Marketing Exam 3

Product

Everything, both favorable and unfavorable, that a person receives in an exchange. Tangible goods, service ideas

Convenience product

a relatively inexpensive item that merits little shopping effort.

Shopping product

a product that requires comparison shopping because it is usually more expensive than a convenience product and found in fewer stores. Homogenous, heterogenous

Specialty product

a particular item for which consumers search extensively and are very reluctant to accept substitutes.

Unsought product

a product unknown to the potential buyer or a known product that the buyer does not actively seek

Product items

a specific version of a product that can be designated as a distinct offering among an organization’s products.

Product line

A group of closely related product items.

Product items

all products that an organization sells. 

Product mix width

the number of product lines an organization offers.

Product line depth

the number of product items in a product line. 

Brand

a name, term, symbol, design, or combination that identifies a seller’s products and differentiates them from competitors’ products

Brand mark

The elements of a brand that cannot be spoken

Brand equity

The value of a company or brand name

Global brand

a brand that obtains at least one-third of its earnings from outside its home country, is recognizable outside its home base of customers, and has publicly available marketing and financial data

Brand loyalty

consistent preference for one brand over all others

Manufacturer’s brand

the brand name of a manufacturer

Private brand

a brand name owned by a wholesaler or a retailer

Captive brands

a brand manufactured by a third party for an exclusive retailer, without evidence of that retailer’s affiliation

Ingredient branding

Identifies the brand of a part that makes up the product.

Complementary branding

Suggests usage by advertising and marketing products that are used together

Cooperative branding

Occurs when two brands receiving equal treatment borrow from each other’s brand equity.

Trademark

the exclusive right to use a brand or part of a brand

Service mark

a trademark for a service

Generic product name

Identifies a product by class or type and cannot be trademarked

Persuasive labeling

a type of package labeling that focuses on a promotional theme or logo, and consumer information is secondary

Informational labeling

a type of package labeling designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase. ex: food products, pharmaceuticals

New products

a product new to the world, the market, the producer, the seller, or some combination of these.

New-product strategy

a plan that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation.

Product development

A marketing strategy that entails the creation of marketable new products; the process of converting applications for new technologies into marketable products

Development

The stage in the product development process in which a prototype is developed and a marketing strategy is outlined

Production life cycle (PLC)

 A concept that provides a way to trace the stages of a product’s acceptance, from its introduction (birth) to its decline (death)

Supply chain

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

Supply chain management

a management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value.

Supply chain integration

when multiple firms or business functions in a supply chain coordinate their activities and processes so that they are seamlessly linked to one another in an effort to satisfy the customer.

Business processes

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

Customer relationship management (CRM)

allows companies to prioritize their marketing focus on different customer groups based on each group’s long-term value to the company or supply chain.

Customer service management process

presents a multi- company, unified response system to customers when complaints, concerns, questions, or comments are voiced.

Demand management process

seeks to align supply and demand throughout the supply chain by foreseeing customer requirements at each level and creating customer- focused plans of action prior to actual customer purchasing behavior.

Order fulfillment process

a highly integrated process requiring persons from multiple companies and multiple functions to come together and coordinate to create customer satisfaction at a given place and time.

Order cycle time

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

Manufacturing flow management process

concerned with ensuring that firms in the supply chain have the needed resources to manufacture with flexibility and move products through a production process.

Business processes

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

Supplier relationship management process

supports manufacturing flow by identifying and maintaining relationships with highly valued suppliers.

Product development and commercialization process

includes the group of activities that facilitates the joint development and marketing of new offerings among a group of supply chain partner firms.

Return management process

enables firms to manage volumes of returned product efficiently while minimizing returns-related costs and maximizing the value of the returned assets to the firms in the supply chain.

Marketing channel (channel of distribution)

a set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer.

Channel members

all parties in the marketing channel who negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving the product from the manufacturer into the hands of the final consumer.

Form utility

the elements of the composition and appearance of a product that make it desirable. (aesthetic)

Time utlity

the increase in customer satisfaction gained by making a good or service available at the appropriate time.

Place utility

the usefulness of a good or service as a function of the location at which it is made available.

Exchange utility

the increased value of a product that is created as its ownership is transferred.

Direct channel

a distribution channel in which producers sell directly to consumers.

Agents/broker channel

used in markets with small manufacturers/retailers who lack the resources to find each other.

Retailer channel

retailer is large and can buy in large quantities directly from the manufacturer.

