front 1 Market leader | back 1 Has largest market share Leads in price changes, new product introductions, distribution coverage and promotional intensity 40% |
front 2 Market challenger | back 2 Market group that attacks the leader and other competitors in an aggressive bid for further market share 30% |
front 3 Market follower | back 3 Market group that is willing to maintain its share and chooses not to rock the boat or attack the market leader 20% |
front 4 Market nicher | back 4 Market group that serves small segments larger firms don't reach 10% |
front 5 Market leader strategies | back 5 Expand the total market Defend market share Mobile defense Contraction defense |
front 6 Expanding total market demand strategies | back 6 New customers - new users and new uses More usage - increase amount, level, or frequency used Additional opportunities to use the brand New ways to use the brand |
front 7 Protecting market share strategies | back 7 Proactive marketing Defensive marketing |
front 8 Proactive marketing | back 8 Responsive marketing Anticipative marketing Creative marketing |
front 9 Responsive marketing | back 9 Proactive marketing strategy Finds stated need and fills it |
front 10 Anticipative marketing | back 10 Proactive marketing strategy Looks ahead to needs customers may have in the near future |
front 11 Creative marketing | back 11 Proactive marketing strategy Discovers solutions customers did not ask for but to which they enthusiastically respond Market driving firms |
front 12 Defensive marketing strategies | back 12 Position defense Flank defense Preemptive defense Counteroffensive defense Mobile defense Contraction defense |
front 13 Position defense | back 13 Defensive marketing strategy Occupying the most desirable market space in consumer's minds, making the brand almost impregnable |
front 14 Flank defense | back 14 Defensive marketing strategy Erecting outposts to protect a weak front or support a possible counterattack |
front 15 Preemptive defense | back 15 Defensive marketing strategy Attack first in order to keep everyone off balance Announce a stream of new products in advance |
front 16 Counteroffensive defense | back 16 Defensive marketing strategy The market leader can meet the attacker frontally and hit its flank or launch movements forcing challengers to pull back Exercise of economic or political clout |
front 17 Mobile defense | back 17 Defensive marketing strategy The leader stretches its domain over new territories through marketing broadening and diversification |
front 18 Contraction defense | back 18 Defensive marketing strategy Market leaders give up weaker markets and reassign resources to stronger ones |
front 19 Potential drawbacks of increasing market share | back 19 Antitrust action Economic cost Pursuing the wrong marketing-mix strategy Effect of increased market share on actual and perceived quality |
front 20 Market challenger strategic objectives | back 20 Attack the market leader Attack firms its own size that are not doing the job and are underfinanced Attack small local and region firms |
front 21 Market challenger attack strategies | back 21 Frontal attack Flank attack Encirclement attack Bypass attack Guerrilla attacks |
front 22 Frontal attack | back 22 Market challenger attack strategy Attacker matches its opponent's product, advertising, price, and distribution Greater resources will win |
front 23 Flank attack | back 23 Market challenger attack strategy Concentrate your strength's on the enemy's weak spots Geographic attack Serve uncovered market needs attack |
front 24 Encirclement attack | back 24 Market challenger attack strategy Attempts to capture a wide slice of territory by launching a grand offensive on several fronts Challenger must command significant resources |
front 25 Bypass attack | back 25 Market challenger attack strategy Bypassing the enemy altogether to attack easier markets Diversifying into unrelated products, new geographical regions, new technologies |
front 26 Guerrilla attacks | back 26 Market challenger attack strategy Small intermittent attacks, conventional and unconventional designed to harass the opponent and eventually secure permanent footholds Selective price cuts, intense promotion, legal actions |
front 27 Market follower strategies | back 27 Counterfeiter Cloner Imitator Adapter |
front 28 Counterfeiter | back 28 Market follower strategy Duplicates leader's products and packages and sells it on the black market |
front 29 Cloner | back 29 Market follower strategy Emulates the leaders products, name, and packaging with slight variations |
front 30 Imitator | back 30 Market follower strategy Copies some things from the leader but differentiates on packaging, advertising, pricing, or location |
front 31 Adapter | back 31 Market follower strategy Takes the leaders products and adapts or improves them |
front 32 Market niche stratgies | back 32 End user specialist Vertical level secialist Specific customer specialist Product line specialist Product feature specialist Quality/Price specialist Service specialist Channel specialist |
front 33 Product life cycle | back 33 Introduction Growth Maturity Decline |
front 34 Growth-slump-maturity pattern | back 34 Sales grow rapidly when the product is first introduced and fall into a petrified level sustained by late adopters buying for first time and early adopters replacing it Small kitchen appliances |
front 35 Cycle-recycle patter | back 35 Aggressively promote new product, when sales decline, another promotion push occurs Pharmaceutical drugs |
front 36 Scalloped PLC | back 36 Product life cycle Sales pass through a succession of life cycles based on the discovery of new product characteristics, uses, or users Nylon |
front 37 Style | back 37 A basic and distinctive mode of expression |
front 38 Fashion | back 38 Currently accepted or popular style in a given field |
front 39 Fad | back 39 Fashions that come quickly into public view, are adopted with great zeal, peak early, and decline very fast. |
front 40 Marketing strategies for INTRODUCTION stage of product life cycle | back 40 Inform potential consumers Induce product trial Secure distribution in retail outlets |
front 41 Inventor | back 41 First to deveop patents in a new product category |
front 42 Product pioneer | back 42 First to develop a working product model |
front 43 Market pioneer | back 43 First to sell in the new product category |
front 44 Marketing strategies for GROWTH stage of product life cycle | back 44 Improve product quality and add new features Add new models and flanker products Enters new market segments Increases distribution coverage and enters new distribution channels Shifts from awareness and trial promotion to loyalty Lowers prices to attract the next layer of price sensitive buyers |
front 45 Marketing strategies for MATURITY stage of product life cycle | back 45 Market modification Product modification Marketing program modification |
front 46 Marketing strategies for DECLINE stage of product life cycle | back 46 Harvesting Divesting |
front 47 Harvesting | back 47 Marketing strategy for decline stage of product life cycle Gradually reducing the product cost while trying to remain profitable |
front 48 Divesting | back 48 Marketing strategy for decline stage of product life cycle Selling the product, idea, distribution channel to another firm |
front 49 Marketing strategies in an economic downturn | back 49 Explore the upside of increasing investment Get closer to customers Review budget allocations Put forth the most compelling value proposition Fine tune brand and product offerings |
front 50 Five product levels - Customer value hierarchy | back 50 Core benefit Basic product Expected product Augmented product Potential product |
front 51 Product | back 51 Anything that can be offered to a market to satisfy a want or need |
front 52 Core benefit | back 52 The service or benefit the customer is really buying Hotel guest buying rest and sleep Drill buyer is purchasing holes |
front 53 Basic product | back 53 A core benefit is turned into a product Hotel room includes a bed, bathroom, towels, desk, dressers, etc |
front 54 Expected prodcuct | back 54 A set of attributes and conditions the buyer normally expect when they purchase this product Hotel guests expect clean bed, fresh towels, working lamps, etc |
front 55 Augmented product | back 55 A product that exceeds customers expectations Brand positioning and competition occur here |
front 56 Potential product | back 56 Encompasses all the possible augmentations and transformations the product or offering might undergo in the future |
front 57 Consumption system | back 57 The way the user performs the task of getting and using products and services |
front 58 Product classificaitons | back 58 Durability and tangibility Consumer goods Industrial goods |
