MKTG FINAL V4

Advertisement

Nonpersonal paid form of communication.

Product Advertising

Advertising aimed at promoting a specific product.

Pioneering/Informational Product Ad

First stage of PLC that explains what a product is, what it does, and where it can be found.

Competitive/Persuasive Ad

Second stage of PLC that highlights benefits of a company's product over competitors.

Reminder Ad

Advertisements that discuss past positive customer experiences.

Institutional Advertising

Advertising that promotes a company rather than its products.

Advocacy Institutional Ad

Ads where a company takes a stand on a specific issue.

Pioneering Institutional Ad

Ad that explains what a company can do for its customers and its location.

Competitive Institutional Ad

Advertising that communicates benefits of a product class over others.

Reminder Institutional Ad

Advertisements that remind customers of past experiences.

Advertising Process

Three steps: Developing, Executing, and Evaluating.

Identification of Target Audience

Determining who the advertisement is aimed at.

Ad Objective

The intended goal of the advertisement.

Advertising Budget

The amount allocated for the advertisement.

Ad Design

Includes information, persuasion, and a combination of both appeals.

Human Appeal

Advertising that connects on an emotional level with the audience.

Fear Appeal

Using fear to persuade consumers to take action.

Ad Scheduling

Determining the right times to show the advertisement.

Reach

The number of people exposed to the ad.

Rating

The number of households watching a particular show or series.

Gross Rating Points (GRPs)

Calculation that multiplies reach by frequency of exposure.

Cost Per Thousand (CPM)

The cost to reach one thousand people.

Pretesting Advertising

Evaluating ads before they are launched.

Portfolio Pretesting

Group comments on several ads to gauge reactions.

Jury Pretesting

Ads shown to experts for feedback before general release.

Theatre Pretesting

Ads shown to customers in a theatre setting followed by surveys.

Post Testing Advertising

Evaluating the effectiveness of an ad after it has been shown.

Aided Recall

Customers recall products shown after the ad is presented.

Unaided Recall

Customers attempt to recall products without prompts.

Attitude Testing

Gathering feedback on the ad from viewers.

Sales Promotion

Short-term promotions and discounts to boost sales.

Sales Growth from Promotions

US companies spend 100 billion dollars annually on sales promotions.

Supply Chain

The connected chain of all business entities, both internal and external, that perform or support the logistics function.

Supply Chain Management

A system that coordinates and integrates all activities performed by supply chain members into a seamless process, enhancing customer and economic value.

Supply Chain Agility

An operational strategy focused on creating inventory velocity and operational flexibility simultaneously in the supply chain.

Supply Chain Orientation

A system of management practices consistent with a 'systems thinking' approach.

Supply Chain Integration

When multiple firms or business functions coordinate their activities and processes to satisfy the customer seamlessly.

Demand-Supply Integration (DSI)

A supply chain operational philosophy focused on integrating supply-management and demand-generating functions.

Business Processes

Bundles of interconnected activities that stretch across firms in the supply chain.

Customer Relationship Management (CRM)

A process that prioritizes marketing focus on different customer groups according to their long-term value.

Customer Service Management

A process that presents a unified response system to customers' complaints, concerns, and questions.

Demand Management

A process that aligns supply and demand by anticipating customer requirements and creating related plans.

Order Fulfillment

A highly integrated process requiring collaboration from multiple companies to satisfy customer needs.

Order Cycle Time

The time delay between placement of a customer's order and the receipt of that order.

Manufacturing Flow Management

A process ensuring that firms have the resources to manufacture and move products flexibly through production.

Supplier Relationship Management

A process that supports manufacturing flow by maintaining relationships with valued suppliers.

Product Development and Commercialization

Activities facilitating joint development and marketing of new offerings among supply chain partners.

Returns Management

A process that enables firms to manage returned products efficiently while maximizing value.

Sustainable Supply Chain Management

A philosophy that optimizes social and environmental costs in addition to financial costs.

Outsourcing

Use of an independent third party to manage an entire function of a logistics system.

