Marketing Final Exam Akin TCU

Business to Business Electronic Commerce
-B2B
-The use of the internet to facilitate the exchange of goods, services and information between organizations
Stickiness
A measure of a web site’s effectiveness
-Calculated by multiplying the frequency of visits by the duration of a visit by the number of pages viewed during each visit
Disintermediation
The elimination of intermediaries such as wholesalers of distributors from a marketing channel
Reintermediation
The reintroduction of an intermediary between producers and users
Strategic Alliance
-Strategic partnership
-A cooperative agreement between business firms
Relationship Commitment
A firms belief that an ongoing relationship with another firms is so important that the relationship warrants maximum efforts at maintaining it indefinitely
Trust
The condition that exists when one party has confidence in an exchange partners reliability and integrity
Keiretsu
A network of interlocking corporate affiliates
Original Equipment Manufacturers
Individuals and organizations that buy business goods and incorporate them into the products they produce for eventual sale to other producers or to consumers
North American Industry Classification System
A detailed numbering system developed by the United States, Canada, and and Mexico to classify North American business establishments by their main production processes
Derived Demand
The demand for business products
Joint Demand
The demand for tow or more items used together in a final product
Multiplier Effect
-Accelerator Principle
-Phenomenon in which a small increase or decrease in consumer demand con produce a much larger change in demand for the facilities and equipment needed to make the consumer product
Business to Business Online Exchange
An electron trading floor that provides companies with integrated links to their customers and suppliers
Reciprocity
A practice whereby business purchasers choose to buy from their own customers
Major Equipment
-Installations
-Capital goods such as large or expensive machines, mainframe computers, blast furnaces, generators, airplanes and buildings
Accessory Equipment
Goods such as portable tools and office equipment that are less expensive and shorter lived than major equipment
Raw Materials
Unprocessed extractive or agricultural products such as mineral ore, lumber, wheat, corn, fruits, vegetables, and fish
Component Parts
Either finished items ready for assembly or products that need very little processing before becoming part of some other product
Processed Materials
Products used directly in manufacturing other products
Supplies
Consumable items that do not become party of the final product
Business Services
Expense items that do not become part of the final product
Buying Center
All those people in an organization who become involved in the purchase decision
New Buy
A situation requiring the purchase of a product for the first time
Modified Rebuy
A situation in which the purchaser wants some change in the original good or service
Straight Rebuy
A situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers
Strategic Planning
-The managerial proces of creating and maintaing a fit between the organizations objective s and resources and the evolving market opportunities
-Goal is long-run profitability and growth
Strategic Business Unit
A subgroup of a single business or collection of related businesses within the larger organization
Ansoff’s Opportunity Matrix
-Market Penetration
-Market Development
-Product Development
-Diversification
Market Penetration
A marketing strategy that tries to increase market share among existing customers
Market Development
A marketing strategy that entail attracting new customers to existing products
Product Development
A marketing strategy that entails the creation of new products for present markets
Diversification
A strategy of increasing sales by introducing new products into new markets
Innovation Matrix
-Core Innovation
-Adjacent Innovation
-Transformational Innovation
The Boston Consulting Group Model
-Portfolio Matrix
-Stars
-Cash Cows
-Problem Children
-Dogs
Portfolio Matrix
A tool for allocating resources among products of strategic business units on the basis of relative market share and market growth rate
Star
A business unit that is a fast growing market leader
Cash Cow
A business unit that generates more cash than it needs to maintain its market share
Problem Children
-“Question Mark”
-A business unit that shows rapid growth but poor profit margins
Dogs
A business unit that has low growth potential and a small market share
Allocating Resources for SBU’s
-Build
-Hold
-Harvest
-Divest
The General Electric Model
X & Y chart for:
-Market attractiveness
-Company strength
Planning
The process of anticipating future events and determining strategies to achieve organizational objectives in the future
Marketing Planning
Designating activities relating to marketing objectives and the changing marketing environments
Marketing Plan
A written document that acts as a guidebook of marketing activities for the marketing manager
Mission Statement
A statement of the firms business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions
Marketing Myopia
Defining a business in terms of goods and services rather than in terms of the benefits customers seek
SWOT Analysis
Identifying internal strengths and weaknesses and examining external opportunities and threats
Environmental Scanning
Collection and Interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan
Competitive Advantage
A set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition
Cost Competitive Advantage
Being the low cost competitor in an industry while maintaining satisfactory profit margins
Experience Curves
Curves that show costs declining at a predictable rate as experience with a product increases
Product/Service Differentiation Competitive Advantage
The provision of something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition
Niche Competitive Advantage
The advantage achieved when a firm seeks to target and effectively serve a small segment of the market
Marketing Objective
A statement of what is to be accomplished through marketing activities
Sustainable Competitive Advantage
An advantage that cannot be copied by the competition
Marketing Strategy
The activities of selecting and describing one or more target markets and developing and maintaining a marking mix that will produce mutually satisfying exchanges with target markets
Market Opportunity Analysis
The description and estimation of the size and sales potential of market segments that are of interest tot the firm and the assessment of key competitors in these market segments
Marketing Mix
A unique blend of product, place, promotion, and pricing strategies designed to produces mutually satisfying exchanges with a target market
Four Ps
Together make up the marketing mix
-Product
-Place
-Promotion
-Price
Marketing Plan Steps
-Implementation
-Evaluation
-Control
-Marketing Audit
Implementation
The process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes that plan’s objectives
Evaluation
Gauging the extent to which the marketing objectives have been achieved during the specified time period
Control
Provides the mechanisms for evaluating marketing results in light of the plans objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines
Marketing Audit
A through, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization
Relationship Selling
a sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships
Customer-Centric
a philosophy under which the company customizes its product and service offering based on data generated through interactions between the customer and the company
Learning
An informal process of collecting customer data through customer comments and feedback on product or service performance
Knowledge Managment
The process by which learned information from customers is centralized and shared in order to enhance the relationship between customers and the organization.