front 59 Durability and tangibility products | back 59 Nondurable goods Durable goods Services |
front 60 Nonduarable goods | back 60 Tangible goods normally consumed in one or a few uses Beer, cheese, shampoo |
front 61 Durable goods | back 61 Tangible goods that normally survive many uses Washing machine, car, clothing |
front 62 Services | back 62 Intangible, inseparable, variable and perishable products that normally require more quality control, supplier credibility, and adaptability. Haircuts, legal advice, appliance repairs |
front 63 Consumer goods classification | back 63 Convenience goods Shopping goods Specialty goods Unsought goods |
front 64 Convenience goods | back 64 Purchased frequently, immediately, and with minimal effort Soft drinks, soaps, etc Impulse goods Emergency goods |
front 65 Shopping goods | back 65 Consumers compare on bases such as suitability, quality, price, and style Homogenous - differ by price Heterogeneous - differ by quality |
front 66 Specialty goods | back 66 Have unique characteristics or brad identifications for which enough buyers are willing to make a special purchasing effort Cars, stereo equipment, homes |
front 67 Unsought goods | back 67 Goods the consumer does not now about or normally think of buying Smoke detectors, cemetery plots |
front 68 Industrial goods | back 68 Materials and parts Capital items Supplies and business services |
front 69 Materials and parts | back 69 Goods that enter the manufacturers product completely Raw materials Manufactured materials |
front 70 Raw materials | back 70 Farm products - wheat, cotton, livestock, fruits Natural products - fish, lumber, iron ore |
front 71 Manufactured materials | back 71 Component materials - iron, yarn, cement Component parts - small motors, tires, castings |
front 72 Capital items | back 72 Long lasting goods that facilitate developing or managing the finished products Installations Equipment |
front 73 Installations | back 73 Buildings, factories, heavy equipment, machines, computer systems |
front 74 Equipment | back 74 Portable factory equipment and tools and office equipment Don't become part of finished product |
front 75 Supplies and business services | back 75 Short term goods and services that facilitate developing or managing the finished product Maintenance and repair items Operating supplies Business advisory services |
front 76 Maintenance and repair items | back 76 Paint, nails, brooms, window cleaning, copier repair |
front 77 Operating supplies | back 77 Lubricants, coal, writing paper |
front 78 Business advisory services | back 78 Legal, management consulting, advertising |
front 79 Product differentiation | back 79 Form Featuers Customization Performance quality Conformance quality Durability Reliability Repairability Style |
front 80 Services differentiation | back 80 Ordering ease Delivery Installation Customer training Customer consulting Maintenance and repair Returns |
front 81 Design | back 81 The totality of features that affect how a product looks, feels, and functions to a consumer |
front 82 The product hierarchy | back 82 Need family Product family Product class Product line Product type Item |
front 83 Need family | back 83 Product hierarchy The core need that underlies the existence of a product family Example - security |
front 84 Product family | back 84 Product hierarchy All the product classes that can satisfy a core need Example - savings and income |
front 85 Product class | back 85 Product hierarchy A group of products within the product family recognized a having a certain functional coherence Example - financial instruments |
front 86 Product line | back 86 Product hierarchy A group of products within a product class that are closely related because they perform a similar function, are sold to same customer groups, are marketed through the same channels, or fall within given price range Example - life insurance |
front 87 Product type | back 87 Product hierarchy A group of items within a product line that share one of several possible forms of the product Example - term life insurance |
front 88 Item | back 88 Product hierarchy A distinct unit within a brand or product line distinguishable by size, price, appearance, or some other attribute. Example - Prudential renewable term life insurance |
front 89 Product system | back 89 A group of diverse but related items that function in a compatible manner Example - iPod product selections |
front 90 Product Mix | back 90 The set of all products and items a particular seller offers for sale Width Length Depth Consistency |
front 91 Width | back 91 Part of product mix How many different product lines the company carries |
front 92 Length | back 92 Part of product mix The total number of items in a mix |
front 93 Depth | back 93 Part of product mix How many variants are offered of each product in the line |
front 94 Consistency | back 94 Part of product mix How closely related the various product lines are in end use, production requirements, distribution channels, or some other ways |
front 95 Product map | back 95 Shows which competitors' items are competing against company X's products Shows possible locations for new items Identifies market segment |
front 96 Product line length decisions | back 96 Line stretching Line filling Line modernization, featuring, and pruning |
front 97 Line stretching strategies | back 97 Down market stretch Up market stretch Two way stretch |
front 98 Line stretching | back 98 When a company lengthens its product line beyond its current range |
front 99 Down market stretch | back 99 Product line stretching strategy Introducing lower priced line |
front 100 Up market stretch | back 100 Product line stretching strategy Introducing a premium product line in the high end market |
front 101 Two way stretch | back 101 Product line stretching strategy Introducing both lower and higher priced product lines |
front 102 Line filling | back 102 Lengthening a product line by adding more items within the present range |
front 103 Product mix pricing strategies | back 103 Product line pricing Optional feature pricing Captive product pricing Two part pricing By product pricing Product bundling pricing |
front 104 Product mix pricing | back 104 The firm searches fro a set of prices that maximizes profits on the total mix, not individual products |
front 105 Product line pricing | back 105 Products in a line with established quality and price differences Men's suits for $300, $600, and $900 |
front 106 Optional feature pricing | back 106 Companies offering optional products, features, and services with their main product Restaurants price food low and beverages high |
front 107 Captive product pricing | back 107 Products that require the use of ancillary or captive products Low initial razor prices, high prices for replacement blade cartridges |
front 108 Two part pricing | back 108 A fixed fee plus a variable usage fee |
front 109 By product pricing | back 109 The selling of products that are byproducts of the original product Meats, petroleum, etc |
front 110 Product bundling pricing | back 110 Pure bundling - firm offers its products only as a bundle Mixed bundling - firm offers products both individually and as a bundle |
front 111 Co-branding | back 111 Two or more well known brands are combined into a joint product or marketed together in some fashion |
front 112 Ingredient branding | back 112 Special case of co-branding Creates brand equity for materials, components, r parts that are necessarily contained within other branded products GORETEX water resistant fibers, Scotchgard fabrics |
front 113 Packaging | back 113 All the activities of designing and producing the container for the product |
front 114 Labeling | back 114 Identifies the product Grades the product Describes the product Promotes the product |
front 115 Warranty | back 115 Formal statements of expected product performance by the manufacturer |
front 116 Service | back 116 Any act or performance one party can offer to another that is essentially intangible and does not result int he ownership of anything |
front 117 Categories of service mix | back 117 Pure tangible good Tangible good with accompanying services Hybrid Major service with accompanying minor goods and services Pure service |
front 118 Pure tangible good | back 118 Service mix category Soap, toothpaste, salt No accompanying services |
front 119 Tangible good with accompanying services | back 119 Service mix category Car, computer, cell phone |
front 120 Hybrid | back 120 Service mix category Equal parts goods and services Restaurant meal |
front 121 Major service with minor accompanying goods and and services | back 121 Service mix category Air travel |
