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Study Guide Vocab for Final

by: Natalie Land

Study Guide Vocab for Final MKT 301

Marketplace > University of Miami > Marketing > MKT 301 > Study Guide Vocab for Final
Natalie Land
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Here are vocabulary for our final for marketing 301
Howard Marmostein
Study Guide
Marketing, vocab, 301, MKT301, market, fianl, final
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This 13 page Study Guide was uploaded by Natalie Land on Saturday April 16, 2016. The Study Guide belongs to MKT 301 at University of Miami taught by Howard Marmostein in Summer 2015. Since its upload, it has received 39 views. For similar materials see Marketing in Marketing at University of Miami.


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Date Created: 04/16/16
Profit  orientation   A  company  objective  that  can  be  implemented  by  focusing  on   target  profit  pricing     Target  profit  pricing     A  pricing  strategy  implemented  by  firms  when  they  have  a   particular  profit  goal  as  their  overriding  concern   Maximizing  profits   A  profit  strategy  that  relies  primarily  on  economic  theory     Target  return  pricing     Pricing  strategy  implemented  by  firms  less  concerned  with   absolute  level  of  profits  and  more  interested  in  the  rates  at   which  their  profits  are  generated  relative  to  their  investments     Sales  orientation   A  company  objective  based  on  the  belief  that  increasing  sales   will  help  the  firm  more  than  will  increasing  profits     Premium  pricing     Competitor  based  pricing  method  by  which  the  firm   deliberately  prices  a  product  above  the  prices  set  for   competing  products  to  capture  those  consumers  who  always   shop  for  the  best     Competitor  orientation   A  company  objective  based  on  the  premise  that  the  firm   should  measure  itself  primarily  against  its  competition   Competitive  parity     A  firm’s  strategy  of  setting  prices  that  are  similar  to  those  of   major  competitors     Status  quo  pricing     A  competitor  oriented  strategy  in  which  a  firm  changes  prices   only  to  meet  those  of  competition     Customer  orientation     A  company  objective  based  on  the  premise  that  the  firm   should  measure  itself  according  to  whether  it  meets  its   customers  needs     Demand  curve     Shows  how  many  units  of  a  product  or  service  consumers  will   demand  during  a  specific  period  at  different  prices     Prestige  product  or  services     Those  that  consumer  purchase  for  status  rather  than   functionality     Price  elasticity  of  demand     Measures  how  changes  in  a  price  affect  the  quantity  of  the   product  demanded     Dynamic  pricing     The  process  of  charging  different  prices  for  goods  or  services   based  on  the  type  of  customer,  time  of  day,  week  or  even   season  and  level  of  demand     Individualized  pricing     Same  thing  as  dynamic  pricing     Income  effect     Change  in  the  quantity  of  a  product  demanded  by  consumers   due  to  change  in  their  income     Substitution  effect     Consumer’s  ability  to  substitute  other  products  for  the  focal   brand  thus  increasing  the  price  elasticity  of  demand  for  the   focal  brand     Cross-­‐price  elasticity     Percentage  change  in  demand  for  product  A  that  occurs  in   response  to  a  percentage  change  in  produce  of  product  B     Complementary  products     Products  whose  demand  curves  are  positively  related  such   that  they  rise  and  fall  together     Substitute  products     Products  for  which  changes  in  demand  are  negatively  related   that  is  percentage  increase  in  quantity  demanded  for  product   A  results  in  percentage  decrease  for  product  B     Variable  costs     Those  costs  primarily  labor  and  materials  that  vary  with   product  volume     Fixed  costs   Those  costs  that  remain  essentially  at  same  level  regardless  of   changes  in  volume  of  production   Total  costs     Sum  of  variable  and  fixed  costs     Break-­‐  even  analysis     Technique  used  to  examine  relationship  among  cost,  price,   revenue,  and  profit  over  different  levels  of  production  and   sales  to  determine  break  even  point     Break-­‐even  point     The  point  at  which  the  number  of  units  sold  generates   enough  revenue  to  equal  the  total  costs,  profits  here  are  zero   Total  variable  costs     Variable  cost  per  unit  times  quantity     Total  costs     Fixed  costs  plus  total  variable  costs     Total  revenue     Price  times  quantity     Contribution  per  unit       Break  even  point   Fixed  costs  divided  by  contributions  per  unit     Profit     (contribution  per  unit  times  quantity)  –  fixed  costs     Monopoly     One  firm  provides  the  product  or  service  in  a  particular   industry  which  results  in  less  price  competition       Target  return  price     