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Management Exam Review.docx

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Brock University
Herb Mac Kenzie

Management Exam Review (chapters: 11-14, & 18) Chapter 11 Behavioural segmentation: Dividing the market based on how people behave towards various products. This category includes both the benefits that consumers seek from products and how consumers use the product. Business buyer behaviour: Describes how people act when they are buying products to use either directly or indirectly to produce other products. Business marketers (also known as business-to-business or B2B): Marketers who direct their efforts toward people who are buying products to use either directly or indirectly to produce other products. Cognitive dissonance: Consumer discomfort with a purchase decision, typically for a major purchase. Consumer behaviour: Description of how people act when they are buying, using, and discarding goods and services for their own personal consumption. Consumer behaviour also explores the reasons behind people's actions. consumer marketers (also known as business-to-consumer or B2C): Marketers who direct their efforts toward people who are buying products for personal consumption. Customer loyalty: When customers buy a product from the same supplier again and again- sometimes paying even more for it than they would for a competitive product. Customer relationship management (CRM): The on-going process of acquiring, maintaining, and growing profitable customer relationships by delivering unmatched value. Customer satisfaction: When customers perceive that a good or service delivers value above and beyond their expectations.  The first trap is overpromising. Even if you deliver more value than anyone else, your customers will be disappointed if your product falls short of overly high expectations.  The second trap is underpromising. If you don't set expectations high enough, too few customers will be willing to try your product. The result will be a tiny base of highly satisfied customers, which usually isn't enough to sustain a business. Demographic segmentation: Dividing the market into smaller groups based on measurable characteristics about people such as age, income, ethnicity, and gender. Environmental scanning: The process of continually collecting information from the external marketing environment. Form utility: The power of a good or a service to satisfy customer "wants" by converting inputs into a finished form. Geographic segmentation: Dividing the market into smaller groups based on where consumers live. This process can incorporate countries, or cities, or population density as key factors. Green marketing: The development and promotion of products with ecological benefits. Market segmentation: Dividing potential customers into groups of similar people, or segments. Market share: The percentage of a market controlled by a given marketer. Marketing: The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Marketing concept: A business philosophy that makes customer satisfaction- now and in the future-the central focus of the entire organization. Marketing mix: The blend of marketing strategies for product, price, distribution, and promotion.  Product strategy: product strategy decisions range from brand name, to product image, to product package design, to customer service, to guarantees, to new product development, and more.  Pricing strategy: pricing is a challenging area of the marketing mix. To deliver customer value, your prices must be fair relative to the benefits of your products. Other factors include competition, regulation, and public opinion.  Promotion strategy: promotion includes all of the ways that marketers communicate about their products. Key elements today include advertising, personal selling, sales promotion, public relations, word-of-mouth, and product placement. Successful promotional strategies typically evolve in response to both customer needs and completion.  Distribution strategy: the goal is to deliver your product to the right people, in the right quantities, at the right time, in the right place. The key decisions include shipping, warehousing, and selling outlets. Marketing plan: A formal document that defines marketing objectives and the specific strategies for achieving those objectives. Marketing research: The process of gathering, interpreting, and applying information to uncover marketing opportunities and challenges, and to make better marketing decisions. Mass customization: The creation of products tailored for individual consumers on a mass basis. Observation research: Marketing research that does not require the researcher to interact with the research subject. Ownership utility: The power of a good or a service to satisfy customer "wants" by smoothly transferring ownership of goods and services from seller to buyer. Place utility: The power of a good or a service to satisfy customer "wants" by providing goods and services at a convenient place for customers. Primary data: New data that marketers compile for a specific research project. Psychographic segmentation: Dividing the market into smaller groups based on consumer attitudes, interests, values, and lifestyles. Secondary data: Existing data that marketers gather or purchase for a research project. Survey research: Marketing research that requires the researcher to interact with the research subject. Target market: The group of people who are most likely to buy a particular product.  Size: there must be enough people in your target group to support a business.  Profitability: the people must be willing and able to spend more than the cost of producing and marketing your product.  Accessibility: your target must be reachable through channels that your business can afford.  