define Customer Lifetime Value:

The total stream of purchases that a customer could contribute to the company over the length of the relationship - Loyal customers continue to buy brands that satisfy them - Relationships that develop satisfied customers + Who purchase over time = Lifetime value of customers

CH 2: Define Mass Marketing:

The typical production-oriented approach → Vaguely aims at "everyone" with the same marketing mix - Assumes that everyone is the same, and that everyone is a potential customer - Contrast to target marketing

CH 8: Define Branding and characteristics of a strong brand name:

The use of a name, term, symbol, or design—or a combination of these—to identify a product. Strong brand names: - Reduces the markets selling time and effort - Brand familiarity means how well customers recognize and accept a company's brand

CH 8: Define Brand Equity:

The value of a brand's overall strength in the market.

CH 1: Things a manager should do before and after deciding to produce and sell (a bike, for example):

Things a manager should do before and after deciding to produce and sell (a bike, for example): - Analyze needs - Determine wants - Identify competition - Predict designs that different customers will want - Determine where (directly to consumers or through retailers) - Decide promotion - Estimate price and if a firm can make a profit selling at that price - Provide service (customer service after buying) ***These steps are not part of production, they are part of marketing

CH 16: Marketing automation software:

Tracks individual customers behavior and triggers actions in response to specific consumer activities

CH 11: Piggyback service:

Transportation of goods where one transportation unit is carried on the back of something else. - A specialized form of intermodal transportation and combined transport

CH 11: Logistics:

Transporting, storing, and handling of goods in ways that match target customers needs with firms marketing mix with individual firms and along channel of distribution *AKA: Physical distribution

CH 17: Pricing Policies -- ​Skimming price policy:

Tries to sell the top (skim the cream) of a market—the top of the demand curve—at a high price before aiming at more price-sensitive customers. - A skimming policy often involves a slow reduction in price over time

CH 17: Pricing Policies -- A ​Penetration pricing policy:

Tries to sell to the whole market at one low price. - This approach might be wise when the elite market—those willing to pay a high price—is small. - Penetration pricing may be wise if the firm expects strong competition very soon after introduction. - Used when demand curve is elastic

CH 4: Define Clustering Techniques:

Try to find similar patterns within sets of data - Groups customers who are similar on their segmenting dimensions into homogeneous segments - Clustering approaches use computers to do what previously was done with much intuition and judgement

CH 2: What is Market Development?

Trying to increase sales by selling present products in new markets. (same product --> new customers) - May involve searching for new uses for a product or advertising in different media to reach new target customers - Tactic: change marketing mix to appeal to new geographic area/demographic

CH 2: What is Market Penetration?

Trying to increase sales of a firm's present products in its present markets (selling more to existing customers) - Tactic: a more aggressive marketing mix

CH 12: Types of stores -- Specialty Shop:

Type of conventional-limited line store, small, with distinct personality - Simplifies buying--speeds turnover and cuts costs due to obsolescence and style changes

CH 8: Business Products -- 6 main categories (instillations, accessories, raw materials, components, supplies, professional services) -- Raw Materials:

Unprocessed expense items—such as logs, iron--that are moved to the next production process with little handling. Two types of raw materials: 1. FARM PRODUCTS: are grown by farmers—examples are oranges, sugarcane, and cattle. 2. NATURAL PRODUCTS: Occur in nature—such as timber, iron, oil, and coal. **Unlike installations and accessories, raw materials become part of a physical good and are expense items.

CH 5: Define Limited Problem Solving:

Used by consumers when some effort is required in deciding the best way to satisfy a need, but still not high risk - Typical when the consumer has some previous experience with a product but isn't quite sure which choice to make at the moment

CH 18: Define Value-in-use-pricing vs Reference pricing:

VALUE-IN-USE Setting prices that will capture some of what customers will save by substituting the firm's product for the one currently being used. REFERNCE: The price consumers expect to pay—for many of the products they purchase.

CH 10: What are the two basic types of conflict in channels of distribution? (Vertical vs Horizontal):

VERTICAL: Between firms at different levels in a channel - Ex: between a producer/retailer/wholesaler HORIZONTAL: Occur between firms at the same level in a distribution channel - EX: between competing retailers

CH 5: Define Perception -- Selective Retention:

We remember only what we want to remember - Ex: If we read an article about Taco Bell removing artificial ingredients from its food, but we don't eat at Taco Bell, then we won't commit this new info to memory **memory ***RETENSION = REPETITION

CH 5: Define Discretionary Income:

What is left of income after paying taxes and paying for necessities - Elusive concept → the definition of necessities varies from family to family and changes over time

CH 12: Types of Wholesalers -- Agent Wholesalers:

Wholesalers who do not own the products they sell - Purpose is to help in buying and selling - Normally specialize by customer type and product or product line - Common in international trade

CH 17: Different Types of Pricing -- (Zone, Uniform, Freight-Absorption, Value):

ZONE PRICING: Making an average freight charge to all buyers within specific geographic areas. UNIFORM PRICING: A type of zone pricing that consists of making an average freight charge to all buyers. Uniform delivered pricing is most often used when (1) transportation costs are relatively low (2) the seller wishes to sell in all geographic areas at one price, perhaps a nationally advertised price. FREIGHT-ABSORPTION PRICING: Absorbing freight cost so that a firm's delivered price meets that of the nearest competitor. VALUE PRICING: Setting a fair price level for a marketing mix that really gives the target market superior customer value.

CH 5: Define Dissonance:

("buyer's remorse"): A feeling of uncertainty about whether the correct decision was made after the purchase

CH 9: Define the Product Life Cycle and its 4 stages: -- Market Growth Stage:

(2) Market Growth Stage: - Industry SALES GROW FAST—but industry profits rise to highest point and then start falling. - Competitors see the opportunity and enter the market --> price sensitivity becomes an issue - The new entries result in much product variety. So monopolistic competition usually occurs

CH 9: Define the Product Life Cycle and its 4 stages: -- Market Maturity Stage:

(3) Market Maturity Stage: - Industry SALES LEVEL OFF and competition gets tougher. - Many aggressive competitors have entered the race for profits—except in oligopoly situations. - Some competitors cut prices to attract business. Less efficient firms can't compete and drop out of the market. - Customers who are happy with their current relationship won't switch to a new brand. So late entrants usually have a tough battle. - As the various products become almost the same in the minds of potential consumers, price sensitivity is a real factor.

CH 9: Define the Product Life Cycle and its 4 stages: -- Sales Decline Stage:

(4) Sales Decline Stage: - NEW PRODUCTS REPLACE THE OLD -- firms with strong brands may make profits until the end because they have successfully differentiated their products. - Price competition becomes more vigorous

CHAPTER 18: Price Setting in the Business World -- Concepts to Apply:

***CONCEPTS GROUPED TOGETHER WITH CHAPTER 17 ***NOT SURE IF WE NEED TO KNOW TERMS FOR THIS CHAPTER OR NOT ***NO MATH

CHAPTER 16: Publicity: Promotion Using Earned Media, Owned Media, and Social Media -- Concepts to Apply:

***GROUPED TOGETHER WITH CHAPTER 15 CONCEPTS TO APPLY

CHAPTER 11: Distribution Customer Service and Logistics -- CONCEPTS TO APPLY

***SEE CH 10 CONCEPTS TO APPLY (CH 10 & 11 GROUPED TOGETHER)

Define Physiological Needs, Safety Needs, Social Needs, and Personal Needs:

**Ascending by hierarchy of needs 1. PHYSIOLOGICAL: - Concerned with biological needs -- food, liquid, rest, and sex 2. SAFETY: - Concerned with protection and physical well-being (involving health, financial security, medicine and exercise) 3. SOCIAL: - Concerned with love, friendship, status, and esteem - Things that involve a person's interaction with others - Marketers that help people connect with others inspire positive feelings about their own brands 4. PERSONAL: - Concerned with an individual's need for personal satisfaction - unrelated to what others think or do - Including accomplishment, fun, freedom, and relaxation

CHAPTER 15: Advertising and Sales Promotion -- Concepts to Apply:

**CHAPTER 15 & 16 CONCEPTS TO APPLY GROUPED TOGETHER: 1. Identify the characteristics of a well-defined advertising objective. 2. Explain the criteria that should be considered when deciding which advertising and social media medium(s) to use. 3. Explain when comparative advertising should be used and when it should be avoided. 4. Explain how deception differs from puffery. - How dies this apply to political advertising. 5. Illustrate the differences between paid, earned, and owned media and identify examples of each. - Identify ethical issues with earned media. 6. Describe how native advertising differs from traditional paid advertising and what is driving its growth. 7. Explain the relationship between the PLC and the adoption curve and the implications for advertising

POST EXAM 2 MATERIAL (CH 10, 11, 12, 13, 15, 16, 19): CHAPTER 10: Place and Development of Channel Systems -- Concepts to Apply (10 & 11 together):

*Describe how proper supply chain management can be used to create a competitive advantage. - How does the physical distribution concept contribute to that goal? *Explain when direct distribution is the better choice and when indirect distribution should be used. - Why use multiple channels even though they are more difficult to manage? *Describe at least 4 activities provided by the channel members that enhance distribution. *Describe how customer satisfaction can impact distribution costs and logistical choices. *Explain how product classes affect "place" decisions and how "place" changes as brands mature. *Describe the differences between horizontal and vertical conflict and between horizontal and vertical arrangements. - What are the legal implications of each? *Explain how changes in place are affecting supply chain and retail strategies-and describe two ethical issues that are occurring because of those changes.

