Marketing Final Exam
Evaluation Criteria
Attributes that consumer considers important about a certain product
Behavioral Segmentation
Divides a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product
Geographic segmentation
Divides groups based on physical location
Demographic segmentation
Divides the market into segments based on variables such as age, generation, etc
Materialism
Encourages consumers to focus on the acquisition and possession of objects/things they may not need
Deceptive Pricing
Encourages customers to believe they are getting a better value than they are. Intentionally misleading advertising sale prices or other deceptive techniques
Indirect Competitors
Firms that compete with products that have different characteristics but serve similar function
Deceptive Promotions
Firms try to amplify a product's features and performance
Marketing Myopia
Focusing on the specific products rather than the benefits/experiences produced
Capturing Value
For firms to capture value they must identify ways in which they can gain in some way through the exchange
Shifts in secondary Beliefs and Values
How people view themselves, others, organizations, society, nature and the universe
Positioning
How the product is defined by consumers on important attributes
labeling and Logos
Identifies the product or brand, describes attributes and provides promotional value
Competitive Advantage
Identify competitive advantages and select the ones consistent with consumer beliefs
good-value pricing
Is offering just the right combination of quality and good service at a fair price
Channel Level
Layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer adding value
Selling Concept
Marketing belief that customers will not buy enough focuses on transactions and use large-scale selling and Promotions
Ethics
Moral standards expected by society
Evoke Set
Set consists of those brands which the consumer is aware of and considers for purchase
Penetration Pricing
Set price at a very low price to attract buyers and large market share or win customers initially and turn them into loyal customers
Cost-Based Pricing
Sets prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk
High-Pressure Selling
Sometimes a salesperson's compensation might be tied directly to how much he or she sells
Target Costing
Starts with an ideal selling price based on consumer value considerations and then targets costs that will ensure that the price is met
Micro Environment
The current internal environment where marketing is influenced by the firm's choices and firms may alter them
Style and Design
describes the appearance of the product but does not necessarily make the product better
Selective
distribution of products through a limited number of dealers (Luxury brands)
Marketing Concept
holds that achieving organizational goals depends on knowing the need/wants of the customers and delivering the desired satisfaction
Reference Groups
made up of people to whom a consumer compares himself or herself
Secondary Beliefs and Values
more open to change and include other's views of themselves including people, organizations, society, nature, and the universe
Geo Demographic
A hybrid form of segmentation that considers geographic and demographic factors
Cognitive Dissonance
A mental conflict that occurs when consumers acquire new information that contradicts their beliefs or assumptions about the purchase
Value
An equation of Benefits that meet needs/wants minus Cost
Predatory Pricing
A strategy to intentionally sell below cost to push a competitor out of a market, then raise prices to new highs is called predatory pricing
Cost-Plus Pricing
Adds a standard mark-up to the cost of the product
Purchase Decision
After evaluating alternatives, consumers will most likely purchase a product
Meeting Customer Needs
Aim of marketing is to provide customer value by conducting research to understand needs
Product line pricing
Also referred to as price lining, sets price points between barious products in a product line
Product Features
Characteristic that describes the product
Communications
Communicate important attributes and deliver on promises
external Information Search
Consumers seek information beyond their personal knowledge and experience
Internal Information Search
Consumers use past experience switch items from the same brand or product class as sources of information
Marketing Strategies
Develop marketing strategies consistent with offering's competitive advantages
Exclusive
Distribution of product through a one/few intermediaries in a specific geographic region (automobiles)
Intensive
Distribution of products in as many outlets as possible. Boosts revenue, impulse buying, convenience, awareness
Psychographic Segmentation
Divides a market into different segments based on social class, lifestyle, or personality characteristics
Planned Obsolescence
In order to create a feeling of excitement and exclusivity, marketers might purposely cause their products to run out before demand is satisfied
Place
Includes the activities a firm undertakes to make ts product available to potential consumers
Opinion Leaders
Individuals who exert an unequal amount of influence on the decisions of others because they are considered knowledgeable about products
Marketing Environment
Internal and external factors that affect a firm's ability to succeed and formatted to identity strengths, weaknesses, opportunities, and threats
every-day-low pricing
Involves charging a constant everyday low price with few or no temporary price discounts
Packaging
Involves designing and producing the container or wrapper for a product
Tactical Greening
Involves implementing limited change within a single area of the
Price Discrimination
Occurs when a seller offers different price to different customers without a substantive basis, such that competition is reduced
Value Creation
