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Marketing Test 2
Chapters 7-12
72
Marketing
Undergraduate 3
10/27/2011

Additional Marketing Flashcards

 


 

Cards

Term
Segmentation
Definition
identifying and describing market segments
Term
targeting
Definition
evaluating segments and deciding which to pursue
Term
psychographics
Definition
dividing buyers into different groups based on social class, lifestyle or personality
Term
behavioral segmentation
Definition
dividing buyers based on knowledge, attitudes, uses and repsonses
Term
undifferentiated segment
Definition
avoids segmentation, appeals to wide spectrum of buyers
Term
differentiated strategy
Definition
developing separate marketing programs for different market segments, Ex. Nike, Toyota
Term
concentrated strategy
Definition
making products for a single segment, small firms
Term
product position
Definition
the way a product is defined by customers
Term

repositioning

 

Definition
deliberate attempts to change a company's image relative to other products, should say something about competition
Term
product quality
Definition

2 types, level and consistency,

level is the ability to perform funcions

consistency is freedom from defects

Term
product features
Definition
tool for differentiating a company's product from other products
Term
product style/design
Definition
appearence of a product, contributes to usefulness and look
Term
brand
Definition
name, term, sign, symbol or design that identifies the maker of a product. should be memorable, have positive connotation, and convey a certain image
Term
brand equity
Definition
how the brand name affects customer repsonse
Term
trademarks
Definition

legal term for brand name.

R- legally resistered

TM- user claims ownership, but not registered.

only protects within U.S.

Term
licensing
Definition

renting a brand to another company.

pay royalties, licensor can still use

Term
packaging
Definition
covering for a product, protects the product, makes it easy to handle, communicates brand personality
Term
product line
Definition
group of products that are closely related because they serve a similar function. sold to same customer group
Term
product line length
Definition
number of items on the product line
Term
product line filling
Definition
adding more items to the present line
Term
product line stretching
Definition
companies can stretch their products to fit different ranges. high end product can go low end and vice versa
Term
line extensions
Definition
extension of brand names to new forms, colros, sizes, ingredients, or flavors
Term
brand extensions
Definition
extension of a current brand  to new products in a new category
Term
multibranding
Definition
new brands in a new category
Term
new product development
Definition
refers to original products, product improvements, product modifications, and new brands developed by R&D
Term
new product failure
Definition
causes: meager competitive advantages, overestimate of market size, poor product positioning, poor marketing mix, poor design, priced too high, management influence, high development costs
Term
idea generation
Definition
systematic search for new product ideas
Term
idea screening
Definition
helps spot good ideas and drop poor ones
Term
concept development
Definition
creating several descriptions of products: ideas, concept, image
Term
marketing strategy development
Definition
designing and initial marketing strategy
Term
business analysis
Definition
review of sales, costs, and profits of the new product
Term
product development
Definition
devloped concept into physical product
Term
test marketing
Definition
product and marketing program are introduced into realistic setting
Term
commercialization
Definition
introducing new product into the market
Term
product life cycle stages
Definition
development, introduction, growth, maturity, decline
Term
product development stage
Definition
no sales, high costs
Term
introduction stage
Definition
slow sales, no profits
Term
growth stage
Definition
rapid market acceptance, increased profits
Term
maturity stage
Definition
slowing sales growth, profits level off/decline
Term
decline stage
Definition
sales fall, profits drop
Term
style life cycle
Definition
rapid sales increase, up and down growth, fairly consistent
Term
fashion cycle
Definition
moderate initial growth, steady decline
Term
fad product cycle
Definition
growth increases rapidly, falls rapidly
Term
rate of adoption
Definition
relative advantage, compatability, complexity, trialability, observability
Term
relative advantage
Definition
the degree to which a product is advantageous to a customer over competing brands
Term
compatibility
Definition
how much a consumer must adjust to the new product
Term
complexity
Definition
how hard it is to understand the product
Term
trialability
Definition
the extent to which a customer can try and test the product
Term
observability
Definition
exposure to customers
Term
price
Definition
sum of all values a customer gives up to gain use of product/service, only element of marketing mix that creates revenue
Term
cost based pricing
Definition
price based on cost of producing, distributing, and selling the product, plus room for profit
Term
value based pricing
Definition
uses buyers perception of value, not costs
Term
market based pricing
Definition
evlauates prices of similar firms with similar goods
Term
fixed costs
Definition
overhead costs, does not vary with production
Term
variable costs
Definition
varies with production
Term
Break even (volume)
Definition

BE = TFC/ price-VC per unit

 

tfc- total fixed costs

Term
break even (price)
Definition
BE = TFC / 1- (VC/price)
Term
Elasticity
Definition
% change in unit sales that result from a % change in price. Greater than 1= elastic, less than 1= inelastic
Term
skimming
Definition
high initial prices, high quality, hard for others to enter the market
Term
penetration
Definition
low initial price to attract many new customers, quickly gain market share
Term
price fixing
Definition
collaborating with competitors to set price within a market
Term
predatory pricing
Definition
selling prouct below costs to drive other out of business, then increase prices
Term
deceptive pricing strategies
Definition
retailers must not claim prices are lower than they actually are, going out of business means the company is actually going out of business, bait and switch- luring a customer into a store for one product then selling him another
Term
supply chain parts
Definition
raw materials, parts suppliers, manufacturer, resellers, consumer
Term
channel of distribution
Definition
producer- agent- wholesaler- retailer- customer
Term
transactional function
Definition
buying products, finding buyers, assuming risk with inventory
Term
logistical functions
Definition
creating procuct assortment, storing goods for better customer service, moving product to customer
Term
facilitating function
Definition
extending credit, grading products, provide info to consumers and suppliers
Term
vertical channel conflict
Definition
when a company owns producer, wholesaler, and retailer and sell to customer
Term
horizontal chain conflict
Definition
when two or more companies combine for a new opportunity
Term
conventional channel system
Definition
all channels of distribution independently owned
Term
channel design decisions
Definition
intensive (cheap), exclusive (luxury), and selective (specific market)
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