CH 1: Describe the Evolution of Marketing over the Years -- Simple Trade Era:

- A time when families traded/sold their "surplus" output to local distributors - 1800s (Pre-Industrial Revolution Era)

CH 8: Business Products -- 6 main categories (instillations, accessories, raw materials, components, supplies, professional services) -- Instillations:

- Buildings, land rights, and major equipment—are important capital items. - One-of-a-kind installations—such as office buildings and custom-made machines—generally require special negotiations for each sale.

CH 1: Describe the Evolution of Marketing over the Years -- Sales Era:

- Company emphasizes selling because of increased competition - 1920-1940

CH 10: Regrouping Activities (4 TYPES) -- Bulk Breaking:

- Dividing larger quantities into smaller quantities as products get closer to final market - May involve several levels in a channel - Wholesalers sell smaller numbers to other wholesalers or retailers - Ex: golf ball packaging

EXAM 1 (CH 1-5): CHAPTER 1: Marketing's Value to Consumers, Firms, and Society -- Concepts to apply:

- Explain the importance of customer satisfaction to the marketing concept (Hint: How are they linked? Employee satisfaction? To profit?) - As a manufacturer with little to no competition should you spend to create customer satisfaction? Why? When, if ever, is applying the "production mentality" enough? - Defend your position by addressing the following: Provide an example of a micro/macro dilemma and identify the conflicting stakeholders. ***IMPORTANT TERMS: - Micro-macro dilemma - Social responsibility - Marketing ethics

CH 2: The 4 P's of a Marketing Mix -- PRODUCT:

- Product area is concerned with developing the right "product" for the target market. - Physical good, service, installation, packaging, branding **All 4 P's contribute to the whole → selection of target market

CH 1: Describe the Evolution of Marketing over the Years -- Production Era:

- Production of a few specific products → "If we can make it, it will sell" - 1860-1920

CHAPTER 3: Evaluating Opportunities in the Changing Marketing Environment -- Concepts to Apply:

- Provide examples of how the direct and indirect environments may affect a marketing strategy.

CH 5: Why do customers buy? What is an Opinion Leader?

- Social Influences - Family Life Cycle - Culture/Ethnicity - Purchase Situation - Psychological Influences -- motivation, perception, learning, attitude, trust, and lifestyle Opinion Leader: - People who influence others (celebrities, friends who are ahead of the curve in knowing about specific things) - Trendsetters

CH 19: Answer the question: "How is marketing more than just a clever slogan?"

- Takes a consumer centric plan

CH 16: Branded Services:

- Valued services that a brand provides not directly connected to a core product offering - Benefit with lasting positive impression

CH 16: Digital Advertising -- Copy Thrust:

- What words and illustrations should communicate in ads

CH 19: Describe at least three ethical issues present in marketing today:

1. Advertising wastes resources 2. Consumers are too easily controlled - Consumers are not puppets - Needs and wants change 3. Marketing often costs too much 4. Sources of marketing inefficiency: - Lack of interest in customers - Improper blending of the 4 Ps

CH 3: Population Changes by Age:

1. BABY BOOMERS: - Powerful buying force - Aging/retiring - Still control most of the country's wealth - 1946-64 2. GEN X: - Family over career - Well known and successful entrepreneurs in this category - 1965-77 3. MILLENIALS: - Huge amount of buying power - Tech savvy - Strong influence on buying, communicating, culture - Value experience over material - Adaptable to change - 1978-94 4. GEN Z: - "Digital Natives" - More accepting of diverse cultures - Device addicts - 1995-2015

CH 16: Types of Digital Advertising -- 1. Banner Ads (pop-ups) 2. Directories and Classifieds (craigslist) 3. Search advertising (Google Advanced) 4. Social network advertising (social media) 5. Mobile advertising

1. BANNER ADS (pop ups): ADVANTAGES: - Low cost - Building brand image - Targeted ads can bring customers in DISADVANTAGES: - Some types like pop ups can be seen as intrusive 2. DIRECTORIES & CLASSFIELDS (craigslist): ADVANTAGES: - low cost - Best for customers ready to buy DISADVANTAGES: - Doesn't help brand building - not good for large companies 3. SEARCH ADVERTISING (Google Advanced): ADVANTAGES: - Target users in information gathering state of buying process - Easy to measure return on investment - Highly targeted and high credibility DISADVANTAGES: - costly - Limited/no image capability 4. SOCIAL NETWORK: (social media) ADVANTAGES: - Potentially wide reach when viral DISADVANTAGES: - Users of social media want to avoid ads 5. MOBILE: ADVANTAGES: - Works well for immediate purchase DISADVANTAGES: - Not user friendly

CH 12: Types of Brokers -- 1. Brokers 2. Export/Import brokers

1. BROKERS: - Bring buyers and sellers together --> Have temporary relationship with buyer and seller while a deal is negotiated - Earn commission if transaction is completed 2. EXPORT/IMPORT BROKERS: - Operate like other brokers but specialize in bringing together buyers and sellers from different countries - Use internet to increase opportunities -->Cyber brokers

CH 9: What are the 3 Types of Innovations -- Continuous vs Dynamically Continuous vs Discontinuous:

1. CONTINUOUS INNOVATIONS: - Don't require customers to learn new behaviors. - Minor variations on existing products (new toothpaste flavor, etc.) 2. DYNAMICALLY CONTINUOUS INNOVATIONS: - Require minor changes in customer behavior. - Promotion for dynamically continuous innovations needs to clearly communicate the benefits of the innovation. 3. DISCONTINUOUS INNOVATIONS: - Requires that customers adopting the innovation significantly change their behavior. - This type of innovation often results in a completely new product market and new-product life cycle.

CHAPTER 9: Product Development and New-Product Management -- Concepts to Apply:

1. Demonstrate the difference between a new product (FTC) and a product improvement and how the latter is used to extend the PLC. 2. Explain how the new product development process improves the odds of new product success. 3. Explain the relationship between the PLC and the adoption curve and the implications for new product success

CHAPTER 19: Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges -- Concepts to Apply:

1. Describe the key steps in the marketing planning process. ***SEE CHAPTER 2; SLIDE 33-35 2. Answer the question: "How is marketing more than just a clever slogan?" 3. Describe at least three ethical issues present in marketing today and identify potential winning and losing stakeholders.

CHAPTER 5: Final Consumers and Their Buying Behavior -- Concepts to Apply:

1. Describe the learning process. - Provide an example that demonstrates the difference between a need, a want, a drive, a cue and a response. **Why do marketers need to understand the impact of - Selective exposure - Selective perception - Selective retention ***PSYCHOLOGY DRIVEN CHAPTER

CH 16: Types of Owned Media: 1. Educational web pages 2. White papers/case studies 3. Landing Page 4. Blog: 5. Infographics: 6. Branded Apps: 7. Brand Community 8. Email Newsletter:

1. Educational web pages - Webpage created to share information about brand with customers 2. White papers/case studies - Authoritative report/guide that addresses important issues in an industry and offer solutions 3. Landing Page - Customized web page that logically follows from clicking on an organic search result, online ad or other link 4. Blog - Regularly updated website, usually managed by one person or a small group 5. Infographic: - Visual image such as a chart or diagram used to represent information and data 6. Branded Apps: - Sponsored software applications that benefit customers by providing entertainment, solving a problem, and or saving time 7. Brand Community - Group of customers joined around a particular brand or common set of shared interests 8. Email Newsletter: - Building customer relationships through email

CHAPTER 12: Retailers, Wholesalers, and Their Strategy Planning -- Concepts to Apply:

1. Explain how merchant wholesalers differ from agent wholesalers and describe the functions of three different types of agent wholesalers. - What function(s) do these wholesalers provide in the channel? 2. Give 3 examples of how the "line" between online and brick and mortar retailers has "blurred" - How are retailers adapting to the online environment? - Provide at least 3 real world examples of how retailers are changing their mission in order to survive. - Define the external environmental trends that are driving these changes. 3. Explain the assortment/service/convenience and margin strategies for each retail of the 4 major retail categories - How does the strategy link to customer needs? 4. Give an example of the "wheel of retailing" concept? - Give an example of "scrambled" merchandising. - Why is it used by retailers - Provide examples for how each external (indirect) marketing factor is affecting the future of retail. 5. What is meant by retailtainment? - How does it fit in today's retail experiential strategy?

CH 4: What are the 4 criteria that contribute to an affective segment?