Occurs when consumers use products or services that satisfy their needs and wants
Actual Cost
Often more than the initial price
Evaluation of Alternatives
Once Consumers acquire information, they can use it to evaluate different alternatives
deceptive Packaging
Packaging to exaggerate the contents of the package, making consumers think they are getting more than they are
Observability
People can see others using a product and perceive value in its use
Customer Value
Perceived benefits that customers received from a product compared to its cost
Core Beliefs and Values
Persistent and are passed on from parents to children and are reinforced by schools, churches, businesses, and government
High Prices
Priced higher than needed and blame on distribution and advertising costs and excessive markups
Reference Pricing
Prices that buyers carry in their minds an refer to when they look at a given product
high-low pricing
Pricing involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items
Optional Product Pricing
Pricing of optional or accessory products along with a main product
Complexity
Product is easier it is to understand and use a product
Trialability
Products that consumers can try without significant expense
Corporate Social Responsibility
Refers to an organization's obligations to maximize its positive impact and minimize its negative impact on society
The Cohort Effect
Tendency of members of a generation to be influenced and bound together by significant events in their formative year or age
Compatibility
The Product fits potential customer's needs, values, product knowledge, and past behaviors
Macro Environment
The act of monitoring developments that influence the marketing plan but outside of the firm's control with the goal of detecting and responding to threats and opportunities
Marketing AMA Definition
The activity, set of institutions and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at Large
Price
The amount of something - money, time, or effort - that a buyer exchanges with a seller to obtain a product. It relates the customer's assessment of the value of the product and allows the firm to capture value from customers
Price
The primary way that firms capture value from customers
Sustainable marketing
The process of creating, communicating, and delivering value to customers through the preservation and protection of the natural systems that provide the natural resources upon which our society and economy depend
Situation Analysis
The process of gathering information on the internal and external environments to asses the firm's SWOT and to guide its goals and objectives
Strategic Planning
The process of thoughtfully defining a firm's objectives and developing a method for achieving those objectives.
Product Life Cycle
The progression of a product category rather than a product item through the four stages of its time on the market
Marketing Strategy
The set of actions taken to accomplish organization objectives
Supply Chain
Three or more companies directly linked by one or more of the upstream and downstream flows of products, services, finances, and information from a source to a customer
Perceptual maps
Tool used to show the customer's perception of a brand relative to competing brands on important attributes
Value-based Pricing
Uses the buyers perceptions of value rather than the sellers cost
Quasi-strategic Greening
Usually involves more substantive changes`
Sustainable Competitive Advantage
What resources/abilities does the firm have that are difficult to duplicate and that provides a superior long-term position over competitors
Marketing to children
Young people are a growing audience for marketers as they are increasing in their buying power, vulnerable and susceptible to manipulations
Product
central element around which all other elements revolve. A specific combination of goods, services, or ideas that a firm offers to consumers.
Promotional Pricing
characterized by temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales
Marketing Mix
combination of Activities that represent areas a firm can adjust to influence demand for its good, service, or idea, known as the 4Ps
Product bundle pricing
combining multiple products and offering the bundle and sold together at a reduced price
Price fixing
companies that collude to set prices at a mutually beneficial high level are engaged in price fixing
Marketing environment
comprises internal factors and changes in external factors that affect firms and may help or hurt a product in the marketplace
Psychological Pricing
considers the psychology of prices and not simply the economics; the price is used to say something about the product
Direct competitors
firms that compete with products designed around the same or similar characteristics
Shoddy/Unsafe Products
for many consumers, quality control is a major concern. Firms that aim to cut costs by reducing quality
Captive product pricing
price components required to support a product already purchased
Strategic greening
requires a holistic approach that integrates and coordinates all the firm's activities on environmental issues across every functional area
Segmentation pricing
selling a product or service at two or more prices, where the difference in prices is not based on differences in costs
market-price skimming
set highest initial price to skim max revenue from segments willing to pay high price
Branding
the name, term, sign, or design or a combination of these, that identifies the maker or seller of a product or service
Promotions
what most people think of when asked to describe marketing. Successful promotion involves the firm's ability to integrate its promotional activities in a way that maximizes the value of each
Product mix pricing
when product is part of a product mix, firms seek a set of prices that will maximize profits from the total mix
