Marketing CLEP

Full-Service Wholesaler

A wholesaler that buys merchandise from a manufacturer, inventories it, fills orders, and delivers the merchandise to retailers. In addition, offers trade credit, research, management, and promotion for the merchandise.

All of the following are objective characteristics that define consumers EXCEPT:

a) Age

b) Stage in life cycle

c) Brand loyalty

d) Gender

e) Socioeconomic class

C*

The marketing concept philosophy differs from earlier views of marketing by

doing extensive research about potential customers.

The marketing concept philosophy emphasizes the role of the buyer in product development and uses market research extensively to divine what the market wants.

Convenience Goods

Convenience goods, such as tabloids, candy bars, and magazines bought at the checkout line, as well as staples like as bread and milk, are categorized as convenience products.

Specialty Goods

Specialty goods are expensive items, such as high-end cars and designer clothes.

Unsought Goods

Unsought goods and services are those that individuals don't know exist, such as DVRs when they first came out, or don't want, such as annuities.

Component Products

Component products are those that are part of another product, such as microchips in computers, or those that need additional processing, such as silicon for the microchips.

Supplies

Supplies are used in maintenance, overhaul, and operations (Maintenance, Repair, and Operations) jobs and include such things as paint, nails, paper, and toner.

Concentrated Strategy

A concentrated strategy is also called single or niche strategy; it focuses on one market segment.

Differentiated Strategy

A differentiated strategy uses many types of marketing mixes for a variety of products sold to a variety of market segments.

SMSA

Standard Metropolitan Statistical Area

used in analyzing geographic demographics

Positional Influencer

Someone who has a close relationship to a potential customer and is most likely to influence that customer when faced with buying a product

Which of the following is an example of Reverse Logistics?

A company accepts the return of its used clothing from customers and reuses it in the manufacture of new clothing.

Direct Channel

A direct channel means there are no intermediaries (like wholesalers, distributors, or retailers) between the producer (the person making the product) and the consumer (the person buying it). The producer sells directly to the customer.

Which of the following is an example of a Direct Channel?

A basketweaver selling to customers at a craft show.

A salesperson who works for a distributor or wholesaler, but restocks shelves and sets up displays in stores, is what kind of a salesperson?

A trade salesperson restocks shelves, sets up displays, and may take orders from retailers, but does not sell.

Order Taker

Takes orders but does not generate them.

Missionary Sales Representative

Shows new products to prospective customers but does not restock shelves or set up store displays.

Service Salesperson

Works with customers on service to products after a sale and does not restock shelves or set up store displays.

Product Manager

Is an internal position that oversees the development, marketing, and sale of products; the product manager is not in a sales position.

Promotional Allowance

Is a reduction in the wholesale price that is offered to incentivize retailers or other intermediaries to promote a product.

Intrapersonal Influences

Intrapersonal, or internal, influences include a person's attitudes, perceptions, and values.

Computer Graphics, Inc., decides it wants to sell its netbooks in Japan. The option that involves the least investment for CGI is

Working through an importer is the method for expanding business into another country that involves the least investment. Setting up sales offices is next in order of less costly.

Direct Selling

The most important tool in the promotional mix for industrial product sales is direct, or personal, selling.

Dual Distribution

Dual distribution uses two or more types of distribution channels—intermediaries—to get the same product to the same market.

Franchise

Is a right given to an individual or group (franchisee) to market a company's goods or services at a certain location or within a certain territory in exchange for a fee. Franchisees in return have the support and technical assistance of the franchisor.

Licensing Arrangement

Involves the use only of patents, trademarks, copyrights, or marketing in exchange for a fee or royalties.

Strategic Alliance

Is a formal relationship between independent organizations in order to pursue some agreed-upon goals.

Turnkey Operation

Is a contract between companies in which one provides the services for the other.

Partnership

Is, in legal terms, a type of unincorporated business organization in which two or more individuals manage the business and bear equal liability.

Characteristics of a Market

money, authority to purchase, desire, and access.

Maturity Stage of Product Life Cycle

Sales are still increasing, but at a declining rate.

Some of the economic factors that a company should consider before entering a foreign market include

In considering whether to enter a foreign market, the economic factors that a company would consider include the stability of the nation's currency, the nation's infrastructure, and the income levels of its population.

Star

Generate large profits, but also consume substantial resources to finance their continued growth. High Industry Growth Rate, High Relative Market Share.

Problem Child / Question Mark

Does not provide great profits, but still requires high levels of investments to maintain or increase market share. High Industry Growth Rate, Low Relative Market Share.

Cash Cow

Generate large profits and require relatively little investment to maintain their market share in slow-growth industries. Low Industry Growth Rate, High Relative Market Share.

Dog

Are characterized by low profitability and little opportunity for sales growth. Low Industry Growth Rate, Low Relative Market Share.

Customer Value

Is the value, or utility, that marketing creates for customers: form, place, time, and possession.