1. HOMOGENOUS WITHIN --> Customers in the same mix should be similar have a therefore have similar needs 2. HETEROGENOUS BETWEEN --> Customers in different segments should be different 3. SUBSTANTIAL --> Segment large enough to be profitable 4. OPERATIONAL --> Segmenting dimensions should be useful for identifying customers

CH 9: Define the new-product development process and its 5 stages (Idea Generation, Screening, Idea Evaluation, Development, Commercialization):

1. IDEA GENERATION: - Ideas come from customers and users, marketing research, competitors, other markets etc. 2. SCREENING: - Assesses the strengths and weaknesses (SWOT) - Decides if the product fits within the company objectives 3. IDEA EVALUATION: - Informal focus groups --> reactions from customers - Rough estimates of costs, sales and profits - **Crowdsourcing: Most successful designs often come highest ratings from customer base 4. DEVELOPMENT: - Develop model or prototype - Test the marketing mix - ROI estimate 5.COMMERCIALIZATION: - Finalize product and marketing plan - Start production and marketing rolling it out

CH 13: Sales Promotion -- 3 basic promotion objectives:

1. INFORMING: - Inform consumers about product and its benefits - Show it meets consumer needs better than other products 2. PERSUADING: - When competitors offer similar products - Firm tries to develop a favorable set of attitudes, so customers will buy and re-buy product 3. REMINDING: - Customers who have bought from a firm still could switch - Remind them of their past satisfaction

CH 13: Terms related to Adoption -- Innovators, Early Adopters, Early Majority, Late Majority, Laggers/non-adopters:

1. INNOVATORS: o First to adopt o Eager to try new ideas o Willing to take risks 2. EARLY ADOPTERS: o Follow innovators o Well respected by peers o Opinion leaders 3. EARLY MAJORITY: o Follow early adopters o Avoid risks and wait to consider new ideas after many early adopters have tried it o Lots of contact with mass media 4. LATE MAJORITY: o Follow early majority o Cautious about new ideas (set in ways) o Less likely to follow and adopt o Need strong social pressure from with in group to try 5. LAGGARDS (NON-ADOPTERS): o Laggards follow late majority and non-adopters never adopt o Prefer way of past, suspicious of new ideas

CH 10: Types of Distribution -- Intensive, Selective, Exclusive:

1. Intensive Distribution: Selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product. - Best when products are wanted near by 2. Selective Distribution: Selling through only those intermediaries who will give the product special attention. - Used when widespread coverage is needed but also special attention from intermediaries *Most popular 3. Exclusive Distribution: Selling through only one intermediary in a particular geographic location - Used when there are fewer customers so less support is needed form intermediaries *Intensive --> selective --> exclusive (As you go through, gets less expensive and less exposure)

CH 12: Types of Agents -- 1. Manufacturers' agents 2. Export and import agents 3. Selling Agents:

1. Manufacturers' agents: - Sells similar products for several non-competing producers for a commission on what is sold - Work as members of company's sales team but really independent wholesalers - If area's sales potential is low, firm may use them because agent can do job at low cost *Helpful in introducing new products 2. Export and import agents: - Specialize in international trade - Operate in every country and help international firms adjust to unfamiliar market conditions 3. Selling agents: - Take over whole marketing job of producers - If in financial trouble --> need help from selling agents

CH 13: Types of Managers -- 1. Sales 2. Advertising 3. Social Media 4. Marketing:

1. SALES MANAGER: - Concerned with managing personal selling - Responsible for building good distribution channels and implementing place policies 2. ADVERTISING MANAGER: - Manage company's mass selling effort (TV, newspaper, magazines, and other media) - Need to choose right media and developing ads 3. SOCIAL MEDIA MANAGER: - In charge of firm's social media presence 4. MARKETING MANAGER: - Determines blend of promotion methods - Must weigh pros and cons of various promotion methods and come up with an effective promotion blend

CH 17: Define the 4 Main Pricing Strategies: Target Return Objective vs Profit Maximization Objective vs Sales-Oriented Objective vs Status-Quo Objectives

1. TARGET RETURN OBJECTIVE: - Sets a specific level of profit as an objective. - Often this amount is stated as a percentage of sales or of capital investment. 2. PROFIT MAXIMIZATION OBJECTIVE: - Seeks to get as much profit as possible. **This method doesn't always lead to high prices. Low prices may expand the size of the market and result in greater sales and profits. 3. SALES ORIENTED OBJECTIVE: - Seeks some level of unit sales, dollar sales, or share of market—without referring to profit. - Works in short-term but not well in long - Business managers should usually pay more attention to profits, not just sales. ***Many firms seek to ​gain a specified share (percentage) of a market​. 4. STATUS-QUO OBJECTIVE: (don't-rock-the-boat) - Managers satisfied with their current market share that want to to stabilize prices, meet competition, or even avoid competition. - This don't-rock-the- boat thinking is most common when the total market is not growing.

CH 8: What are the 6 favorable marker conditions for branding?

1. The product is EASY TO LABEL and identify by brand or trademark. 2. The product QUALITY IS EASY TO MAINTAIN and the best value for the price. 3. Dependable and WIDESPREAD AVAILABILITY is possible. - When customers start using a brand, they want to be able to continue using it. 4. DEMAND IS STRONG enough that the market price can be high enough to make the branding effort profitable. 5. There are ECONOMIES OF SCALE. If the branding is really successful, costs should drop and profits should increase. 6. Favorable SHELF LOCATION or display space in stores will help. This is something retailers can control when they brand their own products.

CHAPTER 13: Promotion—Introduction to Integrated Marketing Communications -- Concepts to Apply:

1. What is the purpose of IMC? - Define the different audiences for IMC. - Why is the measurement of IMC tactics so important to long term success? 2. What are the components of the "old" communication model and why is it still relevant? - Why is a common frame of reference important to effective communication? - Give an example of when not having a common frame of message can lead to consumer misunderstanding. - What can marketers do to combat the effects of 'noise'? 3. Explain how you would use a push strategy vs. a pull strategy to integrate your promotion to the company, the channel and the consumer. 4. What is most common budgeting method and what is most preferred and why - How do companies resolve this difference? 5. Explain the difference between sales promotion and advertising.

CH 7: Define Marketing Research [DAGIS] -- 3. Gather Data:

2 key forms of obtaining info about customers in order to get problem-specific data: 1. Questioning (qualitative or qualitative) 2. Observing

CH 7: Scientific Method:

A decision making approach that focuses on being objective and orderly in testing ideas before accepting them - Forces research process-can *Never just assume intuition is correct;

CH 2: Define Marketing Strategy -- Target Market:

A fairly similar group of customers who a company wants to appeal to

CH 9: New Products and Antimonopoly Laws:

A firm can call its product new for only 6 months according to the Federal Trade Commission (FTC) - To be called new, says the FTC, a product must be entirely new or changed in a "functionally significant or substantial respect."

CH 9: What is a Patent & Planned Obsolescence?

A firm can file for a government for a patent, which grants the inventor the ability to "exclude others from making, using, offering for sales, or selling the invention." Planned Obsolescence: Releasing new products that the company plans to soon replace with improved new versions. - Way of abusing patent laws and ensure longer monopolies

CH 2: What is a Competitive Advantage?

A firm has a marketing mix that the target market sees as better than a competitor's mix - A strong sales force or a well-known brand name may give you a competitive advantage - Provide superior value and satisfy customers better than competitor

CH 12: Corporate chain:

A firm that owns and manages more than one store EX: Chipotle, Nordstrom, Walmart - Chains buy in larger quantities and earn lower process --> operational efficiencies **Why they take business from independent stores/retailers --> Because size is so powerful, non-chain retailers often join cooperative or franchises

CH 4: What is a market?

A group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods or services -- ways of satisfying those needs **getting the firm to focus on specific target markets is vital ***the relevant market for finding opportunities should be bigger than the firm's present product-market -- but not so big that the firm couldn't expand and be an important competitor

CH 10: Channel Captain:

A manager who helps direct the activities of a whole channel and tries to avoid or solve channel conflicts. - Producers lead channels when the producer is large, dominates a category or wields a powerful brand name - Wholesalers and retailers often take the lead because closest to consumer

CH 3: Define Oligopoly:

A market form wherein a market or industry is dominated by a small number of large sellers. - Oligopolies can result from various forms of collusion which reduce competition and lead to higher prices for consumers

CH 3: Define Pure Competition:

A market that has a broad range of competitors who are selling the same products. - Also referred to as perfect competition - In pure competition, only difference between competitors is the price → product managers have to distinguish the product for a customer; find a reason to buy other than the price

CH 4: What is a market -- Generic Market:

A market with broadly similar needs and sellers offering various, often diverse, ways of satisfying those needs - Quite different products types may compete with one another

CH 4: What is a market -- Product Market:

A market with very similar needs and sellers offering various close substitute ways of satisfying those needs Includes: (1) What -- Product type (type of good/service) (2) To meet what -- Customer (user) needs (3) For whom -- Customer types (4) Where -- Geographic area

CH 1: What does it mean to have a Marketing Concept?

A marketing concept means an organization aims all of its efforts at satisfying its customers -- at a profit. Combines the three main factors of: (1) customer satisfaction (2) total company effort (3) profit as a long term objective - Take the customer's point of view! - Emotion may over-rule value logic

CH 3: What is a Sustainable Competitive Advantage?

A marketing mix that customers see as better than a competitor's mix and cannot be quickly or easily copied

CH 7: Experimental Method:

A method of investigation used to demonstrate cause-and-effect relationships by purposely manipulating one factor thought to produce change in another factor - Comparing the responses of 2 or more groups

CH 12: Omnichannel:

A multichannel selling approach where a single retailer provides a seamless customer shopping experience from a desktop, computer, device phone or brick and mortar store

CH 5: Define Attitude

A point of view on a brand - Marketers go with existing attitudes and beliefs rather than go against them or try to change them **Set expectations appropriately to build trust and positive attitudes Too high = disappointment Too low = not motivating

CH 8: What is a Product-Line?

A product line is a set of individual products that are closely related - A product assortment/mix is the set of all product lines and individual products that a firm sells

CH 1: Define Macro-Marketing and what are possible issues that can arise:

A social process that directs an economy's flow of goods and services from producers to consumers in a way that effectively matches supply and demand and accomplishes the objectives of a society *Dilemma when a firm focuses its efforts on satisfying some customers, there may be negative effects on society. - What is "good" for some firms and consumers may not be good for society as a whole - Ex: 1) Some consumers want hand guns but they could be dangerous 2) Consumers want water bottles but it's bad for the environment **Exchange between producers and consumers is hampered by: - Spatial separation - Separation in time - Separation of information - Separation in values - Separation of ownership

CH 13: Communication Process -- Source --> encoding --> message channel --> decoding --> receiver --> feedback -->start over:

A source trying to reach a receiver with a message SOURCE: - Sender of message ENCODING: - Source deciding what it wants to say and translating it to words/symbols that will mean what it wants to with the receiver MESSAGE CHANNEL: - Carrier of message --> medium DECODING: - The way receiver translates message RECIEVER: - Potential customer FEEDBACK: - Communication from receiver to source ***NOISE: In the middle interrupting the different stages

CH 5: What is a drive?