Wholesaler channel

for low-cost items that are frequently purchased.

Intensive distribution

a form of distribution aimed at having a product available in every outlet where target customers might want to buy it.

Selective distribution

a form of distribution achieved by screening dealers to eliminate all but a few in any single area.

Exclusive distribution

a form of distribution that establishes one or a few dealers within a given area.

Promotion

communication by marketers that informs, persuades, and reminds potential buyers of a product to influence an opinion or elicit a response.

Promotional strategy

a plan for the optimal use of the elements of promotion: advertising, public relations, personal selling, sales promotion, and social media.

Promotion

communication by marketers that informs, persuades, and reminds potential buyers of a product to influence an opinion or elicit a response.

Promotional strategy

a plan for the optimal use of the elements of promotion: advertising, public relations, personal selling, sales promotion, and social media.

Competitive advantage

one or more unique aspects of an organization that cause target consumers to patronize that firm rather than competitors.

Communication

the process by which we exchange or share meaning through a common set of symbols.

Interpersonal communication

direct, face-to-face communication between two or more people.

Mass communication

the communication of a concept or message to a large audience through a mass medium.

Promotional mix

the combination of promotional tools used to reach the target market and fulfill the organization’s overall goals.

Integrated marketing communications (IMC)

the careful coordination of all promotional messages for a product or a service to ensure the consistency of messages at every contact point at which a company meets the consumer.

AIDA concept

a model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message; the acronym stands for attention, interest, desire, and action.

Advertising

Impersonal, one-way mass communication about a product or organization that is paid for by the marketer.

Measured media

network and cable TV, newspapers, magazines, radio, outdoor, and the Internet

Unmeasured media

direct marketing, promotions, co-op, coupons, catalogs, product placement, and event marketing

Advertising response function

a phenomenon in which spending for advertising and sales promotion increases sales or market share to a certain level but then produces diminishing returns.

Institutional advertising

a form of advertising designed to enhance a company’s image rather than promote a particular product.

Advocacy advertising

a form of advertising in which an organization expresses its views on controversial issues or responds to media attacks.

Product advertising

a form of advertising that touts the benefits of a specific good or service.

Pioneering advertising

a form of advertising designed to stimulate primary demand for a new product or product category.

Competitive advertising

a form of advertising designed to influence demand for a specific brand.

Comparative advertising

a form of advertising that compares two or more specifically named or shown competing brands on one or more specific attributes

Advertising campaign

a series of related advertisements focusing on a common theme, slogan, and set of advertising appeals.

Advertising objective

a specific communication task that a campaign should accomplish for a specified target audience during a specified period.

Advertising appeal

a reason for a person to buy a product.

Unique selling proposition

a desirable, exclusive, and believable advertising appeal selected as the theme for a campaign.

Medium

the channel used to convey a message to a target market.

Media planning

the series of decisions advertisers make regarding the selection and use of media, allowing the marketer to optimally and cost-effectively communicate the message to the target audience.

Media mix

the combination of media to be used for a promotional campaign

Audience selectivity

the ability to reach a precisely defined market.

Media schedule

designation of the media, the specific publications or programs, and the insertion dates of advertising.

Public relations

the element in the promotional mix that evaluates public attitudes, identifies issues that may elicit public concern, and executes programs to gain public understanding and acceptance.

Publicity

the effort to capture media attention, often initiated through press releases that further a corporation’s public relations plans.

Press relations

Placing positive, newsworthy information in the news media or in the hands of influential bloggers to attract attention to a product, a service, or a person associated with the firm or institution.

Product publicity

Publicizing specific products or services through a variety of traditional and online channels.

Corporate communication

Creating internal and external messages to promote a positive image of the firm or institution.

Public affairs

Building and maintaining local, national, or global community relations.

Lobbying

Influencing legislators and government officials to promote or defeat legislation and regulation.

Employee and investor relations

Maintaining positive relationships with

employees, shareholders, and others in the financial community.

Crisis management

Responding to unfavorable publicity or a negative event placement, often at a much lower cost than in mass media like television ads.

Sales promotion

marketing communication activities other than advertising, personal selling, and public relations, in which a short-term incentive motivates consumers or members of the distribution channel to purchase a good or service immediately, either by lowering the price or by adding value.

Trade sales promotion

promotion activities directed to members of the marketing channel, such as wholesalers and retailers.

Consumer sales promotion

promotion activities targeted to the ultimate consumer market.