BUS test 3 (chapters 13-16)

Benefit segmentation

Dividing the market by determining which benefits of the product to talk about.

Brand name

A word, letter, or group of words or letters that differentiates one seller's goods and services from those of competitors.

Business to-business (B2B) market

All the individuals and organizations that want goods and services to use in producing other goods and services or to sell, rent, or supply goods to others.

Consumer market

All the individuals or households that want goods and services for personal consumption or use.

Customer relationship management (CRM)

The process of learning as much as possible about customers and doing everything you can over time to satisfy them or even exceed their expectations with goods and services.

Demographic segmentation

Dividing the market by age, income, and education level.

Environmental scanning

The process of identifying the factors that can affect marketing success.

Focus group

A small group of people who meet under the direction of a discussion leader to communicate their opinions about an organization, its products, or other given issues.

Geographic segmentation

Dividing the market by cities, counties, states or regions.

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.

Marketing concept

A three-part business philosophy: (1) a customer orientation, (2) a service orientation, and (3) a profit orientation.

Marketing mix

The ingredients that go into a marketing program: product, price, place, and promotion.

Marketing research

The analysis of markets to determine opportunities and challenges, and to find the information needed to make good decisions.

Marketing segmentation

The process of dividing the total market into groups whose members have similar characteristics.

Mass marketing

Developing products and promotions to please large groups of people.

Niche marketing

The process of finding small but profitable market segments and designing or finding products for them.

One-to-one marketing

Developing a unique mix of goods and services for each individual customer.

Primary data

Data that you gather yourself (not form secondary sources such as books and magazines).

Product

Any physical good, service, or idea that satisfies a want or need plus anything that would enhance the product in the eyes of consumers, such as the brand name.

Promotion

All the techniques sellers use to inform people about and motivate them to buy their products or services.

Psychographic segmentation

Dividing the market using the group's values, attitudes, and interests.

Relationship marketing

Marketing strategy with the goal of keeping individual customers over time by offering them products that exactly meet their requirements.

Secondary data

Information that has already been compiled by others and published in journals and books or made available online.

Target marketing

Marketing directed toward those groups (market segments) an organization decides it can serve profitably.

Test marketing

The process of testing products among potential users.

Volume (or usage) segmentation

Dividing the market by usage (volume of use).

Value

Good quality at a fair price. When consumers calculate the value of a product, they look at the benefits and then subtract the cost to see if the benefits exceed the costs.

Total product offer

Everything that consumers evaluate when deciding whether to buy something; also called a value package.

Product line

A group of products that are physically similar or are intended for a similar market.

Product mix

The combination of product lines offered by a manufacturer.

Product differentiation

The creation of real or perceived product differences.

Convenience goods and services

Product that the consumer wants to purchase frequently and with minimum of effort.

Shopping goods and services

Those products that the consumer buys only after comparing value, quality, price, and style from a variety of sellers.

Specialty goods and services

Consumer products with unique characteristics and brand identity. Because these products are perceived as having no reasonable substitute, the consumer puts forth a special effort to purchase them.

Unsought goods and services

Products that consumers are unaware of, haven't necessarily thought of buying, or find that they need to solve an unexpected problem.

Industrial goods

Products used in the production of other products. Sometimes called business goods or B2B goods.

Bundling

Grouping two or more products together and pricing them as a unit.

Brand

A name, symbol, or design (or combination thereof) that identifies the goods or services of one seller or group of sellers and distinguishes them from the goods and services of competitors.

Trademark

A brand that has exclusive legal protection for both its brand name and its design.

Manufacturers' brand names

The brand names of manufacturers that distribute products nationally.

Dealer (private label) brands

Products that don't carry the manufacturer's name but carry a distributor or retailer's name instead.

Generic goods

Nonbranded products that usually sell at a sizable discount compared to national or private label brands.

Knockoff brands

Illegal copies of national brand-name goods.

Brand equity

The value of the brand name and associated symbols.

Brand loyalty

The degree to which customers are satisfied, like the brand, and are committed to further purchases.

Brand awareness

How quickly or easily a given brand name comes to mind when a product category is mentioned.

Brand association

The linking of a brand to other favorable images.

Brand manager

A manager who has direct responsibility for one brand or one product line; called a product manager in some firms.

Product screening

A process designed to reduce the number of new-product ideas being worked on at any one time.

Product analysis

Making cost estimates and sales forecasts to get a feeling for profitability of new product ideas.

Concept testing

Taking a product idea to consumers to test their reactions.

