Flashcards Business Exam 2

Advertising

Paid, non-personal communication through media by an identified sponsor.

Publicity

Unpaid information about a product or firm delivered through the media.

Advantages of Publicity

Highly credible and free or low-cost.

Disadvantages of Publicity

Lack of control over media coverage and risk of negative publicity.

PERT Purpose

Project management tool to schedule, organize, and map project tasks.

Critical Path Significance

Represents minimum completion time; any delay delays the entire project.

Production Era

Era focused on mass production because demand exceeded supply.

Selling Era

Era focused on heavy selling and advertising to push excess capacity.

Marketing Concept Era

Era focused on customer orientation, service, and profit orientation.

Customer Relationship (CRM) Era

Era focused on building long-term, individualized customer relationships.

Eliminating Intermediaries

You can eliminate intermediaries, but you cannot eliminate their functions.

Market Segmentation Importance

Allows targeted marketing, tailored products, and maximized ROI.

Demographic Segmentation

Segmentation by age, income, gender, education, race, or religion.

Geographic Segmentation

Segmentation by region, city size, climate, or density.

Psychographic Segmentation

Segmentation by lifestyle, social class, values, or personality traits.

Marketing Mix Components

Product, Price, Place, and Promotion.

Pull Strategy

Directs promotional efforts toward consumers to create demand.

Push Strategy

Directs promotional efforts toward wholesalers and retailers.

Wholesaler

Intermediary that sells products to other businesses, not ultimate consumers.

Merchant Wholesalers vs. Agents/Brokers

Merchant wholesalers take title to goods; agents and brokers do not.

Cash-and-Carry Wholesalers

Limited-function wholesalers serving small retailers who pick up goods and pay cash.

Drop Shippers

Wholesalers that take orders without physically handling or storing stock.

Rack Jobbers

Wholesalers that furnish and stock merchandise racks for retailers.

Brand

Name, term, symbol, or design identifying and differentiating a seller's products.

Brand Name

The spoken part of a brand such as letters, words, or numbers.

Brand Equity

The extra value of a brand name built on loyalty, quality, and awareness.

Convenience Products

Products purchased frequently with minimal effort, like milk or gum.

Shopping Products

Products bought after comparing brands on price, quality, and style.

Specialty Products

Unique products requiring special purchase effort with no accepted substitutes.

Unsought Products

Products bought during emergencies or unexpected needs like life insurance.

ISO 9001 Standard

Global standard for quality management systems.

ISO 14001 Standard

Global standard for environmental management systems.

Newspaper Advertising Advantages

High local market coverage, flexibility, and low cost.

Newspaper Advertising Disadvantages

Short life span and poor reproduction quality.

Television Advertising Advantages

Reaches massive audiences and combines sight, sound, and motion.

Television Advertising Disadvantages

Very high absolute costs and high clutter.

Utility

The want-satisfying ability or value a product provides to customers.

Form Utility

Changing raw materials into finished goods.

Time Utility

Making products available when consumers want them.

Place Utility

Making products available where convenient for consumers.

Possession Utility

Doing whatever is necessary to transfer ownership from seller to buyer.