Transcript Chapter 8 E-Commerce Review

 A carefully arranged sequence of
promotions designed around a
common theme responsive to
specific objectives
 promotional plan
 A non paid form of communication
about a business or organization (or
its products and services) that is
transmitted through a mass medium
 publicity
A type of market in which
there are a large number of
suppliers offering very similar
products
pure competition
 Groups or organizations from which
people take their values and
attitudes
reference groups
 A type of market in which the
resources and decisions are shared
between the government and other
groups or individuals
regulated economy
Not relying on others for the
things needed in order to survive
self-sufficient
Direct, personal communications
with prospective customers in
order to assess needs and satisfy
those needs with appropriate
products and services
selling
The quantity of a product that
producers are willing and able to
provide at a specific price
Supply
The graph of the relationship
between price and quantity
supplied
supply curve
The use of currency as a recognized
medium of exchange
 money system
Market situation in which there are
many firms competing with products
that are somewhat different
 monopolistic competition
A type of market in which there is one
supplier offering a unique product
 monopoly
Any paid form of non-
personal communication sent
through a mass medium by an
organization about its
products or services.
Advertising
 Interpreting the message or symbols
and converting them into concepts
and ideas
Decoding
 The quantity of a product consumers
are willing and able to purchase at a
specific price
demand
Survey questions that offer
two or more choices from
which respondents can select
answers.
closed-ended questions
A statement of
responsibilities for honest and
proper conduct
code of ethics
A personalized presentation
of the features of the
marketing mix in a way that
emphasizes the benefits and
value to the customer
 sales demonstration
Method of selling where a
salesperson contacts a large
number of people who are
conveniently located, without
knowing a great deal about
each person contacted
cold calling
Results from changes in the
tangible part of a product or
service
form utility
Resources are owned by
individuals rather than the
government, and decisions are
made independently with no
attempt at regulation or control
by the government
free economy
The transfer of a message
from a sender to a receiver
communication process
The advantage provided to
a customer as a result of a
feature of the product.
benefit
A graph showing the relationship
between a product's price and the
quantity demanded
demand curve
The descriptive characteristics of a
market such as age, gender, race,
income, and educational level
demographics
 An organized effort to influence a
company by refusing to purchase its
products.
 Boycott
 A name, symbol, word, or design that
identifies a product, service, or
company.
 brand
The exchange of goods,
services, information, or other
business through electronic
means
e-commerce
All of the consumers who will
purchase a particular product
or service
economic market
Exchanging products or
services with others by
agreeing on their values.
Bartering
The practice of combining the
price of several related services.
Bundling
Buyer of goods and services to
produce and market other goods
and services or for resale.
business consumer
Small files that a web server
sends to your browser when
you access a site.
cookies
A part of the marketing
mix that is the locations
and methods used to make
the product available to
customers
distribution
People are sent to competitors' stores
to determine products that are sold,
prices charged, and services offered
comparison shopping
The government attempts to own and
control important resources and to
make the decisions about what will be
produced and consumed.
controlled economy
The quantity of a product that
must be sold for total revenues to
match total costs at a special price.
breakeven point
 Company that completes most of
its business activities by means
other than the Internet.
bricks and mortar business
 The organized actions of groups of
consumers seeking to increase their
influence on business practices
 consumerism
 Scheduling an advertisement
regularly throughout the year; a
common timing technique for
products that do not have seasonal
swings.
 continuity
A business company that
does almost all of its
business activities through
the Internet
dot.com
The study of consumers
and how they make
decisions
consumer behavior
The amount of satisfaction a
consumer receives from the
consumption of a particular
product or service
economic utility
A business owned by people who
purchase stock in the company,
granted a charter by the state in
which they are formed.
Corporation
The common beliefs and
behaviors of a group of people
who have a similar heritage and
experience
culture
Reasons to purchase based on
feelings, beliefs, or attitudes
emotional motives
Putting the message into
language or symbols that are
familiar to the intended receiver
entrepreneur someone who takes
the risk to start a new business
encoding
Decisions and behavior based on
honest and fair standards
ethics
Tightly controlled situations in
which all important factors are
the same except the one being
studied
experiments
Information provides an
understanding of factors outside
of the organization
external
A description of a product
characteristic
feature
The receiver's reaction or
response to the source's message
feedback
Buyer of a product or service
for personal use
final consumer
A small number of people
brought together to discuss
identified elements of an issue
or problem
focus group
Making contact with the
customer after the sale to
ensure satisfaction._
follow-up
Increasing economic utility by
changing the tangible parts of
a product or service
form utility
Person-to-person communication
with potential customers in an effort
to inform, persuade, or remind them
to purchase an organization's
products or services
personal selling
A well-defined, enduring pattern of
behavior
personality
The decision processes and
actions of consumers as they
buy and use services and
products.
buying behavior
The reasons that consumers
buy products.
