Flashcard
Flashcard
Production Concept: The idea that consumers will favor products that are available & highly
affordable; therefore, the organization should focus on improving production & distribution
efficiency.
Product Concept: The idea that consumers will favor products that offer the most quality,
performance, & features; therefore, the organization should devote its energy to making
continuous product improvements.
Selling Concept: The idea that consumers will not buy enough of the firm's products unless the
firm undertakes a large-scale selling & promotion effort
Marketing Concept: A philosophy in which achieving organizational goals depends on knowing
the needs & wants of target markets & delivering the desired satisfactions better than
competitors do
Societal Marketing Concept: The idea that a company's marketing decisions should consider
consumers' wants, the company's requirements, consumers' long-run interests, & society's
long-run interests
Some fast-food restaurants offer tasty & convenient food at affordable prices, but in doing so
they contribute to a national obesity epidemic & environmental problems. These restaurants
are overlooking which philosophy?
Societal Marketing Concept
Customer Relationship Management: The overall process of building & maintaining profitable
customer relationships by delivering superior customer value & satisfaction
Customer-Perceived Value: The customer's evaluation of the difference between all the
benefits & all the costs of marketing offer relative to those of competing offers
Customer Satisfaction: The extent to which a product's perceived performance matches a
buyer's expectations
Consumer-Generated Marketing: rand exchanges created by consumers themselves- both
invited & uninvited- by which consumers are playing an increasing role in shaping their own
brand experiences & those of other consumers.
Define marketing: (1) managing profitable customer relationships (2) Create value for customer
+ Build good relationship= capture value of customer
Outline the steps in the marketing process:
The first 4 steps create value for customers & build customer relationships:
(1) need to understand the marketplace and customers needs and wants
(2) design a customer-driven marketing strategy with the goal of getting, keeping, and growing
target customers
(3) construct a marketing program that delivers superior value
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(4) Build profitable relationships and create customer delight
(5) Reward: Capture value from customers to create profit and customer equity
Chapter 2: Company and marketing strategy- Partnering to build customer engagement, value
and relationship.
Levels of Planning:
Concern-/company level
SBU-level
Product/market-combinations
Mission Statement: The organization's purpose. What it wants to accomplish in the larger
environment.
Based on a vision, start from basic needs of the market, actionable guidelines, realistic and
motivating.
Business portfolio: It's the collection of businesses and products that make up the company.
Portfolio analysis: It's a major activity in the strategic planning whereby management evaluates
the products and business that make up the company. The process by which management
evaluates the products and businesses that make up the company.
Company division, product line within a division and single product or brand.
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Product/market expansion grid: a portfolio-planning tool for identifying company growth
opportunities through market penetration, market development, product development, or
diversification
Market penetration: company growth by increasing sales of current products to current market
segments without changing the product
Market development: company growth by identifying and developing new market segments for
current company products
Network;
Company, its suppliers, distributors and customers
Partner with each other to improve performance of entire system
Group of consumers
Respond in similar way to given set of marketing efforts
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Chapter 3: Understanding the Marketplace and Customer Value
Marketing environment: Consists of the actors and forces outside marketing that affect
marketing management's ability to build and maintain successful relationship s with target
customers
Microenvironment: Consists of the actors close to the company that affect its ability to engage
and serve its customers - the company, suppliers, marketing intermediaries, customer markets,
competitors, and publics
Macro environment: Consists of the larger societal forces that affect the microenvironment -
demographic, economic, natural, technological, political and cultural forces
Marketing intermediaries: Help the company promote, sell, and distribute its products to final
buyers - resellers, physical distribution firms, marketing agencies
Resellers: Distribution channel firms that help the company find customers or make sales to
them
Physical distribution firms: Help the company stock and move goods from their points or origin
to their destinations
Marketing service agencies: Marketing research firms, advertising agencies, media firms,
consulting firms that help the company target and promote its products to the right markets.
