Chapter 11-13 BSAD Final

Marketing

the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

Value

a customer’s estimation of the worth of a production based on a comparison of its costs and benefits, including quality, relative to other products

Exchange functions: Buying___; Selling___

Buying includes obtaining raw materials to make products, knowing how much merchandise to keep on hand, and selecting suppliers. Selling creates possession utility by transferring the title of a product from seller to customer

Physical distribution functions: Transporting___; Storing___

Transporting involves selecting a mode of transportation that provides an acceptable delivery schedule at an acceptable price. Storing goods is often necessary to sell them at the optimal selling time.

Facilitating functions; financing___, standardization___, risk-taking____, gathering

Financing: to buy raw materials, manufacturers often borrow from banks or receive credit from suppliers

Relationship marketing

establishing long-term mutually satisfying buyer-seller relationships

Customer relationship management

using information about customers to create marketing strategies that develop and sustain desirable customer relationships; requires identifying patterns of buying behavior to focus on the most promising and profitable customers

Customer lifetime value

a measure of customer’s worth (sales minus costs) to a business over one’s lifetime

Utility

the ability of a good or service to satisfy a human need

Form utility

utility created by converting production inputs into finished products

Place utlity

utility created by making a product available at a location where customers wish to purchase it

Time utility

utility created by making a product available when customers wish to purchase it

Possession utility

utility created by transffering title (or ownership) of a product to a buyer

Marketing concept

a business philosophy that a firm should provide goods and services that satisfy customers’ needs through a coordinated set of activities that allow the firm to achieve its objectives

market

a group of individuals or organizations, or both, that need products in a given category and that have the ability, willingness, and authority to purchase them

Marketing strategy

a plan that will enable an organization to make the best use of its resources and advantages to meet its objectives

Marketing mix

a combination of product, price, distribution, and promotion developed to satisfy a particular target market

Target market

a group of individuals or organizations, or both, for which a firm develops and maintains a marketing mix suitable for the specific needs and preferences of that group

Undifferentiated approach

directing a single marketing mix at the entire market for a particular product

Market segment

a group of individuals or organizations within a market that shares one or more common characteristics

Market segmentation

the process of dividing a market into segments and directing a marketing mix at a particular segment or segments rather than at the total market

Marketing plan

written document that specifies and organizations resource objectives, strategy, and implementation and control efforts to be used in marketing a specific product or product group

Sales forecast

an estimate of the amount of a product than an organization expects to sell during a certain period of time based on a specified level of marketing effort

Marketing analytics

the collection, organization, and interpretation of data about marketing performance

marketing research

the process of systematically gathering, recording, and analyzing data concerning a particular marketing problem

Buying behavior

the decisions and actions of people involved in buying and using products

Consumer buying behavior

the purchasing of products for personal or household use, not for business purposes

Business buying behavior

the purchasing of products by produces resellers, governmental units, and institutions

Product

everything one receives in an exchange, including all tangible and intangible attributes and experienced benefits (good, services, or ide

Consumer product

a product purchased to satisfy personal and family needs

Business product

a product bought for resale, for making other products, or for use in a firm’s

Convenience product

a relatively inexpensive, frequently purchased items for which buyers wan to exert only minimal efforts

Shopping product

an item for which buyers are willing to expend con

Specialty product

an item that possesses one or more unique characteristics for which a significant group of buyers is willing to expend

Unsought product

an item that people do not plan of purchasing, such as one that addresses a sudden problem or that customers are unaware of until they see it in a store or online

Raw material

a basic material that becomes part of a physical product; usually comes from mines, forests, oceans, or recycled solid wastes

Major equipment

large tools and machines used for production purposes

Accessory equipment

standardized equipment used in a firm’s production or office activities

Component part

an item that becomes part of a physical product and is either a finished item ready for assembly or a product that needs little processing before assembly

Process material

a material that is used directly in the production of another product but is not readily identifiable in the finished product

Supply

an item that facilitates production and operations but does not become part of a finished product

Business service

a intangible product that an organization uses in its operations

Product life cycle

a series of stages in which a product’s sales revenue and profit increase, reach a peak, and then decline

