Final Exam Review Flashcards

Chapter 1

  • Need vs. Wants: Understand the difference between needs (basic requirements) and wants (desires).
  • Showstoppers: Factors that can completely derail a product's success.
  • How can companies avoid new product failures?: Understanding market research, testing, and adapting to consumer feedback are crucial steps.
  • What is a marketing program?: A plan that integrates various marketing mixes to provide a product, service, or idea to prospective customers.
  • The marketing concept…what is it?: An organization should strive to satisfy the needs of consumers while also trying to achieve the organization's goals. Be able to recognize it in an example.
  • The marketing mix…what are the elements?: Also known as the 4Ps: Product, Price, Place (distribution), and Promotion. Know how each of them is defined.
  • Environmental forces: Uncontrollable factors that affect a marketing decision, which consist of social, economic, technological, competitive, and regulatory forces.
  • Customer value: The ratio between the customer's perceived benefits and the resources used to obtain those benefits.
  • Target market: A specific group of potential customers that the organization directs its marketing efforts towards.
  • Relationship marketing: Linking the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit.
  • What is a customer?: An individual or organization that purchases goods or services from a company.
  • Types of utility:
    • Form Utility: Production of the product or service
    • Place Utility: Having the offering available where consumers need it
    • Time Utility: Having the offering available when consumers need it
    • Possession Utility: Value of making an item easy to purchase through the provision of credit cards or financial arrangements
  • Consumer Misbehavior: Be able to recognize examples of "consumer misbehavior."
    • Definition: Behavioral acts by consumers, which violate the generally accepted norms of conduct in consumption situations, and thus disrupt the consumption order.

Chapter 2

  • Forward-looking organizations: Organizations that anticipate future trends and adapt their strategies accordingly.
  • Types of organizations: Know what they are and how to recognize them:
    1. For-profit (business)
    2. Non-Profit
    3. Government
  • What is profit?: The financial reward an organization receives from its efforts to provide products and services to its clientele.
  • Marketing Metrics: What are they and how are they used?
    • Marketing metrics are measurable values used to assess the effectiveness of marketing activities.
  • SWOT analysis: A structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or business venture.
  • Elements of the market/product grid: What are they?
    • A framework to relate the market segments of potential buyers to products offered or potential marketing actions by the organization.
  • Diversification analysis:
    1. Market penetration: A marketing strategy to increase sales of current products in current markets.
    2. Market development: A marketing strategy to sell current products in new markets.
    3. Product development: A marketing strategy of selling new products to current markets.
    4. Product diversification: Developing new products and selling them in new markets.
  • Mission statement: A statement of the organization's function in society that often identifies its customers, markets, products, and technologies.
  • Elements of an organization’s foundation: What are they?
    • Core Values: Fundamental, passionate, and enduring principles that guide an organization's conduct over time.
    • Mission (Vision): A statement of the organization's function in society.
    • Organizational Culture: The set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization

Chapter 3

  • Environmental Scanning: What is it and how is it used?
    • Definition: The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends.
  • Types of market segmentation: What are they?
    • Geographic Segmentation
    • Demographic Segmentation
    • Psychographic Segmentation
    • Behavioral Segmentation
  • Gross income, Disposable income, discretionary income: Know how to recognize each of them.
    • Gross Income: Total amount of money received by a person, household, or company during a given period.
    • Disposable Income: The income a person or household has available to spend or save after income taxes.
    • Discretionary Income: The income a person or household has available for spending and saving after essential needs have been met.

Chapter 4

  • What is a consideration set?: The group of brands a consumer considers acceptable from among all the brands in the product class of which he or she is aware.
  • How is it used?: Used during the alternative evaluation stage of the consumer purchase decision process.
  • What are the stages of the consumer purchase decision process?:
    1. Problem Recognition
    2. Information Search
    3. Alternative Evaluation
    4. Purchase Decision
    5. Post-purchase Behavior

Chapter 5

  • Know how to differentiate the various types of organizational buyers:
    • Industrial Markets: Reprocess a product or service they buy before selling it again to the next buyer.
    • Reseller Markets: Buy physical products and resell them again without any reprocessing.
    • Government Markets: Federal, state, and local agencies that buy goods and services for the constituents they serve.
  • Reciprocity: An industrial buying practice in which two organizations agree to purchase each other's products and services.
  • Auctions: A marketplace where products are sold to the highest bidder.

Chapter 9

  • Types of products:
    • Convenience Products: Inexpensive items that consumers purchase regularly without much thought.
    • Shopping Products: Items for which consumers will compare several alternatives on criteria such as price, quality, or style.
    • Specialty Products: Items that a consumer makes a special effort to search out and buy.
    • Unsought Products: Items that the consumer does not know about or knows about but does not initially want.
  • How do we categorize services?:
    • Delivery by People or Equipment
    • Profit or Nonprofit Organizations
    • Government-sponsored
  • What are the characteristics of services?:
    • Intangibility: Services are intangible and cannot be held, touched, or seen before the purchase decision.
    • Inconsistency: Services depend on the people who provide them, thus, their quality varies with each person's capabilities and day-to-day job performance.
    • Inseparability: The consumer cannot (and does not) separate the service from the deliverer of the service.
    • Inventory: Many services are perishable, and there are costs associated with idle production capacity.