Financial intermediaries: Banks, credit companies, insurance companies, etc that help finance
transactions or insure against the risk associated with the buying and selling of goods
Public: Any group that has an actual or potential interest in or impact on an organization's
ability to achieve its objectives.
Financial publics: This group influences the company's ability to obtain funds. i.e banks,
investment analyst, and stockholders
Demography: The study of human populations in terms of size, density, location, age, gender,
race, occupation, and other statistics.
Baby Boomers: The 78 million people born during the years following World War II and lasting
until 1964.
Generation X: The 49 million people born between 1965 and 1976 in the "birth dearth"
following the baby boom.
Millennials (or Generation Y): The 83 million children of the baby boomers born between 1977
and 2000.
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Generation Z: People born after 2000 (although many analysts include people born after 1995)
who make up the kids, tweens, and teens markets.
Economic Environment: Economic factors that affect consumer purchasing power and spending
patterns.
Natural Environment: The physical environment and the natural resources that are needed as
inputs by marketers or that are affected by marketing activities.
Environmental Sustainability: Developing strategies and practices that create a world economy
that the planet can support indefinitely.
Technological Environment: Forces that create new technologies, creating new product and
market opportunities.
Political Environment: Laws, government agencies, and pressure groups that influence and limit
various organizations and individuals in a given society.
Cultural Environment: Institutions and other forces that affect society's basic values,
perceptions, preferences, and behaviors.
126) Discuss the makeup and functions of a marketing information system (MIS).
Answer: A typical MIS consists of people, equipment, and procedures to gather, sort, analyze,
evaluate, and distribute needed, timely, and accurate information to marketing decision
makers. First, it interacts with information users to assess information needs. Next, it develops
needed information from internal company databases, marketing intelligence activities, and
marketing research. Finally, it helps users to analyze and use the information to develop
customer insights, make marketing decisions, and manage customer relationships. Diff: 2 Page
Ref: 101-102
148) Explain why it's important for both the researcher and the marketing manager to
interpret the findings of market research.
Answer: Both a marketing manager and a researcher bring important points of view to the task:
a marketing manager is an expert in the problem and the decisions that must be made, but also
may be biased about the results; a researcher is an expert in statistics. Because findings can be
interpreted in many ways, discussions between a researcher and marketing manager will lead
to the most appropriate interpretation for the given situation. Diff: 2 Page Ref: 120
149) Why is it difficult to obtain relevant and reliable secondary data when conducting
international marketing research?
Answer: Unlike the United States, many countries have no or almost no research services; in
addition, most international research services operate in only a handful of countries. Diff: 2
Page Ref: 124
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150) Why has consumer resentment toward marketing research been growing?
Answer: More individuals are wary of invasion of privacy and want to protect personal
information; many also simply resent the intrusion of marketing research and dislike surveys
that are too long or too personal. Diff: 2 Page Ref: 127
consumer insight: fresh understandings of customers and the marketplace divided from
marketing information that become the basis for creating customers value and relationship
market information system (MIS): people and procedures dedicated to assessing information
need, developing the needed information, and helping decision makers to use the information
to generate and validate actionable customers and market insight.
internal database: electronic collections of consumers and market information obtained from
dat sources within the company network.
competitive marketing intelligence: the systematic collection and analysis of publicy abailable
information about consumers, competitors, and developments in the marketing environment.
marketing research: the systematic design, collection, analysis, and reporting of data relevant to
a specific marketing situation facing an organization
exploratory research: marketing research to gather preliminary information that will help
define problems and suggest hypotheses
secondary data: information that already exist somewhere. having been collected for another
purpose.
Sources of information are: internal data, marketing intelligence, and marketing research.
Internal databases: electronic collections of consumer and market information obtained from
data sources within the company’s network.
EX: customer characteristics, sales transactions, and Web site visits .
Competitive marketing intelligence: The systematic collection and analysis of publicly available
information about consumers, competitors, and developments in the marketing environment.
