MKT 320 Final
collectors
Use RSS feeds to collect information and vote for websites online
-new to the world -new product lines -product line additions -Improvements or revisions -repositioned products -lower priced products
What are categories of new products? (6)
-credibility -benevolence -cooperation -availability of support from top managers -efficiency in conducting and directing supply chain activity
What are characteristics of leading supply chain oriented firms? (5)
-SMS -MMS -Mobile website -mobile ads -Bluetooth marketing -smartphone applications
What are common mobile marketing tools? (6)
-experience -merchandise's appeal to customers -past response to the markup -Item's promotional value -seasonality of the good -fashion appeal fo the product -product's traditional selling price -competition
What are mark ups influenced by?
-customer profiles -consumer or industrial customer -size of market -geographic location
What are market factors affecting channel choice? (4)
-producer resources -number of product lines -desire for channel control
What are producer factors affecting channel choice? (3)
1. complexity 2. compatibility 3. relative advantage 4. observability 5. trialability
What are product characteristics and the rate of adoption? (5)
-complexity -price -customization -standardization -life cycle
What are product factors affecting channel choice? (5)
-increasing demand for imported products worldwide -cheap labor advantages -removal of trade barriers/tariffs -exposure to new technologies -creating competition to domestic suppliers -building brand equity
What are reasons for globalizing a company's supply chain? (6)
-low barrier to entry -consumers acclimating to privacy and pricing policies -effective at garnering consumer attention in real time -measurable -In store notification technology -higher response rate than traditional media types
What are reasons for mobile marketing popularity?
-no discernible benefit compared to existing products -poor match between product features and customer desires -overestimation of market size -Incorrect targeting -too high or too low prices -Inadequate distribution
What are reasons for product failure? (6)
-geopolitical conflict -foreign nationalization of assets and knowledge diffusion -highly variable quality standards -less reliability of foreign suppliers -service failures due to variability in transportation -complexities of handling overseas logistics
What are risks of moving offshore? (6)
-customers -employees -distributors -competitors -research and development -consultants -other experts
What are sources of new product ideas?
1. innovators 2. early adopters 3. early majority 4. late majority 5. laggards
What are the category of innovators? (5)
-availability of substitutes -price relative to purchasing power -product durability -product's other uses
What are the factors that affect elasticity of demand?
1. changing demographic 2. declining sales 3. changes in the social environment
What are the factors that motivate a firm to reposition?
1. Listen and learn 2. Build relationships and awareness 3. Promote products and services 4. Manage your reputation 5. Improve customer service
What are the five social media objectives?
-demand -cost -sales -profitability
What are the four considerations in the business analysis stage?
1. establish pricing goals 2. estimate demand, costs, and profits 3. choose a price strategy to help determine a base price 4. fine tune the base price with pricing tactics
What are the four steps in setting the right price on a product
-unfair trade practices -price fixing -price discrimination -predatory pricing
What are the four types of illegal pricing strategies?
1. contains and protects products 2. promotes products 3. facilities storage, use, and convenience of products 4. facilitates recycling and reduces environmental damages
What are the functions of packaging?
-advertising -public relations -sales promotion
What are the retail promotion strategies? (3)
1. listening to customers 2. setting social media objectives 3. defining strategies 4. identifying the target audience 5. selecting tools and platforms 6. implementing and monitoring the strategy
What are the stages in creating an effective social media plan? (6)
1. intent to use application is filed with the US Patent and Trademark Office 2. Company should have a genuine intention to use the mark 3. company should use it within three years of the granting of the application
What are the steps to register a trademark?
-market factors -product factors -producer factors
What are the three types of factors affecting channel choice?
-advertising response function -requirement of a minimum level of exposure to measurably affect purchase habits
What are the two reasons why new brands spend more on advertising and sales promotion?
1. word of mouth communication 2. communication from marketers to consumers
What are types of communication that aid the diffusion process
-department stores -speciality stores -supermarkets -drugstores -convenience stores -discount stores -restaraunts
What are types of in store retailers? (7)
Positive, neutral, and negative sentiment; trends of sentiment; and volume of sentiment
What defines the content of sentiment analysis?
listen to customers
What is the first stage in creating an effective social media plan?
-product -place -price -promotion -personnel -presentation
What is the retailing mix?
If handled effectively, these can result in higher customer loyalty
What is true of service failures?
marketing department, business unit, corporation
When developing a new product strategy, you should link the new product development process with the objectives of the:
receivers
When marketers play the role of message ____ they develop and adapt messages and spot new communication opportunities
set social media objectives, define strategies, and identify the target audience
Which of the following illustrates the correct sequential stages involved in creating an effective social media plan?
demand
Which of the following is NOT a component of AIDA model?
products are developed for global distribution and then tweaked to meet unique market requirements whenever possible
Which of the following is a characteristic of products produced by multinational corporations?
to stimulate insightful comments through group interaction
Which of the following is an objective of focus group interviews?
it aims to form relationships with customers and potential customers
Which of the following is true about the use of social media in promotion?
