10 things Flashcards
Target marketing
A marketing mix that is tailored to fit some specific target customers
Segmentation
An aggregating process that clusters people with similar needs into a market segment
Positioning
An approach that refers to how customers think about proposed or present brands in a market
Differentiation
The marketing mix is distinct from and better than what’s available from a competitor
Customer Satisfaction
The extent to which a firm fulfills a consumer’s needs, desires, and expectations
Micro-macro dilemma
What s good for some producers and consumers may not be good for society as a whole
Why is customer satisfaction important in the U.S.?
Our basic objective of our market-directd economic system has been to satisfy consumer nees as they, the consumers, see them
This objective implies that political freedom and economic freedom go hand in hand and that citizens in a free society have the right to live as they choose
Why should you get your customers to complain?
Majority of customer complaints are never reported
Many complaints that are reported never get fully resolved
Pricing objectives
Pricing oriented
sales oriented
status quo oriented
Profit oriented pricing objetive
Target return
Maximize profits
Sales oriented pricing objective
Dollar or unit sales growth
Growth in market share
Status quo oriented pricing objective
Meeting competition
Nonprice competition
One price policy
Makes pricing easier
Competitors can easily undercut if price is high
Flexible-price policy
Frequent changes to prices are easier
Can lead to a lower price and lower profit
comomon in business products and at retail for expensive shopping products
People can get unhappy if other customers paid cheaper
can increase selling costs and frustrate customers
Skimming pricing policy
Trie to sell the top of the market at a high price before aiming at more price-senstive customers
situation: if few substitutes or if customers are not price sensitive
when you dont know much about the demand curve
Penetration pricing policy
Tries to sell the whole market at one low price
Used for elite market is small
if selling large quantities results in lower costs because of economies of scale
if firm expects strong competition very soon after introduction
Geographic pricing
FOB
Zone pricing
Uniform delivered pricing
Freight absorption pricing
Relationship between stockturn and markup
IF people can sell a much greater amount in the same time period the may be able to take a lower markup and still earn a higher profits
increasing their stockturn rate
Factors that affect sensitivity
When customers have substitute ways of meeting a need they are likely to be more price sensitive
compare prices
People are less price senstive when someone else pays the bill or share sthe cost
custoemers are more price senstive the greater the total expenditure
less price sensitive th egreater the significance of the end benefit of the purchase
Retailer’s “whole” offer
Convenience
Product selection
Special services
Fairness in dealings
Helpful information
Prices
social and emotial needs: social image, shoppng atmosphere
single line/limited line store
Stores that specialize in certain lines of related products rather than a wide assortment
First year failiure rates of retailers
3/4 of new retailing ventures fail during the first year
Expanded asortment and service
Specialty shops and department stores
Expanded assortment and/or reduced margins and service
Supermarkets, discount hoouses, superstores, club stores
