MKT 320F FINAL REVIEW

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What does BCG Portfolio Matrix do?

Classifies SBUs by present or forecast growth and relative market share

What is 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?

Marketing

T/F: Shorter marketing channels means fewer intermediaries.

T

T/F: all variable and fixed costs have been absorbed at the break even point

T

T/F: traditional retailers have been unable to respond well to the advance in technology

T

gross margin =

(Price * cumulative demand) - costs

what are the 6 steps in the purchase-decision process for consumers?

1. awareness 2. interest 3. evaluation 4. action 5. loyalty 6. advocacy

what are the 7 basic steps of marketing research process

1. identify and formulate the problem/opportunity 2. plan the research design and gather secondary data 3. specify the sampling procedures 4. collect primary data 5. anaylze the data 6. prepare and present the report 7. follow up

what are the 7 stages of new product development?

1. new product strategy 2. idea generation 3. idea screening 4. business analysis 5. development 6. test marketing 7. commercialization

majority fallacy in identifying target segments

a company targets the largest segment of consumers, which seems wise but is actually a mistake because everyone else is targeting that large segment and it makes competition intense so no one really makes a lot of money

market share

a company's product sales as a percentage of total sales for that industry

selective distribution

a form of distribution achieved by screening dealers to eliminate all but a few in any single area

intensive distribution

a form of distribution aimed at having a product available in every outlet where target customers might want to buy it

exclusive distribution

a form of distribution that establishes one or a few dealers within a given area

product line

a group of closely related product items

supply chain management

a management system that coordinates and integrates all of 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

perceptual mapping

a means of displaying or graphing the location of products, brands, or groups of products in customers' minds

brand

a name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitors' products

product item

a specific version of a product that can be designated as a distinct offering among an organization's products

marketing objective

a statement of what is to be accomplished through marketing activities

multi-segment targeting

a strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each

concentrated targeting

a strategy used to select one segment of a market for targeting marketing efforts

scanner-based research

a system for gathering information from a single group of respondents by continuously monitoring the advertising, promotion, and pricing they are exposed to and the things they buy

yield management system

a technique for adjusting prices that uses complex mathematical software to make use of underutilized capacity and reduce the cost of perishability

marketing mix

a unique blend of product, place (distribution), promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market

what is the predictive role of marketing research

addressing future "what if" questions

product mix

all products that an organization sells

social media

any tool or service that uses the Internet to facilitate conversations

market development

attract new customers to existing products (ansoff)

positioning bases include:

attributes, price/quality, use/application, product user, product class, competitor, and emotion

product mix depth

average number of different products offered in each product line

adaption process for consumers (4 steps)

awareness, interest, evaluation, regular usage

What are the four basic strategies of the BCG Matrix?

build, hold, harvest, divest

According to the BCG Matrix, which category has high market share and low growth rate?

cash cow

According to the BCG Matrix, which category of SBU is in a low-growth stage but has a dominant market share?

cash cow

functional modification of a product

change in a product's versatility, effectiveness, convenience, or safety

quality modification of a product

change in a products dependability or durability

reverse channels

channels that enable customers to return products or components for reuse or remanufacturing

what are the 2 common methods for business segmentation?

company characteristics and buying processes

explain the volume objective of pricing

considers a minimum level of profitability but focuses on gaining market share and increasing sales

brand loyalty

consistent preference for one brand over all others

credence quality

consumers are not able to evaluate the service effectively even through experience

strategic channel alliances

cooperative agreement between business firms to use the other's already established distribution channel

what makes up the "whole" product/service?

core benefit, primary characteristics, secondary characteristics

A major goal of marketing is to:

create an exchange

product development

create new products for present markets (ansoff)

pricing does what 3 things?

creates revenue sends messages about quality and competitive position comprehends an organization's cost structure (while maintaining competitive pressure, legal and economic constraints, and customer demand)

______ ________ is defined as the relationship between benefits and the sacrifice necessary to obtain those benefits.

customer value

what prices for maturity stage

decrease in prices as competition increases

as price increases, demand ____________

decreases

what are the six elements of a marketing plan?

define a mission statement, perform a situation analysis, define objectives, delineate a target market, establish components of the marketing mix, establish the four Ps (product, place, promotion, price)

willingness to pay is the same was what

demand elasticity

what are the 3 roles of marketing research?

descriptive diagnostic predictive

How does a company segment businesses by their buying processes?

determine how much, what kind of things they buy, what kind of service they want, and target them specifically, determine whether they are satisficers or optimizers

receivers in the communication process do what 3 things?

develop messages, adapt messages, spot new communication opportunities

positioning

developing a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general

what are the 4 types of marketing channel structures?

direct, retailer, wholesaler, agent/broker

Firms expand their product mix width to __________ _______.

diversify risk

fixed costs

do not vary with unit production or unit sales

According to the BCG Matrix, which category of SBU has low growth potential and a small market share?