It refers to data that previously had been hard to capture, store, manage, and analyze
Which of the following is true of big data's use in supply chain management?
It helps an organization communicate with its customers, suppliers, stockholders, government officials, employees, and the community in which it operates
Which of the following is true of public relations?
natural lighting, either from windows or skylights, can lead to increased sales
Which of the following is widely believed to be true of the audio and visual factors creating a store's atmosphere?
reminder promotion
Which of the following promotional approaches is most commonly used by toothpaste brands and other consumer products that are well established?
they offer a nearly complete selection of merchandise within a single product category and use self service, discount prices, high volume, and high turnover to their advantage
Which of the following represents the thinking behind single line speciality discount stores such as Foot Locker?
They turn customers into suppliers by buying back pre owned items from customers and reselling to different customers
Which of the following represents the thinking being used good retailers?
they have a very low cost per contact
Which of the following statements is characteristic of social media?
to educate the public about a company's goals and objectives
Which of the following statements is the objective of public relations?
print advertising can be useful for high involvement purchase decisions
Which of the following statements is true of buying decisions?
It is designed to stimulate a purchase or an action
Which of the following statements is true of persuasive promotion?
They are critical to the satisfaction of both company and societal interests
Which of the following statements is true of public private partnerships?
chain store
Which retail operation is part of a group of the same stores owned and operated by a single organization?
both are illegal under the Federal Trade Commission Act
Which statement best describes a similarity between price fixing and predatory pricing?
it complements advertising by yielding faster sales responses
Which statement describes an element of sales promotion?
it enables supply chain managers to respond quickly to sudden changes in supply or demand
Which statement is true of supply chain management
initially charge a relatively low price per product
Zen Electronics has taken a penetration pricing approach to launch its new line of mobiles. Therefore, Zen is most likely to ____.
price lining
____ is the practice of offering a product line with several items at specific price points
pioneering
_____ advertising is designed to stimulate primary demand for a new product or product category
price skimming
_____ works when there is strong demand for a good or service
informative
______ promotion converts an existing need into a want or stimulates interest in a new product
gray marketing
_______ channels are unintended secondary channel that often flow illegally obtained or counterfeit product toward customers
product
_______ offering is the starting point in creating a marketing mix
bait pricing
_________ is a price tactic that tries to get consumers into a store though false or misleading price advertising and then uses high pressure selling to persuade consumers to buy more expensive merchandise
global brand
a brand that obtains at least a third of its earnings from outside its home country
coupon
a certificate that entitles consumers to an immediate price reduction when the product is purchased
retailer
a channel intermediary that sells mainly to consumers
crisis management
a coordinated effort to handle all the effects of unfavorable publicity or another unexpected unfavorable event
zone pricing
a modification of uniform delivered pricing that divides the United States (or the total market) into segments or zones and charges a flat freight rate to all customers in a given zone
brand
a name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitors' products
specialty products
a particular item for which consumers search extensively and are very reluctant to accept substitutes
advertising response function
a phenomenon in which spending for advertising and sales promotion increases sales or market share up to a certain level but then produces diminishing returns
sampling
a promotional program that allows the consumer the opportunity to try a product or service for free -mail to the customer directly -door to door delivery -package with another product -demonstrations at a retail store or service outlet -online sampling
Universal Product Codes
a series of thick and thin vertical lines (bar codes) readable by computerized optical scanners that represent numbers used to track products
social commerce
a subset of e-commerce that involves the interaction and user contribution aspects of social online media to assist online buying and selling of products and services
relationship integration
ability of two or more companies to develop social connections that serve to guide their interactions when working together
dynamic pricing
ability to change prices very quickly in real time -aids brick and mortar retailers to compete more efficiently with online alternatives
m-commerce
ability to conduct commerce using a mobile device for buying or selling goods or services -enables consumers using mobile devices to connect to the internet and shop
selective distribution
achieved by screening dealers to eliminate all but a few in any single area
Robinson-Patman Act
act that prohibits firms from selling similar commodities at different to two or more different buyers within a short time, sellers from offering two buyers different supplementary services, and buyers from using their purchasing power to force sellers into granting discriminatory prices or services
trade sales promotion
activities directed to members of the marketing channel
product line extension
adding additional products to an existing product line
sustainable supply chain management
adopted by firms to reduce costs
pulsing media schedule
advertising combines continuous scheduling with flighted scheduling
advocacy advertising
advertising in which an organization expresses its views on controversial issues or responds to media attacks
flighted media schedule
advertising is run heavily every other month or every two weeks
seasonal media schedule
advertising is run only when the product is likely to be used
continuous media schedule
advertising is run steadily throughout the period
promotion
advertising, publicity, and public relations
price fixing
agreement between two or more firms on the price they will charge for a product
intensive distribution
aims at having a product available in every outlet where target customers might want to buy it
demand management process
