MCS 1000 Final: final exam

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University of Guelph
Marketing and Consumer Studies
MCS 1000
Sergio Meza

Marketing Final Study Guide- all text book notes Who does marketing affect? Marketing affects all individuals, all organizations, all industries, all countries and out natural environment What is marketing and what is it not? 1. Marketing is not advertisement-although it is one of the most visible aspects of marketing, it is but one small element of marketing 2. Marketing is not selling 3. Marketing is not merely common sense 4. Effective marketing requires intimate knowledge and understanding of consumers and the marketplace which goes beyond common sense What is marketing? Marketing is the activity for creating, communicating, delivering and exchanging offerings that benefit the organizations, its stakeholders and society at large What does marketing seek? 1. To discover the needs and wants of prospective customers 2. Satisfy them Who are proscriptive customers? Both individuals buying for themselves or their households and organizations that buy for their own use (such as manufactures) or for resale (such as wholesalers) What are the 4 factors that must occur for marketing? 1. Two or more parties 2. A desire and ability on their part to be satisfied 3. A way for the parties to communicate : where you buy it 4. A thing to exchange What is a market? A market is people with the desire and ability to buy a specific product. People must also have the ability to buy, have authority, and money. Who markets? Every organization, business firm, retails, politicians, non-profit organizations What is marketed? Good, services, ideas and experiences What are goods- physical objects? What are services- activities, deeds or other basic intangibles? What are ideas- are intangibles involving thoughts about actions or causes such as donating to charity What are experiences- personal and memorable experiences such as your vacation What is social marketing? Marketing Final Study Guide- all text book notes Marketing designed to influence the behaviour of individuals in which the benefits of the behaviour accrue to those individuals or to the society in general and not the marketer (ie: anti-smoking campaigns by health Canada) Who buys and uses what is marketed? Both individuals and organizations buy and use goods and services that are marketed Who are ultimate consumers? People who use the goods and services for their household What are organization buyers? Those manufactures, wholesalers, retailer and government agencies that buy goods and services for their own use or for resale Who benefits from marketing? 1. Consumers (who buy_ 2. Organizations (that sell) 3. Society What does providing choice allow for? Customer satisfaction and the quality of life to be what we expect it to be from the Canadian economic system How does marketing help us all? It enhances competition which improves the quality of products and lowers their prices What is the first objective in marketing? Discovering the needs of a customer What is a need? – occurs when a person feels physiologically deprived of basic necessities, such as food, and shelter What is a want- a felt need that is shaped by a persons knowledge, culture and personality What does effective marketing do? Shape a persons wants How do you satisfy a cusomers needs? Because all organizations cannot satisfy all consumers needs, it must concentrate its efforts on certain needs of a specific group of potential consumers What is a target market? One or more specific groups of potential consumers towards which an organization directs its marketing program What are the 4’s that help to communicate and deliver value to a target market? 1. Product- a good, service or idea to satisfy the consumers needs 2. Price- what is exchanged for the product 3. Promotion- a means of communication between the seller and buyer 4. Place- a means of getting the product into the consumers hands What is a marketing mix? Marketing Final Study Guide- all text book notes The marketing managers controllable factors- the marketing actions of product, price, promotion and place that he or she can create, communicate and deliver value What are environmental forces? The uncontrollable factors involving social, economic, technological, competitive, and regulatory forces What are the five environmental forces? 1.Social 2. Economic 3. Technological 4. Competitive 5. Regulatory What is the marketing program A plan that integrates the marketing mix to provide goods, services and ideas to prospect buyers (product, price, promotion, place) How has marketing become so important? 1. Evolution of North American Businesses a. Production era: the central notion was that products would sell themselves, and so the major concern of business firm was production, not marketing b. Sales era: firms discovered that they could produce more goods than their regular buyers so completion grew. The solution was to hire more salespeople (Pillsbury salesman stage) c. Marketing concept era: 1960s marketing became the motivating force among first c.i. The concept of this period was the idea that an organization should strive to satisfy the needs of consumers while trying to achieve their organizational goals d. Marketing organization era: focusing efforts on (1) continuously collecting information about customers needs and competitors capabilities (2) sharing this information throughout the organization (3) using the information to create value, ensure customer satisfaction and develop customer relationships What was the emphasis of the market organization era? Customer value: the unique combination of benefits received by the customer that include quality, price , conveniences