Principles of Marketing Final Exam Study Guide

4 P’s of Marketing
The four basic variables of the marketing mix; Product, Price, Place, Promotion
Marketing Concept
The controllable variables that the company puts together to satisfy a target group
Product
The need-satisfying offering of a firm
Price
The amount of money that is charged for “something” of value
Place
Making goods and services available in the right quantities and location- when customers want them
Promotion
Communicating information between seller and potential buyer or others in the channel to influence attitudes and behavior
Market Segmentation
A two-step process of (1) naming broad product-markets and (2) segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes
target market
A fairly homogeneous (similar) group of customers to whom a company wishes to appeal
demographics
related to population, income etc.
psychographics
The analysis of a person’s day-to-day pattern of living as expressed in that person’s Activities, Interests, and Opinions- sometimes referred to as AIOs or lifestyle analysis
positioning
An approach that refers to how customers think about proposed or present brands in a market
competitive advantage
A firm has a marketing mix that the target market sees as better than a competitor’s mix
consumer buying behavior
economic influences on behavior
psychological influences on behavior
social influences on behavior
cultural influences on behavior
discretionary income
What is left of income after paying taxes and paying for necessities
disposable income
buying power
5 step market research process
purpose of market research
primary data
Information specifically collected to solve a current problem
secondary data
Information that has been collected or published already
sample
A part of the relevant population
validity
The extent to which data measure what they are intended to measure
brand equity
The value of a brand’s overall strength in the market
branding
The use of a name, term, symbol, or design- or a combination of these- to identify a product.
brand familiarity
How well customers recognize and accept a company’s brand
product life cycle
The stages a new product idea goes through from beginning to end
product development process
generic brands
national brands
private labels
supply chain
The complete set of firms and facilities and logistics activities that are involved in procuring materials, transforming them into intermediate and finished products, and distributing them to customers
channel of distribution
Any series of firms or individuals who participate in the flow of products from producer to final user or consumer
logistics
The transporting, storing, and handling of goods in ways that match target customers’ needs with a firm’s marketing mix- both within individual firms and along a channel of distribution (aka physical distribution
physical distribution concept
All transporting, storing, and physical handling activities of a business and a whole channel system should be coordinated as one system that seeks to minimize the cost of distribution for a given customer service level
Physiological needs
Biological needs such as the need for food, drink, rest, and sex
costs/risks of holding inventory
retailing
All of the activities involved the sale of products to final consumers
promotion and the promotional mix of advertising
publicity
Any unpaid form of nonpersonal presentation of ideas, goods, or services
sales promotion
Those promotion activities- other than advertising, publicity, and personal selling- that stimulate interest, trial, or purchase by final customers or others in the channel
personal selling
Direct spoken communication between sellers and potential customers, usually in person but sometimes over the telephone or even via a video conference over the Internet
adoption process for new ideas
The steps individuals go through on the way to accepting or rejecting a new idea
communication process
A source trying to reach a receiver with a message
objectives of price setting
profit
sales volume/ competition
customer objectives
price discrimination
Injuring competition by selling the same products to different buyers at different prices
price fixing
Competitors illegally getting together to raise, lower, or stabilize prices
dumping
Pricing a product sold in a foreign market below the cost of producing it or at a price lower than in its domestic market
quantity discounts
Discounts offered to encourage customers to buy in larger amounts
cash discounts
Reductions in the price to encourage buyers to pay their bills quickly
Robinson Patman Act
A 1936 law that makes illegal any price discrimination if it injures competition