CHAPTER 1 WHAT IS MARKETING Marketing: a term that describes the planning, pricing, distributing, and selling of a product or service

e Consumer Market: everyone who might buy a product Raw Materials: materials marketed to a business that will process them or use them in manufacturing Processed Goods: Products are sold as semi finished goods or finished goods Target Market: specific group of consumers that the marketer most wants to attract Marketing Concept: the idea held by a company about how to get people to use its product or service; as well as how to make the product or service better than its competitors while still meeting its own goals or priorities Tariffs: taxes on imported goods, increasing the price of these products Distribution Management: organizes marketing activities around the ways that the product or service will be delivered to the customer Value Equation: adds together all of the benefits of a product (real or not) and subtracts the costs involved in obtaining the product Push Strategy: sells the product to retailers, importers, or whole-salers, and not to end-use consumers Pull Strategy: attempts to increase consumer demand directly, rather than rely on retailers to sell the product to the customers

CHAPTER 2 Consumer: a person who uses a product Product Life Cycle: the way in which the demand for a product changes over time Shelf Allowance: money paid manufacturers to a retailer to provide shelf space for a new product; are controversial Fad: a product or service that is extremely popular for a very brief period of time; becomes unpopular just as quickly, vanishing soon from the marketplace Niche Markets: small section of the market that they dominate with products Trend: a mass movement toward a particular sale or value; can result in a number of products that take on a traditional PLC Consumer Segment: a group of consumers who share particular interests/buying habits Demographics: study of obvious characteristics that categorize people, including age, gender, family life cycle, income level, ethnicity and culture Baby Boomers: most important group to most businesses in Canada; born between 19461963 Family Life Cycle: A consumers stage in the family life cycle determines many of his or her wants, needs, and purchasing patterns Buying Process: the purchasing of a product that can be arranged in a hierarchy: Step 6: Evaluating the purchase Step 5: A purchase is made Step 4: A decision is made Step 3: Consumer searches for ideal product Step 2: Criteria for want is set Step 1: Create a want Industrial Consumer: People who are authorized to buy products and services for a company and have a different profile than nonindustrial consumers

CHAPTER 3 Free Market: market in which businesses can make a profit, which means that successful business people can keep some of the money they make; economic system Profit: the amount of money left over from the sale of goods or services after all expenses have been paid; the reward that an owner receives for taking risks Perfect Competition: a market characterized by a large number of small companies, none of whom have an opportunity for market control Monopolistic Competition: a market consisting of a large number of companies, each having an opportunity for a degree of market control Oligopoly: a market with a small number of large companies, each with a substantial amount of market control Monopoly: a market in which a single company has complete market control Research and Development: a department within a company that supports the creation of new products Direct Competition: when companies with products that are very similar are competing for the same market Indirect Competition: when companies with products are not similar but compete for the same consumer dollar Relationship Marketing: customer loyalty with a product or retailer, in which they will not consider another brand Competitive Market: all the products or services that compete with one another for consumers money in a specific category Market Share: percentage that one companys product takes of the total dollars spent by consumers on products within a specific market category; part that product controls Market Segment: part of the market defined by a specific characteristic

CHAPTER 4 Marketing Research: the collection and analysis of information that is used to solve a marketing problem or understand a potential market Hard Data: information that is supported by facts Secondary Data: information that has been gathered from sources that have been published or gathered previously Primary Research: research done by a researcher using primary data; original data to surveys. Two types: Qualitative and Quantative research Qualitative Research: researched about how people feel toward or think about a product Test Market: sites that mirror the demographic composition of the country as a whole Survey: a set of questions used to gather information about the consumer or potential consumers Observation: collecting information by watching the actions of people Focus Group: a group of people who are brought together to discuss a product or problem Consumer Research: all the efforts marketers use to determine peoples buying behaviors Product Research: research on the impact that a product might have on the market Margin of Error: a measure of the accuracy of a surveys results by examining the randomness of a survey

CHAPTER 5 Benefit Analysis: analyzing the benefits of product/service to the consumer Feasibility Study: a study to determine how well a potential product/service would work Invention: new devices, methods, or processes developed from study and experimentation Innovation: a product/service that uses new technology, items, or processes to change existing products, to change the methods used to produce products, or to change the ways used to distribute them Prototype: a sample of what a product might look like and how it might operate Information Utility: providing knowledge, facts, instructions, and technical support for a product that adds value to the product Place Utility: making the product accessible for the consumer, adds value Time Utility: providing the product in the market place when the consumer needs it, adds value Market Potential: a figure calculated to find out how many people might buy the product being marketed Marketing Opportunity Analysis (MOA): analysis of where in the market a product could fit, looking at three different areas: overall market, indirect competitors and direct competitors Test Marketing: a group of people the manufacturer or service provider wants to buy a product Product Launch: The moment when a new product is introduced into the marketplaceit is the birth of a new product