A strong stimulus that encourages action to reduce a need **internal → they are the reasons behind certain behavior patterns ***In marketing, a product purchase results from a drive to satisfy some need

CH 10: Vertical Marketing Systems -- Administered channel systems:

ADMINISTERED: - Channel members formally agree to cooperate with one another - Agree to routinized accounting, ordering, share inventory and sales, and promotion

CH 2: What are the components of a Marketing Plan?

A written statement of a marketing strategy and the time-related details for carrying out the strategy. Should spell out the following in detail: (1) What marketing mix will be offered, to whom (target market) and for how long (2) What company resources (shown as costs) will be needed at what rate (3) What results are expected (sales and profits, customer satisfaction levels) **Planning keeps you up to speed → customer expectations, needs, and wants evolve **After plan is developed, need to implement it, and operational decisions (short-run decisions) may be needed

CH 17: Allowances -- What are the 4 kinds? (Advertising, Stocking, Push Money, Trade-in):

ADVERTISING ALLOWANCES: Price reductions given to firms in the channel to encourage them to advertise or otherwise promote the supplier's products locally. STOCKING ALLOWANCES: Are given to an intermediary to get shelf space for a product. - Sometimes called slotting allowances PUSH MONEY ALLOWANCES (Prize money allowances): Given to retailers by manufacturers or wholesalers to pass on to the retailers' salesclerks for aggressively selling certain items. TRADE-IN ALLOWANCES: A price reduction given for used products when similar new products are bought. - Trade-ins give the marketing manager an easy way to lower the effective price without reducing list price.

CH 10: Regrouping Activities (4 TYPES) -- Accumulating:

Adjust quantities or assortments of products handled at each level in a channel distribution - 4 types: Accumulating, bulk breaking, sorting, assorting ACCUMULATING: - Involves collecting products from many small producers - Lowest transportation cost, more convenient - Important in less developed countries and agricultural markets where there are many small producers - Also important with professional services because they often involve combined work of number of individuals

CH 15: Types of Advertising -- Native Advertising:

Ads designed to not look like ads - Sponsored or posed by someone normal - To have consumers put their guard down - FTC discussed but cant decide if this is too unethical to be made illegal

CH 3: What are Cultural and Social Environments?

Affects how and why people live and behave as they do -- which affects customer buying behavior and eventually the economic, political, and legal environments Some criteria include: - Languages people speak - Type of education they have - Religious beliefs - What type of food they eat - Style of clothing and housing - How they view work, marriage, and family - Some social trends affect broad changes in attitudes (e.g. people becoming more aware of what they eat) - Other social trends relate to demographics (population, age, income, literacy, and technology adoption) **Lifestyles of Health an d Sustainability (LOHAS) → caters to conscious consumers, in line with global thinking

CH 3: Define a Competitive Environment:

Affects the number and types of competitors in the market and how they behave - Marketing managers can't control these factors but they can choose strategies that avoid head on competition **4 kinds of competitive situations: (1) Monopoly (2) Oligopoly (3) Pure Competition (4) Monopolistic Competition

CH 7: Define Marketing Research [DAGIS] -- 4. Interpret Data:

After someone collects the data, they have to be analyzed to decide what they all mean. In quantitative research, this step usually involves statistics.

CH 1: Describe the Evolution of Marketing over the Years -- Marketing Department Era:

All marketing activities are brought under the control of one department to improve short-run policy planning and try to integrate the firm's activities - 1940-1960

CH 8: Broad Product Groups -- Consumer Products Vs Business Products:

All products fit into one of two broad groups—based on the type of customer that will use them. CONSUMER: - Meant for the final consumer. BUSINESS: - Meant for use in producing other products. *The same product—like Bertolli Olive Oil—might be both a consumer product and a business product. - Consumers buy it to use in their own kitchens, but food processing companies and restaurants buy it in large quantities as an ingredient in the products they sell. **The big difference between consumer product markets and business product markets is DERIVED DEMAND (demand for business products derives from the demand for final consumer products) --> determined by consumer ***business products are fairly inelastic

CH 11: Physical Distribution Concept:

All transporting, storing and product handling activities of a business and a whole channel system should be coordinated as one system that seeks to minimize cost of distribution for a given customer service level - Better service at lower cost increases customer value - Different departments focus on different steps à need someone to coordinate it all

CH 8: What are the different types of brands -- Dealer Brands:

Also called private brands (or private label), are brands created by intermediaries. - Examples of dealer brands include Craftsman and Kenmore (Sears), Primo Taglio and Priority Pet (Safeway), Up & Up (Target)

CHAPTER 17: Pricing Objectives & Policy -- Concepts to Apply:

BE ABLE TO EXPLAIN: *Explain how price sensitivity can affect a price setting decision. *Explain how pricing affects the channel and the final price to consumer. *Explain how a break-even point and average cost both can contribute to determining a price point. *Explain when a manufacturer should use a skimming pricing strategy and when it should use a penetration pricing strategy. *Explain why manufacturers use discounts and allowances. *Explain the conditions under which you can legally charge "like" channel members (e.g. two wholesalers) different prices. *Name 3 key steps to prevent a runaway promotion. *What is the difference between demand and cost base pricing strategies? Why use both?

CHAPTER 8: Elements of Product Planning for Goods and Services -- Concepts to Apply:

BE ABLE TO: 1. Explain how branding contributes to brand identity and how it is used to build/reinforce brand equity. 2. Explain what drives consumer product classifications. • Provide 3 real world examples of how MFR. Brands battle store brands. 3. Explain how marketing strategy changes in each phase of brand acceptance. - How does a brand recover from rejection? - What is the difference between preference and loyalty? 4. Demonstrate how different elements of product and packaging can create a competitive advantage and/or USP

EXAM 2 (CH 7, 8, 9, 17, 18): CHAPTER 7: Improving Decisions with Marketing Decisions -- Concepts to Apply:

BE ABLE TO: 1. Defend why it is important to follow a research process (scientific method). - What is the most important step in that process? 2. Give an example of a problem vs. a symptom. (other than what was given in lecture). 3. Why is the distinction between a problem and a symptom important? 4. Explain the research types, terms and tradeoffs. - For example when should you use quantitative vs. qualitative research vs. when not to do research at all. 5. Describe the pitfalls to data interpretation. 6. Defend the importance of understanding confidence intervals, sampling and non-sampling error when interpreting polling results. 7. What should you know about interpreting opinion polls? 8. Explain why you either agree or disagree with the following statement: "With all of the purchasing data available to construct predictive purchasing models we no longer need to conduct consumers surveys."

CH 7: Big Data & Decision Support System (DSS):

BIG DATA: - Data sets too large and complex to work with typical data base management tools - MIS organizes info into these data bases DSS: - A computer program that makes it easy for a marketing manager to obtain and use information-helps convert info into knowledge that allows them to make informed marketing strategy decisions

CH 11: Universal product code:

Bare code, used to track stock and monitor inventory

CHAPTER 4: Focusing Marketing Strategy with Segmentation and Positioning -- Concepts to Apply:

Be able to Explain: - The importance of segmentation and targeting in product development. - The critical components of a good segment, why it is necessary to segment and what strategies marketers can use to pursue a single or multiple segments **IMPORTANT TERMS: - Positioning - USP - Qualifying/Determining Dimensions - Map - Differentiation

CHAPTER 2: Marketing Strategy Planning -- Concepts to Apply:

Be able to Explain: 1. The process and purpose of a marketing plan: - Diagram the steps of the marketing planning process - Why is marketing planning essential? 2. Apply strategies and tactics: - What are the 4 types of market growth strategies - Describe conditions for when each strategy could be used. - Which of the 4 P's is most important? Why? - (Advanced) How does satisfying a need differ from providing a "benefit"?

CH 1: Define the Universal Functions of Marketing:

Buying, selling, transporting, storing, standardization and grading, financing, risk taking, and market information - Must be performed in all macro-marketing systems, but how these functions are performed and by whom may differ among nations and economic systems

CH 15: Types of Advertising -- Comparative advertising:

COMPARATIVE: - Making specific brand comparisons using actual product names - EX: coke vs pepsi - Not allowed in many countries but IS in US - Can back fire by calling attention to brands the consumer hadn't originally thought about

CH 10: Vertical Marketing Systems -- Contractual Channel Systems:

CONTRACTUAL: Channel members agree by contract to cooperate with one another

CH 12: Convenience (food) stores & Automatic Vending:

CONVENIENCE: - Convenience oriented version of conventional limited line food stores - Limit stock to pick up/fill in items VENDING: - Selling and delivering products through vending machines - Can be costly to operate, but very convenient

CH 10: Vertical Marketing Systems -- Corporate channel systems & Vertical Integration:

CORPORATE: Corporate ownership all along the channel o The firm is its own vertical marketing system as they act as the producer, wholesaler, and retailer. o Develop by vertical integration Vertical Integration: Acquiring firms at different levels of channel activity **Advantage: - Stable sources of supplies, better control of distribution and quality **Disadvantage: - Difficult when each channel member runs differently

CH 12: Scrambled merchandising:

Carrying any product lines they think can sell profitably, mixing product lines for higher profits

CH 3: What is a Legal Environment?