Commercialization

Promoting a product to distributors and retailers to get wide distribution, and developing strong advertising and sales campaigns to generate and maintain interest in the product among distributors and consumers.

Product life cycle

A theoretical model of what happens to sales and profits for a product class over time; the four stages of the cycle are introduction, growth, maturity, and decline.

Target costing

Designing a product so that it satisfies customers and meets the profit margins desired by the firm.

Competition based pricing

A pricing strategy based on what all the other competitors are doing. The price can be set at, above, or below competitors' prices.

Price leadership

The strategy by which one or more dominant firms set the pricing practices that all competitors in an industry follow.

Break even analysis

The process used to determine profitability at various levels of sales.

Total fixed costs

All the expenses that remain the same no matter how many products are made or sold.

Variable costs

Costs that change according to the level of production.

Skimming price strategy

Strategy in which a new product is priced high to make optimum profit while there's little competition.

Penetration strategy

Strategy in which a product is priced low to attract many customers and discourage competition.

Everyday low pricing (EDLP)

Setting prices lower than competitors and then not having any special sales.

High-low pricing strategy

Setting prices that are higher than EDLP stores, but having many special sales where the prices are lower than competitors'.

Psychological pricing

Pricing goods and services at price points that make the product appear less expensive than it is.

Marketing intermediaries

Organizations that assist in moving goods and services from producers to businesses and from businesses to consumers

Channel of distribution

A whole set of marketing intermediaries such as agents brokers wholesalers and retailers that join together to transport and store goods in their path

Agents/brokers

Marketing intermediaries who bring buyers and sellers together and assist in negotiating an exchange but don't take title to the goods

Wholesaler

A marketing intermediary that sells to other organizations

Retailer

An organization that sells to ultimate consumers

Utility

In economics the satisfying ability or value that organizations add to goods or services

Time utility

Adding value to products by making them available when they're needed

Place utility

Adding value to products by having them where people want them

Possession utility

Doing whatever is necessary to transfer ownership from one party to another including providing credit delivery installation guarantees and follow up service

Information utility

Adding value to products by opening two way flows of information between marketing participants

Service utility

Adding value by providing fast friendly service during and after the sale and by teaching customers how to best use products over time

Merchant wholesalers

Independently owned firms that take title to the goods they handle

Rack jobbers

Wholesalers that furnish racks or shelves full of merchandise to retailers display products and sell on consignment

Cash and carry wholesalers

Wholesalers that serve mostly smaller retailers with a limited assortment of products

Drop shippers

Wholesalers that solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer

Intensive distribution

Distribution that puts products into as many retail outlets as possible

Selective distribution

Distribution that sends products to only one retail outlet in a given geographic area.

Telemarketing

The sale of goods and services by telephone

Direct selling

Selling to consumers in their homes or where they work

Direct marketing

Any activity that directly links manufacturers or intermediaries with the ultimate consumer

Corporate distribution system

A distribution system in which all of the organizations in the channel of distribution are owned by one firm

Contractual distribution system

A distribution system in which members are bound to cooperate through contractual agreements

Administered distribution system

A distribution system in which producers manage all of the marketing functions at the retail level

Supply chain

The sequence of linked activities that must be performed by various organizations to move goods from the sources of raw materials ultimate consumers goods from the sources of raw materials ultimate consumers

Supply chain management

The process of managing the movement of raw materials parts and work in chain managing the return of such goods if necessary and recycling materials when appropriate

Logistics

The marketing activity that involves planning, implementing, and controlling the physical flow of materials, final goods and related information from points of origin to points of consumption to meet a customer requirements at a profit

Inbound logistics

The area of logistics that involves bringing raw materials packaging other goods and services and information from suppliers to producers

Materials handling

The movement of goods within a warehouse from warehouse to the factory floor and from the factory floor to various workstations

Outbound logistics

The area of logistics that involves managing the flow of finished products and information to businesses buyers and ultimate consumers

Reverse logistics

The area of logistics that involves bringing goods back to the manufacturer because of defects or for recycling materials

Freight forwarder

An organization that puts many small shipments together to create a single large shipment that can be transported cost effectively to the final destination

Intermodal shipping

The use of multiple modes of transportation to complete a single long distance movement of freight

Promotion mix

The combination of promotional tools an organization uses.

Integrated marketing communication (IMC)

A technique that combines all the promotional tools into one comprehensive, unified promotional strategy.

Advertising

Paid, non-personal communication through various media by organizations and individuals who are in some way identified in the advertising message.

Product placement

Putting products into TV shows and movies where they will be seen