Is a catchall phrase for online channels of communication that builds communities?

TermDefinitionA Value Proposition a thirty-second “elevator speech” stating the specific benefits a product or service offering provides a buyer. It shows why the product or service is superior to competing offers target markets: groups of customers, they want to reach when they are developing their value propositions corporate level plans strategic plans which take place on a corporate level strategic business unit (SBU) is a business or product line within an organization that has its own competitors, customers, and profit center for accounting purposes. business level plans A firm’s SBUs may also have their own mission statement (purpose) and will generally develop strategic plans for themselves. Strategic planning levels: Corporate planning level ----- Business planning level------functional level first mover strategy which has some decided benefits, primarily developing long-term relationships that can lead to being a market winner. The innovators! strategic planning process includes conducting a situation analysis and developing the organization’s mission statement, objectives, value proposition, and strategies Planning Process evaluate internal and external enviornments then create a mission statement, followed by the objectives, followed lastly by the value proposition and strategy formula. What is SWOT analysis organizations analyze their strengths, weaknesses, opportunities, and threats, or conduct Best competitive analysis Porters 5 force model cost-benefit analysis Method of ranking each possible solution according to its probable impact. professional networking sites A site that allows people to link to and interact with others who work in their industry or related ones. leader-as-coach Individual serving as a teacher, motivator, and keeper of the goals of the group. Performing Stage Time when the group accomplishes its mandate, fulfills its purpose, and reaches its goals. pitch Frequency, high or low, of one’s voice Quality Emotional tone of one’s voice norming stage Time when the group establishes norms, or informal rules, for behavior and interaction. storming stage Time of struggles as group members themselves sort out their differences. group Three or more individuals who affiliate, interact or cooperate in a familial, social, or work context. Divergent group member Individuals who pull back, contribute less, and start to see themselves as separate from the group. Forums Theme-based Web sites that gather a community of individuals dedicated to a common interest. potential member Individual who is qualified to join a group but has not yet joined. Socialization The process of learning to associate, communicate, or interact within a group. Micro Group A small, independent group that has a link, affiliation, or association with a larger group. Primary Groups Groups that meet most, if not all, of one’s needs. Adjourning group Time when group members leave the group autocratic leader Self-directed leader who establishes norms and conduct for the group. Emergent leader Individual who grows into the leadership role, often out of necessity. leader as technician Occurs when the leader has skills that others do not. uncertainty theory States that we choose to know more about others with whom we have interactions in order to reduce or resolve the anxiety associated with the unknown. marginal group member Individual who looks outside the group for fulfillment of personal needs. double booking Misunderstanding in which two meetings are scheduled at the same time in the same place wikis Collaborations on Web content that are created and edited by users. organizational communication The study of the communication context, environment, and interaction within an organization laissez-faire leader Individual who practices a “live and let live” style of leadership. differentiated marketing has another term targeted marketing segmentation and target marketing American Express is segmenting its marketing and targeting different customers with different offerings. undifferentiated marketing : Henry Ford’s success at developing and marketing the Model T was an example of ________. Henry Ford was successful at undifferentiated marketing, also called mass marketing. This is a benefit to segmentation and targeting markets. It allows you to develop new offerings and expand profitable brands and product lines. Peppers and Rogers offer: one on one marketing as a future trend Segmentation of a market according to the customers’ thoughts and values as well as how they live their lives describes psycographic segmentation Behavioral segmentation includes benefits sought by customers like this for example Clairol designs its shampoo products to correspond to offset whether a customer has dry, normal, or oily hair. In this case, Clairol’s segmentation base is: Holiday product segmentation is a form of: behavioral segmentation This reflects family life cycle, a demographic segmentation characteristic John and Sylvia Hammond have seen their travel destination choices change throughout their marriage. On their honeymoon, they went on to Las Vegas. When their children were young, it was Disney. Now retired and the kids grown. John & PRIZM combines which two bases of marketing segmentation to generate its categories of customers? PRIZM combines demographics and geography segmentation One of the VALS types has members who are motivated by ideals. They are mature, satisfied, comfortable, and reflective people who value order, knowledge, and responsibility. These are categorized by VALS as THINKERS Consumer insight results when you USE quantitative and qualitative information. Many companies have used the Internet to expand their selection of target markets into new geographic markets. What characteristic of an attractive market is best reflected by companies pursuing this strategy? ACCESIBILITY STRATEGY There are only a handful of jet aircraft manufacturers globally. What reason does not make this an attractive market for those considering this industry? Entering this industry would require enormous resources Which of the following has the greatest ethical implications? MICROTARGETING Old brands or products companies “bring back” for a period of time. are called retrobrands The stages families go through over time and how it affects people’s buying behavior is called family life cycle Targeting a very select group of customers. concentrated marketing Targeting an extremely select group of consumers. Niche marketing Segmenting buyers by