on time delivery on both the sale and after sale service What is customer satisfaction? The match between customer expectations of the product and the products actual performance- it measure the ability of a firm to meet the needs of the customer What is customer relationship management? The process of building and developing long term relationships with customers by delivering value and satisfaction What is customer lifetime value? The profit generated by the customer purchase of an organization products or service over the customers lifetime What is eCRM? A web-centric, personalized approach to managing long term customer relationships electronically What is interactive marketing? Involves two way buyer seller electronic communication in which the buyer can control the kind and amount of information received from the seller Marketing Final Study Guide- all text book notes What does the company need to do for interactive marketing to be effective? Companies must listen, understand and respond to their customers needs What is customer experience management? Managing the customers interaction with the organization at all levels and at all touch points (direct and indirect contacts of the customer with an organization) so that the customer has a positive impression of the organization What does CEM require? Customer centric marketing organization What is customer-marketing organization? The customer is the focus and the company’s brand, product and services. .Leaders and marketers are in tune with the customers needs, expectations, aspirations and budgets What is social media marketing? Consumer granted online marketing efforts to promote brands and companies for which they are fans and the use by markers of online tools and platforms to promote their brands or organization What is the percentage of business that use social media? 25% What is social CRM? The use of social media to enable organizations engage customers in collaborative conversations for mutually beneficial value What are ethics and how do they serve as guideline? Ethics are the moral principles and values that govern the actions and decisions of an individual or group. They serve as a guideline on how to act justly What is social responsibility in marketing? Individuals and organizations are part of a larger society and accountable to that society for their actions. What is the societal marketing concept? The view that an organization should discover and satisfy the needs of its consumers in ways that also provide a society’s well being What is macro marketing? The aggregate flow of a nations good and services to benefit society What is a micro marketing? How an individual organization directs its marketing activates and allocates its resources its customers Chapters 5 & 6 What is consumer behaviour? Marketing Final Study Guide- all text book notes The actions that a person takes in purchasing and using products and services, including the mental and social processes that precede and follow these actions What is purchase decision power? The stages a buyer passes through in making choices about which products and services to buy What stages are there in the purchase decision process? 1. Problem recognition: the intial step is perceiving the difference between a persons ideal and actual situations that is big enough to trigger a decision 2. Information search: After recognizing a problem, a consumer begins to search for informationYou may scan your memory for pervious experiences with a product brand- the primary source of information are personal sources (family), public sources (product rating), marketer dominated sources (information from sellers) 3. Alternative evaluation (assessing value): the brands that you become aware of during your search become your awareness set. a. Evaluative criteria: factors that represent both the objective attributes of a brand (display) and the subjective ones (brand prestige) b. Consideration set: The group of brands that a consumer would consider acceptable from among all the brands of which he or she is aware 4. Purchase decision (buying value): Two choices remain in this stafe-from who to buy and when 5. Post purchase behaviour (value in consumption): the consumer compares their experience after buying the product with others What does involvement mean in marketing? The personal, social and economic significance to the consumer What are the three characteristics high involvement purchase occasions must have? 1. expensive 2. can have serious personal consequences 3. could reflect on ones social image What are some examples of low involvement goods? toothpaste, soap What are the three problem solving variations ? 1. Extended problem solving a. many brands examined b. many sellers considered c. high involvement 2. Limited problem solving a. several brands examined b. several sellers consider c. little time spent searching 3. Routine problem Solving Marketing Final Study Guide- all text book notes a. one brand examined b. few sellers considered c. minimal time searching What are low involvement products based on? 1. Maintaining product quality 2. Avoiding stock out 3. Advertising messages reinforce a consumers knowledge that they are making thr right choice What are situational influences? 1. The purchase task 2. The social surroundings 3. Physical surroundings 4. Temporal effects 5. Antecent What are psychological influences? Motivation and personality, perception, learning values, beliefs and attitudes and lifestyle What are socio-cultural influences? Personal influence, reference groups, family, culture and subculture What is the marketing mix influence? Product Price Promotion Place What are the two psychological concepts that with describe marketing implications motivation and personality What is motivation? The energising force that causes behaviour that satisfies a need What are the hierarchy of needs? 