-improve strategic decision making by understanding the consumer environment, assessing and
tracking competitors’ actions, and providing early warnings of opportunities and threats
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-observing consumers firsthand to quizzing the company’s own employees, benchmarking
competitors’ products, researching on the Internet, and monitoring social media buzz.
Immersion groups— small groups of consumers who interact directly and informally with
product designers without a focus group moderator present.
Behavioral targeting: Using online consumer tracking data to target advertisements and
marketing offers to specific consumers.
Judgment samples: the researcher uses his or her judgment to select population members who
are good prospects for accurate information.
Quota sample: the researcher finds and interviews a prescribed number of people in each of
several categories.
Consumer buyer behavior: the buying behavior of final consumers-individuals and households
that buy goods and services for personal consumption
Consumer market: all the individuals and households who buy or acquire goods and services
Consumer's black box: Buyer’s characteristics influence how he or she perceives and reacts to
the stimuli. Buyer’s decision process itself affects the buyer's behavior.
Culture: the set of basic values, perceptions, wants, and behaviors learned by a member of
society from family and other important institutions
Subculture: a group of people with shared value systems based on common life experiences
and situations
Social class: relatively permanent and ordered divisions in a society whose members share
similar values, interest and behaviors. combination of occupation, income, education, wealth
and other variables.
Group: two or more people who interact to accomplish individual or mutual goals
Opinion leader: person within a reference group, who because of special skill knowledge,
personality or other characteristics exerts social influence on others
Online social networks: online social communities- blogs, social networking- where people
socialize or exchange information
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- Other: Economic, technological, political, political, ecological, and cultural
2. Buyer’s black box: characteristics, decision process
3. Buyer responses: product choice, brand choice, dealer choice, purchase timing, purchase
amount.
There are four major psychological factors those influences buying decisions:
- Motivation (drive): a need that is sufficiently pressing to direct the person to seek to satisfy it.
Moslow can be connected to people’s drives and motivations
- Perception: the process by which people select, organize and interpret information to form a
meaningful picture of the world
- Learning: an individual’s behavior arising from experience
- Beliefs: a descriptive thought that a person has about something, they might be based on real
knowledge, opinion or faith
- Attitudes: a persons relatively consistent evaluations, feelings, and tendencies towards an
object or idea. Attitudes are difficult to change.
1. Need recognition
2. Information search
3. Evaluation of alternatives
4. Purchase decision
5. Post-purchase behavior
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Chapter 6- Business Markets & Business Buyer Behavior
Business Buyer Behavior: The buying behavior of organizations that buy goods & services for
use in the production of other products & services that are sold, rented, or supplied to others
Business Buying Process: The decision process by which business buyers determine which
products & services their organizations need to purchase & then find, evaluate, & choose
among alternative suppliers & brands.
Business Market Structure & Demand: Business market normally deals w/ far fewer but far
larger buyers
Derived Demand: Business demand ultimately comes from (derives from) the demand for
consumer goods
Business Buying Center: All the individuals & units that play a role in the purchase decision-
making process
Users: Members of the buying organization who will actually use the purchased product or
service
Influencers: People in an organization's buying center who affect the buying decision; they
often help define specifications & also provide information for evaluating alternatives
Straight Rebuy: A business buying situation in which the buyer routinely reorders something
without any modifications
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Modified Rebuy: A business buying situation in which the buyer wants to modify product
specifications, prices, terms, or suppliers
New Task: A business buyer situation in which the buyer purchases a product or service for the
first time
Systems Selling (Solutions Selling): Buying a packaged solution to a problem firm a single seller,
thus avoiding all the separate decisions involved in a complex buying situation
Buying Center: All the individuals and units that play a role in the purchase decision making
process
Buyers: The people in the organization's buying center who have formal or informal power to
select or approve the final suppliers
Gatekeepers: People in the organization's buying center who control the flow of information to
others
Problem Recognition: The first stage of the business buying process in which someone in the
company recognizes a problem or need that can be met by acquiring a good or a service
General Need Description: The stage in te business buying process in which the company
describes the general characteristics and quantity of a needed item
Product Specification: The stage in the business buying process in which the buying
organization decides on and specifies the best technical product characteristics for a needed
item
Supplier Search: The stage in the business buying process in which the buyer tries to find the
best vendors
Proposal Solicitation: The stage of the business buying process in which the buyer invites
qualified suppliers to submit proposals
Order Routine Specification: The stage of the business buying process in which the buyer
writes the final order with the chosen suppliers, listing the technical specifications, quantity
needed, expected time of delivery, return policies, and warranties
Performance Review: The stage of the business buying process in which the buyer assesses the
performance of the supplier and decides to continue, modify, or drop the arrangement
E-Procurement: Purchasing through electronic connections between buyers and sellers- usually
online
Institutional Market: Schools, Hospitals, nursing homes, prisons, and other institutions that
provide goods and services to people in their care.