tangible, personal characteristics such as their ages, incomes, ethnicity, family sizes, and so forth is called Demographic segmentation Criteria used to classify buyers is called segmentation bases Targeting multiple groups of consumers is called multisegment marketing Segmenting buyers by where they are located. geographic segmentation A catchphrase designed to sum up the essence of a product. is called a TAGLINE The process of “moving” a product to a different place in the minds of consumers. REPOSITIONING Forming close, personal relationships with customers and giving them exactly what they want IS CALLED ONE TO ONE MARKETING The description of a type of customer based on market segmentation criteria is called customer profile The process of segmenting buyers geographically and target them within a few hundred feet of a business businesses using wireless technology is called proximity marketing Choosing select groups of people to sell to is called targeted marketing The process of gathering multiple sources of data available on people, everything from their tax and phone records to the catalogs they receive, so as to market to them is called microtargeting The process of plotting geographic marketing information takes on a map is called geocoding Combining both demographic and geographic information for marketing purposes is called geodemographics An understanding of consumers that results when both quantitative and qualitative information are gathered about them is called consumer insight A two-dimensional graph that visually shows where a product stands, or should stand, relative to its competitors is called a perceptual map Dividing people and organization into groups according to how they behave with or act toward products is called behavioral segmentation The process of breaking down all consumers into groups of potential buyers with similar characteristics is called market segmentation Selling the same product to all consumers is called mass marketing Electronic games sellers create to promote a product or service is called advergames Tailoring a product or its marketing so that it stands out from the competition and people want to buy it is called positioning The number of people per square mile is called population density Segmenting people by their activities, interests, opinion, attitudes, values, and lifestyles is called psychographic segmentation What is another term for targeted marketing? differentiated marketing is a synonym for targeted marketing benefits sought by customers and holiday use of products are all a form of behavioral segmentation The overall goal of the communication interaction: to inform, persuade, entertain, facilitate interaction, or motivate a reader describes general purpose Involves your condition of being presented with views, ideas, experiences, or made known to you through direct experience is known as exposure Qualities, capabilities, or power to elicit from the audience belief in one’s character is called credibility Your capacity to respond to stimulation, be excited, be responsive, or be susceptible to new information is called sensitivity The use of self-centered standards to determine what to believe and what to reject is called egocentrism The process by which you integrate new ideas into your thinking patterns. assimilation Involves the act of creating your speech from the elements you have gathered; you may start to consider what comes first, what goes last, and how you will link your ideas and examples together is called production The process by which you cause an idea or ideas to develop in your mind is called in the writing process incubation Involves composing your speech out of materials from the documents and other sources you have collected is called compiling The process by which you bring the information into a whole or complete topic. incorporation Involves the use of society-centered standards. sociocentrism Returning search results from several search engines at once is called metasearch When you only pay attention to information that reinforces your existing beliefs, and ignore or discredit information that contradicts your beliefs is called confirmation bias The process by which you adapt or filter out new sources of information as they relate to your goal accommodation An excited state of awareness is called priming TCO is usually thought of as a concept businesses use to compare offerings. what is TCO Total Cost of Offerings What are Offerings: products and services designed to deliver value to customers—either to fulfill their needs, satisfy their “wants,” or both. A company that assembles and manufactures a product into its final form is a original equipment manufacturer OEM The core technology that is the basis for an offering or product IS A TECHNOLOGY PLATFORM The number of variations in a single product line is called Line Depth An offering that is highly differentiated from other offerings and is designed to satisfy a similar need or want is called a Speciality Offering Offerings used to maintain, repair, and operate the physical assets of an organization is called maintenance, repair, and operations (MRO) Tangible equipment business purchases that are depreciated is called capital equipment offering A material that has been processed into a finished good but is not a stand-alone product; it still has to be incorporated into something else to be usable is called manufactured material A new idea or offering that occurs when a company comes out with another model (related product or service) based on the same platform and brand as one of its other products is called a Line Extension An approach to business that centers on capturing business by focusing on creating and manufacturing better products at lower prices is Product Oriented An offering that is purchased on impulse, without prior planning is this is called Impulse Offering Someone with business responsibility for a particular product or product line. Like brand managers, product managers must make decisions, such as which offerings to include, advertising selection, and others is called a Project manager An intangible component of an offering is called a service The entire assortment of products that a firm offers. Product Mix Marketing managers who oversee B2B products sold to a particular industry are called vertical market managers A person responsible for all business decisions regarding offerings within one brand. A brand manager is often charged with running his or her brand as if it is its own separate business is called a Brand Manager A characteristic of