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Define product
a bundle of physical, service, and symbolic characteristics designed to satisfy consumer wants
Define convenience products.
items the consumer seeks to purchase frequently, immediately, and with little effort
Define shopping products.
typically purchased only after the buyer has compared competing products in competing stores
Define specialty products.
a purchaser is willing to make a special effort to obtain; already familiar with no reasonable substitute
Define business products.
goods and services used in operating an organization; classified by usage and characteristics
Define services.
intended for consumer or business market - intangible, perishable, difficult to standardize
Name the stages in the product life cycle.
introduction, growth, maturity, and decline
List the stages in the new product development process
generating ideas, screening, concept development and business analysis phase, product development, test marketing, commercialization
Define brand equity.
added value that a respected and successful name gives to a product (awareness, loyalty, perceived quality, associated feelings)
Define distribution channels.
path through which products and legal ownership of them - follow from producer to consumers or business users
Define wholesaler.
distribution channel member that sells primarily to retailers, other wholesalers, or business users
Define retailer.
channel member that sells goods and services to individuals for their own use rather than for resale
What are the two types of retail?
store and nonstore
Define supply chain.
complete sequence of suppliers that contribute to creating a good or service and delivering it to business users and final consumers
Define logistics
process of coordinating the flow of goods, services, and information among members of the supply chain
What is the objective of an integrated marketing communications program?
To produce a unified, customer-focused message and to identify consumer needs and show how products meet them
Name the five most common objectives of promotional strategy?
Differentiate Product Provide Information Stabilize Sales Increase Sales Accentuate Product Value
Define positioning.
the act of establishing a product in the minds of customers by communicating meaningful distinctions about the attributes, price, quality, or use
Define pushing strategy.
personal selling to market an item to wholesalers and retailers in a company's distribution channels
Define pulling strategy.
promoting a product by generating consumer demand for it, primarily through advertising and sales promotion appeals
What are the two main types of advertising?
product advertising and institutional advertisements
What is the leading advertising medium in the United States?
Television
In what two major ways do firms benefit from sponsorships?
providing funds in an exchange for a direct association
Under what four conditions is a firm more likely to use personal selling rather than advertising or sales promo?
customers are relatively few in number and are geographically concentrated
the product is technically complex, involves trade-ins, or requires special handling
the product carries a relatively high price
the product moves through direct-distribution channels
Name the three basic tasks of personal selling
order processing, creative selling, and missionary selling
What are the seven steps in the sales process?
prospecting and qualifying, approach, presentation, demonstration, handling objectives, closing, and follow-up
Why do retailers and manufacturers use sales promotion tactics?
to offer consumers extra incentives to buy (samples, coupons, contests, displays, trade shows, and dealer incentives)
What are consumer-oriented promotions?
getting new and existing customers to try and buy products and encourage repeat purchases by rewarding current users
What are trade-oriented promotions?
sales promotion geared to marketing intermediaries rather than to final consumers
How does public relations serve a marketing purpose?
improve their prestige and image with the public by distributing messages or ideas to audience
How does a firm use publicity to enhance their image?
can help investors grow a business and receive coverage of events / raise money, profit, and sales
Define volume objective.
pricing strategy that bases a pricing decision on the attainment of market share
Define prestige pricing.
strategies that establish relatively high prices to develop and maintain an image of quality and exclusiveness
Define EDLP.
everyday low pricing - maintaining continuous low prices rather than relying on price-cutting
Define skimming pricing.
sets an intentionally high price relative to the prices of competing products
Define penetration pricing.
strategy that sets a low price to enter competitive markets
Define cost-based pricing
calculating total costs per unit and adding markups to cover overhead costs and generate profits
Why do marketers use breakeven analysis in pricing their good or service?
to determine the minimum sales volume a product must generate at a certain price level to cover all costs
Define data.
raw facts and figures
Define information.
knowledge gained from processing data
What is an information system?
organized method for collecting, storing, and communication information on operations
List the four components of a computer-based information system
computer hardware, computer software, telecommunications and computer networks, data resource management
What is a database?
centralized integrated collection of data resources
Name the two general types of information systems
operational support systems and management support systems
Define computer hardware.
the tangible elements of a computer system that store and process data / perform calculations
Define software.
all the programs, routines, and computer languages that control a computer and tell it how to operate
List two input and two output devices.
Keyboard & Joystick - Speakers & Printer
What accounts for the increasing popularity of notebook computers?
their improved displays, faster processing speeds, and ability to handle more intense graphics, store larger capacities, durable design
What is a LAN?
local area network that connects machines within limited areas
Define intranet.
computer network that is similar to the internet but limits access to authorized users
Define VPN
virtual private network that secures connection between two points on the internet using firewalls
How does VoIP work?
an alternative version of telecommunication connected to a personal computer with any type of broadband connection
What types of disasters are information systems vulnerable?
natural disaster, power failure, equipment malfunction, software glitches, human error, terrorist attacks
What is a disaster recovery plan?
deciding how to prevent system failures and continue operations if computer systems fail
What is an application service provider?
outside supplier that provides computers and application support
Define on-demand computing
rental of software time from application providers, paying only for software usage
Define accounting.
the process of measuring, interpreting, and communicating financial info to enable people inside and outside the form to make informed decisions
Define GAAP
generally accepted accounting principles: guidelines on the conventions, rules, and procedures for determining acceptable accounting and financial reporting practices
Define FASB
financial accounting standards board: an organization responsible for evaluating, setting, or modifying GAAP in the US
Define foreign corrupt practices act
federal law that prohibits US citizens and companies from bribing foreign officials in order to win or continue business
What is the accounting equation?
Assets = Liabilities + Owners' Equity
Define balance sheet
statement of a firm's financial position on a particular date
Define IASB
international accounting standards board: organization established in 1973 to promote worldwide consistency in financial reporting practices
Define IFRS
international financial reporting standards: standards and interpretations adopted by the IASB
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