Government market: Government units- federal, state, and local,- that purchase or rent goods
and services for carrying out the main functions of the government.
Rife Approach (todays target marketing): firms focusing on the buyers who have greater
interest in the values they create best.
Geographic Segmentation: dividing a market into different geographical units, such as nations,
states, regions, counties, cities, or even neighborhoods.
Demographic Segmentation: Dividing the market into segments based on variables such as age,
gender, family, size, family life cycle, income, occupation, education, religion, race, generation,
and nationality.
Psychographic Segmentation: Dividing a market into different segments based on social class,
lifestyle, or personality characteristics.
Behavioral Segmentation: Divides buyers into segments based on their knowledge, attitudes,
uses, or responses to a product.
Occasions: Buyers are grouped to occasions when they get the idea to buy, actually make the
purchase, or use the purchased item. (ex. super bowl, valentine’s day, etc.)
Benefit Segmentation: Dividing the market into segments according to the different benefits
that consumers seek from the product.
User Status: Markets can be segmented into non users, ex-users, potential users, first time
users and regular users of a product.
Target market: Set of buyers sharing common needs that the firm decides to serve.
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Undifferentiated (mass) marketing: Market coverage strategy in which a firm ignores market
segmentation and goes after the whole market
Differentiated marketing: Developing different market offers for several segments.
Concentrated marketing (niche): Market coverage strategy in which a firm goes after a large
share of 1 or more segments.
Positioning: Arranging for a market offering to occupy a clear, distinctive, and desirable place
relative to the competing offers IN THE MINDS of the target consumers.
Age and Life-cycle segmentation: dividing a market into different age and life-cycle groups.
Micromarketing: tailoring products and marketing programs to the needs and wants of specific
individuals and local customer segments; it includes local marketing and individual marketing
Local marketing: tailoring brands and marketing to the needs and wants of local customer
segments - cities, neighborhoods, and even specific stores
Individual marketing: tailoring products and marketing programs to the needs and preferences
of individual customers
Product position: the way a product is defined by consumers on important attributes - the
place the product occupies in consumers minds relative to competing products
Value proposition: the full positioning of a brand - the full mix or benefits on which it is
positioned
Positioning statement: a statement that summarizes company or brand positioning using this
form: to (target segment and need) our (brand) is (concept) that (point of difference)
Product: Anything that can be offered in a market for attention, acquisition, use, or
consumption that might satisfy a need or want. Broadly, products also include services, events,
persons, places, organizations, and ideas, or a mixture of these
Service: A product that consists of activities, benefits, or satisfactions and that is essentially
intangible and does not result in the ownership of anything
Experiences: Companies are now creating and managing customer experiences with their
brands or company
Consumer Products: Products and services bought by final consumers for personal
consumption; includes convenience products, shopping products, and specialty products
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Convenience Products: Bought frequently, immediately, and with minimum comparison and
buying effort (ie candy, or fast food).