Changes in the political environment often lead to changes in the legal environment - Many laws and regulations set up to control and monitor companies - Federal Trade Commission Act (1914) → monitors deceptive advertising and pricing - Magnuson-Moss Act (1975) → warranty has to be in writing if you have one - Robinson-Patman Act (1936) → Prohibits "false" advertising allowances in discrimination in help offered; prohibits price discrimination Consumer Protection Agencies: - Food and Drug Administration (FDA) - Consumer Product Safety Commission (CPSC)

CH 10: Vertical Marketing Systems:

Channel systems in which the whole channel focuses on the same target market at the end of the channel - Growing because if the final customer doesn't buy the product then everyone in the channel suffers together - Dominate the marketplace **3 types: Corporate, administered, and contractual

CH 10: Reverse Channels:

Channels used to retrieve products that consumers no longer want - Needed when company recalls products, errors completing orders, when consumers make returns **Manufacturers must recycle or reuse hazardous materials or products at the end of lifecycle

CH 4: Market-oriented strategies in a broad product-market -- Combined target market approach:

Combining two or more submarkets into one larger target market as a basis for a SINGLE marketing mix - Have to make compromises in developing the marketing mix - May help achieve economies of scale and may require less investment

CH 13: Public Relations:

Communication with non-customers including press, labor, interest groups, stock holders, government, etc

CH 17: Define Price-Fixing:

Competitors getting together to raise, lower, or stabilize prices—is common and relatively easy. *Price-level and price-flexibility policies can lead to price discrimination.

CH 11: Supply Chain & EDI:

Complete set of firms and facilities and logistics activities that are involved in procuring materials, transforming them into intermediate or finished products and distributing to customers Electronic data interchange (EDI): - Puts delivery information in a standardized format easily shared between different computer systems

CH 12: Wholesalers:

Concerned with activities of people/establishments that sell to retailers and other merchants or to industrial, institutional and commercial users, but that do not sell in large amounts to final consumers - Wholesaling activities: Gathering and providing information, buying and selling, grading, storing, transporting, financing, risk taking **Used to dominate distribution channels but now in decline

CH 2: The 4 P's of a Marketing Mix -- PROMOTION:

Concerned with telling the target market or others in the channel of distribution about the right product. - Sometimes promotion is focused on acquiring new customers and sometimes it's focused on retaining current customers. - Objectives, salespeople, advertising, publicity

CH 7: Validity:

Concerns the extent to which data measures what they are intended to measure

CH 5: Define Extensive Problem Solving:

Consumers use this when they put much effort into deciding how to satisfy a need -- likely for a completely new purchase or to satisfy an important need - Usually an expensive and high risk purchase like a car or where to attend school - much info desired - high-involvement purchases

CH 5: Define Routinized Response Behavior:

Consumers uses this when they regularly select a particular way of satisfying a need when it occurs - Inexpensive purchases and little risk associated - Typical for low-involvement purchases: purchases that have little importance or relevance to the customer (buying a box of salt)

CH 12: Retailing:

Covers all activities involved in the sale of products to final consumers Usually selling a good made by someone else but there is service

CH 8: What are the different types of brands -- Manufacturer Brands (National Brands):

Created by producers. These are sometimes called national brands because the brand is promoted all across the country or in large regions. - Ex: Mccdonalds, Visa, etc

CH 18: Define Subscription Pricing:

Customers pay on a periodic basis for access to a product. Pioneered by newspapers and magazines,

CH 10: Terms related to foreign markets -- Joint Venture:

Domestic firm enters a partnership with foreign firm - Can lead to disagreement s but can be profitable and attractive

CH 10: Direct vs Indirect Distribution

DIRECT: - Easier to control whole marketing job - Serve target at lower cost/ more effectively - Easier to adjust mix quickly...don't need to go through intermediaries - May have to go direct if suitable intermediaries are not available or will not cooperate - Due to consumer behavior patterns, direct doesn't always work even if desired by a firm INDIRECT: - Intermediaries resolve Discrepancies in quantity and assortment - Intermediaries add value in consumer eye - Not good when retailer sand wholesalers carry own competing product and make decisions based on self interest - Firms that produce physical goods turn to channel specialists to help provide services customers expect - Consumer product producers rely on indirect channels

CH 12: Types of Selling -- Door to Door vs Internet Retailing vs Multichannel:

DOOR-TO-DOOR: - A sales person going directly to the consumers home - Convenient and personal attention INTERNET: - Online retailers offer low prices and wide assortment *Advantages include: - Wide assortment - Fast and convenient - Anytime/anywhere access MULTICHANNEL: - Use different channels as they move through the purchase process - Can occur within same retailer or not - Shop at many stores but only buy at one

CH 12: Drop Shippers vs Rack Jobbers:

DROP SHIPPERS: - Own products they sell but do not actually handle, stock, or deliver them - Producer ships directly to consumer - Commonly sell bulky products where handling would be expensive RACK JOBBERS: - Specialize in hard to handle assortments of products that retailers don't want to manage

CH 5: What is a Cue?

Depending on the cues -- products, signs, ads, and other stimuli in the environment -- an individual chooses some specific response - The smell of a pretzel in a mall sends a cue to a customer to buy one

CH 3: Define Monopolistic Competition:

Different firms offer marketing mixes that at least some customers see as different - Each competitor tries to get control (a monopoly) in its "own" target market, but competition exists

CH 4: Define Determining Dimensions:

Dimensions that actually affect the customer's purchase of a specific product or brand in a product-market. - The more specific you want to be, the more particular the determining dimensions may be - Help identify the "core benefits" that must be offered to everyone in a product-market - Could include behavioral needs, geographic location, and demographics, type of customer, how customer will use product, type of buying situation

CH 3: Define Direct (Internal) Marketing Environments vs. Indirect (External) Environments:

Direct (Internal) Marketing Environment: Customers, company, competitors (things we can control) Indirect (External) Marketing Environment: (1) Economic environment (2) Technological Environment (3) Political and Legal Environment (4) Cultural and Social Environment (Things we do not have control over like a rise in gas prices)

CH 10: Direct Markting:

Direct communication between a seller and an individual customer using a promotion method other than face-to-face personal selling.

CH 4: Define Unique Selling Proposition (USP):

Drives brand choice - What are your brands' determining dimensions? - What is the one thing your brand does better than your competition when addressing these dimensions?

CH 8: Business Products -- Expense Items vs Capital Items:

EXPENSE ITEMS: Products whose total cost is treated as a business expense in the year it's purchased. ex: rubber, steel, lumber CAPITAL ITEMS: Are long-lasting products that can be used and depreciated for many years. - ex: machinery, tools

CH 7: Statistical Packages:

Easy-to-use computer programs that analyze data; tech advancements have made this step easier

CH 18: Define Prestige Pricing:

Setting a rather high price to suggest high quality or high status; luxury items

CH 18: Define Break-Even Analysis & Break Even Point:

Evaluates whether the firm will be able to break even—that is, cover all its costs—with a particular price. BEP --> the quantity where the firm's total cost will just equal its total revenue.

CH 1: Product Evolution vs Product Revolution:

Evolution: - "Product evolution" is a term used by companies who have the vision to not only see a product idea, but how that product can evolve over time. - The idea of mapping out, often before the first product is even manufactured, what future iterations of a product might be as it improves and grows. Revolution: - Coming up with an idea that is totally unlike anyone has ever heard/seen.

CH 8: Business Products -- 6 main categories (instillations, accessories, raw materials, components, supplies, professional services) -- Supplies:

Expense items that do not become part of a finished product. Supplies can be divided into three types: (1) maintenance items (2) repair items (3) operating supplies

CH 8: What is a Warranty?

Explains what the seller promises about its product. - A marketing manager should decide whether to offer a specific warranty, and if so what the warranty will cover and how it will be communicated to target customers. *The Magnuson-Moss Act (of 1975) says that producers must provide a clearly written warranty if they choose to offer any warranty.

CH 8: What are the different types of brands -- Family Branding & Licensed Branding:

FAMILY: - The same brand name for several products - Promotion for one, helps promote the other products - Ex: Sears applicances FAMILY (LICENSED): - A special kind of family brand is a licensed brand—a well-known brand that sellers pay a fee to use. - Ex: Jelly belly makes coke flavored jelly beans

CH 1: Who are Collaborators?

Firms that facilitate or provide one or more of the marketing functions other than buying - (e.g. advertising agencies, marketing research firms, product) testing labs, internet service providers, public warehouses, transporting firms, communication companies, and financial institutions)

CH 18: Define Marginal Analysis:

Focuses on the changes in total revenue and total cost from selling one more unit to find the most profitable price and quantity.

CH 7: Observing:

Focusses on a well-defined problem - Tries to see and observe what a subject does naturally; don't want to influence them in any way

CH 12: Franchise Operation:

Franchisor develops good marketing strategy and the retail franchise holders carry out the strategy in their own units - Smaller firm benefits from expertise of franchise and franchise pays fees to follow rules

CH 12: Types of stores -- General Store & Single Line (Limited) Stores:

GENERAL: Stores that carry anything they could sell in reasonable volume - Single line, limited line retailers specialize by product SINGLE LINE (LIMITED): - Stores that specialize in certain lines of related products rather than a wide assortment *Advantage: Satisfies some target markets better

CH 8: What is the difference between a Goods/Services?

GOOD: - A good is something tangible and physical SERVICE: - A service is something intangible offering a deed or effort - Usually produced in person - They are inconsistent (people do different tasks better than others) - They are PERISHABLE (cannot be produced and stored to sell at future date) --> makes it difficult to balance supply/demand *A product has the ability to be a good or a service **Many products can be both a good and a service (Cell phone companies, restaurants)

CH 17: What are Pricing Objectives?

Goals that describe what a firm wants to achieve through pricing (1) How flexible prices will be (2) The level of prices over the product life cycle (3) To whom and when discounts and allowances will be given (4) How transportation costs will be handled. *Over the long term, and often over the short term, marketing managers should set objectives oriented toward making a profit.

CH 1: What is a Command Economy?

