CH 8, 9, 12, 14 VOCAB (Intro to Marketing)

Product

Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need

Services

an activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything

Customer experiences

A market offering with a strong sensory or emotional component that plays out for the customer over time.

consumer products

a product bought by final consumers for personal consumption

Convenience Products

A consumer product that produces that customers usually buy frequently, immediately, and with minimal comparison and buying effort.

shopping products

a consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style

Specialty Products

a consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.

unsought products

consumer products that the consumer does not know about or knows about but does not normally think of buying

Industrial Products

products purchased for further processing or for use in conducting a business

Social Marketing

the use of traditional business marketing concepts and tools to encourage behaviors that will create individual and societal well-being

product quality

the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs

packaging

involves designing and producing the container or wrapper for a product

product line

a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges

product mix (product portfolio)

the set of all product lines and items that a particular seller offers for sale

Service intangibility

services cannot be seen, tasted, felt, heard, or smelled before they are bought

service inseparability

services are produced and consumed at the same time and cannot be separated from their providers

service variability

the quality of services may vary greatly depending on who provides them and when, where, and how they are provided

service perishability

means that services cannot be stored for later sale or use

service profit chain

the chain that links service firm profits with employee and customer satisfaction

Internal Marketing

orienting and motivating customer-contact employees and supporting service employees to work as a team to provide customer satisfaction

interactive marketing

training service employees in the fine art of interacting with customers to satisfy their needs

Brand Equity

the differential effect that knowing the brand name has on customer response to the product or its marketing

Brand Value

the total financial value of a brand

store brands (private labels)

Brands created and owned by a reseller of a product or service

Co-branding

the practice of using the established brand names of two different companies on the same product

line extension

extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category

brand extension

extending an existing brand name to new product categories

Idea generation

the systematic search for new prodcut ideas

Crowdsourcing

inviting broad communities of people - customers, employees, independent scientists and researchers, and even the public at large - into the new product innovation process

idea screening

screening new product ideas to spot good ones and drop poor ones as soon as possible

concept testing

testing new product concepts with a group of target consumers to find out if the concepts have strong consumer appeal

Marketing Strategy Development

designing an initial marketing strategy for a new product based on the product concept

Business Analysis

a review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company's objectives

Product Development

developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering

Test Marketing

the stage of new product development in which the product and its proposed marketing program are tested in realistic market settings

Commercialization

introducing a new product into the market

customer-centered new product development

new product development that focuses on finding new ways to solve customer problems and create more customer-satisfying experiences

Team-based new product development

new product development in which various company departments work closely together, overlapping the steps in the product development process to save time and increase effectiveness

Product Life Cycle (PLC)

the course of a product's sales and profits over its lifetime

fashion

a currently accepted or popular style in a given field

fads

temporary periods of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity

introduction stage

the PLC stage in which a new product is first distributed and made available for purchase

growth stage

the PLC stage in which a product's sales start climbing quickly

Maturity Stage

the PLC stage in which a product's sales growth slows or levels off

Decline Stage

the PLC stage in which a product's sales fade away

marketing channel (distribution channel)

a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user

direct marketing channel

a marketing channel that has no intermediary levels - the company sells directly to consumers

indirect marketing channels

a marketing channel containing one or more intermediary levels

Channel Conflict

disagreements among marketing channel members on goals, roles, and rewards - who should do what and for what rewards

conventional distribution channel

a channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits, perhaps even at the expense of profits for the system as a whole

Vertical Marketing System (VMS)

A channel structure in which producers, wholesalers, and retailers act as a unified system. One channel member owns the others, has contracts with them, or has so much power that they all cooperate.

corporate VMS

a vertical marketing system that combines successive stages of production and distribution under single ownership- channel leadership is established through common ownership

Contractual VMS

a vertical marketing system in which independent firms at different levels of production and distribution join together through contracts

Franchise organization

a contractual vertical marketing system in which a channel member, called a franchisor, links several stages in the production-distribution process

Administered VMS

a vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties

horizontal marketing system

a channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity

multichannel distribution system

a distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments

Disintermediation

the cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries

Direct-to-consumer (DTC) brands

brands that avoid direct competition with established traditional brands by selling and shipping directly to consumers only through online and mobile channels

marketing channel design

designing effective marketing channels by analyzing customer needs, setting channel objectives, identifying major channel alternatives, and evaluating those alternatives

intensive distribution

stocking the product in as many outlets as possible

exclusive distribution

giving a limited number of dealers the exclusive right to distribute the company's products in their territories

selective distribution

the use of more than one but fewer than all of the intermediaries that are willing to carry the company's products

marketing channel management

selecting, managing, and motivating individual channel members and evaluating their performance over time

marketing logistics(physical distribution)

Planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet consumer requirements at a profit

Supply Chain Management

managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers

distribution center

a large, highly automated warehouse designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible

multimodal transportation

combining two or more modes of transportation

integrated logistics management

the logistics concept that emphasizes teamwork - both inside the company and among all the marketing channel organizations - to maximize the performance of the entire distribution system

Third-party logistics (3PL) provider

an independent logistics provider that performs any or all of the functions required to get a client's product to market

promotion mix (marketing communications mix)

the specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships

Advertising

any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor

Sales Promotion

Short-term incentives to encourage the purchase or sale of a product or service

Personal Selling

Personal presentation by the firm's sales force for the purpose of making sales and building customer relationships

Public Relations

activities designed to engage the company's various publics and build good relations with them

Content Marketing

creating, inspiring, and sharing brand messages and conversations with and among consumers across a fluid mix of paid, owned, earned, and shared channels

integrated marketing communications (IMC)

carefully integrating and coordinating the company's many communications channels to deliver a clear, consistent, and compelling message about the organization and its products

Five A's

awareness, appeal, ask, act, advocacy

personal communication channels

Channels through which two or more people communicate directly with each other, including face to face, on the phone, via mail or e-mail, or even through an internet "chat"

buzz marketing

cultivating opinion leaders and getting them to spread information about a product or a service to others in their communities

Nonpersonal communication channels

Media that carry messages with minimal personal contact or feedback, including major media, atmospheres, and events.

affordable method

setting the promotion budget at the level management thinks the company can afford

percentage of sales method

setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price

competitive parity method

setting the promotion budget to match competitors' outlays

objective and task method

Developing the promotion budget by (1) defining specific promotion objectives, (2) determining the tasks needed to achieve these objectives, and (3) estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget.

push strategy

A promotion strategy that calls for using the sales force and trade promotion to push the product through channels. The producer promotes the product to channel members who in turn promote it to final consumers.

pull strategy

a promotion strategy that calls for spending a lot on consumer advertising and promotion to induce final consumers to buy the product, creating a demand vacuum that "pulls" the product through the channel