Shopping Products: Bought less often and compared carefully on suitability, quality, price, and
style (ie cars, appliances)
Specialty Products: Those with unique characteristics or brand identification for which buyers
are willing to make a special purchase effort (ie medical services, designer clothes)
Unsought Products: Those that consumers neither know about nor normally think of buying (ie
life insurance, blood donations)
Industrial Products: Products purchased for further processing or for use in conducting a
business; includes materials and parts, capital items, and supplies and services
Core Customer Value: What benefits or services the customer is really buying. The solution to
the customers problem. The idea behind the product (freedom, hope, etc.).
Actual Product: Product service features, design, a quality level, a brand name, and packaging.
Unsought product: A consumer product that the consumer either does not know about or
knows about but does not normally think of buying.
Value: The regard that something is held to deserve; the importance/cost of a product in a
consumer's mind - not necessarily the sales price.
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Customer buying behavior,
Price,
Distribution
Promotion.
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Chapter 9: New-Product Development and Product Life-Cycle Strategies
Idea screening: Screening new-product ideas in order to spot good ideas and drop poor ones as
soon as possible – RWW
Concept testing: Testing new-product concepts with a group of target consumers to find out if
the concepts have strong consumer appeal
Marketing strategy development: Designing an initial marketing strategy for a new product
based on the product concept –
1 describe target market, planned value proposition, sales, market share, profit goals
2 planned price, distribution, and marketing budget
3 planned long run sales, profit goals, marketing mix strategy
Business Analysis: A review of the sales, costs, and profit projections for a new product to find
out whether these factors satisfy the company's objectives.
Product development: Developing the product concept into a physical product in order to
ensure that the product idea can be turned into a workable market offering.
Test marketing: The stage of new-product development in which the product and marketing
program are tested in realistic market settings.
* What are the two major challenges presented by the product life-cycle?
1) New Product Development: because all products eventually decline, firms must be good at
developing new products to replace aging ones
2) Product Life-Cycle Strategies: firm must be good at adapting its marketing strategies in the
face of changing tastes, technologies, and competition as products pass through stages
Internal Sources
Source of new product ideas; company's own formal research and development, management
and staff, and entrepreneurially programs
External Sources
Source of new product ideas; outside the company such as customers, competitors,
distributors, suppliers, and outside design firms
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Product Idea: Idea for a possible product that the company can see itself offering to the market
Product Concept: detailed version of the idea stated in meaningful consumer terms
Concept Testing: Testing new product concepts with groups of target consumers
Marketing Strategy Development: Initial marketing strategy for introducing the product to the
market
Marketing Strategy Statement: Description of the target market Value proposition Sales and
profits goals
Business Analysis: Review of the sales, costs, and profit projections to find out whether they
satisfy the company's objectives
Product Development: Creating and testing of one or more physical versions by the R&D or
engineering departments
Test Marketing: Stage at which the product and marketing program are introduced into more
realistic marketing settings; provides marketer with experience in testing the product an entire
marketing program before full introduction.
Customer-centered new product development: focuses on finding new ways to solve customer
problems and create more customer satisfying experiences; begins and ends with solving
customer problems
Sequential New Product Development: development approach where company departments
work closely together individually to complete each stage of the process before passing along
to the next department or stage
Fads: temporary periods of unusually high sales driven by consumer enthusiasm and immediate
product or brand popularity.
Introduction Stage: Slow sales growth. Little or no profit. High distribution and promotion
expense.
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Growth Stage: Sales increase New competitors enter the market. Price stability or decline to
increase volume. Consumer education profits increase. Promotion and manufacturing costs
gain economies of scale.
Maturity Stage: Slowdown in sales. Many suppliers Substitute products. Overcapacity leads to
competition. Increased promotion and R&D to support sales and profits.
Decline Stage: Maintain the product. Harvest the product. Drop the product.
