Introduction to Marketing
Introduction to Marketing MKT 327
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This 6 page Class Notes was uploaded by Jeanette Orn on Saturday September 19, 2015. The Class Notes belongs to MKT 327 at Michigan State University taught by Daniel Lake in Fall. Since its upload, it has received 22 views. For similar materials see /class/207248/mkt-327-michigan-state-university in Marketing at Michigan State University.
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Date Created: 09/19/15
Pages 444446 Chapter 10 0 Figure 105 Page 221 Vocab Product A good service or idea consisting of tangible and intangible features that satisfies consumer s needs and is received in exchange for money or something else Services Intangible activities or benefits that an organization provides to satisfy consumers needs in exchange for money or something else ofvalue Consumer Products Products purchased by the ultimate consumer Business Products Products organizations buy that assist directly or indirectly in providing other products for resale ProductIdem A specific product that has a unique brand size or price Product Line A group ofproducts that are closely related because they are similar in terms of consumer needs and uses market segments sales outlets or prices Product Mix All the product lines offered by a company Four I s of Services Page 213 The four unique elements that distinguish services from goods intangibility inconsistency inseparability and inventory 0 Intangibility o Inconsistency o Inseparability 0 Inventory Idle Production Capacity When the service provider is available but there is no demand for the service NewProduct Process The seven stages an organization goes through to identify business opportunities and convert them into salable products or services QM f Exnerience quot The process of managing the entire customer experience within the company Chapter 11 0 Figure 111 Page 235 0 Figure 113 Page 239 0 Figure 116 Page 249 Vocab Product Live Cycle The stages a new product goes through in the marketplace Introduction growth maturity and decline Branding An organization s use ofa name phrase design symbol or combination of these to identify and distinguish it s products Brand Name Any word device design shape sound or color or combination of these used to distinguish a seller s goods and services Brand Personality A set of human characteristics associated with a brand name Brand Eguigy The added value ofa brand name that gives to a product beyond the functional benefits provided Multiproduct Branding A branding strategy in which a company uses one name for all it s products in a product class Multibranding A branding strategy that involves giving each product a distinct name Eight Ps of services Marketing Expanding the four Ps framework to include productivity people physical environment and process Capacity Management Integrating the service component of the marketing mix with efforts to in uence consumer demand OffPeak Pricing Charging different prices during different times of the day or days of the week to re ect variations in demand for the service Chapter 12 0 Figure 126 Page 274 0 Refer to actual chapter for equations Vocab Price The money or other considerations including other products and services exchanged for the ownership or use ofa product or service Value The ratio ofperceived benefits to price Profit Eguation Profits Total revenue total cost or Unit price X quantity sold Fixed cost variable cost Demand Curve A graph relating the quantity sold and the price which shows how many units will be sold at a given price Price Elasticity of Demand The percentage change in the quantity demanded relative to the percentage change in price Total Revenue The total money received from the sale ofa product the unit price ofa product multiplied by the quantity sold Total Cost The total expenses incurred by a firm in producing and marketing a product total cost is ht sum offixed costs and variable costs BreakEven Analysis A technique that examines the relationship between total revenue and total cost to determine profitability at different levels of output Pricing Objectives Expectations that specify the role of price in an organization s marketing and strategic plans Pricing Constraints Factors that limit the range of prices a firm may set Loss Leader Pricing A sale on a product where the product is sold below cost it is meant to get you into the store and to buy other costly items along with the sale item Chapter 13 O Vocab Figure 138 Page 302 Marketing Channel Individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users Mutichannel Marketing The blending of different communication and delivery channels that are mutually reinforcing in attracting retaining and building relationships with consumers Dual Distribution An arrangement whereby a firm researches different buyers by using two or more different types of channels for the same basic product Vertical Marketing Systems Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact Intensive Distribution When a firm tries to place its products or services in as many outlets as possible Exclusive Distribution When only one retail outlet in a specific geographical area carries the firm s products Selective Distribution When a firm selects a few retail outlets in a specific geographical area to carry its products Channel Con ict Arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving it s goals Disintermediation A channel con ict that arises when a channel member bypasses another member and sells or buys products direct Logistics Those activities that focus on getting the right amount ofthe right products to the right place at the right time and the lowest possible cost Supply Chain The various firms involved in performing the activities required to create and deliver a product or service to consumers or industrial users Total Logistics Cost Expenses associated with transportation materials handling and warehousing inventory stockouts order processing and return products handling Customer Service The ability oflogistics management to satisfy users in terms of time dependability communication and convenience VendorManaged Inventory An inventory management system whereby the supplier determines the product amount and assortment a customer such as a retailer needs and automatically delivers the appropriate items Chapter 14 Vocab Retailing All activities involved in selling renting and providing products and services to ultimate consumers for personal family or household use Scrambled Merchandising Offering several unrelated product lines in a single store Telemarketing Using the telephone to interact and sell directly to consumers Retailing Mix The activities related to managing