Variable  costs  plus  fixed  costs  divided  by  expected  unit  sales     Oligopolistic  competition   Only  a  few  firms  dominate  a  market     Price  war     When  two  or  more  firms  compete  primarily  by  lowering  their   prices     Predatory  pricing     Firms  practice  of  setting  a  very  low  price  for  one  or  more  of   its  products  with  the  intent  to  drive  its  competition  out  of   business   Monopolistic  competition   Occurs  when  there  are  many  firms  that  sell  closely  related  but   not  the  same  products             Chapter  15   Cost  based  pricing  methods       Competition  based  pricing  method       Value  based  pricing  method       Improvement  value       Cost  of  ownership  method       Everyday  low  pricing       High/low  pricing       Reference  price       Market  penetration  strategy     A  growth  strategy  that  employs  the  existing   marketing  mix  and  focuses  the  firms  efforts   on  existing  customers     Experience  curve  effect     Refers  to  the  drop  in  unit  cost  as  the   accumulated  volume  sold  increases;  as  sales   continue  to  grow.     Price  skimming     A  strategy  of  selling  a  new  product  or  service   at  a  high  price  that  innovators  and  early   adopters  are  willing  to  pay  in  order  to  obtain   it     Pricing  strategy     a  long  term  approach  to  setting  prices  for  the   firms  products     Pricing  tactics     Short  term  methods,  in  contrast  to  long  term   pricing  strategies  used  to  focus  on  company   objectives,  costs,  customers,  competitions  or   channel  members     Markdowns     Reductions  retailers  take  on  the  initial  selling   price  of  the  product  or  service     Size  discount     The  most  common  implementation  of  a   quantity  discount  at  the  consumer  level     Coupons     Provides  a  stated  discount  to  consumers  on   the  final  selling  price  of  a  specific  time     Rebates     Consumer  discount  in  which  a  portion  of  the   purchase  price  is  returned  to  the  buyer  in   cash     Lease     A  writer  agreement  under  which  the  owner   of  an  item  or  property  allows  its  use  for  a   specified  period  of  time  in  exchange  for  a  fee   Price  bundling     Selling  more  than  one  product  for  a  single   lower  price  than  what  the  items  would  cost   sold  separately     Leader  pricing     Consumer  pricing  tactic  that  attempts  to   build  store  traffic  by  aggressively  pricing  and   advertising  a  regularly  purchased  item     Price  lining     Consumer  market  pricing  tactics  of   establishing  a  price  floor  and  a  price  ceiling   for  an  entire  line  of  similar  products  and  then   setting  a  few  other  price  points  in  between   to  represent  distinct  differences  in  quality   Seasonal  discount     Pricing  tactic  of  offering  an  additional   reduction  as  an  incentive  to  retailers  to  order   merchandise  in  advance  of  the  normal  buying   season   Cash  discount     Tactic  of  offering  a  reduction  in  the  invoice   cost  if  the  buyer  pays  the  invoice  prior  to  the   end  of  the  discount  period     Advertising  allowance     Tactic  of  offering  a  price  reduction  to  channel   members  if  they  agree  to  feature  the   manufacturer’s  product  in  their  advertising   and  promotional  efforts     Slotting  allowances     Fees  firms  pay  to  retailers  simply  to  get  new   products  into  their  stores  or  to  gain  more  or   better  shelf  space  for  their  products     Quantity  discount     Pricing  tactic  of  offering  a  reduced  price   according  to  the  amount  purchased:  the   more  the  buyer  purchases  the  higher  the   discount     Cumulative  quantity  discount     Pricing  tactic  that  offers  a  discount  based  on   the  amount  purchased  over  a  specified   period  and  usually  involves  several   transactions   Noncumulative  quantity  discount     Pricing  tactic  that  offers  a  discount  based  on   only  the  amount  purchased  in  a  single  order,   Delivered  pricing       Zone  pricing     the  shipper  sets  different  prices  depending   on  a  geographic  division  of  the  delivery  areas     Loss  leader  pricing     Tactic  of  leader  pricing  one  step  further  by   lowering  the  price  below  the  store’s  cost     Bait  and  switch     Luring  customers  into  the  store  with  a  very   low  advertised  price  on  an  item   Predatory  pricing     Firm’s  practice  of  setting  a  very  low  price  for   one  or  more  of  its  products     Price  discrimination   The  practice  of  selling  the  same  product  to   different  resellers  or  to  the  ultimate   consumer  at  different  prices     Price  fixing     Practice  of  colluding  with  other  firms  to   control  prices     Horizontal  price  fixing     Occurs  when  competitors  that  produce  and   sell  competing  products  collude  or  work   together  to  control  prices                   Chapter  16   Marketing  channel  management     A  set  of  approaches  and  techniques  