Third-Party Logistics Company (3PL)

A firm that provides functional logistics services to others.

Fourth-Party Logistics Company (4PL)

A consulting-based organization providing integrated logistical solutions.

Offshoring

The outsourcing of a business process from one country to another for economic advantage.

Nearshoring

The transfer of offshored activity from a distant to a nearby country.

Public-Private Partnerships (PPPs)

Collaborative agreements to address large-scale problems for both company and societal interests.

Electronic Distribution

A technique involving any product or service that can be distributed electronically.

Three-Dimensional Printing (3DP)

The creation of objects using additive manufacturing technology.

Big Data

Large-scale datasets that exceed current analytical capabilities.

Cloud Computing

The practice of using remote servers for storing, managing, and processing data.

Supply Chain Analytics

Data analyses that enhance design and management of the supply chain.

Marketing Channel

A set of interdependent organizations easing the transfer of ownership as products move from producer to consumer.

Channel Members

All parties in the marketing channel who negotiate and facilitate the product change of ownership.

Form Utility

Elements of a product's composition and appearance that make it desirable.

Time Utility

Customer satisfaction gained by making a product available at the appropriate time.

Place Utility

Usefulness of a good based on its location availability.

Exchange Utility

Increased value of a product during the transfer of ownership.

Merchant Wholesaler

An institution buying goods from manufacturers to resell to businesses or other retailers.

Agents and Brokers

Wholesaling intermediaries who facilitate sales without taking title to a product.

Retailer

A channel intermediary that sells mainly to consumers.

Direct Channel

A distribution channel where producers sell directly to consumers.

Dual Distribution

Using two or more channels to distribute the same product to different markets.

Nontraditional Channels

Channels that facilitate unique market access for products and services.

Strategic Channel Alliance

A cooperative agreement between firms to use each other's distribution channels.

Gray Marketing Channels

Unintended secondary channels that often flow illegally obtained products.

Reverse Channels

Channels enabling customers to return products or components for reuse.

Drop and Shop

A system allowing customers to return used products at store entrances.

Digital Channels

Electronic pathways allowing flow of products and information from producer to consumer.

M-commerce

The ability to conduct commerce using mobile devices.

Intensive Distribution

Distribution aimed at having a product available in every outlet where target customers might buy.

Selective Distribution

Distribution achieved by screening dealers to retain only a few in any area.

Exclusive Distribution

Distribution that establishes one or a few dealers within a given area.

What is price?

Money that someone has to give to buy a product.

What is barter?

A transaction where no money is exchanged.

Why is price important to marketers?

It generates revenue, quantifies value, is dynamic, and is influenced by competition.

What is the equation for price?

(Total Cost + Profit) / Quantity → (TC + P) / Q

What is the equation for profit?

(Price × Quantity) - Total Cost → (P × Q) - TC

Define revenue, cost, and profit.

Revenue = P × Q; Cost = TC; Profit = Revenue - TC.

What are the types of cost concepts?

Total cost = Fixed cost + Variable cost.

What are examples of fixed and variable costs?

Fixed costs: Rent; Variable costs: Utilities.

What do AFC, AVC, and ATC stand for?

Average Fixed Cost, Average Variable Cost, and Average Total Cost.

What is marginal cost?

The cost of producing one more unit of a product.

What is breakeven analysis?

Identifies the quantity where a company makes no profit or loss.

How do you calculate the breakeven point?

FC / (Unit Price – Unit Variable Cost)

What is a demand curve?

A graph showing the relationship between price and quantity demanded.

How does price relate to demand for prestige products?

Higher price can increase quantity demanded due to symbolic value.

What is price elasticity of demand?

% Change in Quantity Demanded / % Change in Price.

What does it mean if elasticity (E) > 1?

The product is elastic; substitutes are available.

What does it mean if elasticity (E) < 1?

The product is inelastic; few or no substitutes.

Name the 4 pricing approaches.

Cost-oriented, Demand-oriented, Profit-oriented, Competition-oriented.

What is skimming pricing?

Setting a high initial price and lowering it over time to reach new customer layers.