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43 Cards in this Set
- Front
- Back
What is marketing? |
an organizational function and set of processes for creating, communicating, and delivering value to customers. |
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What are the five eras of marketing? |
Production- A good product will sell itself Sales- Creative advertising and selling will overcome consumers resistance and convince them to buy Marketing- The consumer is king! Find a need and fill it! relationship- long term relationships lead to success
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Target market |
group of potential customers toward whom it directs its marketing efforts |
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What is market segmentation? |
process of dividing a market into several relatively homogeneous groups.
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What is geographical segmentation? |
Dividing a market into homogenous groups on the basis of their location. |
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What is demographic segmentation? |
distinguishes markets on the basis of various demographic or socioeconomic characterizers. Common demographic measures include gender, income, age, occupation, household, stage in family life cycle, education, and racial or ethnic group |
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What is secondary data? |
Low cost and easy to obtain. Include census data, which contain population's age, gender, education level, household size and composition, occupation,employement status and income data. |
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What is primary data? |
produced by companies own performance including changes in unpaid bills; inventory levels; sales generated by different categories of customers or product lines |
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Developing a marketing mix |
Adaptation allows marketers to vary marketing mix to suit local competitive conditions, consumer preferences, and government regulations. |
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Relationship marketing |
goes beyond an effort toward making the sale. Instead, it develops and maintains long-term, cost-effective exchange relationships with partners. |
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Convenience Products |
Items that consumers to purchase frequently, immediately, and with little effort. |
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Shopping prodcuts |
purchased only after the buyer has compared competiting products in competiting stores. Example: new sofa or a dining room table |
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Specialty products |
Third category of consumer products those that a purchaser is willing to make a special effort to obtain Purchaser is familiar with the item and considers it to have no reasonable substitute. lexus, if you want one you have to drive to get it |
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Introduction stage |
- firm tries to promote demand for its new offering; inform the market about it; give free samples to entice consumers to make a trial and explains features |
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Growth stage |
sales climb quickly as new customers join early users who now are repurchasing the item. Word-of-mouth referrals and continued advertising and other special promotions by the firm induce others to make trial purchases |
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Maturity stage |
industry sales climb quickly, eventually reach a saturation level at which further expansion is difficult. competition intensifies, increasing availability of product. |
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decline stage |
sales continue to fall. Profits decline and may become losses as further price cutting occurs in overall market for item. |
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Steps in new product development |
1. Generate new ideas 2. Screening eliminates ideas that do not mesh with overall company objectives or cannot be developed given company's resources concept testing and focus groups 3. actual product developed, subject to to tests and revised. the product is test marketed 4. commercialization product is made readily available |
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Product Identification |
brand is name, term, symbol, design used to identify company trademark- brand that has been given legal protection
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Branding categories |
brand offered by a manufacturer is known as a manufactures brand Private or store brand- identifies product that is not linked to manufactures but instead carries a wholesalers or retailers label.
family brand- single brand used for several products ex: KitchenAid, Johnson & Johnson, Hewlett- Packard, and Arm and Hammer
Individual branding- giving each product within a line a different name
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Brand loyalty |
measure brand loyalty in three stages: recognition, preference, and insistense |
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Packaging and labeling |
-affects durability, image, and convience of an item one of biggest costs in a consumer item
-Labels must meet federal laws requiring companies to allow consumers to make value comparisons among competitive poructs
universal product code- bar code ready by optical scanners that print on receipt
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distribution channels |
direct distribution channels- carries goods directly from producer to consumer
marketing intermediary- business firm that moves goods between producers and consumers |
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promotion |
informing, persuading, and influencing a purchase decision
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what is personal selling |
direct person to person promotional |
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non personal selling |
consists of advertising, sales promotion, direct marketing, and public relations |
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sales promotion |
attracts attention and creates awareness effectiveness is easily measured/ produces short term sales increase |
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Public relations |
enhances product or firm credibility creates a positive attitude about product |
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seven steps to sales |
1. Prospecting and qualifying 2. Approach 3. Presentation 4. Demonstration 5. Handling questions 6. Closing 7. Follow- Up |
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Breakeven analysis |
determine minimum sales volume a product must generate at a certain price level to cover all costs |
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cost plus pricing |
absolute percentage or percentage mark up on cost price to determine selling price |
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skimming price |
strategy sets an intentionally high price relative to the prices of competitive products
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Penetration pricing |
strategy sets a low price as a marketing weapon
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accounting |
process of measuring, interpreting, and communicating financial information to enable people inside and outside firm to make informed decisions |
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users of account information |
managers with a business are major users of accounting information, because it helps them plan and control daily and long-range operations
potential investors evaluate accounting info to help them decide whether to buy a firm's stock.
accounts play fundamental roles not only in business but also other aspects of society. |
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business activities involving accoutning |
1. Financing activities provide necessary funds to start a business and expand it after it begins operating.
2. Investing activities provide valuable assets required to run a business.
3. Operating activities focus on selling goods and services, but they also consider expenses as important elements of financial management |
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generally accepted accounting principles |
principles encompass, convention, rules, and procedures for determining acceptable accounting and financial reporting practices at a particular time. |
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accounting cycle: |
transactions- record, classify, summarize- financial statements- balance sheet, income statement, statement of owners equity, statement of clash flow. |
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accounting equation |
assets= liabilities + Owners equity |
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Balance sheet |
shows financial position on a particular date |
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income statement |
indicates flow of resources that reveal performance of the organization over a specific time period |
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liquidation ratio |
= current assets/ current liabilities |
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what is the acid test? |
current assets- inventory/ current liabilities |