aligns supply and demand throughout the supply chain by foreseeing requirements at each level and creating demand related plans of action prior to actual customer purchasing behavior -allows customer satisfaction through greater flexibility in manufacturing, marketing, and sales programs -by sharing customer demand forecasts and data during sales and operations planning meetings
retailing
all activities directly related to the sale of goods and services to the ultimate consumer for personal, non business use
product mixes
all products that an organization sells
media sharing sites
allow users to upload and distribute multimedia content like videos and photos
customer relationship management
allows companies to prioritize their marketing focus on different customer groups -based on each group's long term value to the company or supply chain
review sites
allows consumers to post, read, rate, and comment on opinions regarding all kinds of products and services
social networking
allows individuals to connect with friends, peers, and business associates
social news sites
allows users to decide which content is promoted on a given website by voting that content up or down
price
amount that is given up in an exchange to acquire a good or service
labeling
an integral part of the package
implied warranty
an unwritten guarantee that the good or service is fit for the purpose for which it was sold
point of purchase display
any promotional display set up at the retailer's location to build traffic, advertise the product, or induce impulse buying -offers manufacturers a captive audience in retail stores
social media
any tool or service that uses the internet to facilitate conversations -social networks, blogs, microblogs, and media sharing sites
cumulative quantity discount
applied to a buyers total purchase made during a specific period
non-cumulative quantity discount
applied to a single order placed during a certain period
seasonal discounts
apply when certain merchandise is bought out of season
width
assortment of products offered
greenwashing
attempt to give the impression of environmental friendliness
value
based upon perceived satisfaction
gambled price discount
based upon the outcome of a probabilistic gamble
microblogs
blogs with strict post length limits
owned media
brands presence on social platforms
loyalty marketing program
build long-term, mutually beneficial relationships between a company and its key customers -shoppers receive discounts, alerts on new products, and other types of enticing offers -retailers are able to build customer databases and understand customer preferences
internet auctions
business to business auctions may be the dominant form in the future
widgets
called gadgets and badges -run within existing online platforms -cheaper than apps to develop -extend reach beyond existing platforms
supply chain analytics
can interpret big data and have great potential for improving supply chain operations
Integrated Marketing Communications (IMC)
careful coordination of all promotional messages for a product or a service -to ensure the consistency of messages at every contact point where a company meets the consumer
rebate
cash refund given for the purchase of a product during a specific period
rebate
cash refunds given for purchasing a product within a specified period
product modification
changing one or more characteristics of a product -quality, function, style
medium
channel used to convey a message to a target market -affected by promotional objectives and the appeal and executional style of advertising
status quo pricing
charging a price identical to or very close to the competitions price -advantage: simplicity -disadvantage: strategy ignores demand or cost or both
AIDA concept
classic model for reaching promotional goals
product assortment
classification based on width and depth of product lines
promotional mix
combination of promotional tools used to reach the target market and fulfill the organization's overall goals -advertising, public relations, sales promotion, personal selling, social media
location-based social networking sites
combine the fun of social networking with the utility of location-based GPS technology
mass communication
communication of a concept or message to large audiences through a mass medium
comparative advertising
compares two or more specifically named or shown competing brands on one or more specific attributes -used by some advertisers against their own brands -used when products experience slow growth or when competition in the market is strong
warranty
confirmation of the quality or performance of a good or service
supply chain
connected chain of all the business entities, both internal and external to the company that perform or support the logistics function
brand loyalty
consistent preference for one brand over all others
high price
consumers rely on _____ price as a predictor of good quality when a purchase decision involves uncertainty
elasticity of demand
consumers' responsiveness or sensitivity to changes in price
transactional functions
contacting and communicating with prospective buyers to explain the features, advantages, and benefits
informative promotion
converts an existing need into a want or stimulates interest in a new product
strategic channel alliances
cooperative agreement between business firms to use the other's already established distribution channel
franchisor
A _____ is the originator of a trade name, product, methods of operation, and the like that grants operating rights to another party to sell its product
private brand
A ______ is a brand name owned by a wholesaler or retailer
owned
A brand's presence on social platforms is ____ media
the mobile simply won't offer any discernible benefit compared to existing products
A mobile telephone manufacturer markets a limited edition cell phone model with 126 different functions. The campaign failed across all 50 states in the US. Which of the following is the most likely reason?
introductory stage
A new range of organic confectionary was introduced by Bounty Foods. The company is forced to give its dealer high margins and also needs to invest heavily in advertising. Their production costs are also high. In which PLC stage is the company most likely to be?
complexity
A product characteristic that impacts the rate of adoption is:
inelastic demand
A situation in which an increase or a decrease in price will not significantly affect demand for the product
elastic demand
A situation in which consumer demand is sensitive to changes in price
supply chain management
coordinates and integrates the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value
social commerce
A subset of e-commerce that involves the interaction and user contribution aspects of social online media to assist online buying and selling of products and services is called _____.
