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.
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)
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
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?
What is the marketing program
A plan that integrates the marketing mix to provide goods, services and ideas to prospect buyers (product, price,
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
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?
What is social CRM?
The use of social media to enable organizations engage customers in collaborative conversations for mutually
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
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?
2. can have serious personal consequences
3. could reflect on ones social image
What are some examples of low involvement goods?
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
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?
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
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
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
What is a subculture?
Subgroups within the larger, or nation, culture with unique values, ideas and attitudes
What describes the Quebecers?
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
What markets are organizational buyers divided into?
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
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
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
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?
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
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
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?
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
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
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
What is a mission?
A statement of the organizations function in society, often identifying its customers, markets, products and
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
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
3. Market share
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
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
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
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
Idea generation Develop concepts for possible products
Screening and evaluation Separate good product ideas from bad ones
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;
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
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,
What is an example of a private branding strategy?
-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
2. Inconsistency: developing, pricing, promotiong and delivering services is challenging because the quality
of service is often inconsistent
3. Inseparability: there
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
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
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
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
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