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This 8 page Class Notes was uploaded by Mr. Humberto Sipes on Wednesday October 21, 2015. The Class Notes belongs to MKTG 321 at Texas A&M University taught by Janet Parish in Fall. Since its upload, it has received 49 views. For similar materials see /class/225779/mktg-321-texas-a-m-university in Marketing at Texas A&M University.
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Date Created: 10/21/15
Chapter 12 Price 7 Value exchanged for products in a marketing transaction Barter 7 The trading of products Price Competition 7 Emphasizing price and matching or beating competitors prices Nonprice Competition Emphasizing factors others than price distinguish a product from competing brands Demand Curve 7 A graph of the quality of products expected to be sold at various prices if other factors remain constant Price Elasticity of Demand 7 A measure of the sensitivity of demand to changes in price Fixed Costs 7 Costs that do not vary with changes in the number of units produced of sold Average Fixed Costs 7 the xed costs per unit produced Variable costs 7 Costs that vary directly with changes in the number of units produced or sold Average Variable Costs 7 The variable cost per unit produced Total Cost 7 The sum of average xed and average variable costs times the quantity produced Average Total Costs 7 The sum of the average xed cost and the average variable cost Marginal Cost 7 The extra cost 0 rm incurs by producing one more unit of a product Marginal Revenue 7 The change in total revenue resulting from the sale of an additional units of a product Breakeven Point 7 The point at which the costs of producing a producing a product equal the revenue made from selling the product Internal Reference Price 7 A price developed in the buyer s maid through experience with the product External Reference Price 7 A comparison price provided by others Value conscious 7 Concerned about price and quality of a product Price conscious 7 Striving to pay low prices Prestige sensitivity 7 Drawn to products that signify prominence and status Price Discrimination 7 Providing price differentials that injure competition by giving one or more buyers a competitive advantage Trade functional discount 7 Also known as functional discount a reduction off the list price given by a producer to an intermediary for performing certain functions Quantity Discounts 7 Deductions from list price for purchasing large quantities Cumulative Discounts 7 Quantity discounts aggregated over a stated period of time Noncumlative Discounts 7 Onetime reductions on price based on speci c factors Cash Discount 7 A price reduction given to buyers for prompt payment or cash payment Seasonal Discount 7 A price reduction given to buyers for purchasing goods or services out of seas Allowance 7 A concession in price to achieve a desired goal Geographic Pricing 7 Reductions for transportation and other costs related to the physical distance between buyer and seller F O B Factory 7 The price of the merchandise at the factory before shipment F O B Destination 7 A price indicating the producer is absorbing shipping costs Uniform Geographic 7 Charging all customers the same price Zone Pricing 7 Pricing based on transportation costs within major geographic zones Base Point Pricing 7 Geographic pricing combining factory price and freight charges from the base point nearest the buyer Freight Absorption Pricing 7 Absorption of all of part of actual freight costs by the seller Transfer Pricing 7 Prices charged in sales between an organization s units Chapter 13 Pricing Objectives 7 goals that describe what a rm wants to achieve through pricing Cost based Pricing 7 Adding a dollar amount or percentage to the cost of the product Cost plus Pricing 7 Adding a specified dollar amount or percentage to the seller s cost Markup Pricing Adding to the cost of the product a predetermine percentage of that cost Demand based Pricing 7 Pricing based on the level of demand for the product Competition based Pricing Pricing in uenced primarily by competitors prices Differential Pricing 7 Charging different prices to different buyers for the same quality and quantity of a product Negotiating Pricing 7 Establishing a final price through bargaining Secondary market Pricing 7 Setting one price for the primary target market and a different price for another market Periodic Discounting 7 Temporary reduction of prices on a patterned or systematic basis Random Discounting 7 Temporary reduction of prices on an unsystematic basis Price Skimming 7 Charging the highest possible price that buyer who most desire that product will pay Penetration Pricing 7 Setting prices below those of competing brands to penetrate a market and gain a significant market share quickly Product line Establishing and adjusting prices of multiple products within a product line Captive Pricing 7 Pricing the basic product in w product line low while pricing related items at a higher level Premium Pricing 7 Pricing the highestquality of most versatile product higher that other models in the product line Bait Pricing 7 Pricing an item in the product line low with the intention of selling a higherpriced item in the line Price Lining 7 Setting a limited number of prices for selected groups or lines of merchandise Psychological Pricing 7 Pricing that attempts to in uence a customer s perception of price that make a product s price more attractive Reference Pricing 7 Pricing a product at a moderate level and displaying it next to a more expensive model or brand Bundle Pricing 7 Packaging together