1. psychological needs: food, shelter 2. safety needs: freedom from harm, 3. Social needs: friendship, belonging, love 4. Personal needs: status, and respect 5. Self actualization: self fulfillment What is a personality? A persons consistent behaviours or responses to recurring situations What is a perception? Marketing Final Study Guide- all text book notes The process by which an individual selects, organizes, interprets information to create a mengful picture of the world What is selective perception? when the human brain attempts or organize and interpret information through a filtering process due to the complex environment that it is in What are the stages of selection perception 1. Selective comprehension: involves interpreting information so that it is consistent with ones attitudes and beliefs 2. Selective retention: means that consumers do not remember all of the information they see, read, or hear even minutes after exposure to it 3. Selective exposure 4. Selective retention: means that consumers do not remember all the information they see after they are exposed to it What is subliminal perception? Means that you hear or see messages without being aware to them What is perceived risk? The anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes that there may be negative consequences What is behavioural learning? The process of developing automatic responses to a situation built through repeated exposure to it What is a drive- a need that moves an individual to action What is a cue- a stimulus or symbol perceived by consumer What is a response- the action taken by a consumer to satisfy the drive What is a reinforcement- the reward What is cognitive learning? Invovles making connection between to or more ideas, or simply observing the outcomes of other behaviours and adjusting your own accordingly What is brain loyalty? A favourable attitude toward and consistent purchase of a single brand over time What play a central role in consumer decision making? Values: Personally or social preferable modes of conduct or states of existence that are enduring Beliefs: A consumers subjective perception of how well a product or brand performs on different attitudes (based on personal experience) Attitudes: a learned predisposition to respond on an object or class of objects in favourable or unfavourable way What is a lifestyle? Marketing Final Study Guide- all text book notes A mode of licing that is identified by how people spend their time and resources, what they consider important in their environment and what they think of themselves and the world around them What are psychographics? The analysis of consumer lifestyle What are some of the findings of Canadian lifestyles and social media? Canadians who connect with family members through social media come in all lifestyles Social media producers are different from followers Quebec consumers have the power to influence What is a personal influence? A consumers purchases are influenced by their views, opinions or behaviours of others What is opinion leadership? Individuals who exert direct or indirect social influence. They are considered to be knowledgeable of particular reprocess and services What is word of mouth? The influencing of people during conversation. It is the most powerful and authentic information source for consumers because it involves family and friends What is buzz marketing? Popularity created by consumers by word of mouth What is viral marketing? The online version of word of mouth; involving the use ofmessages “infectious” enough that consumers wish to pass them along to others through online communication What are reference groups? People to whome an individual looks as a basis for self appraisal or as asource of personal standard What is family influence? Results from consumer socialization as one passes through the family cycle What is consumer socialization? The process by which people acquire the skills, knowledge and attitudes necessary to function as consumers What is the family life cycle? The distinct phases that a family progresses through What is social class? The relatively permanent, homogenous division in a society In which peopelshare ismialr values, lifestyles and behaviour What is a subculture? Subgroups within the larger, or nation, culture with unique values, ideas and attitudes What describes the Quebecers? Loyal Follow instincts Like to talk Marketing Final Study Guide- all text book notes Chapter 6: Organizational Markets and buyer Behaviour What is business marketing? The marketing of goods and services to companies, governemnts and not-for profit organization for the use of creation of goods and services that they can produce and market to others What are organizational buyers? Those manufacters, wholesalers, retailers and govenremnt agencies that buy goods and services for their use or for resale What markets are organizational buyers divided into? 1. Industrial 2. Reseller 3. Governmental markets What are industrial firms? Organizational buyers that, in some way, reprocess a good or service they buy before selling it again to the next buyer What is a reseller market? Wholesalers or retailers that buy physical products and sell them again without any processing What are government units? The federal, provincial and local agencies that buy goods and services for the constituents they service What is an organizational buying behaviour? The decision making process that organization use to establish the need for products and services and to identify, evaluate and choose among alternative brands and suppliers What are the characteristics of organizational buying behaviour? 