an offering is called a Characteristic Packaging designed to hold a single wholesale unit of a product. secondary packaging An offering for which the consumer will make an effort to compare various firms’ offerings and select a brand. is called a shopping offering A set of activities designed to create a brand and position it in the minds of consumers is called BRanding A name, picture, design, or symbol, or combination of those elements, used by a seller to differentiate its offerings from competitors is called a Brand A tangible good that can be bought, sold, and owned is called a product Someone responsible for managing efforts within a particular market, such as a geographic market or another grouping of customers into a market (e.g., a single industry or size) is a market manager The entire bundle of a tangible good, intangible service, and price that composes what a company offers to customers is also known as offering a framework for classifying consumer products as either a convenience good, a shopping good, or a specialty good. Applying the categories helps to guide marketers in developing successful strategies. is a Three way product classification system Packaging designed for the shipping and efficiently handling of large quantities of a product is called tertiary packaging The amount exchanged by the buyer to receive the value offered by the product or service. is a PRICE A symbol or logo used to identify a brand is called a BRANDMARK Someone responsible for managing a broad group of products that may belong to multiple manufacturers is a category manager The process of utilizing an existing brand name or brand mark for a new product category. BRand Extension The number of different, or distinct, product lines offered by a company is called its line breadth The total amount of time and money spent to acquire, use, and dispose of an offering is called TCO total cost of Operating Raw material products firms offer other firms so they can make a product or provide a service. These offerings are processed only to the point required for economic handling and distribution is called raw materials offering Low-priced, frequently purchased products and services that require little shopping effort is called convenience offering Products, or parts, sold by one manufacturer to another that get built into a final product without further modification. OEM offerings or components B2B customers that compose a particular industry, such as the health care industry is called vertical market The spoken part of an identity used to describe of a brand is called a Brand name When a new product takes sales away from the same company’s existing products is called cannibalization Offerings that support an organization’s ability to do business but do not go into the final product is called facilitating offerings The degree to which a feature satisfies a buyer’s need or desire is called benefit Packaging designed to hold a single retail unit of a product is called primary packaging A group of offerings that serve similar needs and are sold under the same name is a product line An offering consumers don’t typically shop for until it is needed. Examples include funeral and towing services is called unsought offering Why do people buy things to solve or satisfy their needs Which category of B2B offerings would include component parts? original equipment manufacturing (OEM) offerings Which type of B2B offerings are usually sold through distributors who often carry thousands of items through salespeople and online purchasing Web sites? MRO marketers carry many items and are often relied on by their customers who value the services and these many items that are frequently needed for maintenance, repair, and operations purposes. dvertising agency services would be considered a facilitating offering. A brand manager is more likely to be found in consumer marketing companies What is the position found at the retail level at each store who is responsible for more than one manufacturer’s offering of a product? a category manager Who is responsible for business decisions for a geographic region, a particular segment, or a channel of distribution? This describes the responsibility of a market manager. Introducing a new offering across markets one by one in order to work out any challenges or problems related to marketing and supporting the offering is called Rolling Launch A specific process for designing new offerings that begins by specifying a customer’s requirements and then designing a product to meet those needs. quality function deployment (QFD) Whats does concept testing involve: running the idea of the offering by potential consumers. The purpose is to get early consumer feedback before investing too much money in an offering that won’t work. ome of the methods used to test concepts include focus groups in which groups of eight to twelve consumers gather and react to the concept, in depth interviews are: in which individuals are presented with the concept and can react to it individually. Focus groups and depth interviews are research techniques that can also be used later in the offering development process to test ideas, or for other purposes. is the degree to which the company can actually make and service the product is called process feasibility what is investment risk in the idea screening or the possibility that the company will fail to earn the appropriate return on the money and effort (the investment) it puts into the new product A specific process for designing new offerings that begins by specifying a customer’s requirements and then designing a product to meet those needs Quallity Function Deployment A strategy in which an organization offers a low initial price on a product so that it captures as much market share as possible penetration pricing strategy The stage of the product life cycle at which sales begin to level off and competitors have saturated the market. maturity stage The potential loss of revenue a company risks when it chooses an alternative course of action such as launching a different offering is called opportunity risk The stage of the life cycle at which sales drop and companies must decide whether to keep, modify, or drop a product. is called decline stage A high initial price that companies set when introducing new products in order to get back money invested skimming pricing strategy Companies reduce investment in a product, service, or business. Harvesting The stages (introduction, growth, maturity, decline) that a product may go through over time is called product life cycle