Limited competition: look for markets with limited competition; a crowded market is much tougher to crack. Time utility: The power of a good or a service to satisfy customer "wants" by providing goods and services at a convenient time for customers. Utility: The ability of goods and services to satisfy consumer "wants." Value: A customer perception that a product has a better relationship than its competitors between the cost and the benefits. Perceived value versus Actual value: simply creating value isn't enough; you also must help customers believe that your product is uniquely qualified to meet their needs. This becomes a particular challenge when you're a new business competing against market leader with disproportionately strong perceived value. People marketing: sports, politics, and art dominate in this category. Start by figuring out what your customer needs, and then ensure that your 'product' (you) delivers above and beyond expectations. Place marketing: this category involves drawing people to a particular place. Provinces and territories, cities, municipalities-and even Canada-use place marketing to attract businesses, investments, and tourists. Event marketing: this category includes marketing-or-sponsoring-athletic, cultural, or charitable events. Partnerships between public and private sectors are increasingly common. Idea marketing: a whole range of public and private organizations market ideas that are meant to change how people think or act. Production era: in the early 1900s, the customer was a joke. Consumers didn't have the overwhelming number of choices that are currently available; most products were purchased as soon as they were produced and distributed to consumers. In this context, the top business priority was to produce large quantities of goods as efficiently as possible. Selling era: by the 1920s, production capacity had increased dramatically. For the first time, supply in many categories exceeded demand which caused the emergence of the hard sell. The selling focus gained momentum in the 1930s and 1940s, when the Depression and World War II made consumers even more reluctant to part with their limited money. Marketing era: Many factories that had churned out military supplies converted to consumer production, flooding the market with choices in virtually every product category. To compete with consumer's dollar, marketers attempted to provide goods and services that met customer needs better than anything else on the market. Relationship era: acquiring a new customer can cost five times more than keeping an existing customer. Retaining your current customers-and getting them to spend additional dollars-is clearly cost-effective. Moreover, satisfied customers can develop into advocates for your business, becoming powerful generators of positive "word-of-mouth." Chapter 12 Accessory equipment: Smaller, movable capital purchases, designed for a shorter productive life than installations. Actual product: The physical good or the delivered service that provides the core benefit of any product. Augmented product: The additional goods and services included with a product to sharpen its competitive edge. Brand: A products identity-including product name, symbol, design, reputation, and image-that sets it apart from other players in the same category. Brand equity: The overall value of a brand to an organization. Brand extension: A new product, in a new category, introduced under an existing brand name. Business products: Products purchased to use either directly or indirectly in the production of other products. Business services: Services that businesses purchase to facilitate operations. Cannibalization: When a producer offers a new product that takes sales away from its existing products. Cobranding: When established brands from different companies join forces to market the same product. Component parts and processed materials: Finished (or partially finished) products used in producing other products. Consumer products: Products purchased for personal use or consumption. Continuous innovation: Existing products with slight modifications. Convenience products: Inexpensive goods and services that consumers buy frequently with limited consideration and analysis. Core benefit: The basic benefit component of any product that consumers buy to satisfy their needs. Customer benefit: The advantage that a customer gains from specific product features. Diffusion: The spread of new products throughout a market after they are introduced. Discontinuous innovation: Brand new products that radically change how people live. Dynamically continuous innovation: Existing products with marked changes and significant new product benefits. Installations: Large capital purchases designed for a long productive life. Licensing: Purchasing the right to use another company's brand name or symbol. Line extensions: Similar products offered under the same brand name. Maintenance, repair, and operating products (MROs): Small ticket items that businesses consume on an on-going basis, but don't incorporate into the final product. National brands: Brands that the producer owns and markets. Product: Anything that an organization offers to satisfy consumer needs and wants, including both goods and services. Product consistency: How reliably a product delivers its promised level of quality. Product differentiation: The attributes that make a good or service different from other products that compete to meet the same or similar customer needs. Product features: The specific characteristics of a product. Product life cycle: A pattern of sales and profits that typically changes over time. Product line: A group of products that are closely related to each other, either in terms of how they work, or the customers they serve. Product mix: The total number of produ
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