Product line

a group of similar products that differ only in relatively minor characteristics

Product mix

all the products a firm offers for sale

• Width: the number of product lines the mix contains

• Depth: the average number of individual products within each line

Product mortification

the process of changing one or more of a product’s characteristics

• Quality modifications: changes that relate to a product’s dependability and durability; usually achieved by altercations in the materials or production process

• Functional modifications: affect a product’s versatility, effectiveness, convenience, or safety; usually require redesign of the product

• Aesthetic modification: change the sensory appeal of a product by altering its taste, texture, sound, smell, or visual characteristics

Line extension

development of a new product that is closely related to one or more products in the existing product line but designed specifically to meet somewhat different customer needs

Product deletion

the elimination of one or more products from a product line

Brand

a name, term, symbol, design or any combination of these that identifies a seller’s products as distinct from those of other sellers

Brand name

the part of the brand that can be spoken

Brand mark

the part of a brand that is a symbol or distinctive design

Trademark

a brand name or brand mark that is registered with the US Patent and Trademark Office and thus is legally protected from use by anyone except it’s owner

Trade name

the complete and legal name of an organization

Manufacturer or producer brand

a brand that is owned by a manufacturer

Store or private brand

a brand that is owned by an individual wholesaler or retailer

Generic product or generic brand

a product with no brand at all

Brand loyalty

extent to which a customer is favorable toward buying a specific brand

Brand equity

marketing and financial value associated with a brand strength in a market

Individual branding

the strategy in which a firm uses a different brand for each of its products

Family branding

the strategy in which a firm uses the same brand for all or most of its products

Brand extension

using an existing brand to brand a new product in a different product category

Packaging

all the activities involved in developing and providing a container with graphics for a product

Labeling

the presentation of information on a product or its package

Price

the amount of money a seller is willing to accept in exchange for a product at a given time and under given circumstances

Price competition

an emphasis on setting a price equal to or lower than competitors’ prices to gain sales or market share

Non-price competition

competition based on factors other than price

• Product differentiation: the process of developing and promoting differences between one’s product and all similar products

Markup

the amount a seller adds to the cost of a product to determine its basic selling price

Fixed cost

a cost incurred no matter how many units of a product are producted or sold

Variable cost

a ost that depends on the

Breakeven quantity

the number of units that must be sold for the tital revenue to equal the total cost

Total revenue

the total amount received from the sales of a product

Total cost

the sum of the fixed costs and the variable costs attributed to a product

Price skimming

the strategy of charging the highest possible price for a product during the introduction stage of it’s life cycle

Penetration pricing

the strategy of setting a low price for a new product to build market share quickly

Negotiated pricing

establishing a final price through bargaining

Secondary-market pricing

setting one price for the primary target market and a different price for another market

Periodic discounting

temporary reduction of prices on a pattered or systematic basis

Random discounting

temporary reduction of prices on an unsystematic basis

Odd-number pricing

the strategy of setting prices using odd numbers that are slightly below whole-dollar amounts

Multiple-unit pricing

the strategy of setting a single price for two or more units

Reference pricing

pricing a product at a moderate level and positioning it next to a more expensive model or brand

Bundle pricing

packaging together two or more complementary products and selling them for a single price

Everyday low prices (EDLPs)

setting a low price for products on a consistent basis

Customary pricing

pricing on the basis of tradition

Captive pricing

pricing the basic product in a production line low, but pricing related items at a higher level

Premium pricing

pricing the highest quality or most versatile products higher than other models in the product line

Price lining

the strategy of selling goods only at a certain predetermined prices that reflect definite price breaks

Price leaders

products 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

setting a price at a specific level and comparing it with a higher price

Transfer pricing

prices charged in sales between an organizations units

Discounting

a deduction from the price of an item

Distribution channel or marketing channel

a sequence of marketing organizations that directs a product from the producer to the ultimate user

Middleman or marketing intermediary

a marketing organization that links a producer and user within a marketing channel

Retailer

an intermediary that buys from producers or other middlemen and sells to consumers

Wholesaler

an intermediary that sells products to other firms

Multichannel or omnichannel distribution

the use of a variety of marketing channels to ensure max distribution

Digital distribution

delivering content through the internet to a computer or other device

Intensive distribution

the use of all available outlets for a product

Selective distribution

the use of only a portion of the available outlets for a product in each gographical area