Chapter 10

  • Stages of the product life cycle: Characteristics and objectives of each.
    • Introduction: Gain awareness
    • Growth: Stress differentiation, gain market share
    • Maturity: Maintain brand loyalty
    • Decline: Harvesting, deletion
  • Five categories of product adopters:
    • Innovators
    • Early Adopters
    • Early Majority
    • Late Majority
    • Laggards
  • Types of product life cycles for various types of products:
    • High-Learning Product
    • Low-Learning Product
    • Fashion Product
    • Fad Product
  • Product class: Refers to the entire product category or industry.
  • Product mix: Consists of all of the product lines offered by an organization.
  • Product item: A specific product that has a unique brand, size, or price.

Chapter 11

  • Types of pricing and objectives of each of them:
    • Cost-Oriented Pricing: Price is set by looking at the production and marketing costs and then adding enough to cover direct expenses, overhead, and profit.
      • Standard Markup Pricing
      • Cost-Plus Pricing
    • Profit-Oriented Pricing: Involves balancing both costs and revenue to set price.
      • Target Profit Pricing
      • Target Return-on-Sales Pricing
      • Target Return-on-Investment Pricing
    • Competition-Oriented Pricing: Rather than emphasize demand, cost, or profit factors, a price setter can stress what competitors or "the market" is doing.
      • Customary Pricing
      • Above-, At-, or Below-Market Pricing
  • Elasticity and inelasticity:
    • Elasticity: A measure of how much the quantity demanded of a good responds to a change in the price of that good, computed as the percentage change in quantity demanded divided by the percentage change in price.
      Elasticity=%ΔinQuantity%ΔinPriceElasticity = \frac{\% \Delta in Quantity}{\% \Delta in Price}
    • Inelasticity: Demand is inelastic when the percentage change in price produces a smaller percentage change in quantity demanded.

Chapter 12

  • Types of channel intermediaries and functions of each of them:
    • Middleman
    • Agent or Broker
    • Wholesaler
    • Retailer
    • Distributor
    • Dealer
  • Logistics: Activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost.
  • Supply chains: The sequence of firms that perform activities required to create and deliver a product or service to ultimate consumers or industrial users.
  • Types of utilities created by channel intermediaries:
    • Time Utility
    • Place Utility
    • Form Utility
    • Possession Utility
  • Total logistics cost: Expenses associated with transportation, materials handling and warehousing, inventory, stockouts, order processing, and return products handling.

Chapter 13

  • Brokers: Independent firms or individuals whose principal function is to bring buyers and sellers together to make sales.
  • Types of agents:
    • Manufacturer's Agents: Work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory.
    • Selling Agents: Represent a single producer and are responsible for the entire marketing function of that producer.
  • Types of merchandising:
    • Visual Merchandising: How products are arranged in stores.
  • Types of wholesalers:
    • Merchant Wholesalers: Independently owned firms that take title to the merchandise they handle.
    • Agents and Brokers: Do not take title to merchandise and perform fewer channel functions.
    • Manufacturers' Branches and Offices: Wholly owned extensions of the producer that perform wholesaling activities.

Chapter 14

  • What is interactive marketing?: Involves two-way buyer-seller electronic communication in a computer-mediated environment in which the buyer controls the kind and amount of information received from the seller.
  • What is multichannel marketing?: Blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in the traditional marketplace and online.
  • Elements of online shopping and marketing:
    • Choice
    • Convenience
    • Customization
    • Communication
    • Cost
    • Control
  • Types of electronic commerce:
    • Business-to-Consumer (B2C)
    • Business-to-Business (B2B)
    • Consumer-to-Consumer (C2C)
  • What is publicity?: A nonpersonal, indirectly paid presentation of an organization, product, or service.
  • Common characteristics of online purchases:
    • Consumers value convenience, control, and choice.

Chapter 15

  • What is integrated marketing communications?: The concept of designing marketing communications programs that coordinate all promotional activities to provide a consistent message across all audiences.
  • Elements of the communication process:
    • Source
    • Message
    • Channel of Communication
    • Receiver
    • Encoding
    • Decoding
  • What is public relations?: A form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services. What are its characteristics?:
    • Credibility
    • Reach
    • Economy
  • Strengths and weaknesses of advertising:
    • Strengths: Efficient means for reaching large numbers of people.
    • Weaknesses: High absolute costs; difficult to receive good feedback.

Chapter 16

  • Types of advertising and objectives of each:
    • Product Advertisements: Focused on selling a product or service.
      • Pioneering (Informational)
      • Competitive (Persuasive)
      • Reminder
    • Institutional Advertisements: Focused on building goodwill or an image for an organization.
      Advocacy
      Pioneering
      Competitive
      Reminder
  • Types of sales promotions:
    • Coupons
    • Deals
    • Premiums
    • Contests
    • Sweepstakes
    • Samples
    • Loyalty Programs
    • Point-of-Purchase Displays
    • Rebates
    • Product Placement

Chapter 18

  • Stages of the personal selling process:
    1. Prospecting
    2. Preapproach
    3. Approach
    4. Presentation
    5. Close
    6. Follow-up
  • Key Account management: The practice of using team selling to focus on important customers so as to build mutually beneficial, long-term, relationships.
  • Types of sales presentations:
    • Stimulus-Response Format
    • Formula Selling Format
    • Need Satisfaction Format.