1. Demand characteristics: consumer demand for products and services is affected by their price and availability and by consumers personal demand and discretionary income a. derived demand: demand for business products and services is driven by, or drived from, demand of consumers products and services 2. Size of the order purchase 3. Number of potential buyers 4. Organizational buying objectives: Organizations buy products and services to help them achieve their objectives 5. Organizational buying criteria: the objectives of the suppliers products and services and the capabilities of the supplier itself What is ISO 9000 Standards? Registration and certification of a manufacture’s quality management and quality assurance system What is a supplier development? The deliberate effort by organizational buyers to build relationships that shape suppliers products, services and capabilities to fit a buyers needs and those of its customers What is a supply partnership ? Marketing Final Study Guide- all text book notes A relationship that exists when a buyer and its supplier adopt mutually beneficial objectives, policies and procedures for the purpose of lowering costs What is the buying centre? The group of people in an organization who participate in the buying process and share common goals What are the roles in the buying centre? users- people who use the product or service Influences- affect the buying decision buyers- have formal authority and responsibility to select the suppliers and negotiate the terms of the contract deciders- have the formal or informal power to select or approve the supplier that receives the contract gatekeepers- control he flow of information in the buying centre What are the three types of buying classes? 1. new buy- first time buyer ofproduct or serive. This involves greater risks (many people are involved and there is a long decision time) 2. Modified rebuy: the users, influencers or deciders in the buying centre want to change the product specifications, price and delivery (two or more people are involved) 3. Striaght rebuy What are the stages in the buying process? 1. problem reconigion (make buy decision) 2. Information search (value analysis) 3. Aleraive evaluation (bidders list- a list of firms believed to be qualified to supply a given item) 4. Purchase decision 5. Post purchase behaviour) What are e-marketplaces? Online trading communities that bring together buyers and supplier organizations What is a traditional auction? A seller puts an item up for sale and buyers are invited to bid in competition with each other What is a reverse auction> A buyer communicates a need for a product or serive and the suppliers are invited to bid in a competition with each other Chapter 9: Market Segmentation, targeting and positioning What are market segments? The relatively homogenous groups of prospective buyers that result from the market segmentation process What does each market segment consist of? People who are relatively similar to each other in terms of consumption behaviour What are product differentiation? Strategy that involves a firm using different marketing mix activities, such as product features and advertising to help consumers perceive the product different from and better than competing products Marketing Final Study Guide- all text book notes What is a market product grid? A framework to relate the market segments of potential buyers to products offered or potential marketing actions by the firm When should you not segment markets? When expenses are greater then the potentially increased sales from segmentation a firm should not attempt to segment its markets What are the 3 specific situations that illustrate effective market segmentation? 1. One product and multiple market segments 2. Multiple products and multiple market segments 3. Segments of one: mass customization What is cannibalization? Stealing stales What is the first step in segmenting markets? 1. group potential buyers into a segment 2. Group products to be sold into categories 3. Develop a market product grid and estimate size of markets 4. Select target markets 5. Target marketing actions to reach target markets What are the 5 criteria for a marketing manager to develop a market segment? 1. Potential for increase profit 2. Similarity of needs of potential buyers with a segment 3. Difference of needs of buyers among segments 4. Potential of a marketing action to reach a segment 5. Simplicity and cost of assigning potential buyers to segments What are the ways to segment markets? 1. Geographic segmentation: a marketer segments based on where the consumer lives 2. Demographic segmentation: this approach segments consumers by age, gender, income, education and occupation 3. Psychographic segmentation: thi segments according to personality or lifestyle 4. Behavioural segmentation: use consumers behaviour to divide the market What are the 5 criteria in selecting target segments? 1. Market size 2. Expected growth 3. Competitive positioning 4. Cost of reaching the segment 5. Compatibility with the organization objectives and resources Marketing Final Study Guide- all text book notes What is product positioning? The place an offering occupies in consumers minds on important attributes relative to competitive products What product repositioning? changing the place an offering occupies in a consumers mind relative to competitive products What are the 2 approaches to product positioning? 