Keeping a product or service the same in all market standardized The testing of a product in a laboratory setting. alpha testing To decrease the size of the package or the amount of product in the package. downsize The stage of the life cycle in which sales increase and more competitors enter the market. growth stage Companies get rid of a product, service, or business. divesting An exploratory research technique of engaging in detailed, one-on-one, question-and-answer sessions with potential buyers is called depth interview The testing of a product by real customer in the customer’s location is called beta testing (como lo que hace fridosa) A new offering’s ability to make money is called Financial Feasibility The degree to which the manufacturing of a product or the delivery of a service can be done within the proper quality specifications on a repeatable basis; the degree to which an organization can actually make and service an offering is called process feasibility Potential customers who are innovative and develop new applications or new products for their own use without the aid of a supplier are called lead users The potential of losing one’s money and time should a new offering fail is also called investment risk How many steps were presented in the development process for new offerings? seven steps what is it called when a customer co creates with his contractor his dream kitchen? products with service components. In what step of the new offerings development process often uses focus groups of 8 to 12 consumers who gather and react to the offering? is called concept testing The degree to which the company can actually make and service the product is called process feasibility What type of risk is being weighed when a company assesses the strategic fit of a new offering in development? opportunity risk In which step of the development process for new offerings is quality function deployment (QFD) often used? in the FEATURE SPECIFICATION STEP DIFFERENCE between alpha and beta testing Alpha testing occurs in lab tests of the company; beta testing occurs with actual users. Mallory Industries likes to launch its new offerings in certain select markets first prior to its full release of the offering. They utilize Rolling Launch What is the last step in the new-offering development process? evaluation step What is a true and common statement for a products life cycle? Some products have longer life cycles than others. what are the four stages of the product life cycle introduction → growth → maturity → decline In which stage of the product life cycle are penetration pricing and skimming pricing considered? in the introduction stage What is penetration pricing strategy? charging a low price during the introduction stage of the product life cycle Which stage of the product life cycle is characterized by increasing sales and profits but also attracts more competitors? in the growth stage In which stage of the product life cycle are most consumer products today as it tends to last longer than the other stages? In the maturity stage Modifying their target markets, modifying their offerings, and finding new uses for a product are all strategic options employed in what stage of the product life cycle? this is also the maturity stage Pringles, the potato chip brand of Procter and Gamble, has offered its customers potato chips that have funny phrases or images printed directly onto the actual chip. Which strategy are they trying to employ modfying their OFFERING STRATEGY A key product decision facing firms entering new international markets is standardization versus adaptation. In the decline stage, some companies will reduce all product and marketing costs of an offering in hopes of they can increase their profits until inventory runs out. This strategy is known as The strategy described is called harvesting. A marketing system in which the channel members have no affiliation with one another. conventional marketing system A system in which two companies at the same channel level agree to cooperate with one another to sell their products. horizontal marketing system All the organizations that participate in the production, promotion, and delivery of a product or service from the producer to the end consumer. supply chain Selling units that work directly for manufacturers. A type of factory outlet store. manufacturers sales offices or branches...OUTLET STORES _________ generally take title to products and employ a sales force to actively market their products. DISTRIBUTORS ____________ that purchase large quantities of products, can store products, can sell products, can deliver desired quantities of products, and can offer services. . BUSINESSES The group of organizations involved in selling and promoting goods from the time they are produced until they reach end users IS CALLED marketing channel Businesses that purchase products in large quantities, can store the products, can break the pallets down into cases or units, and can deliver the desired quantity of a product to distributors, retailers, and/or consumers. wholesalers Retailing not conducted in stores is called nonstore retailing A strategy in which businesses are the target of promotions so products get “pushed” through their marketing channels and sold to consumers. is a push strategy Wholesalers that take title to the goods are called merchant wholesalers Delivering personalized promotional materials directly to individual consumers. Materials may be delivered via mail, catalogs, Internet, e-mail, or telephone, or in person is called DIRECT MARKETING The process of managing and refining supply chains so as to make them as efficient as possible IS CALLED SUPPLY CHAIN MANAGEMENT Miniature supermarkets that stock a limited assortment of products. Many of them sell gasoline and are open twenty-four hours a day. ARE CONVENIENCE STORES A system in which channel members formally agree to cooperate with one another IS CALLED VERTICAL MARKETING CHANNEL A strategy of selling products at specific outlets and/or locations is called Selective distribution An agreement formed by two or more firms to deliver their products via a channel. The products and organizations can be similar or different is called Strategic Channel Alliance A strategy in which consumers are targeted with sales promotions such as coupons, contests, games, rebates, mail-in offers is called pull strategy Third parties that facilitate the supply and sale of products from manufacturers to users are called intermediaries A marketing channel that consists of a producer and a consumer