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89 Cards in this Set
- Front
- Back
80/20 Rule |
A concept that suggests 80% of a firm's sales are obtained from 20% of its customers. |
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Back Translation |
The practice where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors. |
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Balance of Trade |
The difference between monetary value of a nation's exports and imports. |
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Brand Equity |
The aded value a brand name gives to a product beyond the functional benefits provided. |
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Brand Licensing |
A contractual agreement whereby one company (licensor) allows its brand name or trademark to be used with products or services offered by another company (licensee) for a royalty or fee. |
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Brand Name |
Any word, device, or combination (design, shape, sound, or color) of these used to distinguish a seller's products or services. |
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Brand Personality |
A set of human characteristics associated with a brand name. |
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Branding |
A marketing decision in which an organization uses a name, phrase, design, symbols, or combination of these to identify its products and distinguish them from those of competition. |
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Break-Even Analysis |
A technique that analyzes that relationship between total revenue and total cost to determine profitability of various levels of output. |
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Break-Even Point |
The quantity of which total revenue and total cost are equal. |
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Bundle Pricing |
The marketing of two or more products in a single package price. |
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Convenience Products |
Items that the consumer purchases frequently, conveniently, and with a minimum shopping effort. |
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Copyright |
Gives the author of a literary, dramatic, musical, or article work the exclusive right to print, perform, or otherwise copy that work. - 70 years past death for individual. -95 years past death for company. |
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Cost-Plus Pricing |
Summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price. |
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Currency Exchange Rate |
The price of one country's currency expressed in terms of another country's currency. |
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Customer Contact Audit |
A flowchart of the points of interaction or "service encounters" between consumers and a service provider. |
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Customer Experience Management (CEM) |
The process of managing the entire customer experience within the company. |
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Customs |
What is considered normal and expected about the way people do things in a specific country. |
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Data Mining |
Extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patterns and marketing actions. |
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Dumping |
Occurs when a firm sells a product in a foreign country below its domestic price or below its actual cost. |
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Everyday Low Pricing (EDLP) |
The practice of replacing promotional allowances with lower manufacturer list prices. |
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Experience Curve Pricing |
A method of pricing based on the learning effect, which holds that the unit cost of many products and services declines by 10%-30% each time a firm's experience at producing/selling doubles. |
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Exporting |
A global marketing strategy in which a company produces products in one country and sells them in another country. |
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Fixed Cost (FC) |
The sum of the expenses of the firm that are stable and do not change with the quantity of the product that are purchased and sold. |
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Focus Groups |
Informal brainstorming groups of 8-10 people to generate ideas. |
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Four I's of Services |
1) Intangibility 2) Inconsistency 3) Inseparability 4) Inventory |
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Gap Analysis |
A type of analysis that compares the differences between the consumer's expectations about and experiences with a service based on dimensions of service quality. |
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Geographic Segmentation |
Collecting and analyzing information according to the physical location of the customer or data source. |
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Gray Market |
A situation where products are sold through unauthorized channels of distribution. |
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Gross Domestic Product (GDP) |
The monetary value of all products and services produced in a country during one year. |
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Internal Marketing |
The notion that a service organization must focus on its employees or internal market, before successful programs can be directed at customers. |
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Loss-Lender Pricing |
Deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention to it in hopes that they will buy other products with large markups as well. |
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Majority Fallacy |
Strategy error which leads to the mistaken belief that the largest segment of the market is the most lucrative. In reality, it may be the least profitable because of the amount of competition. |
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Market Segmentation |
Involves aggregating prospective buyers into groups, or segments, that have 1, common needs and 2, will respond similarly to a marketing action. |
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Market Share |
The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself. |
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Market-Product Grid |
A framework to relate the market segments of potential buyers to products offered or potential marketing actions. |
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Marketing Research |
The process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions. |
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New-Product Process |
The 7 stages an organization goes though to identify opportunities and convert them into salable products or services. |
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Patents |
Preserves rights for products and how everything is done. |
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Penetration Pricing |
Setting a low initial price on a new product to appeal immediately to the mass market. |
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Perceptual Map |
A means of displaying in two dimensions the locations of products or brands in the minds of consumers to enable a manager to see how they perceive competing products/brands and their own. |
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Post Mortem |
Debrief. 1- What worked? 2- What didn't work? 3- What makes us think so? 4- What are we going to do with what we learned? |
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Predatory Pricing |
