Chapter 10 Review – Marketing

Advertising
any paid form of communication through mass media directed at identified consumers to provide information and influence their actions.
Basic product
the simplest form of a product. It is not unique and is usually available from several companies.
Brand name
a unique identification for a company’s products.
Business consumers
persons, companies, and organizations that buy products for the operation of a business, for incorporation into other products and services, or for resale to their customers.
Buying motives
the reasons consumers decide what products and services to purchase.
Channel members
businesses that take part in a channel of distribution.
Channel of distribution
the route a product follows and the businesses involved in moving a product from the producer to the final consumer.
Communication channel
the way the information being communicated from a sender is being transmitted to the receiver.
Consumer decision-making process
the specific sequence of steps consumers follow to make a purchase.
Decoding
interpreting information for understanding.
Direct channel of distribution
a channel in which products move from the producer straight to the consumer with no other organizations participating.
Display
a device used by retailers to exhibit a product at the point of sale.
Distribution
the locations and methods used to make a product or service available to the target market; determining the best ways for customers to locate, obtain, and use the products and services of an organization.
Effective communication
the exchange of information so there is common understanding by all participants.
Emotional buying motives
reasons consumers decide what products and services to purchase based on feelings, beliefs, and attitudes.
Encoding
preparing the information to be communicated.
Experiment
a method of marketing research which presents two carefully controlled alternatives to subjects in order to determine which is preferred or has better results.
Feedback
a response to the sender from the receiver.
Final consumers
persons who buy products and services mostly for their own use.
Financial analysis
budgeting for marketing activities, obtaining the necessary funds needed for operations, and providing financial assistance to customers so they can purchase the business’ products and services.
Focus group
a marketing research study that gathers the ideas, experiences, and opinions from a small number of consumers who take part in a group discussion.
Gross margin
the difference between the selling price and the product costs.
Heterogeneous
characterized by the differences in the type and quality of service provided.
Indirect channel of distribution
a channel in which products move from the producer to the consumer through one or more other businesses.
Inseparable
something that is consumed at the same time it is produced.
Intangible
something that has no physical form.
Markdown
a reduction from the original selling price.
Marketing
The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
Marketing mix
the blending of four marketing elements products, distribution, price, and promotion.
Marketing orientation
an approach that considers the needs of customers when developing a marketing mix.
Marketing research
finding solutions to problems through carefully designed studies involving customers.
Marketing strategy
a company’s plan that identifies how it will use marketing to achieve its goals.
Marketing-information management
obtaining, managing, and using market information to improve business decision- making and the performance of marketing activities.
Markup
the amount added to the cost of a product to set the selling price.
Mass promotion
communication to many people at the same time with a common message.
Merchandising
a set of promotional activities designed to obtain sales in the retail setting.
Observation
a marketing research study that collects information by recording the actions of consumers rather than asking them questions.
Operating expenses
all of the expenses of operating the business that are associated with the product.
Options
choices of product features.
Packaging
protection and security for the product before it is used.
Perishable
the availability of a service to match the demand for that service at a specific time.
Personal selling
direct, individualized communication with prospective customers to assess their needs and assist them in satisfying those needs with appropriate products and services.
Personalized promotion
communication directly with each customer using information tailored to that person.
Price
money customer must pay for a product or service.
Pricing
setting and communicating the value of products and services.
Primary research
studies carried out to gather new information specifically directed at a current problem.
Product
everything a business offers to satisfy a customer’s needs.
Product and service management
designing, developing, maintaining, improving, and acquiring products and services that meet consumer needs.
Product costs
costs to the manufacturer of producing the product or the price paid by other businesses to buy the product.
Product features
additions and improvements to the basic product.
Profit
the amount of money available to the business after all costs and expenses have been paid.
Promotion
any form of communication used to inform, persuade, or remind
Public relations
an ongoing program of non-paid and paid communications intended to favorably influence public opinion about an organization, marketing effort, idea, or issue.
Publicity
non-paid promotional communication presented by the media rather than by the business or organization that is being promoted.
Rational buying motives
reasons consumers decide what products and services to purchase based on facts and logic.
Wholesalers
intermediaries between manufacturers and retailers.
Receiver
a person or organization that is being communicated to by another person or organization.
Retailer
the final business organization in an indirect channel of distribution for consumer products.
Visual merchandising
visual signals used to communicate information in a retail setting.
Sales promotion
activities and materials designed to reinforce a company’s brand and image. It is also a direct incentive to take an action likely to immediately increase sales of a product or service.
Title
ownership of goods.
Target market
a specific group of customers that have similar wants and needs.
Secondary research
analyzing existing information gathered for another purpose but used to solve a current problem.
Surveys
a marketing research study that gathers information from people using a carefully planned set of questions.
Selling
communicating directly with potential customers to determine and satisfy their needs.
Sender
a person or organization that has information to communicate to another person or organization.
Selling price
the price paid by the customer for the product.
Services
activities provided for the satisfaction of others that are consumed at the same time they are produced.