a  firm   employs  to  integrate  their  suppliers     Supply  chain  management     Same  as  marketing  channel  management   Wholesalers     Firms  engaged  in  buying,  taking  title  to,  often   storing  and  physically  handling  goods  in  large   quantities     Viral  marketing  program   A  promotional  strategy  that  encourages   people  to  pass  along  a  marketing  message  to   other  potential  consumers     Distribution  center     A  growth  strategy  whereby  a  firm  introduces   a  new  product  or  service  to  a  market   segment  that  it  does  not  currently  serve     Fulfillment  center     Warehouse  facilities  used  to  ship   merchandise  directly  to  customers     Direct  marketing  channel   The  manufacturer  sells  directly  to  the  buyer     Indirect  marketing  channel   When  one  or  more  intermediaries  work  with   manufactures  to  provide  goods  and  services   to  customers     Vertical  channel  conflict     A  type  of  channel  conflict  in  which  members   of  the  same  marketing  channel  for  example   manufacturers  and  wholesalers     Horizontal  channel  conflict     A  type  of  channel  conflict  in  which  members   at  the  same  level  of  a  marketing  channel,  for   example,  two  competing  retailers  or  two   competing  manufacturers  are  in   disagreement     Independent  marketing  channel     A  marketing  channel  in  which  several   independent  members  a  manufacturer,  a   wholesaler,  and  a  retailer,  attempts  to  satisfy   its  own  objectives  and  maximize  its  profits     Vertical  marketing  system   A  supply  chain  in  which  the  members  act  as  a   unified  system     Administered  vertical  marketing     A  supply  chain  system  in  which  there  is  no   common  ownership  and  no  contractual   relationship   Power   A  situation  that  occurs  in  a  marketing   channel  in  which  one  member  has  the  means   or  ability  to  have  control  over  the  actions  of   another  member     Reward  power   A  type  of  marketing  channel  power  that   occurs  when  the  channel  member  exerting   the  power  offers  rewards  to  gain  power     Coercive  power   Threatening  or  punishing  the  other  channel   member  for  not  undertaking  certain  tasks     Referent  power   A  type  of  marketing  channel  power  that   occurs  if  one  channel  member  wants  to  be   associated  with  another  channel  member     Expertise  power   When  a  channel  member  uses  its  expertise  as   leverage  to  influence  the  actions  of  another   channel  member     Information  power   A  type  of  marketing  channel  power  within  an   administered  vertical  marketing  system  in   which  one  party  provides  or  with  holds   important  information  to  influence  the   actions  of  another  party     Legitimate  power   A  type  of  marketing  channel  power  that   occurs  if  the  channel  member  exerting  the   power  has  a  contractual  agreement  with  the   other  channel  member  that  requires  the   other  channel  member  to  behave  in  a  certain   way   Contractual  vertical  marketing  system   A  system  in  which  independent  firms  at   different  levels  of  the  supply  chain  join   together  through  contracts  to  obtain   economies  of  scale  and  coordination  and  to   reduce  conflict     Franchising     A  contractual  agreement  between  a   franchiser  and  franchisee  that  allows  the   franchise  to  operate  a  business  using  a  name   and  format  developed  and  supported  by   franchisor     Corporate  vertical  marketing  system   A  system  in  which  the  parent  company  has   complete  control  and  can  dictate  the   priorities  and  objectives  of  the  supply  chain   Strategic  relationship   A  collaborative  relationship  between   independent  firms  though  the  partnering   firms  do  not  create  an  equity     Partnering  relationship     Universal  product  code     The  black  and  white  barcode     Advanced  shipping  notice     An  electronic  document  that  the  supplier   sends  the  retailer  in  advance     Electronic  data  interchange     The  computer  to  computer  exchange  of   business  documents  from  retailer  to  vendor   and  back   Vendor  managed  inventory     An  approach  for  improving  supply  chain   efficiency  in  which  manufacturer  is   responsible  for  maintaining  the  retailers   inventory  levels     Dispatcher   The  person  who  coordinates  deliveries  to   distribution  centers     Receiving     The  process  of  recording  the  receipt  of   merchandise  as  it  arrives  at  a  distribution   center  or  store   Checking     The  process  of  going  through  the  goods  upon   receipt  to  ensure  they  arrived  undamaged   and  that  the  merchandise  ordered  is  the  one   received     Radio  frequency  identification   Tiny  computer  chips  that  automatically   transmit  to  a  special  scanner  all  the   information  about  a  consumers  contents  or   individual  products     Cross  docking  distribution  center   A  distribution  center  to  which  vendors  