Time Utility

The value created by having a product available when the customer wants/needs it.

Place Utility

Refers to the value created in selling a product in a location convenient to the customer.

Possession Utility

Refers to the value to the customer of being able to buy a number of items in one place.

Form Utility

Positioning

Is the process by which marketers attempt to get a targeted market to identify the company's products with a certain image or identity—and buy it.

Production Philosophy

The production philosophy holds that if a company produces and distributes good products, people will buy them.

Marketing Services

Marketing services is the department that performs the activities that implement the strategic marketing plan, such as setting up and running exhibits at trade shows, creating public relations events and press releases, etc.

B2B Complications

Two factors complicate business-to-business marketing. One is the number of people involved in decision making, and the other is the amount of time that it can take for decision makers to decide.

Horizontal Marketing System

An arrangement between two or more distribution channel members that are on the same level of the distribution chain.

To be effective, a marketing plan has to answer "yes" to all of the following questions EXCEPT:

a) Is it measurable?

b) Is it motivational?

c) Is it consistent?

d) Is it specific?

e) Is it achievable?

B*

Pareto Effect

According to the Pareto effect, 20 percent of customers account for 80 percent of a company's business generally.

Zone Pricing

Zone pricing sets prices by regions.

Competitive Pricing

Competitive pricing prices a product within a range of prices competitors charge for the same or similar products.

Flexible Pricing

Refers to setting different prices for different customers for the same product.

Unit Pricing

Provides consumers with information on the price per unit on or near the product to simplify comparisons.

What is the standard agency commission for media buying?

Fifteen percent is the standard advertising agency commission for media buying.

Customer Relationship Marketing

the purpose of CRM is to maximize profitability, revenue, and customer satisfaction.

Boilerplate

Boilerplate is not a marketing tactic, but a formulaic statement or document that can be used and reused, with changes possible.

Latent Demand

Is demand waiting to be fulfilled; no current product satisfies it.

Irregular Demand

Is demand for a product that fluctuates significantly.

Negative Demand

Occurs when people don't like an existing product.

Full Demand

Occurs when a particular company can't fulfill any more business.

Bypass Strategy

Enables a market challenger to market to a segment that the market leader is not in.

Niche Strategy

Niche marketing is like finding a small group of people that the big players (like the market leader) aren't interested in serving because it's too small or specific for them to bother with.

Flank Strategy

A flank attack is about finding and exploiting the weaknesses of the market leader. Instead of fighting them directly, you look for gaps or vulnerabilities in what they offer and target those areas.

Frontal Attack

A frontal attack is like going head-to-head with the market leader. You're directly competing with them in the same space, with the same audience, and trying to beat them at their own game.

Trade Discount

A trade, or functional, discount is given by manufacturers to wholesalers and retailers in return for a service like warehousing or selling.

Quantity Discount

Is one given to encourage a customer to buy more than usual.

Cash Discount

Is an incentive to a customer to pay an invoice early.

Integrated Marketing Communications

Integrated marketing communications (IMC) includes all groups that are responsible for creating and disseminating a company's sales-related messages (promotion) to its stakeholders.

Market Share

Market share is the total unit or dollar sales that competitors in a particular market hold.

Private Label Brand

A private label, or store, brand is one that is owned by a retailer or supplier and, under contract, is manufactured for the owner by someone other than the owner.

National Brand

Is one that is owned by a manufacturer; it is well promoted and recognizable nationally.

Regional Brand

Is one that is marketed in a region of the country, rather than locally or nationally; it is owned by a wholesaler, retailer, or dealer rather than by a manufacturer.

Upselling

The technique of attempting to get a customer to buy more items or a more expensive item is upselling.

Penetration Pricing

The goal of penetration pricing is to take a large share of the market by offering the new product at a low price.

The expectation is that, over time, the large sales volume will offset the low price.

Global Brand

A global brand has the same name and logo regardless of the country in which the branded products are being sold; that's why it's a global brand.

Unique Selling Proposition

The unique selling proposition (USP) is the reason a customer should buy a product; it is the most important benefit and separates a product from its competitors.

Bounce Back

A retailer adds a bounce back coupon to entice the customer to come back to the store and buy again.

Do Not Call Act of 2003

Telemarketing is cold calling and is limited by the Do Not Call Act of 2003.

Harvesting

The harvesting strategy is used to maximize short-term profits and cash flow from a product/product line when a company anticipates declining market share and withdrawal from a market at some point.

Test Marketing

Test marketing assesses both the product and the marketing plan for the product.

Consumer Decision-Making Purchase Process

The five steps in the consumer decision-making purchase process are: problem recognition, information search, evaluation of alternatives, implementation of decision, post-purchase behavior.

Advertising Process

In order, the eight steps in the advertising process are: assess opportunities, select channels, establish objectives, determine promotion mix, develop message, develop budget, implement, measure effectiveness.