Price: The amount of money charged or a product or service, or the sum of the values that
customers exchange for the benefits of having or using the product or service
Customer Value-Based Pricing: Setting price based on buyers' perceptions of value rather than
on the seller's cost
Good-Value Pricing: Offering just the right combination of quality & good service at a fair price
Value-Added Pricing: Attaching value-added features & services to differentiate a company's
offers & charging higher prices
Cost-Based Pricing: Setting prices based on the costs of producing, distributing, & selling the
product plus a fair rate of return for effort & risk
Fixed Costs (Overhead): Costs that don't vary w/ production or sales level
Total Costs: The sum of the fixed & variable costs for any given level of production
Experience Curve (Learning Curve): The drop in the average per-unit production cost that
comes w/ accumulated production experience
Customer Value-Based Pricing: setting price based on buyers' perception of value rather than
on the seller's cost, price is considered along with all other marketing mix variables before the
marketing program set
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Value-Added Pricing: attaching value-added features and services to differentiate a company's
offers and charging higher prices
Cost-Based Pricing: setting prices based on the costs of producing, distributing, and selling the
product plus a fair rate of return for effort and risk
Fixed Costs (Overhead): costs that do not vary with production or sales level
Variable Costs: costs that directly with the level of production
Price: The amount of money charged for a product or service. It is the sum of all the values that
consumers give up in order to gain the benefits of having or using a product or service.
Price Ceiling : No demand above this price
Price Floor: No profits below this price
Customer Value-Based Pricing: Setting price based on buyers' perceptions of value rather than
on the seller's cost
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Competition-Based Pricing: Setting prices based on competitors’ strategies, prices, costs, and
market offerings. Depends on how the consumer perceives the company provides customer
value compared to competitors.
If customers feels like a company provides more customer value than their competitors,
how should the company price whatever they offer?
the company must decide on its overall marketing strategy before setting price
Pricing strategy is largely determined by decisions on brand positioning
ex: Honda developed its Acura brand to compete with European luxury-performance cars & so
needed to to set prices in line with luxury performance cars
Objectives as strategy:
A firm can set prices to attract new customers or to profitably retain existing ones
keep the loyalty and support of resellers or to avoid government intervention
prevent competition
continue competing
Why would prices be reduced even the company still killing it?
Pricing decisions must be carefully coordinated with other marketing mix elements
Pricing decisions must be carefully coordinated with other marketing mix elements
includes target costing.
Target costing : pricing that starts with an ideal selling price, and then targets costs that will
ensure that the price is met. ex: When Honda set out to design the Fit, it began with a $13,950
starting point and 33-miles-per-gallon operating efficiency firmly in mind THEN, it designed a
stylish, peppy little car with costs that allowed it to give target customers those values.
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What does the marketing mix allow you to do instead of just tryin to sell at the lowest
price?
what are the important factors to consider when considering the market and demand to
price our products?
Market-skimming pricing (price skimming): setting a high price for a new product to skim
maximum revenues layer by layer from the segments willing to pay the high price; the company
makes fewer but more profitable sales
Market-penetration pricing: setting a low price for a new product in order to attract a large
number of buyers and a large market share
Product line pricing: setting the price steps between various products in a product line based on
cost differences between the products, customer evaluations of different features, and
competitors' prices
Optional-product pricing: the pricing of optional or accessory products along with a main
product
Captive-product pricing: setting a price for products that must be used along with a main
product, such as blades for a razor and games for a video-game console
By-product pricing: setting a price for by-products in order to make the main product's price
more competitive
Product-bundle pricing: combining several products and offering the bundle at a reduced price
Discount: a straight reduction in price on purchases during a stated period of time or of larger
quantities
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Allowance: promotional money paid by manufacturers to retailers in return for an agreement
to feature the manufacturer's products in some way
Segmented pricing: selling a product or service at two or more prices, where the difference in
prices is not based on differences in costs
Value Delivery Network: A network composed of the company, suppliers, distributors, &,
ultimately, customers who partner w/ each other to improve the performance of the entire
system in delivering customer value.