Government officials decide what and how much is to be produced and distributed by whom, when, to whom, and why.

CH 4: Define Positioning -- Perceptual Mapping:

Graphs for positioning decisions by asking consumers to make judgements about different brands

CH 11: Containerization:

Grouping individual items into economical shipping quantity and sealing them in protective containers for transit to the final destination - Protects products and simplifies handling

CH 5: Define Stimulus Discrimination:

Helps brands prevent copying - Trying to control how people perceive things - Packaging/logo - Positive brand image transfers from product to product **Coke bottle example

CH 2: Define Channel of Distribution:

How a product reaches customers → any series or firms (or individuals) that participate in the flow of products from producer to final user or consumer - Could consist of wholesalers and retailers - Sometimes it's short and runs directly from producer to consumer (ex: GEICO sells its insurance directly to final consumers)

CH 5: Define Perception:

How we gather and interpret information from the world around us

CH 8: Brand Familiarity and its 5 levels: (RNRPI):

How well customers recognize and accept a company's brand. 1. Rejection: - Potential customers will not buy this brand unless its image is changed or the customers have absolutely no other choice 2. Nonrecognition - Basically, products are seen as all the same. - Examples include inexpensive dinnerware, hardware store items, etc. 3. Recognition (start here) - Customers remember the brand 4. Preference - The target customers usually choose this brand over other brands, maybe because of past favorable experiences 5. Insistence - A customer is 100% loyal and insists on buying that specific brand (will search for it specifically)

CH 9: Elements that increase sales speed (4):

INCREASE SPEED: 1. Easy to use 2. Easy to communicate 3. Can be tried 4. Comparative to the values of the target market

CH 15: Types of Advertising -- Cooperative -- INSTITUTIONAL:

INSTITUTIONAL: - Promotes organization, image, reputation, or ideas rather than specific product - Focuses more on name and prestige of a brand - May seek to inform, persuade or remind

CH 2: Define S.W.O.T Analysis:

Identifies and lists the firm's strengths, weaknesses, opportunities, and threats - Strengths and weaknesses come from assessing the company's resources and capabilities - Opportunities and threats emerge from an examination of customers, competition, and the external market environment

CH 5: Define Reinforcement:

In the learning process, occurs when the response is followed by satisfaction -- that is, reduction in the drive - Strengthens the relationship between the cue and the response - Repeated reinforcement leads to development of a habit *Sound of bell = reward of treat for a dog **the more times the dog gets the treat after the sound of bell, the stronger the reinforcement

CH 7: Define Marketing Research [DAGIS] -- 5. Solve Problem:

In the problem solution step, managers use the research results to make marketing decisions. - We emphasize this step because it is the reason for and logical conclusion to the whole research process. - This final step must be anticipated at each of the earlier steps.

CH 1: Define Market-Orientation:

Instead of just trying to get customers to buy what the firm has produced, a marketing oriented firm tries to offer customers what they need - Trying to carry out the marketing concept - All departments work together guided by customer needs NOT just trying to unload what the firm has produced

CH 13: Integrated marketing communications:

Intentional coordination of every communication from a firm to a target customer to convey a consistent and complete message

CH 11: Total Cost Approach:

Involves evaluating each possible physical distribution system and identifying all of the costs of each alternative

CH 8: Elements of Good Packaging:

Involves promoting, protecting, and enhancing the product. Packaging can be important to both sellers and customers - It can make a product more convenient to use or store. - Can prevent spoiling or damage and make items more/less transportable - Good packaging makes products easier to identify and promotes the brand at the point of purchase and even in use. *Recently, BIG emphasis on packaging that is suitable for the environment (water bottles using less plastic in caps, etc) **The federal fair packaging and labeling act requires that consumer goods be clearly labeled in easy-to-understand terms to give consumers more information.

CH 9: Define the Product Life Cycle and its 4 stages: -- Market Introduction Stage:

It describes the stages a new-product idea goes through from beginning to end. (1) Market Introduction Stage: - SALES ARE LOW as a new idea is first introduced to a market (Customers aren't looking for the product) - Even though a firm promotes its new product, it takes time for customers to learn that the product is available. - Most companies experience losses during the introduction stage

CH 18: Define Leader Pricing vs Bait Pricing:

LEADER: Setting some very low prices—real bargains—to get customers into retail stores. BAIT: Setting some very low prices to attract customers but trying to sell more expensive models or brands once the customer is in the store.

CH 8: Trademark -- The Lanham Act (of 1946) & "Descriptive Term" Dilemma:

Lanham Act: Spells out what kinds of marks (including brand names) can be protected and the exact method of protecting them. - The law applies to goods shipped in interstate or foreign commerce. - Counterfeit products cause a brand to lose sales and jeopardize its reputation. "Descriptive Term" Dilemma: - Brand name can't become a common descriptive term for its kind of product or owner loses all rights to it - Ex: aspirin, band aid

CH 12: Types of stores -- Department stores:

Larger stores that are organized into many separate departments and offer many product lines - Each department is like a separate limited line store with variety of shopping products - Combine many limited line stores and specialty shops

CH 9: PLC Length:

Length varies widely across products. However, in general, life cycles are getting shorter - A new-product idea will move quickly through the cycle when the product has innovative characteristics (the greater the comparative advantage of a new product over those already on the market, the more rapidly its sales will grow). - Pioneers tend to be less profitable over the long run—in part because many do not survive

CH 17: Allowances:

Like discounts, allowances are given to final consumers, business customers, or channel members for doing something or accepting less of something.

CH 12: Mass merchandising related terms -- Mass merchandisers & Mass merchandising concept:

MASS MERCHANDISERS: - Large self-service stores with many departments that emphasize soft goods - (House ware, clothing, fabric) and staples (heath and beauty aids) - Place to shop for frequently purchased consumer products **still follow discount houses emphasis on lower margins to get faster turnover - EX: Target, Walmart MASS-MERCHANDISING CONCEPT: - Retailers should offer low prices to get a faster turnover and great sales volumes by appealing to larger market

CH 16: Types of media: 1. Paid media 2. Owned media 3. Earned media

MEDIA: Means used for mass communication 1. PAID: - Messages generated by a brand and communicated through a message channel the brand pays to access 2. OWNED: - Refers to promotional messages generated by a brand communicated through a message channel the brand directly controls - EX: brochures, catalogs, website, social media pages - Unpaid with total control 3. EARNED: - Refers to promotional messages not directly generated by the company or brand, but rather a 3rd party such as journalists or customers - Can be positive or negative - Unpaid with no control

CH 10: Ideal Market Exposure:

Makes a product available widely enough to satisfy target customer's needs but not exceed them - Too much exposure only increases the total cost of marketing

CH 1: Define Production

Making the goods or performing the service

CH 1: Define Production-Orientation:

Making whatever products are easy to produce and then trying to sell them - They think of customers existing to buy the firm's output rather than firms existing to serve customers and the needs of society

CH 17: Pricing Policies -- Define One Price Policy:

Offering the same price to all customers who purchase products under essentially the same conditions and in the same quantities. - A one-price policy makes pricing easier. But a marketing manager must be careful to avoid a rigid one-price policy. **This can amount to broadcasting a price that competitors can undercut, especially if the price is somewhat high.

CH 17: Pricing Policies -- Flexible-price policy​:

Offering the same product and quantities to different customers at different prices. - When computers are used to implement flexible pricing, the decisions focus more on what type of customer will get a price break.

CH 16: Referral program

Offers a current customer an incentive for recommending a new customer to a business - Ratings/reviews let customers do the selling

CH 18: Define Complementary Product Pricing

One product is priced to maximize sales volume in order to stimulate the demand of other related products

CH 12: Mill supply houses:

Operate in similar way to General merchandise wholesalers but carry broad variety of accessories and supplies to serve need of manufacturer

CH 12: Types of Wholesalers -- Cash and carry wholesalers:

Operate like service wholesalers except the customer must pay in cash - Big warehouse clubs have taken much of this business **More common in less developed nations where small retailers handle bulk of retailing transactions

CH 12: Types of Wholesalers -- Merchant Wholesalers (Service & Limited Function):

Own the products that they sell often specialize by certain types of products and consumers **2 types: 1. Service 2. Limited function

CH 16: Pass Along & Viral Promotion:

PASS ALONG: - When one customer makes a recommendation for or against a specific brand to another customer VIRAL PROMOTION: - When customers quickly spread a message far and wide - Form of a pass along - EX: Paid intagram ads by celebrities

CH 16: Types of Digital Advertising -- Pay Per Click vs Retargeting:

PAY-PER-CLICK: - Advertisers pay media costs only when a customer clicks on the ad and link to the advertisers website when online RETARGETING: - Displays ads to a new web user based on sites they have previously visited - EX: facebook gives an ad for a website you were recently on

CH 9: Market-oriented Strategies -- Pivot vs Phase-out:

PIVOT: - Moving to a new marketing mix PHASE-OUT: - Firm realizes product will not be successful so they phase out gradually (cut losses)

CH 7: Population & Sample:

POPULATION: - Total group of interest SAMPLE: - Part of relevant population *Usually, the larger the sample size, the greater the accuracy of random selection

CH 7: Primary Data vs Secondary Data

PRIMARY: Info directly collected to solve the current problem - Observing, questioning - (Focus Groups, Survey) SECONDARY: Info that has been collected/published already (can be from within or from out of the company)

CH 11: Inventory -- Private vs Public Warehouses:

PRIVATE: - Storing facilities owned or leased by companies for their own use - Manufacturers, wholesalers, and retailers have some in main building or separate location - Used when large volume of goods must be stored regularly PUBLIC: - Independent storing facilities - Can provide all services tonight that company's own warehouse can provide - Firms that don't have regular need for space