dog

According to BCG matrix, which category has low market share and low growth rate?

dogs

Analyze aspects of the marketing environment by ________ ___________

environmental scanning

Who is responsible for marketing?

everyone in the organization

what is the biggest change due to new platforms and services?

everyone is interconnected and marketers can reach consumers anywhere at anytime

what is the diagnostic role of marketing research

explaining data

Mass market has ___________ so IMC is harder.

fragmented

what is the descriptive role of marketing research

gathering and presenting factual statements

Company Characteristics

geographic location, type of company, company size, volume of purchase, product use that can be used to segment business markets

what are the 5 common methods for consumer segmentation?

geographic, demographic, psychographic, benefit, usage

In the BCG Matrix, what is divesting?

getting rid of SBUs with low shares of low-growth markets

In the BCG Matrix, what is building?

giving up short-term profits and using financial resources to achieve the goal

what are some the secondary characteristics that make up the whole product/service?

guarantees and warranties, installation, shipping, credit, associated services

What is the result of declining population growth, rising costs, and shortages of resources?

heightened domestic competition

competitive intelligence

helps managers assess their competitors and their vendors in order to become more efficient and effective competitors

if it is easily evaluated after experience the item, it has _________ experience quality

high

what prices for introductory stage

high prices to recover development costs quickly

Organizations have a __________ level of involvement in their purchases compared to individual consumers.

higher

explain the prestige objective of pricing

higher price indicates higher status and people want to purchase products that others cannot afford

sales orientation

how can we sell more aggressively?

what are the four requirements for effective segmentation?

identifiability and measurability, sustainability, accessibility, and responsiveness

positioning statement

identifies the target market, makes an important claim about the product relative to competitor offerings, provides support for their advantage

search quality

if something can be easily assessed before purchase

advertising

impersonal, one-way mass communication about a product or organization that is paid for by a marketer

what are the two uses of marketing research

improves the quality of decision making for management helps managers understand whether and when changes should be made to existing products/services

market penetration

increase market share among existing customers (ansoff)

diversification

increasing sales by introducing new products into new markets (ansoff)

In the BCG Matrix, what is harvesting?

increasing short-term cash return without too much concern for long-run impact

senders in the communication process do what four things?

inform, persuade, remind, connect

Which 3 categories of product adopters exist in the introduction/growth stage?

innovators, early adopters, early majority

what are the 5 categories of product adopters?

innovators, early adopters, early majority, late majority, laggards

what are the four characteristics that make services different from products?

intangibility, inseparability of production and consumption, heterogeneity, perishability

In what 3 ways does the organization buying process differ from the individual buying process?

involves more people, is more methodical , is more formal

Value is found _____ in brand recognition and more in _______ by others.

less, reviews

What are the 5 objectives of social media?

listen and learn build relationships and awareness promote products and services manage your reputation improve customer service

the more standardized the product, the ________ the distribution channel

longer

What two factors make up cost leadership strategy in porter's generic strategies?

low cost and broad target scope

What two factors make up focus strategy (low cost) in porter's generic strategies?

low cost and narrow target scope

What are the axes of Porter's Generic Strategies?

low cost or product uniqueness and target scope (narrow or broad)

benefits of supply chain management

lower costs, greater flexibility, improved customer service, higher revenues, differentiation

What are the four options in Ansoff's Strategic Opportunity Matrix?

market penetration, market development, product development, diversification

What are the four factors that can influence the selection of the marketing channel structure?

market, product, producer, social factors

product line extension

marketers add related products to an established brand to help reach a larger audience

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

A __________ ___________ states that the social and economic justification for an organization's existence is the satisfaction of customer want a needs while meeting organizational objectives.

marketing concept

what prices for decline stage

more price decrease to salvage the last demands

What are the 5 steps of the consumer buying process?

need recognition, information search, evaluation of alternatives, purchase, post-purchase behavior

what are the 5 PR tools

new-product publicity, product placement, consumer education, sponsorship, company websites

nontraditional channels

non-physical channels that facilitate the unique market access of products and services

Achieving a marketing orientation involves what 4 things?

obtaining information about customers, competitors, and markets examining the info from a total business perspective determining how to deliver superior customer value implementing actions to provide value to customers

what are some of the primary characteristics that make up the "whole product/service"?

packaging, styling and form, quality level, branding components

market

people or organizations with needs or wants and the ability and willingness to buy

In the BCG Matrix, what is holding?

preserve market share so the organization can take advantage of positive cash flow

functions of PR

press relations, product publicity, corporate communication, public affairs, lobbying, employee and investor relations, crisis management

secondary data

previously collected data for any purpose other the focused-on purpose of the research you're doing

explain the competition objective of pricing

price isn't a factor, utilizes product promotion and place (distribution) to establish competitive advantage that affect pricing as a result

revenue =

price x units

what are the advantages and disadvantage of advertising?

pro: one type of mass communication, directly from marketer to audience con: expensive, impersonal

what are the two types of sampling procedures and what do they mean?

