2nd buisness quiz

Marketing

All business activities that direct the flow of goods from the producer to the customer in order to satisfy customer needs and make a profit.

Utility

The value added by the marketer

Form Utility

Utility created by converting production inputs into finished products.

Time Utility

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

Place Utility

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

Ownership Utility

Utility created by transferring the title of a product to the buyer.

Customer Relationship Management (CRM)

An ongoing, company-wide business strategy designed to optimize profitability by creating value and customer satisfaction to acquire customer loyalty.

Customer Satisfaction

The outcome achieved when delivering perceived value above and beyond customer expectations, paired with extraordinary and superior customer service.

Customer Loyalty

The condition where customers repeatedly buy certain products; the payoff for delivering value and generating satisfaction.

Brand Loyalty Process

1. Awareness, 2. Acceptance, 3. Preference, and 4. Insistence.

Exchange Functions

The marketing functions centered on buying and selling.

Physical Distribution Functions

The marketing functions concerned with transporting and storing goods.

Facilitating Functions

The marketing functions that support the exchange and physical distribution processes, consisting of financing, standardizing, risk taking, and gathering market information.

The Marketing Mix (The 4 P's)

The coordinated set of four foundational elements—Product, Price, Place (Distribution), and Promotion—designed around customer needs.

Quality Level

A measure of how well a product performs its core functions.

Product Consistency

How reliably a product delivers its promised level of quality.

New-Product Development Process

The seven sequential stages required to introduce a new product: 1. New-product strategy development, 2. Idea generation, 3. Screening and evaluation, 4. Business analysis, 5. Development, 6. Market testing, and 7. Commercialization / Branding.

Price

A specification of what a seller requires in exchange for transferring ownership or use of a product or service.

Total Cost

The sum of the cost of goods sold, selling expenses, and overhead costs.

Variable Costs

Costs that vary directly with the quantity of products produced or sold.

Fixed Costs

Costs that remain constant regardless of variations in the quantity produced or sold.

Break-Even Analysis

A pricing analysis that reveals the point at which profitability starts and losses cease, compares cost and revenue estimates to determine price acceptability, and calculates the number of units that must be sold to cover costs.

Breakeven Point Formula

$$\text{Breakeven Point (BP)} = \frac{\text{Total fixed cost (FC)} + \text{expenses}}{\text{Price/Unit (P)} - \text{Variable cost/unit (VC)}}$$

Skimming Pricing

A pricing strategy of targeting innovators with a high introductory price during the introduction stage before later adjustments.

Penetration Pricing

A pricing strategy that sets a low initial price to attract large numbers of consumers quickly and secure market share.

Market

A group of individuals or organizations that have an unsatisfied need in a given category and have the ability to purchase such products.

Tasks of Promotion

The three core objectives directed at a target audience: Informing (increasing awareness, explaining product function, suggesting uses), Persuading (encouraging brand switching, influencing immediate buying), and Reminding (maintaining awareness and reminding customers where and when to buy).

Consumer Promotion

Promotional activities intended to stimulate immediate sales from end buyers, including premiums, promotional products, samples, coupons, refunds/rebates, displays, contests/sweepstakes, and bonus packs.

Trade Promotion

Promotional efforts aimed at stimulating wholesalers and retailers to push specific products, including special deals, allowances, trade shows, contests, sweepstakes, and special events.

Middlemen

Intermediary entities in place strategies that are critical for getting a product from the producer to the consumer.