1. Head to head positioning: involves competing directly with competitors on similar product attributes in the same target market 2. Differentiation positioning: involves seeking a less competitive, smaller market niches in which to locate a brand, usually stressing the unique aspect of the product What are percpetual maps? A means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands relative to its own and then taking marketing actions What is market (industry) potential? The maximum total sales of a product by all firms to a segment during a specified time period under specififed environmental conditions and marketing efforts of the firms What is sales forecast? The total sales of a product by all firms to a segment during a specified time period under specified environmental conditions and marketing efforts of the firms What is a direct forecast? Estimating the value to be a forecast without any intervening steps What is a lost-horse forecast? Making a forecast using the last know value and modifying it according to positive or negative factors expected in the future What is a surveys buyers intention forecast? Asking prospective customers if they are likely to buy a product during some future time period What are the two types of statistical data? Trend explosion: Linear trend extrapolation: the pattern is described with a straight line Chapter 2: Developing successful marketing strategies What is an organization? a legal entity of people who share a common mission What is a business firm? A privately owned organization that serves its customers in order to earn a profit What is profit? The money left after a business firms total expenses are subtracted from its total revenue Marketing Final Study Guide- all text book notes What is a strategy? An organizations long term course of action desgined to deliver a unqiue customer experience while acheivig its goals What is the corporate level? Level which a top management directs overall strategy for the entire organization. Top management means the bored of directors with a variety of sksills and experiences that are unvaluable in establishing overall stategy What is marketing accountability? The responsibility for the systematic management of marketing resouces and processes to achieve measurable gains in return on marketing investment and increased marketing efficiency, while maintaining quality and increasing the value of the corporation What is strategic business unit? A subsidiary division or unit of an organization that markets a set of related offerings to a clearly defined group of customers What is the functional level? The level of the organization where groups of specialists actually create value for the organization What is cross-functional teams? A small number of people from different departments in an organization who are mutally accountable to accomplish a task ot common set of performance goals What are core values? An organization core values are the fundamental, passionate and enduring principles tht guide its conduct over time What is a mission? A statement of the organizations function in society, often identifying its customers, markets, products and technologies What is the organizational culture? A set of values, ideas, attitudes, and norms of behaviour that is learned and shared among the member of an organization What is a business? Describes the broad, underlying industry or market sector of an organization offering What is a business model? The strategies an organization develops to provide value to the customer it serves What are goals or objectives? Statements of an accomplishment of a task to be achieved often by a specific time What is SMART 1. Specific – be precise description of what is to be achieved 2. Measurable – be a quantitative value to show attainment 3. Attainable – be achievable but challenging 4. Relevant – be pertinent to the organizations mission 5. Time based – have a deadline Marketing Final Study Guide- all text book notes What can a business firm pursue 1. Profit 2. Sales 3. Market share 4. Quality 5. Customer satisfaction 6. Employee welfare 7. Social responsibility What are competencies? An organizations special capabilities, including skills, technologies and resources, that distinguish it form other organizations and provide value to its customers What is competitive advantage? A unique strength relative to competitors, often based on quality, time, cost, innovation, customer intimacy, or customer experience management What is quality? Those features and characteristics of a product that influence its ability to satisfy a need What is benchmarking? Discovering how others do something better than your own firm so that you can imitate or leapfrog competition Chapter 10: Developing New Products and Services What is a product? A good, service or idea consisting of a bundle of tangible and intanglible attributes that satisfies consumers and is received in exchange for money or some other unit of value What is a product line? A group of products that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets, or fall within a given price rage What is a product mix? The number of product lines offered by a company What are consumer goods? Products purchased by the ultimate consumer What is a business goods? Products that assist directly or indirectly in providing products for resale What are convenience goods? Items that the consumer purchases frequently and with a minimum of shopping effort What is shopping goods? Marketing Final Study Guide- all text book notes Items for which the consumer compares several alternatives on such criteria as price, quality or style What is a specialty good? Items that a consumer makes a special effort to search out and buy What are unsought goods? Items that the consumer either does not know about or knows about but does not initially want What are production goods? Items used in the manufacturing process that become part of the final product What are support goods? Items used to assist in producing other goods and services What is continuous innovation? Requires no new learning (ex: improved shaver, detergent, and toothpaste) What is dynamically continuous innovation? Disrupts consumers normal routine but does not require totally new learning (electric toothbrush, automatic flash units) What is discontinuous innovation? Requires new learning and consumption patterns by consumers (wireless router, digital video recorder) What are new services? 