mark up pricing
cost of buying the product from the producer, plus amounts for profit and for expenses not otherwise accounted for -the marketing manger must calculate an adequate gross margin
fixed cost
cost that does not change as output is increased or decreased
variable cost
cost that varies with changes in the level of output
Technology and planning integration
creation and maintenance of information technology systems that connect managers across and through the firms in the supply chain
three-dimensional printing
creation of three dimensional objects via an additive manufacturing technology that layers raw material into desired shapes -smaller and localized supply chains will become the norm -small manufacturers will produce many more custom products than before over short lead times
public private partnerships
critical to the satisfaction of both company and societal interests -provide a mechanism by which very large scale problems or opportunities can be addressed -factor into the solution of future national and global supply chain problems
personnel
customer service and personal selling
action
AIDA stands for attention, interest, desire, and _____
multichannel marketing
customers are offered information, goods, services, and or support through one or more synchronized channels -creates redundancies and complexities in the firm's distribution system
joiners
According to Charlene Li and Josh Bernoff of Forrester Research, ____ are those who maintain a social networking profile and visit other sites.
consumer sales promotion
Activities targeted to the ultimate consumer market
Uniform Commercial Code
All sales have an implied warranty under the ____________________.
limited warranty
Any written warranty that does not live up to this tough prescription must be "conspicuously" promoted
price
At a local supermarket, Giada saw a box of plant fertilizer that retails at $25 but was marked down to $20.99. Given this information, $20.99 is the ___.
shortage of bikes will be created
At a price of $2000 per unit, the demand for Rancho 60 mountain bikes from Cloyd's Inc. is 300 units, which is the number of bikes they manufacture every year. If the marketing managers at Cloyd's Inc. decide to sell each bike at a price lower than $2000 per unit, _____.
increase the sales of a specific item
At the store level, one goal of tactical retailing is to:
commercialization
decision to market a product involves ordering production materials and equipment, starting production, building inventories, shipping the product to field distribution points, training the sales force, announcing the product to trade, and advertising to potential customers
target markets
defined by demographics, geographic boundaries, and psychographics
institutional advertising
designed to enhance a company's image rather than promote a particular product
competitive advertising
designed to influence demand for a specific brand -used when product enters its growth phase -goal is to influence demand for a specific brand
pioneering advertising
designed to stimulate primary demand for a new product or product category -used in introductory stage of the product life cycle -offers consumers in depth information about the benefits of the product class
break even analysis
determines what sales volume must be reached before total revenue equals total costs -provides quick estimate of how much the firm must sell to break even and how much profit can be earned if a higher sales volume is obtained
receivers
develop and adapt messages and spot new communication opportunities
retail marketing strategy
developed based on the goals established by stakeholders and the overall strategic plans developed by company leadership
interpersonal communication
direct, face to face communication between two or more people -ex. salesperson speaking directly with a customer
coupons
discounts offered via paper, a printable web page, or an electronic code
inactives
do none of these things
post campaign evaluation
done by advertisers to identify how the campaign might have been more efficient and what factors contributed to its success
publicity
effort to capture media attention, often initiated through press releases that further a corporation's public relations plans
digital channels
electronic pathways that allow products and related information to flow from producer to consumer -allow for either push or pull based information and product flows to occur
public relations
element in the promotional mix that evaluates public attitudes, identifies issues that may elect public concern, and executes programs to gain public understanding and acceptance
brand mark
elements of a brand that cannot be spoken
form utility
elements of the composition and appearance of a product that makes it desirable
sustainable supply chain management
embraces the need for optimizing social and environmental costs in addition to financial costs -enables firms to address business needs and develop long term initiatives that allow it to mitigate risks and avail itself of future opportunities
reverse channels
enable customers to return products or components for reuse or remanufacturing
click and connect
enables customers to buy something online and then pick up the merchandise from a physical store
returns management process
enables firms to manage volume of returned product efficiently -minimizes returns related costs and maximizes the value of the returned assets to the firms in the supply chain -handling returns quickly creates a positive image -gives the company an additional opportunity to please the customer
customer integration
enables firms to offer long lasting, distinctive, value added offerings to customers who represent the greater value to the firm or supply chain
non store retailing
enables shopping without visiting a physical store location -automatic vending, direct retailing, direct marketing, and online retailing
manufacturing flow management process
ensures that firms in the supply chain have the needed resources to manufacture with flexibility, and move products through a multi stage production process -Intends to improve overall manufacturing output by leveraging the capabilities held by multiple members of the supply chain -lean or agile strategy is selected depending on the product
independent retailer
establishment is owned by an individual or a group
product
everything, both favorable and unfavorable, that a person receives in an exchange -tangible goods -services -ideas
trade marks
exclusive rights to use a brand or part of a brand
Digital Millenium Copyright Act (DMCA) of 1998
explicitly applies trademark law to the digital world -includes financial penalties for those who violate trademarks and register an otherwise trademarked term
consumer penalty
extra fee paid by the consumer for violating the terms of the purchase agreement
premium
extra item offered to the consumer in exchange for some proof of purchase of the promoted product -reinforces consumer's purchase decision -Increases consumption and persuades non users to switch brands
service sector
fastest growing part of the US economy
decline stage
final stage in the product life cycle where price may decrease further until only one firm is left in the market -prices begin to stabilize at this stage and may even increase as the product moves into the specialty goods category
penetration pricing