front 122 Pure service | back 122 Service mix category Purely intangible service Babysitting, psychotherapy, massage |
front 123 Search qualities | back 123 Goods with characteristics the buyer can evaluate before the purchase Clothing, jewelry, furniture |
front 124 Experience qualitites | back 124 Characteristics the buyer can evaluate after the purchase Vacation, haircuts |
front 125 Credence qualities | back 125 Characteristics the buyer normally finds hard to evaluate even after consumption Auto repair, medical diagnosis |
front 126 Characteristics of services | back 126 Intangibility Inseparability Variability Perishability |
front 127 Intangibility | back 127 Services characteristic Services cannot be seen, tasted, felt, heard or smelled before they are bought Position by using place, people, equipment, communication material, symbols and price |
front 128 Inseparability | back 128 Services characteristic Services are typically produced and consumed simultaneously Not like physical goods which are manufactured, inventoried, distributed, and then consumed |
front 129 Variability | back 129 Services characteristic The quality of services depends on who provides them, when and where, and to whom, which makes them highly variable Invest in good hiring and training procedures Standardize the service performance process Monitor customer satisfaction |
front 130 Perishability | back 130 Services characteristic Services cannot be stored Demand strategies - differential pricing, nonpeak demand, complementary services, reservation systems Supply strategies - part-time employees, peak time efficiency, increased customer participation, shared services, facilities for future expansion |
front 131 Solutions to customer failures | back 131 Redesign processes and redefine customer roles to simplify service encounters Incorporate the right technology to aid employees and customers Create high performance customers by enhancing their role clarity, motivation, and ability Encourage "customer citizenship" so customers help customers |
front 132 Types of marketing in service industries | back 132 External marketing Internal marketing Interactive marketing |
front 133 External service marketing | back 133 Normal work of preparing, pricing, distributing, and promoting |
front 134 Internal service marketing | back 134 Training and motivating employees to serve customers wel |
front 135 Interactive service marketing | back 135 Describes the employees' skill in serving the client |
front 136 Best practices of top service companies | back 136 Strategic concept Top management commitment High standards Profit tiers Monitoring systems Satisfying customer complaints |
front 137 Service quality model | back 137 Highlights the main requirements for delivering high service Identifies five gaps that cause unsuccessful delivery |
front 138 Gaps that cause unsuccessful service delivery | back 138 Gap between consumer expectation and management perception Gap between management perception and service quality specification Gap between service quality specification and service delivery Gap between service delivery and external communications Gap between perceived service and expected service |
front 139 Determinants of service quality | back 139 Reliability Responsiveness Assurance Empathy Tangibles |
front 140 Customer worries about product service | back 140 Failure frequency Downtime Out of pocket costs |
front 141 Consumer psychology and pricing | back 141 Reference prices Price quality inferences Price endings |
front 142 Reference prices | back 142 Comparing an observed price to an internal reference price consumers remember or an external frame of reference such as a posted "regular retail price" |
front 143 Steps in the pricing process | back 143 Select the pricing objective Determining demand Estimating costs Analyzing competitors' costs, prices, and offers Selecting a pricing method Selecting the final price |
front 144 Pricing objectives | back 144 Survival Maximum current profit Maximum market share Maximum market skimming Product quality leadership |
front 145 Survival pricing objective | back 145 Companies who are plagued with overcapacity, intense competition, changing consumer wants |
front 146 Maximum current profit pricing objective | back 146 Estimate demand and costs and set the price that maximizes profit |
front 147 Maximum market share pricing objective | back 147 Higher sales volume is believed to lead to lower unit costs Market penetration pricing - set the lowest price to sell high volumes Price sensitive market Production and distribution costs fall with accumulated experience Low price discourages competition |
front 148 Maximum market skimming pricing objective | back 148 Prices start high and slowly drop over time High current demands Unit costs of producing a small volume are high enough to cancel the advantage of charging what the traffic will bear High initial prices does not attract competitors High price communicates the image of superior product |
front 149 Product quality leadership pricing objective | back 149 Company that aims to be the product quality leader Can charge premiums |
front 150 Determining demand | back 150 Price sensitivity Estimating demand curves Price elasticity of demand |
front 151 Methods for estimating demand curve | back 151 Surveys Price experiments Statistical analysis |
front 152 Price elasticity of demand | back 152 How responsive or elastic demand is to a change in price Inelastic - demand hardly changes with large change in price Elastic - demand considerably changes with change in price |
front 153 Price indifference band | back 153 A range of prices in which price changes have no effect on demand |
front 154 Experience or learning curve | back 154 Decline in average cost with accumulated production experience |
front 155 Target costing | back 155 The concentrated effort by designers, engineers, and purchasing agents to reduce costs |
front 156 Pricing methods | back 156 Markup pricing Target return pricing Perceived value pricing Value pricing Going rate pricing Auction type pricing |
front 157 Markup pricing method | back 157 Markup price = unit cost / (1 - desired markup %) 20% markup 16 / (1 - 0.2) = 20 |
front 158 Target return pricing | back 158 Firm sets a price that yields its target rate of return Target return price = unit cost + ((desired return X invested capital) / unit sales) |
front 159 Invest $1,000,000 Unit cost $16 50,000 unit sales ROI of 20% Find Price | back 159 = $16 + ((0.20 X $1,000,000) / 50,000) = $20 |
front 160 Break even volume | back 160 Total revenue curve crosses the total cost curve Break even volume = fixed cost / (price - variable cost) |
front 161 Fixed costs - $300,000 Price = $20 Variable costs = $10 | back 161 = 300,000 / (20 - 10) = 30,000 |
front 162 Perceived value pricing | back 162 Basing a price on the customer's perceived value Based on buyer's image of product performance, channel deliverables, warranty quality, customer support, etc |
front 163 Value pricing | back 163 Charge a fairly low price for high quality offers to win loyal customers |
front 164 Everyday low pricing | back 164 Charging a constant low price with little or no price promotions or specials sales |
front 165 High low pricing | back 165 Retailer charges high prices on an everyday basis but runs frequent promotions with prices temporarily lower than everyday low prices |
front 166 Going rate pricing | back 166 Firm basis its prices largely on competitor's prices |
front 167 Auction type pricing | back 167 English auction - one seller, many buyers increasing bids Dutch auction - one buyer, many sellers decreasing bids Sealed bid auctions - allow only one bid per supplier, can't know what other suppliers bid |
front 168 Countertrade | back 168 Buyers that offer other items in payment Barter Compensation deal Buyback arrangement Offset |
front 169 Barter | back 169 Buyer and seller directly exchange goods No money involved |
front 170 Compensation deal | back 170 Seller receives some percentage of the payment in cash, the rest in products |
front 171 Buyback agreements | back 171 Seller sells plant, equipment, or technology to another country and agrees to accept the products produced with that equipment as partial payment. |
front 172 Offset | back 172 The seller receives full payment in cash but agrees to spend a substantial amount of money in the location in which it was produced |
front 173 Promotional pricing | back 173 Loss leader pricing Special event pricing Special customer pricing Cash rebates Low interest financing Longer payment terms Warranties and service contracts Psychological discounting |
front 174 Loss leader pricing | back 174 Supermarkets drop prices on well known brands to stimulate additional store traffic |