1. Major service innovation 2. Major process innovation 3. Service line extensions 4. Process line extensions 5. Supplementary service innovations 6. Basic service improvements 7. Style changes What is a protocol? A statement that before product development begins, identifies (1) a well defined target market (2) Specific customers needs, wants and preferences and (3) what the product will be and do What is new-product process? The stages a firm uses to identify business opportunities and convert them to saleable well or service Stages: What is new product strategy development? 1 stage The first stage of the new product process, providing the necessary focus, structure, approach, and guidelines for pursuing innovation What is a six stigma? Marketing Final Study Guide- all text book notes A means to delight the customer by achieving quality through a highly disciplined process that focuses on developing and delivering near perfect products and services What is the idea generation? 2 Stage Developing a pool of concepts as candidates for new products What is screening and evaluation? 3 stage The stage of the new product process the involves internal and external evaluations of the new products ideas to eliminate those that warrant no further what is Business analysis? 4 Stage The stage of the new product process that involves specifying the product features and marketing strategy and making financial projections needed to commercialize a porudt What is Development? 5 stage The stage of the new product process that involves turning the idea on paper into a prototype What is market testing? 6 stage Exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy What is commercialization? 7 stage The stage of the new product process that involves positioning and launching a nre product in full scale production What slotting fee? A payment a manufacture makes to place a new item on a retailers shelf What is failure fee? A penalty payment a manufacture makes to compensate a retailer for failed sales from its valuable shelf space New product strategy development Identify focus, structure, approach and guidelines for innovation Idea generation Develop concepts for possible products Screening and evaluation Separate good product ideas from bad ones inexpensively Business analysis Identifying the products deatures and its marketing strategy, and make financial projections Development Create the prototype product, and test it in the laboratory and on consumers Market testing Test product and marketing strategy in the marketplace on a limited scale Commercialization Position and offer product in the marketplace Chapter 11: Managing Products and Brands What is a product life cycle? Marketing Final Study Guide- all text book notes The stages a new product goes through in the marketplace; introduction, growth, maturity decline What is the introduction stage? The stage is when the product is first introduced to the market. There is a lack of profit. The marketing objective for the company is to create consumer awareness and stimulate trial. To discourage competitve entry, a company can price low, called penetration pricing What Is growth stage? Characterized by the rapid increases in sales. It is in this stage that competitors appear. At this stage, the emphasis on advertisement shifts to simulating demand in which product benefits are compared with those of competitors. Changes start to appear in the product during the growth stage- ex: smartphones and e-books What is maturity stage? Characterized by a slowing of total industry sales or product class revenue (soft drinks and DVD players) They try to find new buyers What is the decline stage? Occurs when sales and profits begin to drop because of environmental changes What is product deletion--- dropping a product from a company product line What is harvesting—occurs when a company retains the product but reduces marketing support costs What are the 4 dimensions of a product life cycle? 1. Their length: consumer products have shorter life cycles than do business products 2. The shape of their curve a. High learning product: extended introductory period on the line b. Low learning product: sales begin immediately because little learning is required by the consumer and the benefits of purchase are readily understood c. What is a fashion product: is introduced, declines and then seems to return d. A fad: rapid sales in the introduction and then just a rapid decline 3. How they vary with different levels of the products a. product class: the entire product category or industry b. product form: variations of a product within the product class 4. The rate at which consumers adopt products What is a role of a product manager? Manages the marketing efforts for a close knit family of products or brands What is product modification? Altering a product’s characteristics, such as its quality, performance, appearance, features, or package to try to increase and extend the products sales What is market modification? Marketing Final Study Guide- all text book notes Strategy in which a company tries to find new customers, increase a products use among existing customers, or crate new-use situations What is product repositioning? Changing the place a product occupies in a consumers minds to competing products What is trading up? Adding value to a product through additional features or higher quality