is called a direct channel Stores that carry a wide variety of household and personal types of merchandise such as clothing and jewelry are called department stores A contract term that designates which party is responsible for a product’s shipping costs and owns the title to the goods and when is called Free On Board FOB A situation that occurs when intermediaries are cut out of marketing channels is called disintermediation Large department stores that carry a broad array of general merchandise as well as groceries. Superstores are also referred to as hypermarkets and supercenters are: superstores A dispute among channel members is called channel conflict An agreement whereby a producer of a product restricts the price a retailer can charge for it s called retail price management agreement RPMA A contract that specifies information that is proprietary, or owned by a channel partner, and how, if at all, the other partners can use that information is called a non-disclosure agreement Small temporary stores designed to generate “buzz” for a retailer and drive customers to its regular stores are called pop up stores Products retailers produce themselves or pay manufacturers to produce for them are called store brands (like publix shampoo) these are usually cheaper Supercenters that sell products at a discount to people who pay an annual membership fee to join them are called warehouse clubs Representatives of one or more manufacturers who sell products on their behalf to consumers, wholesalers, and distributors but do not take title to them are called brokers or agents The firms a company partners with to actively promote and sell a product as it travels through its marketing channel to users is called channel members Intermediary firms that sell products that businesses or government departments and agencies use but don’t resell are called industrial distributors The ability to influence a channel partner’s goals and efforts is called Channel Power Conflict that occurs between two different types of members of the channel is called vertical conflict broad range of activities aimed at efficient movement of finished goods from the end of the production line to the consumer is called physical distribution Stores that sell a certain type of product. are called specialty stores A marketing channel that consists of a producer, a consumer, and one or more intermediaries are called indirect channels A strategy of selling products through one or a few retailers in a specific location exclusive distribution A firm that sells a high volume of a product in a particular category is called a category killer A strategy of selling a product in as many outlets as possible is called intensive distribution Stores that sell a variety of discount merchandise that consists of seconds, overruns, and the previous season’s stock other stores have liquidated are called off price retailers Conflict that occurs between organizations of the same type is called horizontal conflict Businesses that purchase products from manufacturers, wholesalers, agents, or distributors and then sell them to consumers are called retailers A market in which a producer hasn’t authorized its products to be sold is called a gray market A strong channel member that wields channel power is called a channel leader Wholesalers obtain large quantities of items then resell them downstream in smaller units preferred by retailers. This process is known as BREAKING BULK Charles Anderson is a channel partner who takes title to tons of shrimp that he buys and sells but does not take physical possession of it as the shrimp is perishable and the volume is large and bulky. Charles is a DROP SHIPPER yes they DO take title but not possession of the bulky goods they handle ARE CALLED drop shippers Which category of channel partner does NOT take title to the products they sell? BROKER What is the easiest way to enter international markets EXPORTING Which channel strategy focuses on creating demand for a product among consumers so that they, in turn, expect retailers that they patronize to carry the items? PULL STRATEGY If a product is damaged during transit within the channel, what provision can identify who is responsible for shipping costs and who owns the product when the damage occurs thus identifying who incurs the loss from any damage? fREE ON BOARD PROVISION allows identification of who owns what and when. What type of channel conflict occurs when two channel members at the same channel level, such as a merchant wholesaler and a rack jobber, have a disagreement? horizontal conflict What is the main purpose for firms to employ supply chain management to make the channel as efficient as possible When should a firm outsource a particular task to an outside company? when the outside company can add more value to a function What does the term “3PLs” discussed in this section refer to? What does the term “3PLs” discussed in this section refer to? Some firms will outsource production to companies abroad. This is called offshoring Backup inventory that serves as a buffer in case the demand for a product surges or the supply of it drops off for some reason is called safety stock The physical flow of materials in the supply chain s called logistics Running broken, defective, and scrap products backward through the supply chain so as to extract value from them is called reverse distribution Systems that electronically record the paths shipments take is called track and trace systems Firms to which other companies outsource their entire order processing and shipping departments. 3LPS: third party logistics firm A practice whereby supply chain partners share information and coordinate their operations. collaborative planning, forecasting, and replenishment (CPFR) The amount of time it takes for a customer to receive a good or service once it’s been ordered. lead time Mass producing goods customized to the specifications of individual consumers. mass customization Software that can synthesize a variety of factors to better predict a firm’s demand is called demand planning software A situation that occurs when a firm runs out of a product a customer wants to buy. stockout The process of estimating how much of a good or service customers will buy from you is called demand planning The idea that firms should engage in business practices that have the least impact on the environment so that it is sustained for future generations is called enviornmental sustainability A term used to describe a reduction or loss in inventory due to shoplifting, employee theft, paperwork