Chapter 8 E-Commerce Review

Final Exam Marketing Terms ReviewA carefully arranged sequence of promotions designed around a common theme responsive to specific objectivespromotional planA non paid form of communication about a business or organization (or its products and services) that is transmitted through a mass mediumpublicityA type of market in which there are a large number of suppliers offering very similar productspure competitionGroups or organizations from which people take their values and attitudesreference groupsA type of market in which the resources and decisions are shared between the government and other groups or individualsregulated economyNot relying on others for the things needed in order to surviveself-sufficientDirect, personal communications with prospective customers in order to assess needs and satisfy those needs with appropriate products and servicessellingThe quantity of a product that producers are willing and able to provide at a specific priceSupply

The graph of the relationship between price and quantity suppliedsupply curveThe use of currency as a recognized medium of exchangemoney systemMarket situation in which there are many firms competing with products that are somewhat differentmonopolistic competitionA type of market in which there is one supplier offering a unique productmonopolyAny paid form of non-personal communication sent through a mass medium by an organization about its products or services.AdvertisingInterpreting the message or symbols and converting them into concepts and ideasDecoding

The quantity of a product consumers are willing and able to purchase at a specific pricedemandSurvey questions that offer two or more choices from which respondents can select answers.closed-ended questionsA statement of responsibilities for honest and proper conductcode of ethicsA personalized presentation of the features of the marketing mix in a way that emphasizes the benefits and value to the customer sales demonstrationMethod of selling where a salesperson contacts a large number of people who are conveniently located, without knowing a great deal about each person contactedcold callingResults from changes in the tangible part of a product or serviceform utilityResources are owned by individuals rather than the government, and decisions are made independently with no attempt at regulation or control by the governmentfree economyThe transfer of a message from a sender to a receivercommunication processThe advantage provided to a customer as a result of a feature of the product.benefitA graph showing the relationship between a product's price and the quantity demandeddemand curveThe descriptive characteristics of a market such as age, gender, race, income, and educational leveldemographics

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.brandThe exchange of goods, services, information, or other business through electronic meanse-commerceAll of the consumers who will purchase a particular product or serviceeconomic marketExchanging products or services with others by agreeing on their values.BarteringThe 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.cookiesA part of the marketing mix that is the locations and methods used to make the product available to customersdistribution

People are sent to competitors' stores to determine products that are sold, prices charged, and services offeredcomparison shopping The government attempts to own and control important resources and to make the decisions about what will be produced and consumed.controlled economyThe quantity of a product that must be sold for total revenues to match total costs at a special price.breakeven pointCompany that completes most of its business activities by means other than the Internet.bricks and mortar businessThe organized actions of groups of consumers seeking to increase their influence on business practicesconsumerismScheduling an advertisement regularly throughout the year; a common timing technique for products that do not have seasonal swings.continuityA business company that does almost all of its business activities through the Internet dot.com

The study of consumers and how they make decisionsconsumer behavior

The amount of satisfaction a consumer receives from the consumption of a particular product or serviceeconomic utilityA 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 experienceculture

Reasons to purchase based on feelings, beliefs, or attitudesemotional motivesPutting the message into language or symbols that are familiar to the intended receiver entrepreneur someone who takes the risk to start a new businessencodingDecisions and behavior based on honest and fair standardsethicsTightly 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 organizationexternalA description of a product characteristicfeatureThe receiver's reaction or response to the source's messagefeedback Buyer of a product or service for personal usefinal consumerA small number of people brought together to discuss identified elements of an issue or problem focus groupMaking contact with the customer after the sale to ensure satisfaction._follow-upIncreasing economic utility by changing the tangible parts of a product or serviceform utilityPerson-to-person communication with potential customers in an effort to inform, persuade, or remind them to purchase an organization's products or servicespersonal sellingA well-defined, enduring pattern of behaviorpersonalityThe decision processes and actions of consumers as they buy and use services and products.buying behaviorThe reasons that consumers buy products.buying motives