CH 15: Types of Advertising -- Cooperative --PRODUCT -- 1. Pioneering, 2. Competitive (Direct competitive vs Indirect competitive), 3. Reminder:

PRODUCT: Tries to sell a product **Three types: 1. PIONEERING: - Tries to develop primary demand for a product category rather than a specific brand - Done in early stages of product life cycle and targets early adopters 2. COMPETETTIVE: - Tries to develop selective demand for a specific brand - Forced into this as product life cycle moves along - Establishing/presenting competitive advantage **Two types of competitive: (1) DIRECT COMPETITIVE: - Aims for immediate buying action (2) INDIRECT COMPETITIVE: - Points out product advantages to affect future buying decisions 3. REMINDER: - Tries to keep products name before the public - Useful when product achieved brand preference or insistence - Maturity and decline stages most often

CH 2: The 4 P's of a Marketing Mix -- PRICE:

Price setting must consider the kind of competition in the target market and the cost of the whole marketing mix. - A manager must also try to estimate customer reaction to possible prices. - Flexibility, geographic terms, discounts

CH 15: Puffery Ads vs. Deception Ads vs. Corrective Ads:

PUFFERY: - Legal advertising practice, but can often be questioned - Promoting product through hyperbole or oversized statements that can not be objectively verified DECEPTION: - Illegal advertising practice - Advertising that deliberately misleads or makes measurably false claims CORRECTION: - Ads to correct deceptive ads - FTC cracking down on deceptive ads with health - What is unfair is changing as social norms change

CH 13: Pushing vs Pulling:

PUSHING: (A product through a channel) - Means using normal promotional effort to help sell mix to possible channel members **Internal marketing effort --> push with in a firm, promotion to employees PULLING: - Getting customers to ask intermediaries for the product - Push and pull used in combination - Intermediaries should be told about pulling effort, so they can be ready if promotion succeeds

CH 10: Terms related to foreign markets -- Direct investment:

Parent firm has division or owns a separate subsidiary firm in foreign market - Gives parent firm total control over marketing and planning

CH 5: Why do customers buy -- Define Economic Buyers:

People who know all the facts and logically compare choices to get the greatest satisfaction from spending their time and money - The economic-buyer theory says that consumers decide what to buy based on economic needs: which are concerned with making the best use of a consumer's time and money -- as the consumer judges it, some economic needs include: - Economy of purchase or use - Efficiency in operation or use - Dependability in use - Improvement of earnings - Convenience

CH 2: The 4 P's of a Marketing Mix -- PLACE:

Place is concerned with all the decisions involved in getting the right product to the target market's Place. - Objectives, channel type, locations of stores, how to handle transporting and storing.

CH 15: Advertising Allowances:

Price reductions to firms further along in channel to encourage them to advertise or promote products

CH 17: Define Phony-List Prices:

Prices customers are shown to suggest that the price has been discounted from list. - Some customers seem more interested in the supposed discount than in the actual price.

CH 17: Define Dumping:

Pricing a product sold in a foreign market below the cost of producing it or at a price lower than in its domestic market.

CH 18: Define Psychological Pricing:

Pricing means setting prices that have special appeal to target customers.

CH 13: Advertising:

Primary form of mass selling - Any paid form of non-personal presentation of ideas, goods and services by an identified sponsor - Includes old school sources (newspaper) with new (internet) - When PAID to be put in media

CH 16: Search Engine Optimization (SEO):

Process of designing a website so that it ranks high in search engines unpaid results - Considers how customers search, key words and how search engines prioritize results - Important because consumers don't usually look past 10 results after doing an online search

CH 8: Business Products -- 6 main categories (instillations, accessories, raw materials, components, supplies, professional services) -- Components

Processed expense items that become part of a finished product. - Component parts are finished (or nearly finished) items that are ready for assembly into the final product. - They have already been processed but must be processed further before becoming part of the final product. (wires, plastic, etc)

CH 18: Define Demand Backward Pricing:

Producer starts with the retail (reference) price for a particular item and then works backward to set final price

CH 15: Types of Advertising -- Cooperative:

Producers share in cost of ads with wholesalers or resellers --> work together *Two types: 1. Product 2. Institutional

CH 8: Consumer Products -- Convenience Products (Staple, impulse, emergency):

Products a consumer needs but isn't willing to spend much time or effort shopping for. - These products are bought often, require little service or selling, don't cost much, and may even be bought by habit. - A convenience product may be a staple, impulse product, or emergency product. 1. STAPLE PRODUCTS: are bought often, routinely, and without much thought— such as breakfast cereal 2. IMPULSE PRODUCTS: are bought quickly—as unplanned purchases—because of a strongly felt need. 3. EMERGENCY PRODUCTS: are purchased immediately when the need is great. (The customer doesn't have time to shop around when a traffic accident occurs or a thunderstorm begins).

CH 8: Consumer Products -- Shopping Products (homogenous/heterogeneous):

Products that a customer feels are worth the time and effort to compare with competing products. - Can be divided into two types: 1. HOMOGENEOUS PRODUCTS: are items the customer sees as basically the same and wants at the lowest price. 2. HETEROGENEOUS PRODUCTS: are items the customer sees as different and wants to inspect for quality and suitability—furniture, clothing, and membership in a spa are examples. *The exact same products can be homogeneous or heterogeneous. It just depends on how a particular target market thinks about and shops for the product.

CH 8: What are the different types of brands -- Generic Products:

Products that have no brand at all other than identification of their contents and the manufacturer or intermediary. - Generic products are usually offered in plain packages at lower prices. - Ex: Rubber

CH 8: Consumer Products -- Unsought Products:

Products that potential customers don't yet want or know they can buy - So they don't search for them at all. In fact, consumers probably won't buy these products if they see them—unless promotion can show their value. Two types of unsought products: 1. NEW UNSOUGHT PRODUCTS: offer really new ideas that potential customers don't know about yet. 2. REGULARLY UNSOUGHT PRODUCTS: such as gravestones, life insurance, and nursing homes—that stay unsought but not unbought forever. *Personal selling important for this type

CH 12: Types of Wholesalers -- Merchant Wholesalers --> LIMITED FUNCTION:

Provide only some of wholesaling functions - Less numerous but important

CH 10: Regrouping Activities (4 TYPES) -- Assorting:

Putting together a variety of products to give a target market what it wants - Usually done by those closest to final consumer - Retailer/wholesalers who try to supply a wide assortment of products for the convenience of their customers - Adding/subtracting channels can add value and differentiate - Ex: a wholesaler selling Yazoo tractors and mowers to golf courses might also carry Pennington grass seed and Scott fertilizer.

CH 7: Qualitative Research vs Quantitative Research:

QUALITATIVE: In depth, open responses - Focus group interviews QUANTITATIVE: Seeks structured responses summarized by numbers - Surveys

CH 10: Discrepancy of Quantity vs Assortment:

QUANTITY: o Difference between quantity of products it is economical for a producer to make and the quantity that final consumers want ASSORTMENT: o Difference between the lines a typical producer makes, and the assortment final consumers want...number of choices

CH 18: Define Full-line Pricing:

Setting prices for a whole line of products; if all products are aimed at same target market, all prices must be logically related

CH 17: Discounts -- Quantity Discounts -- Cumulative Quantity vs Non-Cumulative Quantity:

Quantity discounts are discounts offered to encourage customers to buy in larger amounts. - This lets a seller get more of a buyer's business, or shifts some of the storing function to the buyer, or reduces shipping and selling costs—or all of these. ​ CUMULATIVE QUANTITY DISCOUNTS: ​Apply to purchases over a given period - such as a year—and the discount usually increases as the amount purchased increases. NONCUMALTIVE QUANTITY DISCOUNTS: Apply only to individual orders. - Such discounts encourage larger orders but do not tie a buyer to the seller after that one purchase.

CH 11: Types of Transporting (Railroad, trucks, water, pipelines, air):

RAILROAD: - Large loads moved at low cost - Most commonly used mode of transportation - Takes longer so not well suited for perishable goods TRUCKS: - Flexible and fast - Good at moving small quantities for shorter distances - 75% of consumer products go by truck WATER: - Slowest, lowest cost for heavy freight - International - Port cities are important centers for international trade AIR: - Most expensive cargo transporting mode - Fastest and reduces cost of packaging - Best for low weigh, high value goods - Perishable products PIPELINES: - Move oil and natural gas

CH 16: Reach vs Frequency:

REACH: - How many customers a type of advertising can interact with or capture attention of - Who sees it? FREQUENCY: - How often these people see the ads and how often they act on it

CH 17: Discounts:

Reductions from list price given by a seller to buyers who either give up some marketing function or provide the function themselves.

CH 4: Define Positioning:

Refers to how customers think about proposed or present brands in a market - Influenced by marketers but ultimately controlled by consumers - Achieving and maintaining a distinct, relevant positioning is hard to do - Successful re-positioning is difficult and expensive and often fails - Should consider: marketing goals, competition, customer needs, category perceptions, culture

CH 17: Pricing Policies -- Dynamic pricing​:

Refers to pricing products at a particular customer's perceived ability to pay. - The idea is to optimize revenue and profit by charging higher prices to customers willing to pay more and lower prices to those who do not see value at the high price but will buy at lower prices. - Ex: uber surge pricing, hotels & airlines raising rates over holidays, etc

CH 13: Sales Promotion:

Refers to promotional activities other than advertising, publicity and personal selling that stimulates interest, trial, or purchase by final customers, intermediaries, or a firm's own employees - Ex: Aimed at final consumers: Contests, coupons, samples, trade shows sponsored events, buyer programs, banners

CH 3: What is an Economic Environment?