errors, and supplier fraud is called shrinkage Metal boxes used to ship consumer goods. Intermodal containers Outsourcing work to a company abroad is called offshoring A tag that emits radio signals that can record and track a shipment as it comes in and out of a facility is called radio frequenxy identification tag RFID The practice of moving products between supply chain intermediaries so that they spend little or no time in warehouses as they are transported is called cross docking A term that is sometimes used interchangeably with the term supply chain. The idea behind the value chain is that your supply chain partners should do more for you than perform just basic functions is called value chain When firms move activities, such as logistics, in-house is called insourcing An organization whose duties include consolidating small loads of freight, negotiating rates for their shipment, and booking space for them on transportation vehicles and in warehouses is called a freight fowarder Hiring an organization to do a task your firm previously performed is called outsourcing A barcode that can distinguish between two seemingly identical products. It contains information about where the product was manufactured and where it was shipped from and bound to is called eletronic product code EPC A special electronic format companies use to exchange business documents from computer to computer is called electronica data interchange EDI A situation in which supply chain partners share information with one another so they can see how well the chain is working is called supply chain visibility The idea that companies should manage their businesses not just to earn profits but to advance the well-being of society is known as social responsibility The process of ensuring your firm has an adequate amount of products and a wide enough assortment of them meet your customers’ needs is called inventory control The practice of having your suppliers monitor your inventory levels Vendor Managed Inventroy VMI A system in which a firm keeps very little inventory on hand. Instead, its suppliers ship it inventory as needed is called just in time inventory system The process of purchasing goods and services for your organization is called Procurement The process of evaluating and hiring individual businesses to supply goods and services to your organization is called sourcing A warehouse or storage facility where the emphasis is on processing and moving goods on to wholesalers, retailers, or consumers rather than on storage is called distribution center The management of the resources, events, and processes need to create an offering. production scheduling A label used to distinguish a product that is unique because of some characteristic, such as manufacturer, size, color, or model. SKU is called Stock keeping unit Because of their increasing importance to consumers, what two issues must a firm consider when outsourcing? social responsibility and environmental sustainability More firms are weighing the cost savings of outsourcing against its risks. What are one of these risks mentioned in this section? a risk is that a firm loses control of their technology Sally Gordon is a retailer getting increasingly frustrated over the amount of time it takes her to receive shipments she orders from her major supplier. Her issue is called LEad time While JIT systems ideally would hold inventory costs to zero, firms still like to maintain some inventory in warehouses as a buffer. This is called safety stock Driven by customer consideration, what trend has been seen in recent years in regards to warehousing? smaller warehouses closer to customers Which form of transportation accounts for more product shipment than any other means? Trucks What advantage does using railroads over trucking offer as a means of transportation? Its less expensive Which company is featured in a video clip in this section that has creatively found ways to convert waste into useful new product? Terracycle A pricing strategy in which buyers pays the same shipping charges regardless of their locations is called uniform delivered pricing The amount (in dollars or percent) taken off the price is called markdown State laws requiring sellers to keep a minimum price level for similar products. unfair trade laws A strategy of selling different products or services together, typically at a lower price than if each product or service is sold separately. price bundling Consumers are very sensitive to price changes and buy more at low prices and less at high prices is called price elastic A pricing strategy where a certain amount of profit is added to the total cost of a product in order to determine its price is called cost plus pricing The practice of pricing a product higher to signal that it is of high quality is called prestige pricing When companies act in a predatory manner by setting low prices to drive competitors out of business is called predatory pricing The amount (in units or dollars) where total revenue equals total costs. breakeven point BEP An objective a firm sets to maintain its current prices and/or its competitors’ prices status quo Pricing a product based on what customers are willing to pay for it and then creating the offering based on that price. demand backward pricing Agreements whereby merchants agree to promote one another’s offerings to customers. recipricol agreements A pricing arrangement that designates that a product’s title changes at its destination (the place to which it’s transported), and the seller pays the shipping charges. free on board destination Pricing whereby purchasers pay the same price for a product regardless of where they buy it or from whom is called going rate pricing A strategy whereby a company sets a high initial price for a product. The idea is to target buyers who are willing to pay a high price (top of the market) and buy products early is called skimming price strategy A method for setting the selling price of a good or service at the same level as competitors so as to deemphasize price as a variable in the purchase decision, thereby cause customers to focus on other factors is called competitive pricing strategy Discounts an organization gives its channel partners for performing different functions is called trade allowances Overhead or costs that remain the same regardless of the level of production or the level of sales is called fixed costs When the buyer lists what he or she wants to buy and also states how much he or she is willing to pay. The reverse auction is finished when at least one firm is willing to