firm charges a relatively low price for a product when it first rolled out as a way to reach the mass market -requires a higher volume of sales to reach break even point -low prices can attract additional buyers to the market
price skimming
firms changes a high introductory price, coupled with heavy promotion -successful with a strong demand for a good or service -product is legally well protected, represents a technological breakthrough, or has blocked the entry to competitors
retailers
firms in the channel that sell directly to customers -simplify distribution by reducing the number of transactions required by consumers and making an assortment of goods available in one location
listening
first action a marketing team should take when initiating a social media campaign
screening
first filter in the product development process -eliminates ideas that are inconsistent with the organizations new product strategy or are inappropriate for some other reason
introductory stage
first stage of product life cycle, prices are set high to recover development costs -demand originates in the core of the market and is relatively inelastic
introductory stage
first stage of the product life cycle with high failure rates, little competition, frequent product modification, limited distribution, and high marketing/production costs -sales increase slowly -profits turn negative -promotion focuses on awareness and information -communication challenge is to stimulate primary demand
persuasive labeling
focuses on promotional theme or logo -consumer information is secondary
connect promotion
forms relationships with customers through social media
product development and commercialization process
group of activities that facilitates the joint development and marketing of new offerings among a group of supply chain partner firms -capability for developing and introducing new offerings quickly is key for competitive success versus rival firms
product lines
groups of closely related product items
managers
have a greater chance of successfully marketing products if they understand how consumers learn about and adopt products
informational labeling
helps consumers make proper product selections -lowers a consumers cognitive dissonance after the purchase
Magnuson-Moss Warranty Federal Trade Commission Improvement Act
helps consumers understand warranties and gets action from manufacturers and dealers
DAGMAR approach
helps set objectives that define target audience, desired percentage change in some specified measure of effectiveness, and time frame for the change
omnichannel marketing
helps unify retail interfaces so that all customers receive equal and efficient service -helps retailers merge their distribution channels -by making their inventory data available to customers in real time -creating greater customer control over the shopping experience, leading to greater satisfaction and loyalty
packaging
Container for promoting the product
long term
Contests and sweepstakes are unsuccessful tools to generate ________ sales
advertising objective
Creative work begins with determining an ______________
A is an upstream supply chain member, while C is the downstream chain member
Entity A supplies planed timber, paint, varnish, springs, upholstery, and cushioning to Entity B, which produces a ready to use furniture. Entity C is the marketing department of Entity B. In this context, ______.
exclusive distribution
Establishes one or a few dealers within a given area
they require wide distribution in order to sell sufficient quantities
Eve Aura, a manufacturer of bath and beauty products, predominantly sells convenience products. Given this information, which is a characteristic of Eve Aura's products?
crisis
Failure to respond to criticism leads to ______
product lines
Groups of closely related product items
make a slight change in the design or function of the existing products
Hamdi Corp. manufactures and sells accessories for cell phones. To boost its sales, the research and development team decides to use product modification as an approach to new product development. In this scenario, the research and development team will most likely:
-providing specialization and division of labor -overcoming discrepancies -providing contact efficiencies
How do channel members facilitate distribution? (3)
they ramp up their fulfillment capabilities at distribution centers
How do retailers respond to customers who "showroom" and just visit a physical retail store to examine product features or quality firsthand before eventually making the purchase online?
flighted
In a ___ media schedule, advertising is run heavily every other month or every two weeks
facilitating
In channel functions performed by intermediaries, ____ functions are research and financing
material and service supplier integration
In external supply chain integration ____________ requires firms to link seamlessly to those outsiders that provide goods and services to them.
critics
In the categories of social media users, ______ post comments, ratings, and reviews of products and services on blogs and forums
virtual worlds/online gaming
Include massive multiplayer online games and online communities -becoming an important, viable, and growing consideration
nature of demand
Lower the price, higher the demand for a product or service and vice versa - At higher prices, supply increases as manufacturers earn more capital and vice versa
shopper analytics
Manufacturers and retailers use _______ to understand customer shopping attitudes, emotions, and behaviors
high dealer margins are often needed to obtain adequate distribution
Marketing costs are high in the introductory stage of the product life cycle because ______
Marla, a 55 year old woman, needs to move out of town. She wants to connect with some old school friends and stay in touch with former colleagues. Which of the following is Marla most likely to use for this purpose?
microblog
MirrorSense is a social networking site that allows members to write their views and opinions about various products, services, social issues, and more. However, members on this website can write no more than 140 characters. In this case, MirrorSense is a ________.
new product strategy
Most companies follow a formal new product development process, usually starting with a ________
low
Online only retailers have ____ operating costs
status quo pricing
Pricing that maintains existing prices or meets the competition's prices is called:
-type of ownership -level of service -product assortment -price
Retail establishments can be classified based on: (4)
small
Retail industry in America comprises mostly ______ businesses
shopping bots
Searches the web for the best prices for a particular item that one wishes to purchase -give pricing power to the consumer
destination stores
Stores in isolated locations must become _______ in order to be successful
barriers enablers
Supply chain integration involves a balance between ______ and _____
competitive advantage
Supply chain management helps firms gain _______________
True
T or F. A convenience product is a relatively inexpensive item that merits little shipping effort--that is, a consumer is willing to shop extensively for such an item
False
T or F. A one brand name strategy should be adopted when the name cannot be pronounced in the local language, when the brand name is owned by someone else, or when the brand name has a negative or vulgar connotation in the local language
False
T or F. A rebate is a discount to wholesalers and retailers for performing channel functions.
