BUSI 406 - Principles of Marketing (Final Exam)

Chapter 8: Product

Definition and Consumer Perception

• Product: Need-satisfying offering of a firm.
• Viewed by consumers in terms of total satisfaction, including customer service and warranty.

Quality and Services

• Quality: Product's ability to satisfy customer needs.
• Services are intangible, requiring referrals and cues (e.g., diplomas for lawyers).
• Service quality can vary and services are perishable.

Product Assortment

• Product Assortment: All product lines and individual products a firm sells.
• Product Line: Closely related individual products.
• Individual Product: Single product within a line.

Branding

• Branding uses names, symbols, or designs to identify a product.
• Brand Name: Word or symbol representing a brand.
• Trademark: Legally registered brand sign.
• Successful branding conditions include easy labeling, quality maintenance, and economies of scale.

Brand Familiarity and Equity

• Levels: Rejection, Non-recognition, Recognition, Preference, and Insistence.
• Brand Equity: Brand's market strength.
• Lanham Act: Protects brand marks.

Types of Brands

• Family Brand: Same name for various products.
• Licensed Brand: Use of a brand for a fee.
• Individual Brand: Unique names for products.
• Generic Products: No brand, low price.
• Manufacturer vs. Dealer Brands: Created by producers vs. intermediaries.

Packaging and Warranties

• Packaging: Promotes, protects, and enhances products.
• Warranties: Seller promises regarding the product, influenced by the Magnuson-Moss Act.

Consumer vs. Business Products

• Consumer Products: For final consumers.
• Business Products: For production use.
• Consumer product classes: Convenience, Shopping, Specialty, Unsought.

Chapter 9: Product Life Cycle

Stages and Marketing Mix

• Four Stages: Market introduction, Growth, Maturity, and Decline.
• Marketing mix changes throughout lifecycle.

New Product Development Process

1. Idea Generation
2. Screening
3. Idea Evaluation
4. Development
5. Commercialization

Management and Quality

• Total Quality Management (TQM): Organization-wide quality concern.
• Empowerment: Giving employees problem-solving authority.

Chapter 10: Place

Distribution Channels

• Direct vs. Indirect Distribution
• Regrouping Activities: Accumulating, Bulk-breaking, Sorting, and Assorting.
• Channel Conflicts: Vertical and Horizontal.
• Channel Captain: Manages channel activities.

Market Exposure

• Types: Intensive, Selective, and Exclusive Distribution.
• Multichannel Distribution: Using multiple competing channels.

International Market Strategies

• Exporting, Licensing, Management Contracting, Joint Ventures, Direct Investment.

Chapter 11: Logistics

Physical Distribution

• Customer Service Level: Delivery speed and reliability.
• Total Cost Approach: Evaluating distribution systems.
• Supply Chain: Complete firms and logistics activities.

Transporting and Storing

• Transport methods: Rail, Truck, Water, Containerization.
• Storing: Holding goods for availability.

Chapter 12: Retailing

Retail Formats

• Types: General Stores, Specialty Shops, Department Stores, Supermarkets, Mass-merchandisers.
• Wheel of Retailing Theory: Evolution of retail strategy.

Wholesaling

• Wholesalers: Do not sell in large amounts to final consumers.
• Types: Service Wholesalers, Limited-function Wholesalers.

Chapter 13: Promotion

Methods and Strategies

• Personal Selling: Direct communication.
• Mass Selling: Advertising and Publicity.
• Sales Promotion: Stimulates purchases.

Promotion Management

• Integrated Marketing Communications: Consistency across all communication.
• Promotion Objectives: Informing, Persuading, Reminding.

Chapter 14: Personal Selling

Roles and Tasks

• Basic Tasks: Order-getting, Order-taking, Supporting.
• Selling Approaches: Consultative and Selling Formula.

Chapter 15: Advertising

Objectives and Strategies

• Advertising Objectives: Specific targets.
• Product Advertising vs. Institutional Advertising.
• Media Selection: Target audience considerations.

Regulation

• Federal Trade Commission (FTC): Controls unfair practices.

Chapter 16: Pricing

Policies and Strategies

• Pricing Objectives: Target Return, Profit Maximization, Sales Oriented.
• Price Flexibility and Discounts: Quantity, Seasonal, Cash Discounts.
• Allowances: Advertising, Stocking, Push Money.

Legal and Ethical Considerations

• Unfair Practices: Price Fixing, Discrimination.

Chapter 17: Cost and Demand Oriented Pricing

Markup and Analysis

• Markup: Cost-to-selling price additions.
• Break-even Analysis: Cost vs. revenue evaluation.
• Marginal Analysis: Price and quantity profitability.