front 175 Differentiated Pricing | back 175 Customer segment pricing Product form pricing Image pricing Channel pricing Location pricing Time pricing |
front 176 Price discrimination | back 176 Selling a product or service at two or more prices that do not reflect a proportional difference in costs First degree - separate prices to customers based on the intensity of demand Second degree - lower prices to customers who buy in large volumes Third degree - seller charges different amounts to different classes of buyers |
front 177 Customer segment pricing | back 177 Different customer groups pay different prices for the same product |
front 178 Product form pricing | back 178 Different versions of the product are priced differently but not proportionally to cost |
front 179 Image pricing | back 179 Different prices based on image differenes Perfume in different bottles |
front 180 Marketing channels | back 180 Sets of interdependent organizations participating in the process of making a product or service available for use or consumption |
front 181 Marketing channel system | back 181 The particular set of marketing channels a firm employs |
front 182 Merchants | back 182 Wholesalers and retailers who buy, take title to, and resell merchandise |
front 183 Agents | back 183 Brokers, manufacturers' representatives, sales agents who search for customers and may negotiate on the producer's behalf but do not take title of the product |
front 184 Facilitators | back 184 Transportation companies, warehouses, banks, ad agencies, who assist in the distribution process but neither take title to goods nor negotiate purchases |
front 185 Push strategy | back 185 Uses manufacturer's sales force, trade promotion money to induce intermediaries to carry, promote, and sell the product to end users Low brand loyalty |
front 186 Pull strategy | back 186 Manufacturer uses advertising, promotion ad other forms of communication to persuade consumers to demand the product from intermediaries, this inducing the intermediaries to order it High brand loyalty |
front 187 Hybrid marketing channels | back 187 When a single firm uses two or more marketing channels to reach customer segments |
front 188 Demand chain planning | back 188 The company first thinks of the target market and then designs the supply chain backward from that point |
front 189 Value network | back 189 A system of partnerships and alliances that a firm creates to source, augment, and deliver its offerings Firm's suppliers, suppliers' suppliers, immediate customers, end users |
front 190 Enterprise resource planning system | back 190 Manage cash flow, manufacturing, human resources, purchasing and other major functions within a unified framework |
front 191 Zero level channel | back 191 Direct marketing channel A manufacturer selling directly to the final customer |
front 192 One level channel | back 192 A manufacturer selling to a distributor selling to the final customer |
front 193 Two level channel | back 193 A manufacturer negotiating with a representative selling to a distributor selling to the final customer A manufacturer selling to a wholesaler selling to a retailer selling to the final customer |
front 194 Jobbers | back 194 Intermediaries that act as small scale whole-salers Meat packing industry |
front 195 Channel alternatives | back 195 Exclusive distribution Selective distribution Intensive distribution |
front 196 Exclusive distribution | back 196 Severely limiting the number of intermediares When producer wants to maintain control over service level and outputs |
front 197 Selective distribution | back 197 Relies on only some of the intermediaries willing to carry a particular product Can gain adequate market coverage |
front 198 Intensive distribution | back 198 Places goods or services in as many outlets as possible Snack foods, soft drinks, newspapers |
front 199 Elements in trade relations mix | back 199 Price policy Conditions of sale Distributors' territorial rights Mutual services and responsibilities |
front 200 Channel power | back 200 the ability to alter channel members' behavior so they take actions they would not have taken otherwise |
front 201 Types of manufacturers' channel powers | back 201 Coercive power Reward power Legitimate power Expert power Referent power |
front 202 Coercive power | back 202 Manufacturer threatens to withdraw a resource or terminate a relationship |
front 203 Reward power | back 203 Manufacturer offers intermediaries an extra benefit for performing specific acts or functions |
front 204 Legitimate power | back 204 Manufacturer requests a behavior that is warranted under a contract |
front 205 Expert power | back 205 The manufacturer has special knowledge the intermediary values |
front 206 Referent power | back 206 Manufacturer is so highly respected that intermediaries are proud to be associated with it |
front 207 Efficient consumer response practices | back 207 Demand side management - collaborative practices to stimulate demand Supply side management - collaborative practices to optimize supply Enablers and integrators - collaborative info tech and process improvement tools to support joint activities |
front 208 Types of vertical marketing systems | back 208 Corporate vertical marketing system Administered vertical marketing system Contractual vertical marketing system |
front 209 Conventional marketing channel | back 209 Consists of an independent producer, wholesaler, and retailer |
front 210 Vertical marketing system | back 210 When the producer, wholesaler, and retailer act as a unified system |
front 211 Corporate vertical marketing system | back 211 Combines successive stages of production and distribution under single ownership Sears obtains goods from subsidiaries it owns |
front 212 Administered vertical marketing system | back 212 Coordinates successive stages of production and distribution through the size and power of one of the members Manufacturers of dominant brands can secure strong trade cooperation and support from resellers |
front 213 Distribution programming | back 213 Building a planned, professionally managed, vertical marketing system that meets the needs of both manufacturer and distributer |
front 214 Contractual vertical marketing system | back 214 Independent firms at different levels of production and distribution integrating their programs on a contractual basis to obtain more economies or sales impact than they could achieve alone Wholesaler sponsored voluntary chains Retailer cooperatives Franchise orgainizations |
front 215 Wholesaler sponsored voluntary chains | back 215 Wholesalers organize voluntary chains of independent retailers to help standardize their selling practices and achieve buying economies |
front 216 Retailer cooperatives | back 216 Retailers take the initiate to organize a new business entity to carry on wholesaling and possibly some production |
front 217 Franchise orgainizations | back 217 A franchisor might link several successive stages in the production distribution process |
front 218 Horizontal marketing system | back 218 Two or more unrelated companies put together resources or programs to exploit an emerging marketing opportunity |
front 219 Integrated marketing channel system | back 219 Channel in which the strategies and tactics of selling through one channel reflect the strategies and tactics of selling through one or more other channels |
front 220 Channel conflict | back 220 When one channel member's actions prevent another channel from achieving its goal |
front 221 Types of channel conflict | back 221 Horizontal channel conflict - between members at the same level Vertical channel conflict - between different levels of the channel Multichannel conflict - when manufacturer has established two or more channels that sell to the same market |
front 222 Causes of channel conflict | back 222 Goal incompatibility Unclear roles and rights Differences in perception Intermediaries' dependence on the manufacturer |
front 223 Strategies for managing channel conflict | back 223 Strategic justification Dual compensation Superordinate goals Employee exchange Joint memberships Co-option Diplomacy, mediation, and arbitration Legal recourse |
front 224 Strategic justification | back 224 Strategy for managing channel conflict Explaining that channels do not compete as much as they think |
front 225 Dual compensation | back 225 Strategy for managing channel conflict Pays existing channels for sales made through new channels |
front 226 Superordinate goals | back 226 Strategy for managing channel conflict Channel members come to an agreement on the fundamental goal they are jointly seeking |
front 227 Employee exchange | back 227 Strategy for managing channel conflict Exchange persons between two or more channels |