CHAPTER 6 Positioning: the attempt by a business to obtain a share of mind (or top of mind) awareness among target consumers Target Positioning: brands marketing focuses on a specific consumer segment Product Differentiation: how a company ensures that its products are seen as different from their competitors products Brand: a name, term, slogan, symbol, or design, or a combination of these things used to identify the product of one company and differentiate it from the competitors product Brand Name: Either corporate dominant or product dominant. - Corporate Dominant: brand names that contain the name of the manufacturer within the brand or product name - Product Dominant: brand names that use the name to connect the product with an aspect of the product they would like to emphasize Private Label: products manufactured by a well-known manufacturer and are labeled with the retailers brand Logo: a symbol used on a brands products; three forms include monogrammatic, visual, and abstract Slogan: a short, catchy, positive, and memorable phrase that is always attached to a products brand or logo Brand Extension: using an established brand to create a similar product Brand Equity: the positive reputation that a brand already has Co-Branding: When two or more companies or products agree to support one anothers brands in certain business ventures Licensing: one companys brand appears on another companys products Proprietary Design: the shape or color of a product or package that can only be used by the owner of that product

CHAPTER 7 Mark-up: the amount of money added to the original cost of the product to cover expenses and make a profit Margin: the percentage of the price of a product charged to the consumer that is not used to pay for the costs of the product Variable costs: costs that can go up or down depending on the amount of product made or services provided (e.g., cost of raw materials or packaging) Fixed Costs: costs that never change regardless of how many items are produced by a company. (e.g., the cost of renting the factory, salaries for the companys employees.) Break-even point: the number of a product that a company must sell to cover the costs of making and marketing that product Economies of Scale- the lover costs of production per unit achieved by producing more goods Price fixing; when competing businesses decide together what to charge consumers for a specific product Manufacturers suggested retail price (MSRP): a pre-printed price tag that tells both the store and the customer what the manufacturer wants the retailer to charge for the product Bait and switch: advertise at a lower price so consumers go to store (bait); then store tries to disparage sale and persuade consumer to buy more expensive product Market skimming: setting an initially high price for a product or service before competitors enter the market Marketing boards: organizations that market particular products, usually commodities (e.g., milk, wheat, eggs); funded by the people who produce these products Contribution margin: money left over after the variable costs have been paid. Profit: the amount of money left over from the sale of goods or services after all expenses have been paid; the reward that an owner receives for taking risks Break Even Point: the number of a product that a company must sell to cover the costs of making and marketing the product Gross profit: the amount of money made by a company after it subtracts the variable costs of that product from its selling price. Break-even point: the number of a product that a company must sell to cover the costs of making and marketing that product Retail price maintenance: the forcing of one company by another to charge a certain price for a product they have provided-an illegal practice Marketing boards: organizations that market particular products, usually commodities (e.g., milk, wheat, eggs); funded by the people who produce these products Price lining: putting all the products that are the same price together in a store

Chapter 8 Channels of Distribution: The path that products follow from production to their purchase and ownership by the consumer Logistics: The movement of a product through the channels of distribution Intermediaries: Businesses that take possession of goods, add a markup, and then resell them to other consumers Intensive Distribution: Products that are sold everywhere Selective Distribution: Companies that control the distribution of their product by selling it only in certain stores Direct Channel: Connect the producer with the consumer Importers: Negotiates an exclusive distribution deal with a foreign manufacturer or distributor Wholesalers: Buy products from domestic sources and resell them to retail stores or other businesses and industries Retailing: The selling of goods to the last person who will buy the product Specialty Channels: Distributing the product in a way other than selling it in a retail store Channel Captains: A dominant and controlling member of a distribution channel Free on Board (F.O.B.): The point at which the sellers responsibility for goods in shipment ends and the buyers responsibility for those goods begins

Chapter 9 - Advertising, Promotion and Sales Brand Awareness: bringing attention to a products potential on the market Endorsement: statement by a recognized celebrity that he or she uses the brand Copywriter: one who is responsible for creating the wording of the message SWOT Analysis: looking at the strengths/weaknesses of the brand, opportunities it has in the market and the threats from areas like competition Emotional Appeals: focusing on the consumers feelings Rational Appeals: focusing on the consumers reasoning abilities Direct-to-Home: advertising media that are targeted to consumers while at home Targeted Campaigns: advertising campaign targeted at specific type of consumer Publicity: media coverage of a business for which the business doesnt pay and can be positive/negative Press Releases: print-ready stories about the positive things done by the client Rebate: returns portion of full price