ship   merchandise  prepackaged  and  ready  for  sale     Ready  merchandise       Floor  ready  merchandise     Merchandise  that  is  ready  to  be  placed  on   the  selling  floor  immediately   Ticketing  and  marking     Creating  price  and  identification  labels  and   placing  them  on  the  merchandise     Pick  ticket     A  document  or  display  on  a  screen  in  a   forklift  truck  indicating  how  much  of  each   item  to  get  from  specific  storage  areas     Just  in  time  inventory  systems     Systems  of  inventory  designed  to  deliver  less   merchandise  on  a  more  frequent  basis  than   traditional  inventory  systems     Quick  response  systems   Inventory  management  system  used  in   retailing,  merchandise  received  just  in  time   for  sale     Lead  time     Amount  of  time  between  the  recognition   that  an  order  needs  to  be  placed  and  the   arrival  of  the  needed  merchandise  at  the   store           Chapter  17   Retailing     Set  of  business  activities  that  add  value  to   products  and  services  sold  to  consumers  for   their  personal  or  family  use.     Omni  channel     Selling  in  more  than  one  channel  such  as   catalog  internet  or  store     Multichannel  strategy   Same  as  omni   Distribution  intensity     The  number  of  channel  members  to  use  at   each  level  of  the  marketing  channel     Intensive  distribution   Place  products  in  as  many  outlets  as  possible     Exclusive  distribution   Granting  exclusive  geographic  territories  to   one  or  very  few  retail  customers  so  no  other   retailers  in  that  territory  can  sell  a  particular   brand     Selective  distribution   Few  selected  retail  customers  in  a  territory  to   sell  products     Conventional  supermarket     Large,  self  service  retail  food  store  offering   groceries,  meat,  and  produce,  as  well  as   some  nonfood  items  such  as  health  and   beauty  aids  in  general  merchandise     Limited  assortment  supermarket     Stock  only  about  1500  skus,  offer  one  or  two   brands  and  sizes,  one  of  which  is  a  store   brand     Extreme  value  food  retailers     Same  as  limited  assortment  supermarket     Supercenters     Large  stores  combining  full  line  discount   stores  with  supermarkets  in  one  place     Warehouse  clubs     Large  retailers  with  an  irregular  assortment  ,   low  service  levels,  and  low  prices  that  often   require  membership  for  shoppers     Convenience  stores     Type  of  retailer  that  provides  limited  number   of  items  at  a  convenient  location  in  a  small   store  with  speedy  check  out     Department  stores     A  retailer  that  carries  many  different  type  of   merchandise  and  lots  of  items  within  each   type     Full  line  discount  stores     Retailers  that  offer  low  prices,  limited   service,  and  a  broad  variety  of  merchandise     Specialty  stores     A  type  of  retailer  that  concentrates  on  a   limited  number  of  complementary   merchandise  categories  in  a  relatively  small   store   Drugstores   A  specialty  store  that  concentrates  on  health   and  personal  grooming  merchandise  and   pharmacy  represent  more  than  60  percent  of   it  sales     Category  specialists     A  retailer  that  offers  a  narrow  variety  but  a   deep  assortment  of  merchandise     Big  box  retailers     Discount  stores  that  offer  a  narrow  but  deep   assortment  of  merchandise     Category  killers     A  specialist  that  offers  an  extensive   assortment  in  a  particular  category  so   overwhelming  the  category  that  other   retailers  have  difficulty  competing     Extreme-­‐  value  retailers     A  general  merchandise  discount  store  found   in  lower  income  urban  or  rural  areas     Off  price  retailers     A  type  of  retailer  that  offers  an  inconsistent   assortment  of  merchandise  at  relatively  low   prices     Service  retailers     A  firm  that  primarily  sells  the  services  rather   than  merchandise     Private-­‐  label  brands     Brands  developed  and  marketed  by  a  retailer   and  available  only  from  the  retailer     Exclusive  brands     Developed  by  national  brand  vendor  and   retailer  and  sold  only  by  that  retailer     Mobile  commerce     Communicating  with  or  selling  to  consumers   through  wireless  handheld  devices  such  as   cellular  phones   Cooperative  advertising     An  agreement  between  a  manufacturer  and   retailer  in  which  the  manufacturer  agrees  to   defray  some  advertising  costs       Chapter  18   Integrated  marketing  communications     Represents  the  promotion  dimension  of  the   four  ps;  variety  of  communication  disciplines   such  as  advertising  personal  selling  and  sales   promotion  and  public  relations     Sender     The  firm  from  which  an  IMC  message   originates;  sender  must  be  clearly  identified   to  the  intended  audience     Transmitter     An  agent  in  which  the  sender  works  with  to   develop  the  