The practice of charing a very low price for a product with the intent of driving competitors out of business. |
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Prestige Pricing |
Setting a high price so that quality or status conscious customers will be attracted to the product and buy it. |
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Price Discrimination |
The practice of charging different prices to different buyers for products of like grade and quality. |
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Price Fixing |
A conspiracy among firms to set prices for a product. |
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Price Lining |
Setting the price of a line or product at a number of different specific pricing points. |
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Price Constraints |
Factors that limit the range of prices a firm may set. |
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Price Objectives |
Specifying the role of price in an organizations marketing and strategic plans. |
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Primary Data |
Facts and figures that are newly collected for the project. |
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Private Branding |
A branding strategy used when a company manufactures products but sells them under the brand name of a wholesaler or retailer. |
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Product Class |
Refers to the entire product category or industry. |
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Product Differentiation |
A marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products. |
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Product Life Cycle (PLC) |
Describes the stages a new product goes through in the marketplace: 1- Introduction 2- Growth 3- Maturity 4- Decline |
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Product Line |
A group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customers, are distributed through the same outliers or fall within a given price range. |
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Product Mix |
Consists of all of the product lines offered by an organization. |
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Product Positioning |
The place a product occupies in consumers' minds based on important attributes relative to competitive products. |
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Product-Line Pricing |
The setting of prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necessarily for each item. |
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Promotional Allowances |
Cash payments or an extra amount of "free goods" awarded sellers in the marketing channel for undertaking certain advertising or selling activities to promote a product. |
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Protectionism |
The practice of shielding one or more industries within a countries economy from foreign competition through the use of tariffs or quotas. |
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Protocol |
A statement that before a product development begins, identifies: 1- A well-defined market 2- Specific customers needs/wants/preferences 3- What the product will be and do to satisfy customers |
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Quota |
A restriction placed on the amount of a product allowed to enter or leave a country. |
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Sales Forecast |
Total sales of a product that a firm expects to sell during a specific time period under specified environmental conditions an its own marketing efforts. |
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Secondary Data |
Facts and figures that have already been recorded prior to the project.
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Semiotics |
A field of study that examines that correspondence between symbols and their role in the assignment of meaning for people. |
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Shopping Products |
Items for which the consumer compares several alternatives on criteria such as price, quality, or style. |
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Specialty Prodcuts |
Items that a consumer maker a special effort to search out and buy. |
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Strategic Alliances |
Agreements among 2 or more independent firms to cooperate for the purpose of achieving common goals such as a competitive advantage or customer value creation. |
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Tariffs |
Government taxes on products or services entering a country that primarily serve to raise prices on imports. |
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Total Cost (TC) |
Total expense incurred by a firm in producing and marketing a product. TC = FC + VC |
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Total Revenue (TR) |
The total $ received from the sales of a product. |
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Trademark |
Identifies that a firm has legally registered its brand name or trade name so the firm has its exclusive use, thereby preventing other from using it. |
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Usage Rate |
The quantity consumed or patronage (store visits) during a specific period. |
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Value-Pricing |
The practice of simultaneously increasing product and service benefits while maintaining or decreasing price. |
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Variable Cost (VC) |
The sum of the expenses of the firm that vary directly with the quantity of a product that is produced and sold. |
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Warranty |
A statement indicating the liability of the manufacturer for product deficiencies. |
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World Trade Organization |
A permanent institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions. |
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Data vs. Information |
Data = Facts and figures
Information = Processing of the data |
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Euro |
Currency of the EU. |
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Demographic Segmentation |
Market segmentation according to age, race, religion, gender, family size, ethnicity, income, and education. |
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Measure of Segmentation/Programs Efficiency |
Total Sales-Non-Target Market Sales/Total Sales |
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WTO Compared to GATT |
GATT focused on tariffs and quotas.
WTO focused on any kind of barriers to trade and in 8-12 months trade disputes were resolved! |
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Non-Sampling Error |
Everything outside of significance. |
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Price Skimming Strategy |
Start low, move high. |
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Problems Underlying the Euro Crisis |
No exit strategy. |
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Profit Equation |
Total Revenue - Total Cost = Profit |
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Sampling Error |
Measures Significance. The deviation of the selected sample from the true characteristics, traits, behaviors, qualities or figures of the entire population. |
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Stages of New Product Development |
1) Idea Generation 2) Idea Screening 3) Concept Testing 4) Business Analysis 5) Product/Strategy Development 6) Test Marketing 7) Commercialization |
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What is a brand? |
A chunk of information that stimulates senses. |