the store and the merchandise in the store which includes retail pricing store location retail communication and merchandise Multichannel Retailers Retailers that use a combination of traditional store formats and nonstore formats such as catalogs television and online retailing Category Management An approach to managing the assortment of merchandise that maximizes sales and profits Wheel of Retailing A concept that describes how new forms of retail outlets enter the market Retail Life Cycle The process of growth and decline that retail outlets experience over time Merchant Wholesalers Independently owned firms that take title to the merchandise they handle Manufacturer s Agents Agents who work for several producers and carry noncompetitive complementary merchandise in an exclusive territory Brokers Independent firms or individuals whose main function is to bring buyers and sellers together to make sales Chapter 15 0 Figure 152 Page 337 0 Figure 153 Page 341 Vocab Promotional Mix The combination of one or more of the communication tools used to inform persuade or remind prospective buyers Integrated Marketing l 39 39 The concept of designing marketing communications programs that coordinate all promotional activities to provide a consistent message across all audiences Communication The process of conveying a message to others it requires six elements a source a message a channel of communication a receiver and the processes of encoding and decoding Advertising Any paid form of nonpersonal communication about an organization product service or idea by an identified sponsor Personal Selling The twoway ow of communication between a buyer and seller often in a facetoface encounter designed to in uence a person s or group s purchase decision Public Relations A form of communication management that seeks to in uence the feelings opinions or beliefs held by customers potential customers stockholders suppliers employees and others about a company and its products or services Publicity A nonp ersonal indirectly paid presentation of an organization product or service Sales Promotion A shortterm offer designed to arouse interest in buying a product or service Direct Marketing Promotional element that uses direct communication with consumers to generate a response in the form of an order a request for further information or a visit to a retail outlet Push Strategy Directing the promotional miX to channel members to encourage them to order and stock a product Pull Strategy Directing the promotional mix at ultimate consumers to encourage them to ask the retailer for the product Hierarchy of Effects The sequence of stages a prospective buyer goes through Awareness interest evaluation trial and adoption Direct Orders The result of direct marketing offers that contain all the information necessary for a potential buyer to make a decision to purchase and complete the transaction Lead Generation The result of a direct marketing offer designed to generate interest in a product or a service and a request for additional information Traffic Generation The outcome of a direct marketing offer designed to motivate people to visit a business Chapter 16 0 Figure 162 Page 364 Vocab Advertising Any paid form of nonpersonal communication about an organization product service or idea by an identified sponsor Product Advertisements Advertisements that focus on selling a product or service forms include pioneering informational competitive persuasive and reminder Institutional Advertisements Advertisements designed to build goodwill or an image for an organization rather than promote a specific product or service Infomercials Programlength 30minute advertisements that take an educational approach to communication with potential customers Pretests Tests Conducted before an advertisement is placed in any medium to determine whether it communicates the intended message or to select among alternative versions of the advertisement Posttests Tests conducted after an advertisement has been shown to the target audience to determine whether it has accomplished its intended purpose ConsumerOriented Sales Promotions Sales tools such as coupons sweepstakes and samples used to support a company s advertising and personal selling efforts directed to ultimate consumers Product Placement A consumer sales promotion that uses a brandname product in a movie television show video or commercial for another product TradeOriented Sales Promotions Sales Tools used to support a company s advertising and personal selling directed to wholesalers distributors or retailers Cooperative Advertising Advertising programs by which a manufacturer pays a percentage of the retailer s local advertising expense for advertising the manufacturer s products Publicity Tools Methods of obtaining nonpersonal presentation of an organization product or service without direct cost Chapter 17 0 Figure 172 Page 386 Vocab Personal Selling The twoway ow of communication between a buyer and seller often in facetoface encounter designed to in uence a person s or group s purchase decision Sales Management Planning the selling program and implementing and evaluating the personal selling effort of the firm Relationship Selling The practice ofbuilding ties to customers based on a salesperson s attention and commitment to customer needs over time Order Taker A salesperson who processes routine orders or reorders for products that were already sold by the company Order Getter A salesperson who sells in a conventional sense and identifies prospective customers provides customers with information persuades customers to buy closes sales and follows up on customers use ofa product or service Personal Selling Process Sales activities occurring before and after the sale itself consisting of siX stages 1 prospecting 2 preapproach 3 approach 4 presentation 5 close 6 followup Adaptive Selling A needsatisfaction sales presentation style that involves adjusting the presentation to fit the selling situation Consultative Selling A needsatisfaction sales presentation style that focuses on problem identification where the salesperson serves as an expert on problem recognition and resolution Sales Plan A statement describing what is to be achieved and where and how the selling effort of salespeople is to be deployed Major Account Management The practice of using team selling to focus on important customers so as to build mutually beneficial long term cooperative relationships also called key account management Account Management Policies Policies that specify whom salespeople should contact what kinds of selling and customer service activities should be engaged in and how these activities should be carried out
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