accept the buyer’s price. is reverse auction Products priced below cost; this is illegal in some states. loss leaders A short-term tactic to get people to purchase a product or more of it is called promotional pricing Pricing a group of similar products (e.g., neckties) at a few different price levels (e.g., $25, $50, and $75) is called price lining Buyers are not sensitive to price changes and demand is relatively unchanged. price Inelastic A pricing strategy in which customers are allowed to break down product payments into smaller amounts they pay incrementally. payment pricing A discount card or coupon purchasers can use on their next shopping visits during set dates is called bounce back A pricing strategy in which providers have two different charges for a product, such as the base monthly rate for cell phone coverage and additional charges for extra minutes or texting is called two part pricing A strategy firms use to price products when they know customers must buy specific replacement parts, such as razor blades, because there are no alternatives is called captive pricing A strategy in which a company prices products a few cents below the next dollar amount or a few dollars (for high-cost products such as automobiles) below the next hundred- or thousand-dollar value is called odd-even pricing....example 99,999.00 A U.S. act that limits price discrimination (charging different customers different prices for the same product and quantities of it purchased) is called robinson patman act The practice of charging a low initial price for an offering and maintaining that price throughout the offering’s product life cycle is called everyday low pricing (walmart) The amount of sensitivity to price changes, which affects the demand for a product. price elasticity A strategy of offering low prices on one or more items as “lead” items in advertisements to attract customers is called leader pricing The process of offering to buy or sell products at prices designated in sealed bids. sealed bid pricing The process that occurs when a buyer lists what he or she wants to buy and sellers may submit bids. foward auction Which pricing objective is often used during the launch of a new product that bases its price on a desired percentage of profitability beyond the known investment in the product’s development? a target return on investment (ROI) on what has been and will be invested in the new product’s launch. Under a maximizing profits objective, a firm can still increase profits in weak economic times if they are willing to cut costs. true or false TRUE What is the correct formula for calculating price elasticity of demand? percentage change in quantity demanded divided by percentage change in price If a firm’s customers demonstrate strong price inelasticity of demand for the firm’s brand, what should the firm do in terms of price changes? They should increase prices to increase profitability. A company faces fixed costs of $100,000 and variable costs of $8.00/unit. They plan to directly sell their product to the market for $12.0How many units must they produce and sell to break even? 25,000UNITS failing industries of defining themselves too narrowly, which renders them incapable of adapting to changing markets. THIS IS CALLED MARKTING MYOPIA The personal value equation of the customer is reflected in the formula Value = Benefits received − [Price + Hassle] PROCTOR AND GAMBLE IS WHAT KIND OF A COMPANY for-profit, B2C company _________________ is an effort by government agencies, nonprofit institutions, and religious organizations to achieve certain social objectives. SOCIAL MARKTEING Which marketing career involves meeting with customers, determining value, proposing offerings, and making sure that the customer is satisfied? SALES Which marketing career involves responsibility for developing retailing strategies regarding what to carry which then allows buyers then decide what specific products to purchase? CAREER IN MARKET RESEARCH/MERCHANDISING Which company, mentioned in the text, offers a mission statement that reflects a production orientation rather than a marketing orientation? APPLE The correct order of strategic development for today’s marketing organizations should be _________________. the mission statement, the corporate strategy, and the marketing plan Key considerations of successful marketing are sustainability, a service dominant logic, improved use of metrics, and _________________. GLOBAL ENVIORNMENT When designing a marketing plan, companies should start with _________________. CUSTOMERS Demand that fluctuates sharply in response to a change in consumer demand. FLUCTUATING DEMAND A Web site in which a business buys products from multiple sellers that go there to do business with the firm is called buy-side site Markets in which local, state, and federal governments buy products are called B2G business to governments markets An invitation to submit a bid to supply the good or service is called request for proposal RFP s a way to manage the vast amount of information firms have on hand—information marketing professionals and managers need to make good decisions marketing information system (MIS) s data generated about the number of people who visit a Web site and its various pages, how long they dwell there, and what they buy or don’t buy. this is CLICKSTREAM data looks like the Web and operates like it, but only an organization’s employees have access to the information. is called INTRANET THE PROCESS OF EXTRACTING DATA FROM LARGE DATA BASES SO AS TO UNCOVER PATTERNS AND TRENDS DATA MINING VITAL SOURCE OF DATA INTELLIGENCE IN A FIRM COMES FROM SALESPERSON looks like the Web and operates like it, but only an organization’s employees have access to the information IS CALLED research DESIGN Measurements that record people’s involuntary physical responses to marketing stimuli, such as an advertisement. PHYSIOLOGICAL MEASUREMENTS A study that, when repeated, produces the same or nearly the same result. RELIABLE Questions that limit a respondent’s answers. Multiple-choice and yes-and-no questions are examples of closed-ended questions. CLOSE ENDED QUESTIONS A survey question that is potentially confusing because it asks two questions in the same question. DOUBLE BARRELED QUESTION A less-structured type of research design used to initially investigate a marketing research project that hasn’t yet been defined well enough for an in-depth study to be conducted. EXPLORATORY RESEARCH DESIGN A process whereby a native speaker translates a research instrument such as a survey into a foreign language