buying motives
The total revenue that
can be obtained from
the market segment
market potential
A part of the marketing
mix that is the locations
and methods used to make
the product available to
customers
distribution
 The point where supply and demand
for a product are equal
market price
 A group of individuals or organizations within a larger market that
share one or more important
characteristics
market segment
 The portion of the total market
potential that each company expects
to get in relation to its competitors
market share
The creation and maintenance of
satisfying exchange relationships
marketing
Using the needs of customers as the
primary focus during the planning,
production, distribution, and
promotion of a product or service
marketing concept
 A clearly identified segment of the market
to which the company wants to appeal
Target market
 Specific cities or geographic areas in which
marketing experiments are conducted
test markets
 One idea, appeal, or benefit around which
all advertising messages in a plan revolve
theme
When the price of a product is
increased, less will be demanded, and
when the price is decreased, more
will be demanded
law of demand
When the price of a product is
increased, more will be produced,
and when the price is decreased, less
will be produced
law of supply

An organized method of collecting, storing,
analyzing, and retrieving information to improve
the effectiveness and efficiency of marketing
decisions
marketing information system
 All of the tools or activities available to
organizations to be used in meeting the needs of
a target market; the blending of the four
marketing elements (product, distribution,
price, and promotion) by a business
marketing mix
A procedure designed to identify
solutions to a specific marketing
problem through the use of
scientific problem-solving
marketing research
An amount added to the cost of a
product to determine the selling
price
markup
Communicating to huge
audiences, usually through mass
media such as magazines, radio,
television, or newspapers
mass communication
The information that goes into the
system that is needed for decisionmaking
input
The service cannot be touched,
seen, tasted, heard, or felt
intangible
Information developed from
activities that occur within the
organization
internal information
Advertisers increase their
advertising efforts during a
specific period of time and
decrease or even withdraw their
advertising during another
period of time
pulsing
Study of relationships between
individual consumers and
producers
microeconomics
A business owned and
operated by two or more
people who share in the
decision-making and
profitability of the company
partnership
Buying motives based on
loyalty
patronage motives
 The lifestyle, values, and beliefs that
are common to a group of people
social class
 Concern about the consequences of
actions on society
social responsibility
 Concentrating effort on one or a few
related activities so that they can be
done well
specialization of labor
Offering additional products and
services after an initial sale in
order to increase customer
satisfaction
suggestion selling
The study of the economic
behavior and relationships
of the entire society
Macroeconomics
The money received from the
sale of products and services
Revenue
Taking personal responsibility
for actions
self-regulation
Making products and services
available where the consumer
wants them
place utility
All of the people in the group the
company is interested in
studying
population
 The source or originator of the
message in the communication
process
sender
 Activities that are intangible,
exchanged directly from producer to
consumer, and consumed at the time
of production
services
Results from making the
product or service available
when the customer wants it
time utility
 A type of survey question that allows
respondents to develop their own
answers without information about
possible choices
open-ended question
Interference that can cause the
message to be interpreted by the
receiver incorrectly
noise
The person or persons to
whom the encoded message is
directed
receiver
Experiments operated in
laboratories where researchers
create the situation to be studied
simulations
A reduction from the original
selling price market the
description of the prospective
customers a business wants to
serve and the location of
those customers
markdown
Ads designed to promote
ideas, images, and issues
associated with a company or
organization
organizational
advertising
Services unused in one time
period cannot be stored for
use in the future
perishable
A procedure in which everyone in
the population has an equal
chance of being selected in the
sample
random sampling
Buying motives based on facts or
logic
rational motives
A planned set of questions to
which individuals or groups of
people respond
Survey
An unfulfilled desire
want
Results from the affordability of
the product or service
possession utility
Information collected for the first
time to solve the problem being
studied
primary data
 a market situation in which independent
decisions are made by businesses and consumers with only a limited government role
regulating those relationships
 private enterprise
 anything offered to a market by a business
to satisfy needs, including physical
products, services, and ideas
 product
 used by organizations to sell specific
products
 product advertising
 A decision to use resources in a way that results in
the greatest profit for the producer
profit motive
 Any form of communication used to inform,
persuade, or remind consumers about an
organization's goods or services
promotion
 A blend of the promotional elements of
advertising, personal selling, publicity, and sales
promotion into a strategy for delivering a message to the target market
promotional mix
 Activities or materials that offer
consumers a direct incentive to buy a
good or service
sales promotions
 Unlimited wants and needs,
combined with limited resources
scarcity
 Information already collected for
another purpose that can be used to
solve the current problem
secondary data
What are the 4 parts of the
Marketing Mix?
Product
Price
Place
Promotion
What are the 4 parts of the
Promotional Mix?
Advertising
Promotion
Publicity
Personal Selling
Please list the 3 stages of web development and
what a web site in each stage would provide.
Information – gives just address, phone and basic
company info.
Interaction – you can email/communicate with
company.
Integration – you can order product, check shipping
and get questions answered about anything they sell.
From our notes, what are two advantages of the
Internet?
 Small businesses can compete with large
 Research products well
 Cost to advertise is low compared to print, tv, radio
From our notes, what are two disadvantages of the
Internet?
 Your competition can see all your products
 You may not reach your target market
 No personal face to face contact
 The product received may not be what was
expected
Store
Annual Sales
Kmart
$2,500,000.00
Target
$3,200,000.00
Walmart
$4,200,000.00
What is the market potential?
(add up ALL the sales)…$9,900,000.00
What is Target’s Market Share?
(take the stores sales divided by market potential, then
change to percent)
$3,200,000.00/$9,900,000 = .323…32%
Frosty’s decided to spend $500 to
advertise their Banana Splits in the
Lancaster Bee. The ingredients cost
$1.05 and they sold them for $2.50.
What was the break even point?
Cost of Advertisement
Profit (Sell price – cost)
344.8 = 345 banana splits must be
$500
sold in order to make up the cost of
(2.50-1.05)=$1.45 the advertisement