True
T or F. A relative product failure results when a new product returns a profit but fails to achieve its goals for sales, profit, or market share
True
T or F. A similarity between the customer relationship management process and the supplier relationship management process is that both provide structural support for developing and maintaining relationships with their respective supply chain partners.
True
T or F. Captive brands allow the retailer to ask a price similar or equal to manufacturers' brands, and the retailer typically displays captive brands alongside mainstream products
False
T or F. Decrease in consumer demand for green products was directly responsible for the proliferation of green certifications
False
T or F. Determining a target mix is optional while creating the retailing mix.
True
T or F. Facebook is by far the largest social network for gaming.
False
T or F. Family branding is about using different brand names for different products
False
T or F. Gwenta Corp. a soft drink manufacturing company, pays a certain quarterly amount to its distributors who display the soft drink's latest ad on their distribution trucks. This quarterly payment is referred to as a noncumulative quantity discount.
False
T or F. In a multichannel marketing system, each channel does not hold its own inventory.
False
T or F. Joiners are those social media users who read blogs, listen to podcasts, watch videos, and generally consume media.
False
T or F. Marketers are senders of messages and do not act as receivers.
True
T or F. Marketers have found that social news sites are useful for creating conversations around relevant issues.
True
T or F. Order cycle time is the time between order and customer receipt
False
T or F. Shopper marketing is responsible for the decline fo the partnership trend between brand manufacturers and specific retailers.
False
T or F. The focus of businesses has shifted toward determining how products and services are being "pushed" into the marketplace by manufacturers as well as on partnering with members of the supply chain to enhance customer value.
False
T or F. The product life cycle for a brand is usually longer than the PLC for a product form.
True
T or F. The rate of the decline fo sales during the product life cycle is governed by how rapidly consumer tastes change or substitute products are adopted.
True
T or F. The three most important functions of packaging are to contain and protect products; promote products; and facilitate the storage, use, and convenience of products.
False
T orF. The three aspects of packaging that are especially important in international marketing are product line extension, product mix width, and brand equity
form
The composition and appearance of a product that make it desirable constitute its ____ utility
product offering
The first element in the retailing mix is the ______.
screening
The first filter in the product development process is:
dynamic pricing
The managers at Click to Door, an e commerce website, closely monitor its rival online retailers to analyze how consumers respond to changes in the prices of certain products. They use the results of this analysis to constantly change the prices on their website to maximize sales and profits. In this case, which of the following pricing strategies does Click to Door follow?
postpone objective evaluation and focus on the sheer quantity of ideas generated
The objective of brainstorming is to ______.
predatory pricing
The practice of charging a very low price for a product with an intent to drive competitors out of business or out of a market is called:
freight absorption pricing
The seller pays for all or part of the freight charges and does not pass them on to the buyer
nearly eliminates transportation of finished goods to distribution centers and retailers
Three dimensional printing is expected to dramatically reduce businesses' carbon footprints because the technology ___________.