front 228 Joint memberships | back 228 Strategy for managing channel conflict Marketers can encourage joint memberships in trade associations |
front 229 Co-option | back 229 Strategy for managing channel conflict An effort by one organization to win the support of the leaders of another by including them in advisory councils, boards of directions, etc |
front 230 Diplomacy, mediation, arbitration | back 230 Strategy for managing channel conflict Diplomacy - each side sends a person to meet and resolve conflict Mediation - relies on a neutral third party to reconcile both parties' interests Arbitration - two parties present their arguments to a third party who makes a decision |
front 231 Legal recourse | back 231 Strategy for managing channel conflict A channel partner may choose to file a lawsuit |
front 232 Full line forcing | back 232 When producers of strong brands sell to dealers only if they will take some or all of the rest of the product line Tying agreements - are not illegal |
front 233 E-commerce | back 233 Using a website to transact or facilitate the sale of products or services online |
front 234 M-commerce | back 234 Mobile phone commerce |
front 235 Retailing | back 235 All the activities in selling goods or services directly to final consumers for personal, non business use |
front 236 Retailer | back 236 Any business enterprise whose sales volume cones primarily from retailing |
front 237 Types of retailers | back 237 Store retailers Nonstore retailing Corporate retailing and franchising |
front 238 Store retailers | back 238 Self service Self selection Limited service Full service |
front 239 Self service store retailer | back 239 Cornerstone of all discount operations Customer carries out own locate, compare, select activities |
front 240 Self selection store retailer | back 240 Customers find their own goods, but they can ask for assistance |
front 241 Limited service store retailer | back 241 Retailers that carry shopping goods and services Customers need more information and assistance |
front 242 Full service store retailer | back 242 Salespeople are ready to assist in every phase of the locate, compare, select process |
front 243 Nonstore retailing | back 243 Direct selling Direct marketing Automatic vending Buying service |
front 244 Direct selling nonstore retailing | back 244 Door to door sales, at home party sales Avon, Tupperware |
front 245 Direct marketing nonstore retailing | back 245 Roots in direct mail and catalog marketing Telemarketing - 1-800-FLOWERS Television direct response marketing - QVC Catalog marketing - Land's End catalogs Electronic shopping - Amazon |
front 246 Automatic vending nonstore retailing | back 246 Vending machines |
front 247 Buying service nonstore retailing | back 247 Storeless retailer serving a specific clientele Employees of large organizations who are entitled to buy from a list of retailers that have agreed to discount for members |
front 248 Franchising system | back 248 Tightly knit group of enterprises who's systemic operations are planned, directed, and controlled by the franchisor Franchisor owns trade mark and licenses it to franchisee Franchisee pays to be a part of the system Franchisor provides system for doing business |
front 249 Marketing decisions in retailing | back 249 Target market Product assortment Procurement Prices Services Store atmosphere Store activities and experiences Communications Location |
front 250 Direct product profitability | back 250 Used to measure a product's handling costs from the time it reaches the warehouse until a customer buys it in the retail store Receiving, moving to storage, paperwork, checking, loading, etc) |
front 251 Private label brand | back 251 A brand that retailers and wholesalers develop |
front 252 Generics | back 252 Unbranded, plainly packaged, less expensive versions of common products such as spaghetti, paper towels, canned peaches Standard or lower quality Low price due to low cost labeling and packaging, minimal advertising |
front 253 Slotting fee | back 253 A fee charged by retailers for accepting a new brand, to cover the cost of listing and stocking it |
front 254 Wholesaling | back 254 All the activities in selling goods or services to those who buy for resale or business use Also called distributors |
front 255 Why are wholesalers used? | back 255 Selling and promoting Buying and assortment building Bulk breaking Warehousing Transportation Financing Risk bearing Market information Management services and counseling |
front 256 Major wholesaler types | back 256 Merchant wholesalers Full service wholesalers Limited service wholesalers Brokers and agents Manufacturers' and retailers' branches and offices Specialized wholesalers |
front 257 Merchant wholesalers | back 257 Independently owned business that take title to the merchandise they handle |
front 258 Full service wholesalers | back 258 Carry stock, maintain a sales force, offer credit, make deliveries, provide management assistance |
front 259 Limited service wholesalers | back 259 Cash and carry - sell limited line of fast moving goods for cash Truck - sell and deliver a limited line of semi-perishable goods Drop shippers - serve bulk industries, assume title and risk Rack jobbers - serve grocery retailers in nonfood items Producers' cooperatives - assemble farm produce to sell to markets Mail order - send catalogs to customers |
front 260 Brokers and agents wholesalers | back 260 Facilitate buying and selling on commission Brokers - bring buyers and sellers together and assist with negotiations Agents - represent buyers and sellers in negotiations |
front 261 Supply chain management | back 261 Starts before physical distribution Strategically procuring the right inputs, converting the efficiently into finished products, and dispatching them to the final destinations |
front 262 Market logistics | back 262 Planning the infrastructure to meet demand, then implementing and controlling the physical flows of materials and final goods from points of origin to points of use to meet customer requirements at a profit |
front 263 Integrated logistics systems | back 263 Materials management, material flow systems, and physical distribution aided by information technology |
front 264 Lean manufacturing | back 264 Producing goods with minimal waste of time, materials, and money |
front 265 Market logistics decisions | back 265 How to handle order processing How should we locate stock or warehouse goods How much inventory should we hold How should we transport materials and products |
front 266 Containerization | back 266 Putting the goods in boxes or trailers that are easy to transfer between two transportation methods |
front 267 Marketing communications | back 267 The means by which firms attempt to inform, persuade, and remind consumers - directly or indirectly - about the products and brands they sell |
front 268 Marketing communications mix | back 268 Advertising Sales promotion Events and experiences Public relations and publicity Direct marketing Interactive marketing Word of mouth marketing Personal selling |
front 269 Advertising | back 269 Part of the marketing communications mix Any paid form of nonpersonal presentation and promotion of ideas, goods or services by an identified sponsor Print media Broadcast media - radio, television Network media - telephone, cable, satellite Electronic media - videotape, CD, Web page Display media - billboards, posters |
front 270 Sales promotion | back 270 Part of the marketing communications mix A variety of short term incentives to encourage trial or purchase of a product or service Consumer promotions - samples, coupones Trade promotions - advertising and display allowances Business and sales force promotions - contests for sales reps |
front 271 Events and experiences | back 271 Part of the marketing communications mix Company sponsored activities and programs designed to create brand related interactions with consumers |
front 272 Public relations and publicity | back 272 Part of the marketing communications mix Programs directed internally to employees of the company or externally to customers to promote or protect a company's image |
front 273 Direct marketing | back 273 Part of the marketing communications mix Use of mail, email, telephone, etc to communicate directly with or solicit response from customers |
front 274 Interactive marketing | back 274 Part of the marketing communications mix Online activities and programs designed to engage customers |
front 275 Word of mouth marketing | back 275 Part of the marketing communications mix People to people oral, written, or electronic communication that relate to the experiences of buying or using a product |
front 276 Personal selling | back 276 Part of the marketing communications mix Face to face interaction with prospective purchasers |