two or more complementary products and selling them for a single price Multiple unit Pricing 7 Packaging two or more identical product together and selling them for a single price Everyday Low Prices EDLP 7 Setting a low price for products on a consistent basis Odd even Pricing 7 Ending the price with certain numbers to in uence buyers perceptions of the price or product Customary Pricing 7 Pricing on the basis of tradition Prestige Pricing 7 Setting prices at an arti cially high level to convey prestige or a quality image Professional Pricing 7 Fees set by people with great skill or experience in a particular eld Pricing Leaders 7 Product priced below the usual markup near cost or below cost Special event Pricing Advertised sales or price cutting linked to a holiday season or event Comparison Discounting 7 Setting a price at a speci c level and comparing it with a higher price Chapter 14 Distribution 7 The decisions and activities that make products available to customers when and where they want to purchase them Marketing Channel 7 A group of individuals and organizations directed the ow of products from producers to customers Chapter 1 Marketing 7 The process of creating distributing promoting and pricing goods services and ideas to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment Customers 7 The purchasers of organizations products the focal points of all marketing activities Target Market 7 A specific group of customers on whom an organization focuses its marketing efforts Marketing Mix 7 Four marketing activities 7 product pricing distributing and promotion 7 that a rm can control to meet the needs of customers within its target market Product 7 A good service of an idea Exchange 7 The provision of transfer of goods services or ideas in return for something of value Stakeholders 7 Constituents who have a stake or claim in some aspect of a company s products operations markets industry and outcomes Marketing Environment 7 The competitive economic political legal and regulatory technological and sociocultural forces that surround the customer and affect the marketing mix Marketing Concept 7 A managerial philosophy that an organization should try to satisfy customers needs through a coordinated set of activities that also allows the organization to achieve its goals Marketing Orientation 7 An organization wide commitment to researching and responding to customer needs Relationship Marketing 7 Establishing longterm mutually satisfying buyerseller relationship Customer 39 quot 39 39 CRM 7 Using information about customers to create marketing strategies that develop and sustain desirable customer relationships Value 7 A customer s subjective assessment of benefits relative to costs in determining the worth of a product Marketing Management 7 The process of planning organizing implementing and controlling marketing activities to facilitate exchanges effectively and effectively and efficiently Chapter 2 Strategic Planning 7 The process of establishing an organizational mission and formulating goals corporate strategy marketing objectives marketing strategy and a marketing plan Marketing Strategy 7 A plan of action for identification and analyzing a target market and developing a marketing mix to meet the needs of that market Marketing Plan 7 A written document that specifies the activities to preformed to implement and control on organization s marketing activities Core Competencie 7 Things a rm does extremely well which sometimes gives in an advantage over its competition Marketing Opportunities 7 Strategic Windows 7 Temporary periods of optimal frts between the key requirements of a market and rm s capabilities Competitive Advantag 7 The result of a company s matching a core competency to opportunities in the marketplace SWOT analysi 7 A tool that marketers use to assess an organization s strengths weakness opportunities and threats Mission Statement 7 A longterm view of what the organization wants to become Marketing objectiv 7 A statement of what is to be accomplished through marketing activities Copporate Strategy 7 A strategy that determines the means for using resources in the various functional areas to reach the organization s goals Strategic Business Unit SBU17 A division product line or other pro t center within a parent company Market 7 A group of individuals andor organizations that have needs for products in a product class and have the ability willingness and authority to purchase those products Marketgrowthmarketshare Matrix 7 A strategic planning tool based on the philosophy that a product s market growth rate and market share are important in determining marketing strategy n A 0 A A d t 7 An A that the competition cannot copy Marketing Flaming 7 The process of assessing opportunities and resources determining objectives de ning strategies and establishing guidelines of implementation and control of the marketing program Marketing Implementation 7 The process of putting marketing strategies into action Intended Strategy 7 The strategy the company decides on during the planning phase Realized Strategy 7 The strategy that actually takes place External Customers 7 Individuals who patronize a business Internal Customers 7 A company s employees Internal Marketing 7 Coordination internal exchanges between the rm and its employees to achieve successful external exchanges between the rm and its customers Total Quality Management TQM17 A philosophy that uniform commitments to quality in all areas of the organization will promote a culture that meets customers perceptions of quality Benchmarking 7 Comparing the