Marketing Exam 2 Study Guide Flashcards

Vocabulary practice flashcards covering products, branding, new product development, pricing strategies, distribution channels, and integrated marketing communications from the Marketing Exam 2 Study Guide.

Product

Anything offered to a market that can satisfy a want or need, including physical items, services, events, persons, places, organizations, ideas, or a mix of these.

Core Customer Value

The most basic level of a product that addresses the real problem or need the buyer wants solved.

Actual Product

The physical device or service itself, built around the core value, consisting of features, design, quality level, brand name, and packaging.

Augmented Product

The non-physical part of the product offering additional services and benefits such as warranty, delivery, customer support, and installation.

Convenience Products

Consumer products that customers buy often, fast, with little thinking, and at a low price (e.g., gum, soap, milk).

Shopping Products

Consumer products that customers buy less often and carefully compare on price, quality, and style (e.g., clothes, furniture, TVs).

Specialty Products

Consumer products with unique characteristics or brand identification for which buyers have strong brand loyalty and make a special effort to buy (e.g., Rolex, Tesla, designer bags).

Unsought Products

Consumer products that buyers do not know about or do not normally think about buying (e.g., life insurance, funeral services).

Social Marketing

Using marketing tools and concepts to change behavior for the good of society (e.g., anti-smoking ads).

Product Line

A group of closely related products that function in a similar manner or are sold to the same customer groups (e.g., all Nike running shoes).

Line Filling

Adding more items within the current price range of a product line.

Line Stretching

Lengthening a product line beyond its current range: downward (cheaper), upward (more premium), or both ways.

Product Mix (Product Portfolio)

All the product lines and items that a company sells, defined across four dimensions: width, length, depth, and consistency.

Intangibility

A service characteristic stating that services cannot be seen, touched, or tasted before purchase (e.g., a haircut, a flight).

Inseparability

A service characteristic stating that services are produced and consumed at the same time and cannot be separated from their provider (e.g., a doctor's visit).

Variability

A service characteristic stating that the quality of service depends on who provides it, when, and where (e.g., two waiters giving different service).

Perishability

A service characteristic stating that services cannot be stored for later use or sale (e.g., an empty seat on an airplane is lost).

Service-Profit Chain

The concept linking service firm profits with employee and customer satisfaction: happy employees lead to better service, which creates happy, loyal customers, resulting in profits.

Brand Equity

The extra effect that knowing the brand name has on how customers react to the product (e.g., customers paying more for Nike than an unbranded shoe).

Line Extension

Extending an existing brand name to new forms, colors, sizes, or flavors within an existing product category (e.g., a new flavor of Oreo).

Brand Extension

Using an existing brand name to launch a product in a new product category (e.g., Oreo ice cream).

Multibrands

Marketing multiple different brand names owned by the same company within the same product category.

New Brands

Creating a brand-new name when entering an entirely new product category.

Crowdsourcing

Inviting a broad community of people (such as customers, employees, and the public) into the new product idea generation process.

R-W-W Screening Framework

A common idea screening test used in new product development asking: Is it Real? Can we Win? Is it Worth doing?

Product Life Cycle (PLC)

The course of a product's sales and profits over its lifetime across five stages: product development, introduction, growth, maturity, and decline.

Style

A basic, unique mode of expression that can last for generations, passing in and out of vogue (e.g., casual vs. formal clothing).

Fashion

A currently accepted or popular style that grows slowly, remains popular for a while, and then declines slowly.

Fad

A temporary period of unusually high sales driven by consumer enthusiasm, followed by a fast disappearance (e.g., fidget spinners).

Customer Value-Based Pricing

A customer-driven pricing strategy where the price is set based on how much value buyers perceive in the product rather than on the seller's cost.

Cost-Based Pricing

A product-driven pricing strategy where price is calculated by adding the company's manufacturing and distribution costs to a fair profit.

Competition-Based Pricing

A pricing strategy where prices are set primarily based on what competitors are charging.

Value-Added Pricing

Attaching extra features and services to differentiate an offer and justify higher prices instead of cutting prices.

Target Costing

Pricing that starts with an ideal selling price based on customer value considerations and then target-costs the product to ensure that price is met.

Pure Competition

A market type with many buyers and sellers trading a uniform commodity (e.g., wheat, copper) where individual firms have no control over price.

Monopolistic Competition

A market type with many sellers trading differentiated products across varied price ranges (e.g., restaurants, clothing), giving firms some control over price.

Oligopolistic Competition

A market type with few sellers who are highly alert and reactive to each other's pricing strategies (e.g., airlines, phone carriers).

Pure Monopoly

A market type with only one seller (e.g., utilities) that exercises high control over price, though often regulated by the government.

Price Elasticity of Demand

A measure of how responsive demand is to a change in price, calculated as: $\text{Price elasticity} = \frac{\%\ \text{change in quantity demanded}}{\%\ \text{change in price}}$

Marketing Channel (Distribution Channel)

A group of interdependent organizations that work together to make a product or service available from the maker to the final consumer.

Vertical Marketing System (VMS)

A channel structure in which producers, wholesalers, and retailers act as a unified system, categorized into corporate, contractual, and administered systems.

Disintermediation

The cutting out of marketing channel intermediaries by producers, or the replacement of traditional intermediaries by radical new types (e.g., Netflix replacing video stores).

Intensive Distribution

A distribution strategy of stocking products in as many outlets as possible (e.g., Coca-Cola, gum, toothpaste).

Selective Distribution

A distribution strategy using some, but not all, intermediaries willing to carry the company's products (e.g., Whirlpool appliances, Apple at Best Buy).

Exclusive Distribution

A distribution strategy granting very few dealers (often only one per geographic area) the right to sell products (e.g., Rolex, Bentley, luxury brands).

Integrated Marketing Communications (IMC)

Carefully combining and coordinating all company communication channels to deliver one clear, consistent, and compelling message about the brand.

Advertising

Any paid, nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor (e.g., TV ads, Instagram ads).

Sales Promotion

Short-term incentives to encourage the immediate purchase or sale of a product or service (e.g., coupons, BOGO deals, free samples).

Public Relations (PR)

Building good relations with the public and maintaining a positive corporate image while handling unfavorable news or events (e.g., press releases, sponsoring events).

Objective-and-Task Method

The most logical promotion budgeting method, which sets goals, determines the specific tasks needed to reach them, and sums the estimated costs.

Push Strategy

A promotion strategy where the producer directs marketing activities (such as personal selling and trade promotions) toward channel members to induce them to carry and promote the product to final consumers.

Pull Strategy

A promotion strategy where the producer directs marketing activities (such as advertising and consumer promotions) toward final consumers to induce them to buy the product, creating demand that pulls it through the channel.