Marketing Channel (or Distribution Channel): A set of interdependent organizations that help
make a product or service available for use or consumption by the consumer or business user
Channel Level: A layer of intermediaries that performs some work in bringing the product & its
ownership closer to the final buyer
Channel Conflict: Disagreements among marketing channel members on goals, roles, &
rewards- who should do what & for what rewards
Vertical Marketing System (VMS): A channel structure in which producers, wholesalers, &
retailers act as a unified system. One channel member owns the others, has contracts w/ them,
or has so much power that they all cooperate
Corporate VMS: A vertical marketing system that combines successive stages of production &
distribution under single ownership- channel leadership is established through common
ownership
Contractual VMS: A vertical marketing system in which independent firms at different levels of
production & distribution join together through contracts
Upstream supply chain: set of firms that supply raw materials, compnents, parts, info, needed
to create a product or service; ideas, info, factory, logistics
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Set of interdependent organizations that help make a product or service available for
use or consumption by the consumer or business user
value delivery network: network composed of the company, suppliers, distributors, and
customers who parter with each other to improve the performance of the entire system in
delivering customer value
Channel level: a layer of intermediaries that performs some work in bringing the product and its
ownership closer to the final buyer
Direct marketing channel: no intermediary levels;
Production mix (marketing communications mix): the specific blend of promotion tools that the
company uses to persuasively communicate customer value and build customer relationships
Advertising: any paid form of nonpersonal presentation and promotion of ideas, goods, or
services by an identified sponsor
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Sales promotion: short-term incentives to encourage the purchase or sale of a product or a
service.
Personal selling: personal presentation by the firm's sales force for the purpose of engaging
customers, making sales, and building customer relationships
Public relations (PR): building good relations with the company's various publics by obtaining
favorable publicity, building up a good corporate image, and handling or heading off
unfavorable rumors, stories, and events
Direct and digital marketing: engaging directly with carefully targeted individual consumers and
customer communities to both obtain an immediate response and build lasting customer
relationships
Content marketing: creating, inspiring, and sharing brand messages and conversations with and
among consumers across a fluid mix of paid, owned, earned, and shared channels
Buyer-readiness stages: the stages consumers normally pass through on their way to a
purchase: awareness, knowledge, liking, preference, conviction, purchase
Personal communication channels: channels through which two or more people communicate
directly with each other, including face to face, on the phone, via mail or e-mail, or even
through an internet "chat".
Advertising: Is any paid form of non-personal presentation and promotion of ideas, goods, or
services by an identified sponsor
Advertising Strategy: Is the strategy by which the company accomplishes its advertising
objectives and consists of:
- Creating advertising messages
- Selecting advertising media
Message Strategy: Is the general message that will be communicated to consumers. - Identifies
consumer benefits.
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Major Advertising Decisions, Objectives Setting:
Sales object or a communication objective that are trying to boost sales or communicate a
message
Example: Old Spice trying to create a new image
Reach: Is a measure of the percentage of people in the target market who are exposed to the
ad campaign during a given period of time.
Frequency: Is a measure of how many times the average person in the target market is exposed
to the message
Personal Selling: Personal presentation by the firm's sales force for the purpose of making sales
and building customer relationships
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Sales force management: the analysis, planning, implementation, and control of sales force
activities. It includes designing sales force strategy and structure and recruiting, selecting,
training, supervising, compensating, and evaluating the firm's salespeople.
Territorial sales force structure: A sales force organization that assigns each salesperson to an
exclusive geographic territory in which that salesperson sells the company's full line
Product sales force structure: A sales force organization under which salespeople specialize in
selling only a portion of the company's products or lines
Customer sales force structure: A sales force organization under which salespeople specialize in
selling only to certain customers or industries
Outside sales force: Outside salespeople who travel to call on customers in the field.
Inside sales force: inside salespeople who conduct business from their offices via telephone, the
internet, or visits from prospective buyers.
Team selling: Using teams of people from sales, marketing, engineering, finance, technical
support, and even upper management to service large, complex accounts
Sales quota: A standard that states the amount a salesperson should sell and how sales should
be divided among the company's products.
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