MKT201 Quiz 2 Verbal Study Packet Flashcards

Vocabulary-style flashcards covering the core concepts of marketing including product development, pricing, distribution, and promotion based on the MKT201 study packet.

Stage-Gate Process

A step-by-step process companies use during the product development cycle to lower risk and improve success chances by deciding to continue, stop, or improve at each stage.

Iterative

A characteristic of the product development process meaning companies often go backward and redo earlier steps after learning something new.

Idea Generation

The first stage of product development involving coming up with product ideas, such as YETI designing a bottle for athletes.

Economics / Business Analysis

The fifth stage of product development focused on calculating costs, profits, and expected sales.

Cannibalization

A situation where a company’s new product steals sales away from its older product, potentially decreasing overall profits even if sales rise.

Market-Skimming Pricing

A strategy of starting with a high price to maximize early profits, such as when a new iPhone launches.

Market-Penetration Pricing

A strategy of starting with a low price to attract many customers quickly, such as a streaming service launching with a low subscription price.

Psychological Pricing

A price adjustment strategy based on consumer perception, such as pricing an item at $9.99$ instead of $10$.

Direct Channel

A distribution method where a company sells its products directly to its customers without intermediaries.

Indirect Channel

A distribution method that uses wholesalers and retailers to help sell products to the end consumer.

Channel Conflict

Disagreements within the distribution system over issues such as pricing, profits, and customer access.

Retailing

The business of selling products directly to the final consumers.

Omni-Channel Retailing

A retail strategy allowing customers to shop across multiple platforms, including stores, websites, and apps, seamlessly.

Wholesaling

The process of buying large amounts of products, storing and transporting them, and helping manufacturers reach retailers.

Promotional Mix

The combination of communication tools used by a company, including advertising, sales promotion, personal selling, and public relations.

Public Relations (PR)

A promotional tool focused on building trust, reputation, and positive emotional connections with the public through non-paid channels.

Buzz Marketing

A PR tool used to generate excitement and conversation about a brand or product.

New Marketing Communications Model

A modern approach to marketing that utilizes social media, influencers, SEO, content marketing, and online advertising.

Affordable Method

A promotion budget strategy where the company spends only the amount they believe they can afford.

Objective-and-Task

A promotion budget method where the budget is determined based on specific company goals.

Informative Advertising

A type of advertising intended to educate customers about a product or service.

Reach

A campaign metric that measures how many unique people see a specific advertisement.

Frequency

A campaign metric that measures how often people see a specific advertisement.

Engagement

A campaign metric measuring how much people interact with an ad through actions like clicks, comments, and likes.