quality of the rm s goods services or processes with that of the bestperforming competitors Empowerment 7 Giving customercontact employees authority and responsibility to make marketing decisions on their own Decentralized Organization 7 A structure in which decision making authority is delegated as far down the chain of command as possible Marketing Control Proces 7 Establishing performance standards and trying to match actual performance to those standards Performance Standard 7 An expected level of performance Chapter 3 Environmental Scanning 7 Environmental Analysis 7 Competition 7 Brand Competitors 7 Product Competitors 7 Generic Competitors 7 Total Budget Competitors 7 Monopoly 7 Oligopoly 7 Monopolistic Competition 7 Pure Competition 7 Buying Power 7 Disposable Income 7 Discretiona Income 7 Willingness to spend 7 Business Cycle 7 Federal Trade Commission FTC17 Better Business Bureau 7 National Advertising Review Board NARB17 Technology 7 Sociocultural Forces 7 Social Responsibility 7 Marketing Citizenship 7 Marketing Ethics 7 Ethical Issue 7 Causerelated Marketing 7 Strategic Philanthropy 7 Green Marketing 7 Consumerism 7 Codes of Conduct 7 Chapter7 Consumer Market Purchasers and household members who intend to consume or benefit from the purchase and do not buy products to make a profit Business Market Individuals or groups that purchase a specific kind of product for resale direct use or use in general daily operations Undifferentiated Targeting Strategy A strategy in which an organization designs a single marketing mix and directs it as the entire market for a particular product Homogeneous Markets A market in which a large portion of customers have a similar need for a product Heterogeneous Markets Markets made up of individuals of organizations with diverse needs for a product in a specific product class Market Segmentation The process of dividing a total market into groups with relatively similar product needs to design a marketing mix that matches those needs Marketing Segment ndividuas groups or organizations with one or more similar characteristics that causes them to have similar product needs Concentrated Targeting Strategy A strategy in which an organization targets a single marketing segment using one marketing mix Differentiated Targeting Strategy A strategy in which an organization targets two of mare segments by developing a marketing mix for each Segmentation Variables Characteristics of individuals groups or organizations used to divide a making into segments Market Density the number of potential customers within a unit of land area Geodemographic Segmentation Marking segmentation that clusters people in a zip code areas and smaller neighborhood units based on lifestyle and demographics information Micromarketing An approach to marketing segmentation in which organizations focus precise marketing efforts on very small geographic markets Benefit Segmentation The division of a market according to benefits that customers want from the product Market Potential The total amount of a product that customers will purchase within a specified period at a specific level of industry wide marketing activity Company sales Potential The maximum percentage of market potential that an individual firm can expect to obtain from a specific product Breakdown Approach Measuring company sales potential based on a general economic forecast for a specific period and the market potential derived from it Buildup Approach Measuring company sales potential by estimating how much a product a potential buyer in a specific geographic area will purchase in a given period multiplying the estimate by the number of potential buyers and adding the totals of all the geographic areas considered Sales Forecast the amount of a product a company expects to sell during a specific period as a specified level of marketing activities Executive Judgment Sales forecasting bases on the intuition of one or more executives Customer Forecasting Survey a survey of customers regarding the types and quantities of products they intend to buy during a specific period Sales Force Forecasting Survey a survey of a firm s sales force regarding anticipated sales in their territories for a specified period Expert Forecasting Survey sales forcasts prepared by experts such as economists managements consultants advertising executives college professors or other persons outside the firm Delphi technigue A procedure in which experts create intial forecasts submit them to a company for averaging and then refine and forecasts Chapter7 Timeseries Analysis A forecasting method that uses historical sales data to discover patterns in the firm s sales over time and generally involves trend cycle seasonal and random factor analyses Trend Analysis An analysis that focuses on aggregate sales data over a period of many years to determine general trends in annual sales Cycle Analysis An analysis of sales data over a period of three to five years to ascertain whether saes fluctuate in a consistent periodic manner Seasonal Analysis An analysis of daily weekly or monthly sales figures to evaluate the degree to which seasonal factors influence saes Random Factor Analysis Ananalusis attempting to attribute erradic saes variation to random nonrecurring events Regression Analysis A method of predicting saes based on finding a relationship between past sales and one or more variables such as a population or income Market Test Making a product available to buyers in one or more test areas and measuring purchases and customers responses
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