generic product name
identifies a product by class or type and cannot be trademarked
ingredients branding
identifies the brand of a part that makes up the product
social media monitoring
identifying and assessing what is being said about a company, individual, product, or brand
new products
important to sustain growth, increase revenues and profits, and replace obsolete items
electronic distribution
includes any kinds of product or service that can be distributed electronically -through traditional forms or through satellite transmission of electronic signals
time utility
increase in customer satisfaction gained by making a good or service available at the appropriate time
exchange utility
increased value of a product that is created as its ownership is transferred
convenience products
inexpensive items that merit little shipping effort
senders
inform, persuade, and remind the target market to take actions favorable to purchase of product
promotion
informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response
merchant wholesaler
institution that buys goods from manufacturers and resells them to wholesalers, retailers, or businesses -takes title to goods, stores them, and later ships them
basing point pricing
involves charging freight from a given point, regardless of the city from which the goods are shipped
reminder promotion
keeps the product and brand in the public's mind
decline stage
last stage in the product life cycle when long run drop in sales, large inventories of unsold items, elimination of all nonessential marketing expenses, and organized abandonment
unfair trade practice acts
laws that prohibit wholesalers and retailers from selling below cost
presentation
layout and atmosphere
place
location and hours
joiners
maintain a social networking profile and visit other sites
status quo pricing
maintains existing prices or meets the completion's prices -leads to suboptimal pricing
pull strategy
manufacturer promotes to consumer, consumer demands product from retailer, retailer demands product from wholesaler, wholesaler demands product from manufacturer
push strategy
manufacturer promotes to wholesaler, wholesaler promotes to retailer, retailer promotes to consumer, consumer buys from retailer
outsourcing
manufacturers or suppliers use of independent third party to manage an entire function of the logistics system -can be third party logistics company or fourth party logistics company -reduces inventories -locates stock at fewer plants and distribution centers -provides same or better levels of service
sales promotion
marketing communication activities other than advertising, personal selling, and public relations, in which a short-term incentive motivates consumers or members of the distribution channel to purchase a good or service immediately, either by lowering the price or by adding value -goal is the give the consumer an incentive to make an impulse purchase
family branding
marketing several different products under the same brand name
margin
must provide adequate funds to cover selling expenses and profit
pricing objectives
need to be specific, attainable, and measurable -profit oriented, sales oriented, or status quo
ROI
net profit after taxes divided by total assets
nontraditional channels
non physical channels that facilitate the unique market access of products and services
depth
number of different brands offered within each assortment
supply chain integration
occurs when multiple firms or business functions in a supply chain coordinate their activities and processes so that they are seamlessly linked to one another
cooperative branding
occurs when two brands receiving equal treatment borrow from each other's brand equity
cash discounts
offered in return for prompt payment of a bill
quantity discounts
offered when a customer buys multiple units or above a specified dollar amount
functional discounts
offered when channel intermediaries perform a service for the manufacturer
zero percent financing
offers no interest charge in order to increase sales -does cost the manufacturers
competitive advantage
one or more unique aspects of an organization that cause target consumers to patronize that firm rather than competitors
AIDA concept
outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message -proposes that consumers respond to marketing messages in a cognitive, affective, and cognitive sequence
brand name
part of a brand that can be spoken, including letters, words, and numbers
chain store
part of a group of the same stores owned and operated by a single organization
channel members
parties who negotiate with one another, buy and sell products, and facilitate the change of ownerships between buyer and seller while moving the product from the manufacturer to the final consumer
promotional allowances
payments to dealers for promoting the manufacturers products
conversationalists
people who post status updates on social networking sites and microblogging services
apps
perform platform specific or convert existing content to mobile format -can generate buzz and customer engagement
available funds
permit firms to optimize their return on promotion dollars while minimizing the cost per contact
trading up
persuading customers to buy a higher priced item than they originally intended to buy
trading up
persuading customers to buy a higher priced item they they originally intended to buy is called:
co branding
placing two or more brand names on a product or its package
promotional strategy
plan for optimal use of the elements of promotion--advertising, public relations, personal selling, sales promotion, and social media
new product strategy
plan that links the new product development process with the objectives of the marketing department, business unit, and corporation -sharpens the focus and provides general guidelines for generating, screening, and evaluating new product ideas
advertising
popular form of promotion -helps change a consumer's negative attitude toward a product into a positive one -reinforces positive attunes toward brands -can affect the way a consumer ranks a brand's attributes
critics
post comments, ratings, and reviews of products and services on blogs and forums
predatory pricing
practice of charging a very low price for a product with an intent to drive competitors out of business or out of a market
customer service management process
presents a multi company, unified response system to customers when complaints, concerns, questions, or comments are voiced -has strong positive impact on revenues when executed properly -enhanced by the use of customer care software
revenue
price charge to customers multiplied by the number of units sold
sales oriented pricing
pricing objective focused on maintaining or increasing market share, and maximizing sales
profit oriented pricing
pricing objective that focused on profit maximization, satisfactory profits, and target return investment (ROI)
communication
process by which meanings are exchanged or shared through a common set of symbols
diffusion
process by which the adoption of an innovation spreads
big data analytics
process of discovering patterns in large data sets for the purposes of extracting knowledge and understanding human behavior
creators
produce and share online content like blogs, websites, articles, and videos
-innovation
product perceived as new by a potential adopter
unsought products
products unknown to the potential buyer or known products that the buyer does not actively seek
sweepstakes
promotions in which participants are able to win depending on chance
contests
promotions in which participants use some skill or ability to compete for prizes
warranty
protects the buyer and gives essential information about the product
globalization
provides a reason for multinational firms to consider new product development from a worldwide perspective
blog
publicly accessible web page that acts as an interactive journal, whereby readers can post comments on the author's entries
level of service