front 277 Macromodel of the communications process | back 277 Sender Receiver Message Media Encoding Decoding Response Feedack Noise |
front 278 Micromodels of consumer response | back 278 AIDA model Hierarchy of effects model Innovation adoption model Communications model |
front 279 Response hierarchy model | back 279 Buyers pass through cognitive, affective, and behavioral stages Learn - feel - do Do - feel - learn Learn - do - feel |
front 280 AIDA consumer response hierarchy model | back 280 Attention Interest Desire Action |
front 281 Hierarchy of effects consumer response hierarchy model | back 281 Awareness Knowledge Liking Preference Conviction Purchase |
front 282 Innovation adoption consumer response hierarchy model | back 282 Awareness Interest Evaluation Trial Adoption |
front 283 Communications consumer response hierarchy model | back 283 Exposure Reception Cognitive response Attitutde Intention Behavior |
front 284 Developing effective communications | back 284 Identify the target audience Determine the communications objectives Design the communications Select the communications channels Establish marketing communications budget |
front 285 Communications objectives | back 285 Category need Brand awareness Brand attitude Brand purchase intention |
front 286 Category needs | back 286 Communications objective Establishing a product or service category as necessary to remove or satisfy a perceived discrepancy between a current motivational state ad a desired motivational state New to the world products |
front 287 Brand awareness | back 287 Communications objective Fostering the consumer's ability to recognize or recall the brand within the category, in sufficient detail to make a purchase |
front 288 Brand attitude | back 288 Communications objective Helping consumers evaluate the brand's perceived ability to meet a currently relevant need |
front 289 Brand purchase intention | back 289 Communications objective Moving consumers to decide to purchase the brand or take purchase related action |
front 290 Creative communications strategies | back 290 The way marketers translate their messages into specific communication Informational appeal Transformational appeal |
front 291 Informational appeal | back 291 Creative communication strategy Elaborates on product or service attributes or benefits Problem solution ads Product demonstration ads Product comparison ads Testimonials |
front 292 Transformational appeal | back 292 Creative communication strategy Elaborates on a nonproduct related benefit or image What kind of person uses a brand What kind of experiences results from using a brand Positive (humor, love, pride) and negative appeals (fear, guilt, shame) |
front 293 Message source attributes | back 293 Expertise Trustworthiness Likabilty |
front 294 Expertise | back 294 Message source attribute The specialized knowledge the communicator posses to back the claim |
front 295 Trustworthiness | back 295 Message source attribute How objective and honest the source is perceived to be |
front 296 Likability | back 296 Message source attribute Describes the source's attractiveness |
front 297 Principle of congruity | back 297 Implies communicators can use their good image to reduce some negative feelings toward a brand but in the process might lose some esteem with the audience |
front 298 Personal communication channels | back 298 Let two or more persons communicate face to face or person to audience Advocate channels - company salespeople contacting buyers Expert channels - independent experts making statements Social channels -neighbors, friends, family talking to target buyers Earned media - unsolicited professional commentary |
front 299 Nonpersonal communication channels | back 299 Media Advertising Sales promotions Events and experiences Public relations |
front 300 Methods of establishing marketing communications budget | back 300 Affordable method Percentage of sales method Competitive parity method Objective and task method |
front 301 Affordable method | back 301 Method of establishing marketing communications budget Budget set at what the company thinks it can afford |
front 302 Percentage of sales method | back 302 Method of establishing marketing communications budget Budget set at a certain percentage of current or anticipated sales or of the sale price |
front 303 Competitive parity method | back 303 Method of establishing marketing communications budget Budget set to what competitors spend |
front 304 Objective and task method | back 304 Method of establishing marketing communications budget Develop communication budgets by defining specific objectives, determining the tasks that must be performed to achieve these objectives, and estimating the costs of performing them Establish market share goal Determine percentage of the market that should be reached Determine the percentage of aware prospects that should be persuaded to try the brand Determine the number of advertising impressions per 1 percent trial rate Determine the number of gross rating points that would have to be purchased Determine the necessary advertising budget on the basis of the average cost of buying a gross rating point |
front 305 Advertising characteristics | back 305 Pervasiveness Amplified expressiveness Control |
front 306 Sales promotion characteristics | back 306 Ability to be attention getting Incentive Invitation |
front 307 Public relations and publicity characteristics | back 307 High credibility Ability to reach hard to find buyers Dramatization |
front 308 Events and experiences characteristics | back 308 Relevant Engaging Implicit |
front 309 Direct and interactive marketing characteristics | back 309 Customized Up to date Interactive |
front 310 Word of mouth marketing characteristics | back 310 Influential Personal Timely |
front 311 Personal selling characteristics | back 311 Personal interaction Cultivation Response |
front 312 Factors in setting the marketing communications mix | back 312 Type of product market Buyer readiness stage Product life cycle stage |
front 313 Integrated marketing communications | back 313 A planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time |
front 314 Advertising | back 314 Cost effective way to disseminate messages, whether to build a brand preference or to educate people Mission Money Message Media Measurement |
front 315 Advertising objective | back 315 A specific communications task and achievement level to be accomplished with a specific audience in a specific period of time Informative advertising Persuasive advertising Reminder advertising Reinforcement advertising |
front 316 Informative advertising | back 316 Advertising objective Aims to create brand awareness and knowledge of new products or new features of existing products |
front 317 Persuasive advertising | back 317 Advertising objective Aims to create liking, preference, conviction, and purchase of a product or service |
front 318 Reminder advertising | back 318 Advertising objective Aims to stimulate repeat purchase of products or services |
front 319 Reinforcement advertising | back 319 Advertising objective Aims to convince current purchasers that they made the right choice |
front 320 Factors affecting advertising budget | back 320 Stage in the product life cycle Market share and consumer base Competition and clutter Advertising frequency Product substitutability |
front 321 Steps for developing the advertising campaign | back 321 Message generation and evaluation Creative development and execution Legal and social issues |
front 322 Creative brief | back 322 Elaboration of the positioning statement Includes considerations such as key message, target audience, communications objectives, key brand benefits, supports for the brand promise and media |
front 323 Creative advertising development and execution | back 323 Television ads Print ads Radio ads |
front 324 Television ads | back 324 Reaches broad spectrum Low cost per exposure Ability to demonstrate product use Brief Clutter High cost of production/placement |
front 325 Print ads | back 325 Detailed product information Ability to communicate user imagery Flexibility Ability to segment Passive medium Clutter Unable to demonstrate product use |
front 326 Print ad parts | back 326 Picture Headline Copy Signature |
front 327 Radio ads | back 327 Pervasive media Flexibility Targeted stations Lack of visual images Passive nature of audience |
front 328 Media selection | back 328 Finding the most cost effective media to deliver the desired number and type of exposures to the target audience Find level of brand awareness required for trial rate Find how many exposures are required to reach brand awareness level Exposures are a product of reach, frequency, and impact |