Refers to the macro-economic factors, including national income, economic growth, and inflation that affect patterns of consumer and business spending. - Changes very rapidly→ requires immediate changes in marketing strategy - How do you revise product mix to be affordable to the middle class?

CH 2: Define Sales Promotion:

Refers to those promotion activities -- other than advertising, publicity, and personal selling -- that stimulates interest or purchase by final customers. - Involves the use of coupons, samples, signs, contests, events and catalogs

CH 4: Define Qualifying Dimensions:

Relevant to including a customer type in a product-market - Ex: A prospective car buyer needs the qualifying dimensions of having a license and enough credit to buy a car and insure it **these don't determine what specific brand of car the person might buy

CH 11: Just In Time (JIT) delivery systems:

Reliably getting products there just before the consumer needs them *Advantage: - Reduces physical distribution costs, especially in storing and handling *Disadvantage: - No backup plan with extra inventory if something goes wrong - Requires supplier to respond to very short order lead times and customer production schedule-->ecommerce is often required.

CH 17: Discounts -- Seasonal vs Cash Discounts:

SEASONAL DISCOUNTS: Offered to encourage buyers to buy earlier than present demand requires. - If used by a manufacturer, this discount tends to shift the storing function further along in the channel. CASH DISCOUNTS: Reductions in price to encourage buyers to pay their bills quickly.

CH 5: Selective Exposure vs Selective Perception

SELECTIVE EXPOSURE: We notice what we want to notice and filter out everything else - When we're hungry → we notice signs for restaurants - Notice things via our senses: sight, sound, touch, smell, taste **The challenge for selective exposure for marketers is breaking through the "clutter" without obscuring the message SELECTIVE PERCEPTION: People screen out or modify ideas that conflict with previously learned attitudes and beliefs - If we believe that Apple products are cool, we ignore ads by Samsung that suggest Apple is uncool.

CH 18: Define Price Lining:

Setting a few price levels for an entire product line and then marketing all items at these prices; advantage is simplicity for retailers with one set price class

CH 12: Types of Wholesalers -- Merchant Wholesalers --> SERVICE --> 1. General Merchandise 2. Single Line (general line) 3. Specialty.

SERVICE: Merchant wholesalers that provide all wholesaling functions **3 types: 1. GENERAL MERCHANDISE: - Carry a wide variety of non-perishable items with a broad line of convenience and shopping products they serve many stores - Hardware, furniture, drugs, cosmetics, automobile equipment 2. SINGLE LINE (GENERAL LINE): - Carry a narrower line of merchandise wholesalers - In business products try to cover a wider geographic area and offer more specialized service - Only carry either food, or tools or supplies --> SINGLE LINE. 3. SPECIALTY: - Carry a very narrow range of products and offer more information and service than other service wholesalers - Ex: Health foods ONLY --> **UNIQUE/SPECIFIC **Many consumer products wholesalers hit hard by growth of retail chains that set up distribution centers and deal with producers directly

CH 12: Showrooming vs Webrooming:

SHOWROOMING: - When consumers go to a store in person to inspect a product and purchase it from an online retailer at a cheaper price WEBROOMING: - Gathering information online then purchasing and brick and mortar (in person) store - Retailers with physical store use it as competitive advantage through omnichannel

CH 12: Mass merchandising related terms -- Supermarket & Discount Houses & Supercenters:

SUPERMARKETS: - Large stores specializing in groceries with self serve and wide assortments DISCOUNT HOUSES: - Offer hard goods (cameras, TVs and appliances) at substantial price cuts to consumers SUPERCENTERS: - Very large stores that try to carry not only food and drug items but all goods and services that the consumer purchases routinely - Combination of supermarkets, drug stores, and mass merchandisers - Tries to meet all consumer needs at low price **Warehouse club like Costco is form of popular retailing --> Customers pay annual fees to get products in bulk at cheaper prices

CH 4: Market-oriented strategies in a broad product-market -- Multiple Target Market Approach:

Segmenting the market and choosing two or more segments and treating each as a separate target market needing a DIFFERENT marketing mix.

CH 4: Market-oriented strategies in a broad product-market -- Single Target Market Approach:

Segmenting the market and picking one of the homogeneous segments as the firm's target market

CH 12: Types of Wholesalers -- Catalog Wholesalers:

Sell through catalogs that may be distributed widely to smaller industrial customers or to retailers that may not be called on by other wholesalers - Can reach outlying areas

CH 10: Management Contracting:

Seller provides only management and marketing skills

CH 10: Terms related to foreign markets -- Exporting:

Selling some of what firm produces to foreign markets - Some do this to get rid of surplus **Exporting --> licensing --> management contracting --> joint venture --> direct investment ****Increasing in investment, risk and control of market

CH 10: Licensing:

Selling the right to use some process, trademark, patent, or other right for a fee or royalty - Risk because it requires up front investment

CH 8: What are the different types of brands -- Individual brands:

Separate brand names for each product - When it's important for the products to each have a separate identity, as when products vary in quality or type.

CH 10: Regrouping Activities (4 TYPES) -- Sorting:

Separating products into grades and qualities desired by the different target markets

CH 3: What is a Mission Statement?

Sets out the organization's basic purpose for being - A good mission statement focuses on a few key goals rather than embracing everything - It should guide managers on determining which opportunities to pursue - May need to be revised as new market needs arise or as the market environment changes - Does not replace specific objectives that provide guidance in screening possible opportunities

CH 12: Cookies:

Small data files placed on consumers computer can track consumer movement on computer - Online retailers use big data collected from cookies to better target their audience and shoppers and personalize shopping

CH 15: Ad Agencies:

Specialists in planning and handling mass selling details for advertisers **3 biggest agencies handle most of advertising "The big three" *Ethical dilemma b/c agencies learn confidential info about companies that they work with and they may also be working with competitors

CH 12: Types of Wholesalers -- Truck Wholesalers:

Specialize in delivering products that they stock in their own trucks

CH 8: Business Products -- 6 main categories (instillations, accessories, raw materials, components, supplies, professional services) -- Professional Services:

Specialized services that support a firm's operations. - Usually expense items. - Ex: Management consulting services, Information technology services, Advertising agencies food services

CH 2: Define Marketing Strategy:

Specifies a TARGET MARKET and a related MARKETING MIX. - It's a big picture of what a firm will do in some market Three Types of Resources that Guide Marketing Strategy: (1) Planning -- financial (2) Production (3) Marketing

CH 7: Ethnographic:

Studies cultures by observing participants in their natural habitat - Studying customers in their homes or at work

CH 13: Task Method vs Sales Method:

TASK METHOD: - Basing promotion budget on job to be done - Consider efficiency and economically friendly SALES METHOD: - Basing promotion budget on a percent of either past or expected sales - Most common method of making budget

CH 17: Discounts -- Trade (functional) discount​ vs Sale Price:

TRADE (FUNCTIONAL) DISCOUNT: A trade is a list price reduction given to channel members for the job they are going to do. SALE PRICE: Temporary discount​ from the list price. - Encourage immediate buying.

CH 8: Branding -- Trademark VS Service Mark:

TRADEMARK: - Trademark is a legal term. A trademark includes only those words, symbols, or marks that are legally registered for use by a single company. SERVICE MARK: - A service mark is the same as a trademark except that it refers to a service offering.

CH 17: Pricing Policies -- Introductory price dealing:

Temporary price cuts—to speed new products into a market and get customers to try them. - Low prices tend to attract customers and trial. **However, don't confuse these temporary price cuts with low penetration prices. The plan here is to raise prices as soon as the introductory offer is over.

CH 5: Define Stimulus Generalization:

Tendency for stimuli similar to a conditioned stimulus to evoke similar feelings **PRODUCT LINE EXTENSION benefits from this (look-alike packaging (coppertone sunscreen and walgreen's brand sunscreen placed right next to it look the same) - Good for brands like walgreens, bad for copperstone

CH 17: Define Basic List Prices​:

The prices final customers or users are normally asked to pay for products.

CH 8: What is the "Battle of the Brands"?

The competition between dealer brands and manufacturer brands is just a question of which brands will be more popular and who will be in control. *Traditionally, dealer brands were knockoffs of manufacturer brands—often of lower quality with lower prices. Now some dealer brands sell premium products.

CH 5: Define Trust:

The confidence a person has in the promises or actions of another person, brand, or company - Drives expectations - When people trust → they expect the other party to fulfill promises - Build trust -- a customer is not a customer until they purchase a second time

CH 2: Define Marketing Strategy -- Marketing Mix:

The controllable variables the company puts together to satisfy a target group **includes some product, offered at a price, with some promotion to tell potential customers about the product

CH 8: Consumer Products -- Specialty Products:

The customer really wants and makes a special effort to find. - Shopping for a specialty product doesn't mean comparing—the buyer wants that special product and is willing to search for it.

CH 1: Define Customer Value:

The difference between the benefits a customer sees from a marketing offering and the costs of obtaining those benefits

CH 1: What is a Market-Directed Economy?

The individual decisions of the many producers and consumer make the macro-level decisions for the whole economy - Price is a measure of value - Greatest freedom of choice - The role of the government → enforce the "rules of the game", control interest rates and supply money, make import and export rules; makes sure property is protected, contracts are enforced, individuals are not exploited, no group unfairly monopolized market, producers deliver the kinds and quality of goods and services they claim to be offering - Public interest groups and consumers spread the word

CH 2: Define Strategic Management Planning:

The managerial process of developing and maintaining a match between an organization's resources and its market opportunities

CH 8: What is a Product?

The need satisfying offering of a firm - A product's quality is a product's ability to satisfy the customer's needs or requirements - An individual product is one particular product within a product line