ranges from full-service to self-service
spectators
read blogs, listen to podcasts, watch videos, and consume media
order fulfillment process
reduces order cycle time when at its best -Involves understanding and integrating the firm's internal capabilities with customer needs and matching these together -for allowing supply chain to maximize profits and minimize costs and waste
brand cannibalization
reduction of sales for one brand as the result of the introduction of a new product
measurement integration
reflects the idea that performance assessments be transparent, measurable, and should assess the performance of the supply chain as a whole -holds each individual firm or business unit accountable for meeting its own goals
franchise
relationship in which business rights to operate and sell a product are granted by the franchisor to the franchisee
marketing channels
represent the place or distribution element of the marketing mix
shopping products
require comparison shopping -more expensive and found in fewer stores
material and service supplier integration
requires firms to link seamlessly to those outsiders that provide goods and services to them -to enable the firms to streamline processes and provide quality customer experiences
highly integrated process
requires people from multiple companies and functions to gather and coordinate to create customer satisfaction at a given place and time
facilitating functions
research and financing
profit
revenue minus expenses
growth stage
second stage in the product life cycle where prices tend to stabilize due to increase product supply from competitors, increased product appeal to a broader market, and decreased costs from economies of scale
growth stage
second stage of the product life cycle with increasing rate of sales, entrance of competitors, market consolidation, initial healthy profits, aggressive advertising of the differences between brands, and wider distribution
suggestion selling
seeking to broaden customers original purchases with related items
beacon
sends out connecting signals to customers smartphones and tablets in order to bring them into a retail store or improve their shopping experience
media planning
series of decisions advertisers make regarding the selection and use of media -allows the marketer to optimally and cost effectively communicate the message to the target audience
advertising campaign
series of related advertisements focusing on a common theme, slogan, and set of advertising appeals
marketing channels
sets of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer -facilitate distribution via channel members
value based pricign
sets the price at a level that seems to the custom to be a good price compared to other prices
social media plan
should be outlined to effectively use social media tools
social commerce sites
sites that include ratings and recommendations -help consumers make more informed decisions on purchases and services
product items
specific versions of a product that can be designated as a distinct offering among an organizations products
development
stage in the product development process that includes developing a prototype, sketching a marketing strategy, deciding on packaging/branding/labeling, mapping out promotion, price, and distribution, and examining manufacturing feasibility
AIDA
stands for attention, interest, desire, and action
persuasive promotion
stimulates a purchase or an action
complementary branding
suggests usage by advertising and marketing products that are used together
supplier relationship management process
supports manufacturing flow by identifying and maintaining relationships with highly highly valued suppliers -highly dependent on supplier relationships for flexibility -provides structural support for developing and maintaining relationships with suppliers
supply chain orientation
system of management practices that are consistent with a "systems thinking" approach
drop and shop
system used by retailers that allows customers to bring used products for return or donation at the entrance of the store
simultaneous product development
team oriented approach to new product development
concept test
test to evaluate a new product idea, usually before any prototype has been created
FOB origin pricing
the buyer is required to absorb the freight costs from the shipping point
test marketing
the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation -often takes one year or more -exposes the new product to competitors -can cost $1 million
branding
the main tool marketers use to distinguish their products
planned obsolescence
the practice of modifying products so those that have already been sold become obsolete before they actually need replacement
revenue
the price charged to customers multiplied by the number of units sold
big data analytics
the process of discovering patterns in large data sets for the purposes of extracting knowledge and understanding human behavior is called:
uniform delivered pricing
the seller pays the actual freight charges and bills every purchaser an identical, flat freight charge
brand equity
the value of a company or brand name
maturity stage
third stage in the product life cycle where sales increase at a decreasing rate, saturated markets, annual models appear, lengthened product lines, service and repair assume important roles, heavy promotions to consumers and dealers, marginal competitors drop out, and niche marketers emerge
maturity stage
third stage of the product life cycle with further decreases in price as competition increases and high cost firms are eliminated -distribution channels become a significant cost factor because of the need to offer wide product lines -usually only most efficient manufacturers remain
product advertising
touts the benefits of a specific good or service
service mark
trademark for a service
logistical functions
transportation and storage of assets and their sorting, accumulation, consolidation, and or allocation of assets
demand supply chain integration
type of internal supply chain integration that integrates the supply management and demand generating functions of an organization -enhances customer satisfaction
shopper marketing
understanding how target consumers behave in different channels and formats -Info is leveraged to generate sales or other positive outcomes
gray marketing channels
unintended secondary channel that often flow illegally obtained or counterfeit product toward customers
implied warranty
unwritten guarantee that the good or service is fit for the purpose for which it was sold
older teens/adults
use Facebook
young adults
use match.com, okCupid, and Tinder
paid media
use of traditional media
dual channels
use of two or more channels to distribute the same product to target markets
teens
use snapchat, instagram, twitch, Yik yak, and Tumblr
AIDA model
used for advertising campaigns -depending on where the consumers are in the model, creative development might focus on creating attention, arousing interest, stimulating desire, and leading to the action of buying the product
discounts
used to encourage customers to do what they would not ordinarily do, such as pay cash, take delivery out of season, or performing certain functions within a distribution channel
Cloud computing
used to extract useful data
place utility
usefulness of a good or service as a function of the location at which it is made available
yield management system
uses complex mathematical software to profitably fill unused capacity by discounting early purchases and limiting early sales at discounted prices and over booking capacity
crowdsourcing
using consumers to develop and market products
individual branding
using different brand names for different products
agents and brokers
wholesaling intermediaries who facilitate the sale of a product by representing channel members
product
width and depth of product assortment
earned media
word of mouth or online buzz about a brand
express warranty
written guarantee warranty