front 329 Reach | back 329 The number of different persons or households exposed to a particular media at least once during a specified time period |
front 330 Frequency | back 330 The number of times within the specified time period that an aver person is exposed to the message |
front 331 Impact | back 331 The qualitative value of an exposure through a given medium A food ad will have higher impact in Bon Appetit than in Fortune magazine |
front 332 Total number of exposures | back 332 Also called gross rating points E = Reach X Frequency |
front 333 Weighted number of exposures | back 333 WE = Reach X Frequency X Impact |
front 334 Place advertising | back 334 Out of home advertising Billboards Public spaces Product placement - cabs, buses, benches, etc Point of purchase - ads on shopping carts, aisles, shelves |
front 335 Major types of media | back 335 Newspapers Television Direct mail Radio Magazines Outdoor Yellow pages Newsletters Brochures Telephone Internet |
front 336 Macroscheduling decions | back 336 Relates to seasons and the business cycle |
front 337 Microscheduling decions | back 337 Calls for allocating advertising expenditures within a short period to obtain maximum impact |
front 338 Media schedule timing patterns | back 338 Continuity Concentrated Flighting - advertising then no advertising the advertising then no advertising Pulsing - continuous low weight advertising with periods of heavier activity |
front 339 Buyer turnover | back 339 The rate at which new buyers enter the market Higher rate more continuous the advertising should be |
front 340 Purchase frequency | back 340 The number of times the average buyer buys the product during the period Higher the frequency the more continuous the advertising should be |
front 341 Forgetting rate | back 341 The rate at which the buyer forgets the brand The higher the rate the more continuous advertising should be |
front 342 Evaluating advertising effectiveness methods | back 342 Communication effect research Sales effect research |
front 343 Communication effect research | back 343 Method to evaluate advertising effectiveness Copy testing Seeks to determine whether an ad is communicated effectively |
front 344 Sales effect research | back 344 Method to evaluate advertising effectiveness Historical approach - correlates past sales to past advertising expenditures Experimental design - measure advertising's sales impact |
front 345 Sales promotion | back 345 Consists of a collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade Offers an incentive to buy |
front 346 Manufacturer promotions | back 346 Rebates, gifts to motivate purchase, |
front 347 Retailer promotion | back 347 Price cuts, feature advertising, coupons |
front 348 Consumer sales promotion tools | back 348 Samples Coupons Cash rebates Price packs (cents off deals) Premiums/gifts Frequency programs Prizes/contests Patronage awards Free trials Product warranties Tie in promotions Cross promotions Point of purchase displays and demonstrations |
front 349 Trade sales promotion tools | back 349 Price off - discount of list price Allowance - amount offered in return for agreeing to feature products in some way Free goods |
front 350 Sales force promotion tools | back 350 Trade shows and conventions Sales contests Specialty advertising |
front 351 Forward buying | back 351 Retailers buying a greater quantity during the deal period than they can immediately sell |
front 352 Diverting | back 352 Retailers buying more cases than needed in a region where the manufacturer offers a deal and shipping the surplus to stores in other regions |
front 353 Lead time | back 353 The time necessary to prepare the sales promotion program prior to launching it |
front 354 Sell in time | back 354 Sales promotions Begins with the promotional launch and ends when approximately 95 percent of the deal merchandise is in the hands of consumers |
front 355 Events and experiences objectives | back 355 To identify with a particular target market or lifestyle To increase salience of company or product name To create or reinforce perceptions of key brand image associations To enhance corporate image To create experiences and evoke feelings To express commitment to the community or social issues To entertain key clients or reward key employees TO permit merchandising or promotional opportunities |
front 356 Public | back 356 Any group that has an actual or potential interest in or impact on a company's ability to achieve its objectives |
front 357 Public relations | back 357 A variety of programs to promote or protect a company's image or individual products Press relations Product publicity Corporate communications Lobbying Counseling |
front 358 Marketing public relations | back 358 Support corporate or product promotion and image making Serves a special constituency, the marketing department Launching new products Repositioning a mature product Building interest in a product category Influencing specific target groups Defending products that have encountered public problems Building the corporate image in a way that reflects favorably on its products |
front 359 Decisions in marketing public relations | back 359 Establishing objectives Choosing message ad vehicles Implementing the plan Evaluating the results |
front 360 Tools in marketing public relations | back 360 Publications Events Sponsorships News Speeches Public service activities Identity media |
front 361 Direct marketing | back 361 The use of consumer direct channels to reach and deliver goods and services to customers without using a marketing middleman |
front 362 Direct marketing channels | back 362 Direct mail Catalog marketing Telemarketing Interactive TV Kiosks Web sites Mobile devices |
front 363 Direct mail | back 363 Sending an offer, announcement, remind, or other item to an individual consumer Use recency, frequency, monetary amount formula to select customers Very targeted |
front 364 Parts of direct mail campaign | back 364 Choose objectives Select target prospects - RFM Develop offer elements Test elements Execute Measure success |
front 365 Telemarketing | back 365 Type of direct marketing The use of the telephone and call centers to attract prospects, sell to existing customers, and provide service by taking orders and answering questions |
front 366 Public and ethical issues with direct marketing | back 366 Irritation Unfairness - marketers take advantage of vulnerable or impulsive buyers Deception and fraud Invasion of privacy |
front 367 Advantages of interactive marketing | back 367 Tailored messages possible Easy to track responsiveness Contextual ad placement possible Search engine advertising possible |
front 368 Contextual placement | back 368 Buying ads on sites related to the marketer's offereings |
front 369 Disadvantages of interactive marketing | back 369 Consumers can screen out messages Bogus clicks cause errors |
front 370 Interactive marketing options | back 370 Web sites Search ads Display ads Mobile marketing |
front 371 Web sites | back 371 Interactive marketing option Ease of use Physical attractiveness |
front 372 Search ads | back 372 Interactive marketing option Marketers bid on search terms that serve as a proxy for the consumer's product or consumption interests When consumer searches for a key term the marketer's advertisement displays above the results Advertisers pay only when people click on the links |
front 373 Display ads | back 373 Interactive marketing option Banner ads Small rectangular boxes containing text and perhaps a picture that companies pay to place on relevant web sites |
front 374 Interstitials | back 374 Advertisements, often with video or animation, that pop up between changes on a web site |
front 375 Earned media | back 375 All the PR benefits a firm receives without having directly paid for anything |
front 376 Paid media | back 376 Press coverage of company generated advertising, publicity, or other promotional efforts that was paid for |
front 377 Sources of word of mouth | back 377 Online forums Blogs Social networks |
front 378 Buzz marketing | back 378 Marketing that generates excitement, creates publicity, and conveys new relevant brand related information through unexpected or even outrageous means |
front 379 Viral marketing | back 379 Marketing that encourages consumers to pass along company developed products and services or audio, video, or written information to others online |
front 380 Steps in designing a sales force | back 380 Sales force objectives Sales force strategy Sales force structure Sales force size Compensation |
front 381 Types of sales representatives | back 381 Deliverer Order taker Missionary Technician Demand creator Solution vendor |
front 382 Deliverer | back 382 Type of sales representative Major task is the delivery of a product |