The total revenue that can be obtained from the market segmentmarket potentialA part of the marketing mix that is the locations and methods used to make the product available to customersdistributionThe point where supply and demand for a product are equalmarket priceA group of individuals or organizations within a larger market that share one or more important characteristicsmarket segmentThe portion of the total market potential that each company expects to get in relation to its competitorsmarket shareThe creation and maintenance of satisfying exchange relationshipsmarketingUsing 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 appealTarget marketSpecific cities or geographic areas in which marketing experiments are conductedtest marketsOne 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 demandedlaw of demandWhen the price of a product is increased, more will be produced, and when the price is decreased, less will be producedlaw of supply An organized method of collecting, storing, analyzing, and retrieving information to improve the effectiveness and efficiency of marketing decisionsmarketing information systemAll 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 businessmarketing mixA procedure designed to identify solutions to a specific marketing problem through the use of scientific problem-solvingmarketing researchAn amount added to the cost of a product to determine the selling pricemarkupCommunicating to huge audiences, usually through mass media such as magazines, radio, television, or newspapersmass communicationThe information that goes into the system that is needed for decision-makinginputThe service cannot be touched, seen, tasted, heard, or feltintangibleInformation developed from activities that occur within the organizationinternal informationAdvertisers increase their advertising efforts during a specific period of time and decrease or even withdraw their advertising during another period of timepulsingStudy of relationships between individual consumers and producersmicroeconomicsA business owned and operated by two or more people who share in the decision-making and profitability of the companypartnershipBuying motives based on loyaltypatronage motivesThe lifestyle, values, and beliefs that are common to a group of peoplesocial classConcern about the consequences of actions on societysocial responsibilityConcentrating effort on one or a few related activities so that they can be done wellspecialization of laborOffering additional products and services after an initial sale in order to increase customer satisfactionsuggestion sellingThe study of the economic behavior and relationships of the entire societyMacroeconomicsThe money received from the sale of products and servicesRevenueTaking personal responsibility for actions self-regulation

Making products and services available where the consumer wants themplace utilityAll of the people in the group the company is interested in studyingpopulationThe source or originator of the message in the communication processsenderActivities that are intangible, exchanged directly from producer to consumer, and consumed at the time of productionservicesResults from making the product or service available when the customer wants ittime utilityA type of survey question that allows respondents to develop their own answers without information about possible choicesopen-ended questionInterference that can cause the message to be interpreted by the receiver incorrectlynoiseThe person or persons to whom the encoded message is directedreceiverExperiments operated in laboratories where researchers create the situation to be studiedsimulationsA reduction from the original selling price market the description of the prospective customers a business wants to serve and the location of those customersmarkdownAds designed to promote ideas, images, and issues associated with a company or organizationorganizational advertisingServices unused in one time period cannot be stored for use in the futureperishableA procedure in which everyone in the population has an equal chance of being selected in the samplerandom samplingBuying motives based on facts or logicrational motivesA planned set of questions to which individuals or groups of people respondSurvey

An unfulfilled desirewantResults from the affordability of the product or servicepossession utilityInformation collected for the first time to solve the problem being studiedprimary dataa market situation in which independent decisions are made by businesses and consumers with only a limited government role regulating those relationshipsprivate enterpriseanything offered to a market by a business to satisfy needs, including physical products, services, and ideasproductused by organizations to sell specific productsproduct advertisingA decision to use resources in a way that results in the greatest profit for the producerprofit motiveAny form of communication used to inform, persuade, or remind consumers about an organization's goods or servicespromotionA blend of the promotional elements of advertising, personal selling, publicity, and sales promotion into a strategy for delivering a message to the target marketpromotional mixActivities or materials that offer consumers a direct incentive to buy a good or servicesales promotionsUnlimited wants and needs, combined with limited resourcesscarcityInformation already collected for another purpose that can be used to solve the current problemsecondary dataWhat are the 4 parts of the Marketing Mix?Product PricePlace Promotion What are the 4 parts of the Promotional Mix?AdvertisingPromotion PublicityPersonal 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 largeResearch 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 productsYou may not reach your target marketNo personal face to face contactThe product received may not be what was expectedStoreAnnual SalesKmart$2,500,000.00Target$3,200,000.00Walmart$4,200,000.00What is the market potential?(add up ALL the sales)$9,900,000.00What is Targets Market Share?(take the stores sales divided by market potential, then change to percent)$3,200,000.00/$9,900,000 = .32332%

Frostys 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 AdvertisementProfit (Sell price cost) $500(2.50-1.05)=$1.45344.8 = 345 banana splits must be sold in order to make up the cost of the advertisement