materials What is trading down? Reducing the number of features, quality or price What is downsizing? Reducing the content of packages without changing package size and maintaining or increasing the package price What environmental forces impact how Canadians market? Empowered consumers, new media, social media, return in investment, the importance of changing demographics, ethics in business and organizational change What is branding? Activity in which an organization uses a name, phrase, design, symbol, or combination of these to identify its products and distinguish them from those of competitors What is a brand name? Any word, device (design, shape, sound or colout) or combination of these used to distinguish a sellers goods or services What is a trade name? A commercial, legal name under which a company does business What is a trademark? Identifies that firm has legally registered its brand name or trade name so that the firm has its exclusive name What is a brand personality? A set of human characteristics associated with a brand name What is brand personality? A set of human characteristics associated with a brand name What is brand equity? The added value that a given brand name gives to a product beyond the functional benefits provided What is brand licensing? A contractual agreement whereby a company allows another firm to use its brand, name, patent, trade secret or other property for a royalty or fee What are the 5 criteria that one should meet when selecting a good brand name? 1. The name should suggest the product benefits 2. The name should be memorable, distinctive and positive 3. The name should fit the company or product image 4. The name should have no legal or regulatory restrictions Marketing Final Study Guide- all text book notes 5. The name should be simple What is multiproduct branding? Use by a company of one name for all its products in a product class (ex: Torso makes snowblowers, lawn mowers, sprinkler systems) What is an example of a private branding strategy? Sears has: -kenmore appliances -Craftsman appliances -Die hard batteries What is an example of a mixed branding mechanism? Michelin makes: Michelin tires, sears tires Epson makes: Epson printers, IBM printers What is co-branding? The pairing of two or more recognized brands on a single product or service What is multibranding? A manufacuteres branding strategy giving each product a distinct name What is private branding? When a company manufactuers products but sells them under the brand name of a wholesaler or retailer What is cohort brand management? The building of ones company’s multiple brands into a single marketing effort aimed at a common consumer group What is mixed branding? A firm markets products under its own name and that of a reseller because the segment attracted by the reseller is different from its own What is packaging? Any container in which a product is offered for sale and on which lable information is communicated What is label? An integral part of the package that typically identifies the product or brand, who made it, where and when it was made how it is to be used and package contents and ingredients What are the benefits of packaging and labelling? 1. Communication benefits 2. Functional benefits 3. Perceptual benefits What are the 4 challenges package and label designers face? Marketing Final Study Guide- all text book notes 1. The continuing need to connect with customers 2. Environmental concerns 3. Health, safety and security issues 4. Cost reduction What is warranty? a statement indicating the liability of the manufactures for product deficiencies Chapter 12: Managing Services What are services? Intangible activities, benefits, or satisfactions that an organization provides to consumers in exchange for money or something else of value What are pure goods? Implies that the customer obtains benefits from the good alone without any added value from service What is pure service? Assumes there is no goods element to the service that the customer service What are the four Is of services 1. Intangibility: services are inhabitable that is they cannot be held, touched or seen before the purchase decision 2. Inconsistency: developing, pricing, promotiong and delivering services is challenging because the quality of service is often inconsistent 3. Inseparability: there 4. Inventory: a. idle production capacity: when the service provider is available but there is no demand What is the service continuum? A range from tangible to the intangible What do tangible services have? Search qualities – such as colour, size and style What is a customer contact audit? A flow chart of the points of interaction between consumer and service provider When does a gap analysis occur? An evaluation tool that compares expectations about compares expectations about a service offering to the actual experience a consumer has with the service What does assurance mean Respectful, considerate personnel who listen to customers and answer their questions What does empathy mean? Knowing the customers and understanding their needs Marketing Final Study Guide- all text book notes What does responsiveness mean? Willingness to help customers and provide prompt service What does reliability? Ability to perform the promised service dependably and accurately What are the seven P’s of service marketing? Product, price, place and promotion as well as people, physical evidence, and process that constitute the services marketing mix Price: Hospitals refer to as charges Accountants refer to as fees Airlines refer to it as tution Universities and colleges refer to it as tuition What does promotion show? The value of promotion, especially advertising, for many services it to show consumers the benefits of purchasing the service