Study Guide Vocab for Final
Study Guide Vocab for Final MKT 301
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One Day of Notes
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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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