front 383 Order taker | back 383 Type of sales representative An inside or outside order taker |
front 384 Missionary | back 384 Type of sales representative Salesperson not permitted to take an order but expected to build goodwill or educate potential users |
front 385 Technician | back 385 Type of sales representative A salesperson with high level of technical knowledge |
front 386 Demand creator | back 386 Type of sales representative Relies on creative methods for selling tangible and intangible products |
front 387 Solution vendor | back 387 Type of sales representative A salesperson who's expertise is solving a customer's problem |
front 388 Sales force objectives and strategies | back 388 Prospecting Targeting Communicating Selling Servicing Information gathering Allocating |
front 389 Leveraged sales force | back 389 Focuses reps on selling the company's more complex and customized products to large accounts and uses inside salespeople and web ordering for low end selling |
front 390 Workload approach | back 390 Used to determine sales force size Customers grouped into size classes Desirable call frequencies are established Number of accounts in each size class multiplied by frequency Average number of calls possible per year established Number of reps = total annual calls required / average annual calls one sales rep can make |
front 391 Sales force compensation methods | back 391 Fixed amount Variable amount Expense allowances Benefits |
front 392 Steps in managing the sales force | back 392 Recruiting and selecting representatives Training and supervising Motivating Evaluating |
front 393 Steps in personal selling | back 393 Prospecting and qualifying Preapproach - learn as much as possible Presentation and demonstration Overcoming objections Closing Followup and maintenance |
front 394 Incremental innovation | back 394 Entering new markets by tweaking products for new customers, using variations on a core product to stay one step ahead of the market, and creating interim solutions for industry wide problems |
front 395 Factors causing new product failure | back 395 Shortage of important ideas in certain areas Fragmented markets Social, economic, and governmental constraints Cost of development Capital shortages Shorter required development time Poor launch timing Shorter product life cycles Organizational support |
front 396 New product development organizational approaches | back 396 Cross functional teams Stage gate systems |
front 397 Venture teams | back 397 Organizational approach for new product developent Cross functional groups charged with developing a specific product or business |
front 398 Skunkworks | back 398 Informal workplaces, sometimes garages, where intrepreneurial teams attempt to develop new products |
front 399 Stage gate system | back 399 Organizational approach for new product development Divides the innovation process into stages, with a gate or checkpoint at the end of each stage Managers review criteria and make a decision at each gate |
front 400 New product development decision process | back 400 Idea generation Idea screening Concept development and testing Marketing strategy development Business analysis Product development Market testing Commercialization |
front 401 Ways to generate ideas for new products | back 401 Interacting with others Interacting with employees Studying competitors Adopting creativity techniques |
front 402 Creativity techniques for generating new product ideas | back 402 Attribute listing Forced relationships Morphological analysis Reverse assumption analysis New contexts Mind mapping |
front 403 Attribute listing | back 403 Creativity technique for generating new product ideas List the attributes of an object Modify each attribute |
front 404 Forced relationships | back 404 Creativity technique for generating new product ideas List several ideas and consider each in relationship to each of the others |
front 405 Morphological analysis | back 405 Creativity technique for generating new product ideas Start with a problem (getting something from one place to another) Think of dimensions such as the type of platform (cart, chair, sling, bed) Think of the medium (air, water, oil, rails) Think of the power source (compressed air, electric motor, magnetic fields) |
front 406 Reverse assumption analysis | back 406 Creativity technique for generating new product ideas List all normal assumptions about something and then reverse them |
front 407 New contexts | back 407 Creativity technique for generating new product ideas Take familiar processes and put them into a new context |
front 408 Mind mapping | back 408 Creativity technique for generating new product ideas Start with a thought, write it on paper, then think of the next thought, write it on paper, then think of the next thought, etc |
front 409 Lateral marketing | back 409 Combining two product concepts or ideas to create a new offering Gas stations + food = gas station stores Cereal + snacking = cereal bars Audio + portable = Sony Walkman |
front 410 Drop error | back 410 when a company dismisses a good idea |
front 411 Product idea | back 411 A possible product that a company might offer to the market |
front 412 Product concept | back 412 An elaborated version of the idea expressed in consumer terms |
front 413 Concept testing | back 413 Presenting the product concept to target consumers and getting their reactions Communicability and believability - are the benefits clear and believable? Need level - do you see this product as solving a need? Gap level - do other products currently satisfy this need? Perceived value Purchase intention User targets, purchase occasions, purchase frequency |
front 414 Conjoint analysis | back 414 A method for deriving the utility values that consumers attach to varying levels of a products attributes How important are each attribute of a product |
front 415 Business analysis for new product development | back 415 Estimate total sales Estimate total costs |
front 416 Quality function deployment | back 416 Takes the list of desired customer attributes generated by market research and turns them into a list of engineering attributes that engineers can use |
front 417 Alpha testing | back 417 Testing the product within the firm to see how it performs in different applications |
front 418 Beta testing | back 418 Allowing outside consumers to test the product |
front 419 Consumer goods marketing testing strategies | back 419 Sales wave research Simulated test marketing Controlled test marketing Test markets |
front 420 Sales wave research | back 420 Type of marketing testing strategy for consumer goods Consumers who initially try the product at no cost are reoffered it or a competitors product at slightly reduced prices to see how often they are purchased over and over again |
front 421 Simulated test marketing | back 421 Type of marketing testing strategy for consumer goods Qualified shoppers are shown both new ad and popular brand ad and sees afterwards which shoppers purchase which brands |
front 422 Controlled test marketing | back 422 Type of marketing testing strategy for consumer goods A company with new products specifies the number of stores and geographic locations it wants to test Research firms delivers product and controls location, shelf space Records purchases |
front 423 Test market | back 423 Type of marketing testing strategy for consumer goods Putting the product up for sale in a full blown test market |
front 424 Commercialization of a new product | back 424 When (Timing) Where (Geographic strategy) To whom (Target market) How (Introductory marketing strategy) |
front 425 Critical path scheduling | back 425 Used to coordinate the many tasks in launching a new product Develops a master chart showing the simultaneous and sequential activities that must take place |
front 426 Consumer adoption process | back 426 Awareness Interest Evaluation Trial Adoption |
front 427 Adoption | back 427 An individual's decision to become a regular user of a product |
front 428 Innovation | back 428 Any good or service or idea that someone perceives as new no matter how long its history |
front 429 Adopter groups to new products | back 429 Innovators Early adopters Early majority Late majority Laggards |
front 430 Relative advantage | back 430 The degree to which the innovation appears superior to existing products |
front 431 Compatibility | back 431 The degree to which the innovation matches the values and experiences of the individuals |
front 432 Complexity | back 432 The degree to which the innovation is difficult to understand or use |
front 433 Divisibility | back 433 The degree to which the innovation can be tried on a limited basis |
front 434 Communicability | back 434 The degree to which the benefits of use are observable or describable to others |