What is internal marketing? The notion that in order for a service organization to serve its customers well, it must care for and treat its employees like valued customers What is physical evidence? The appearance of the environment in which the service is delivered and where the firm and customer interact can influence the customer’s perception of the service What does process refer to as? The actual procedures, mechanisms and flow of activities by which the service is created and delivered What is capacity management? Marketing service capacity as productive as possible without compromising service quality What is off peak pricing? Charging different prices during different times of the day or days of the week to reflect variations in demand for the service What can we expect from an aging population> A whole host of aging services, including mobile health care and mobile salons From a technological perspective how will future services look like? The future services will include mobility, convergence, personalization and collaboration Chapter 13: Pricing products and services What is price? The money or other cosniderations (including other goods and services) exchanged for the ownership or use of a good or service What is value? defined as the ratio perceived benefits to price Marketing Final Study Guide- all text book notes What is the profit equation? Profit= total revenue- total cost, or profit = (unit price x quantity sold)- Total cost What are the 6 major steps involved in the process organization of setting prices? 1. Identifying pricing constraints – constraints like product class, and brand, newness, cosrs and competition. 2. Estimating demands and revenue 3. Estimating cost, volume, and profit relationships 4. Selecting an approximate price level 5. Setting the list or quoted price 6. Setting the list or quoted price 7. Making special adjustments to the list or quoted price What are pricing constraints? Factors that limit the latitude of price a firm may set What are some examples of pricing constraints? 1. Demands for the products class, products and brand 2. Newness of products 3. Single product versus a product line 4. Cost of changing prices and time period they apply What are examples of competitive markets? 1. Pure monopoly- One seller who sets the price for a unique product- no competing 2. Oligopoly: Few sellers who are sensitive to each other prices- some competition: price leader or followers of competitions. They try to avoid competition because it can lead to price war. 3. Monopolistic competition: both competition and non-price competition exist. They compete over range of prices. Many sellers who compete on non-price factors 4. Pure competition: many sellers who follow the market price for identical, commodity products What are pricing objectives? Expectations that specify the role of price in an organizations marketing and strategic plans What is the goal of profit? It is measured by the return of investment, return on assets and managing long term profit When does a sale occur? Given that a firms profit is high enough for it to remain in business, its objectives may be to increase sales revenue. The hope is that the increase in sales revenue will, in return, lead to increases in market shares and profit. What is a market share? The ratio of the firms sales revenues or unit sales to those of the industry What is the unit volume? The quantity produced ot sole as a pricing objective What is a demand curve? The summation of points representing of the maximum number of products consumers will buy at given price Marketing Final Study Guide- all text book notes What are the 3 things economists stress of the demand curve? 1. consumer tastes 2. Price and availability of other products 3. Consumer income What is price elasticity of demand? The percentage change in quantity of demanded relative to percentage change in price What it total revenue? The total money received from the sale of a product unit price X quantity sold What is total cost? The total expenses incurred by a firm in producing and marketing a product What is the fixed cost? The firms expenses that are stable and do not change with the quantity of product that is produced and cost What variable cost? The sum of the expenses of a firm that vary directly with the quantity of products that is produced and sold What is break-even analysis? A technique that analyzes the relationships between total revenue and total cost to determine probability at various levels of output fixed cost\ unit price- unit variable = break even analysis What is the skimming price? The highest initial price that customers really desiring a product are willing to pay What is the penetration price? Setting a low initial price on a new price on What is prestige pricing? Setting a high price on a product to attract quality- or status-conscious consumers What is price lining? Pricing a line or products at a number of different specific pricing points What is odd-even pricing? Setting prices a few dollars or cents under an even number What is target pricing? The practice of deliberately adjusting the composition and features of a product to achieve the target price to consumers What is bundle pricing? The marketing of two or more products in a single package price What is yield management prices? The charging of different prices to maximize revenue for a set amount of capacity at any given time Marketing Final Study Guide- all text book notes What is standard mark-up pricing? Adding a fixed percentage to the cost of all items in a specific product class What is cost-plus pricing? Summing the total unit cost of providing a product or service and adding a specific amount to the cost to a
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