and then back again to the original language to determine if there are gaps in meaning. IS CALLED BACK TRANSLATION A research sample that’s not drawn in a systematic way. NON PROBABILITY WAY Data already collected by your firm or another organization for purposes other than the marketing research project at hand. SECONDARY DATA A research sample in which each would-be participant has a known and equal chance of being selected. PROBABILITY SAMPLE A study that looks at how another company, or companies, solved a problem being researched IS CALLED CASE STUDY A marketing research company that doesn’t conduct its own research but instead buys it from other marketing research companies and then sells the reports in their entirety or in pieces to other firms. market research agregator A marketing research experiment conducted in a natural setting such as a store versus a simulated setting in a laboratory or on a computer is called field experiment The place an experiment is conducted or the demographic group of people an experiment is administered to is called test market A type of research design that examines cause-and-effect relationships to allow researchers to answer “what if” types of questions. casual research design A type of study whereby marketing researchers interview, observe, and often videotape people while they work, live, shop, and play is called ethnography Data collected using hands-on tools such as interviews or surveys to answer a question for a specific research project primary data Questions that ask respondents to elaborate upon, or explain, their answers. open ended questions The process of removing research data that have accidentally been duplicated (entered twice into the computer) or correcting data that have obviously been recorded wrong. data cleaning An exploratory research technique of engaging in detailed, one-on-one, question-and-answer sessions with potential buyers is called depth interview A study that involves gathering hard numbers, often via surveys, to describe or measure a phenomenon so as to answer the questions of who, what, where, when, and how. descriptive research design An exploratory research technique used to reveal information research respondents might not reveal by being asked directly. projective technique Information collected by scanners at checkout stands in stores. scanner based research Primary data marketing research firms collect on a regular basis and sell to other companies. syndicated research The list from which a research sample is drawn. The sampling frame won’t perfectly match the population. sampling frame The list from which a research sample is drawn. The sampling frame won’t perfectly match the population. buzz or word of mouth or the spread of the company’s message (like a computer virus) through the community. viral marketing the first company to generate a million dollars in revenue through Twitter is DELL a catchall phrase for the online channels of communication that build communities, includes social networking sites, blogs, podcasts, wikis, vlogs (video blogs), and other Internet-based applications that enable consumers to contribute content. Social Media A form of a social group that centers its attention around a particular brand or product category. is a community An e-mail account that is used for registering when buying products online in order to ignore spam and other junk e-mail later. dump account A legal act that requires certain institutions to provide written notice of their privacy policies. Gramm-Leach-Bliley Act Statements about how a company will use and protect a consumer’s private data. privacy policies A loyalty program that results in members blocking out marketing communications from competitors. blocker effect A loyalty program that results in buyers being more likely to try related products offered by a marketer. spreader effect Laws that limit the amount and type of information a company can collect about a consumer and also specify how that information can be used or shared Privacy Laws A situation in which consumers rethink their decisions after purchasing products and wonder if they made the best decision. postpurchase dissonance When a company supports a nonprofit organization in some way in order to generate positive public relations. cause-related marketing Marketing efforts that reward the frequent purchase and consumption of an offering. loyalty programs Any form of selling under another guise or under a phony front. sugging A gap that occurs when a marketer overstates the performance level of a product, thereby creating unrealistic expectations on the part of consumers communication gap A law that prohibits the use of e-mail, fax, and other technology to randomly send messages to potential consumers. CAN SPAM ACT Soliciting personal information in order to steal an identity and use it to generate cash fraudulently. PHISHING Short for robot; a kind of program that perform automatic functions online. BOT The effect of a loyalty program that, as a consumer approaches the next level of benefits, the rate of consumer’s purchases increases ACCELERATOR EFFECT A firm’s failure to understand a customer’s expectations or needs, which then leads it to create an offering that disappoints the customer. KNOWLEDGE GAP Willing to succumb to a special offer or lower price. DEAL PRONE A group of laws that govern commercial practices in the United States UNIFORM COMMERCIAL CODE when a market is no longer growing but the product is doing well CASH COW PRODUCTS LIFE CYCLE INTRODUCTION, GROWTH, MATURITY AND DECLINE he product entails gradually reducing all costs spent on it, including investments made in the product and marketing costs. By reducing these costs, the company hopes that the profits from the product will increase until their inventory runs out HARVESTING (dropping or deleting) the product from its offerings. The company might choose to sell the brand to another firm or simply reduce the price drastically in order to get rid of all remaining inventory DIVESTING s a product with high growth and a high market share. STAR PRODUCT BCG MODEL s a product with low growth and a high market share CASH COW, ACCORDING TO BCG is a product with low growth and low market share. IS A DOG

What are the three main types of channels quizlet?

Is a special type of community that participates regularly in marketing research activities?

Are marketing efforts that reward a person or organization for frequent purchases and the consumption of offerings?

What Internet tools other than influencer panels create word of mouth?