Interaction
The point at which a customer and a company representative exchange information and develop learning relationships
Touch Points
Areas of a business where customers have contact with the company and data might be gathered
Point-of-Sale Interactions
A touch point in stows oaf information kiosks that use software to enable customers to easily provide information about themselves without feeling violated
Campaign Management
developing product or service offerings customized for the appropriate customer segment and then pricing and communicating these offerings for the purpose of enhancing customer relationships
Sales Process
the set of steps a salesperson goes through in a particular organization to sell a particular product or service
Lead Generation
identification of those firms and people most likely to buy the seller’s offerings
Referral
A recommendation to a salesperson from a customer or business associate
Networking
A process of finding out about potential clients from friends, business contacts, coworkers, acquaintances, and fellow members in professional and civic organizations.
Cold Calling
a form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects’ needs or financial status
Lead Qualification
determination of a sales prospect’s (1) recognized need, (2) buying power, and (3) receptivity and accessibility
Preapproach
a process that describes the “homework” that must be done by a salesperson before he or she contacts a prospect
Needs Assessment
An analysis identifying the jobs, people, and departments for which training is necessary.
Sales Proposal
a formal written document or professional presentation that outlines how the salesperson’s product or service will meet or exceed the prospect’s needs
Sales Presentation
a formal meeting in which the salesperson presents a sales proposal to a prospective buyer
Negotiation
The process during which both the salesperson and the prospect offer special concessions in an attempt to arrive at a sales agreement
Follow-Up
The final step of the selling process, in which the salesperson ensures delivery schedules are met, goods or services perform as promised, and buyers; employees are properly trained to use the products
Quota
A statement of the salespersons sales goals, usually based on sales volume
Price
That which is given up in an exchange to acquire a good or service
Revenue
The price changed to customers multiplied by the number of units sold
Profit
Revenue minus expenses
Return on Investment
Net profit after taxes divided by total assets
Market Share
A company’s product sales as a percentage of total sales for that industry
Status Quo Pricing
A pricing objective that maintains existing prices or meets the competition’s prices.
Demand
The quantity of a product that will be sold in the market at various prices for a specified product
Supply
The quantity of product that will be offered to the market by a supplier at various prices for a specified period
Price Equilibrium
the price at which demand and supply are equal
Elasticity of Demand
Consumers’ responsiveness or sensitivity to changes in price.
Elastic Demand
A situation in which consumer demand is sensitive to changes in price
Inelastic Demand
A situation in which an increase or a decrease in price will not significantly affect demand for the product
Unitary Elasticity
A situation in which total revenue remains the same when prices change
Yield Management Systems
a technique for adjusting prices that uses complex mathematical software to profitably fill unused capacity by discounting early purchases, limiting early sales at these discounted prices, and overbooking capacity
Variable Costs
A cost that varies with changes in the level of output
Fixed Costs
A cost that does not change as output is increased or decreased
Average Variable Cost
Total variable cost divided by the quantity of output produced
Average Total Cost
total cost divided by the quantity of output
Marginal Cost
The change in total costs associated with a one unit change in output
Markup Pricing
the cost of buying the product from the producer, plus amounts for profit and for expenses not otherwise accounted for
Keystoning
the practice of marking up prices by 100 percent, or doubling the cost
Profit Maximization
a method of setting prices that occurs when marginal revenue equals marginal cost
Marginal Revenue
Extra revenue associated with selling an extra unit of output or the change in total revenue with a one-unit change in output
Break-Even Analysis
a method of determining what sales volume must be reached before total revenue equals total costs
Selling Against the Brand
stocking well-known branded items at high prices in order to sell store brands at discounted prices
Extranet
A private electronic network that links a company with its suppliers and customers
Prestige Pricing
Charging a high price to help promote a high-quality image