marketing  communications     Encoding     The  process  of  converting  the  senders  ideas   into  a  message     Communication  channel   The  medium  print  broadcast  the  internet  that   carries  the  message     Receiver     The  person  who  reads  hears  or  sees  and   processes  the  information  contained  in  the   message     Decoding     The  process  by  which  the  receiver  interprets   the  senders  message     Noise     Interference  from  competing  messages     Feedback  loop   Allows  receiver  to  communicate  with  the   sender  and  thereby  informs  the  sender   whether  the  message  was  received  and   decoded  properly     Brand  awareness     Measures  how  many  consumers  in  a  market   are  familiar  with  the  brand  and  what  it   stands  for     Aided  recall   Occurs  when  consumers  recognize  a  name   that  has  been  presented  to  them   Top  of  mind  awareness   A  prominent  place  in  peoples  memories  that   triggers  a  response  without  them  having  to   put  any  thought  into  it     Lagged  effect     A  delayed  response  to  a  marketing   communication  campaign     Advertising     A  paid  form  of  communication  from  an   identifiable  source  delivered  through  a   communication  channel  and  designed  to   persuade  the  receiver  to  take  some  action   Public  relations     The  organizational  function  that  manages  the   firms  communication  to  achieve  a  variety  of   objectives  including  building  and  maintaining   positive  image   Sales  promotion   Special  incentives  or  excitement  building   programs  that  encourage  the  purchase  of  a   product  or  service  such  as  coupons     Personal  selling     The  two  way  flow  of  communication   between  a  buyer  and  a  seller  that  is  designed   to  influence  purchase  decision   Direct  marketing     Sales  and  promotional  techniques  that   deliver  promotional  material  individually     Mobile  marketing     Marketing  through  wireless  handheld  devices     Objective  and  task  method     An  imc  budgeting  method  that  determines   the  cost  required  to  undertake  specific  tasks   to  accomplish  communication  objectives     Rule  of  thumb  method     Budgeting  methods  that  base  the  imc  budget   on  either  the  firms  share  of  the  market  in   relation  to  competition,  fixed  percentage  of   forecasted  sales  or  what  is  left  after  other   operating  costs  and  forecasted  sales  have   been  budgeted     Frequency     Measure  of  how  often  the  audience  is   exposed  to  a  communication  within  a   specified  period  of  time     Reach   Measure  of  consumers  exposure  to   marketing  communications     Gross  rating  points     Measure  used  for  various  media  advertising-­‐   print,  radio,  or  television  reach  times   frequency     Web  tracking  software   Used  to  asses  how  much  time  viewers  spend   on  particular  web  pages  and  the  number  of   pages  they  view     Social  shopping     Using  the  internet  to  communicate  about   product  preferences  with  other  shoppers     Search  engine  marketing     A  type  of  web  advertising  whereby   companies  pay  for  keywords  that  are  used  to   catch  consumers  attention  while  browsing  a   search  engine           Chapter  19   Advertising     Paid  form  of  communication  delivered   through  media  from  an  identifiable  source   about  an  organization,  product,  service  or   idea  designed  to  persuade  the  receiver  to   take  some  action   Advertising  plan   A  subscription  of  the  firms  overall  marketing   plan     Pull  strategy     Pull  the  product  into  the  marketing  channel   by  demanding  it     Push  strategy   Increase  demand  by  focusing  on  wholesalers   retailers  or  salespeople     Informative  advertising     A  communication  used  to  create  and  build   awareness  with  the  ultimate  goal  of  moving   the  consumer  through  the  buying  cycle  to  a   purchase     Persuasive  advertising     Motivate  consumers  to  take  action   Reminder  advertising     Communication  used  to  remind  or  prompt   repurchases  especially  for  products  that  have   gained  marketing  acceptance  and  are  in  the   maturity  stage  of  their  lifecycle   product  focused  advertising     Inform,  persuade,  or  remind  consumers   about  a  specific  product  or  service     Institutional  advertisements     Inform  persuade  or  remind  consumers  about   issues  related  to  places  politics  or  an  industry   Public  service  advertising     Public  welfare  and  generally  sponsored  by   nonprofit  institutions  civic  groups  religious   organizations  and  trade  associations     Social  marketing     The  application  of  marketing  principles  to  a   social  issue  to  bring  about  attitudinal  and   behavioral  change  among  the  general  public   or  a  specific  population  segment     Unique  selling  proposition   The  common  theme  or  slogan  in  an   advertising  campaign,  its  unique ?


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