probability - representative of population nonprobability - non-representative of sampling

According to BCG matrix, which category has low market share and high growth rate?

problem children

According to the BCG Matrix, which category of SBU has a low market share in a high-growth industry?

problem children

Which of the four Ps must be the first to be considered?

product

what are the two types of advertising?

product and institutional advertising

what are the three main purposes of branding?

product identification, repeat sales, new product sales

identify the 5 things that make up the hierarchy of a firm's product/service portfolio

product item product line product mix product mix width product mix depth

what are the 8 factors affecting pricing decisions

product life cycle competition distribution intranet/extranet promotion strategy customer demand price/quality relationship price discrimination laws

What two factors make up differentiation strategy?

product uniqueness and broad target scope

What two factors make up focus strategy (differentiation) in porter's generic strategies?

product uniqueness and narrow target scope

What are the four Ps?

product, place, promotion, price

what are the 4 objectives of pricing

profitability volume competition prestige

a survey is an example of qualitative or quantitative data?

qualitative

___________ data is the "what" and _____________ data is the "why

quantitative, qualitative

what are the four types of discrepancies that intermediaries overcome?

quantity, spatial, temporal, assortment discrepancy

what are the benefits of internet surveys?

rapid development, real-time reporting, reduced costs, personalized questions and data, higher response rate, contact with the hard-to-reach

What four things must be true of a marketing objective?

realistic, measurable, time specific, compared to a benchmark

break even analysis helps marketers understand how much more their marketing needs to generate in _________ for profit to be gained

revenue

cannibalization

sales of a new product cut into sales of a firm's existing product

What marketing communication tool is cheap, easy to measure, and has more effect on behavior than attitudes?

sales promotion

gray marketing channels

secondary channels that are unintended to be used by the producer, and which often flow illegally obtained or counterfeit product toward customers

describe sustainability of potential market segment

segment must be large enough to warrant developing and maintaining a special marketing mix

responsiveness of potential target segment

segmentation only needs to occur when different segments respond to a marketing mix differently

What are the 5 environmental forces affecting marketing strategies and tactics?

social/cultural/demographic, technological, environmental, economic, and political/regulatory

intermediaries allow firms to:

specialize and focus on what they do best (increases efficiency) improve contact efficiency, intermediaries can reach more people overcome discrepancies between the producer and customer

what prices for growth stage

stable prices because competitors have entered the market

According to the BCG Matrix, which category of SBU is a fast-growing market leader?

star

According to BCG matrix, which category has high market share and high growth rate?

stars

What are the four categories of SBUs in the BCG Portfolio Matrix?

stars, cash cows, problem children, dogs

What does SWOT analysis stand for?

strengths, weaknesses, opportunities, threats

what product characteristics influence the rate of adoption of that product?

superiority to other products relative advantage compatibility observability complexity

what is the most popular method of collecting primary data

survey research

drop and shop

system used by several retailers that allow customers to bring used products for return or donation at the entrance of the store

dynamic pricing

the ability to change prices very quickly, in real time using big data

supply chain

the connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function

market opportunity analysis

the description and estimation of the size and sales potential of market segments that are of interest to the firm and the assessment of key competitors in these market segments

publicity

the effort to capture media attention

public relations

the element in the promotional mix that evaluates public attitudes, identifies issues that may elicit public concern, and executes programs to gain public understanding and acceptance

describe accessibility of a potential target market

the firm must be able to reach the members of targeted segments with customized marketing mixes

integrated marketing communications

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

What does the competitive environment encompass?

the number of competitors, the relative size of competitors, and the degree of interdependence within the industry

product mix width

the number of product lines an organization offers

planned obsolescene

the practice of modifying products so those that have already been sold become obsolete before they actually need replacement

price equilibrium

the price at which demand and supply are equal

marget segmentation

the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups based on wants, needs, behaviors, cost sensitivities, and other factors that require variations in the marketing mix

marketing research

the process of planning, collecting, and analyzing data relevant to a marketing decision

demand

the quantity of a product that will be sold in the market at the various prices for a specified period

target segmentation

the subgroup chosen as the focal point for the marketing program and advertising campaign

Dual or multiple distribution

the use of two or more channels to distribute the same product to target markets

break even quantity =

total fixed cost / (price per unit - variable cost per unit)

price per unit =

total revenues / $ of units sold

types of sales promotion

trade sales promotion and consumer sales promotion

explain the profitability objective of pricing

uses marginal analysis to determine the price at which profit is maximized

variable costs

vary with unit production or unit sales, such as materials included in product or sales commissions

What question does the mission statement answer?

what business are we in?

production orientation

what can we make or do best?

marketing orientation

what do customers want and need?

societal orientation

what do customers want/need and how can we benefit society?

price

what is given up in exchange for a product

contribution margin

what is left over from the revenue after covering the variable cost (price per unit - variable cost per unit)


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