AAA FINAL Flashcards
1
Q
What was the recomendation for Nike
A
diversification: new products, new markets
2
Q
nike wrist, promotion strategy
A
mostly social media
3
Q
Nike wrist thing pricing strategy
A
prestige
4
Q
Nike product modifications
A
Heart rate chest strap, upgraded actimetry sensor(track sleep and REM)
5
Q
Threats to gopro
A
smartphones
6
Q
gopro promotion
A
social media, celebrity endorsements
7
Q
Gopros recommended strategy
A
Market Development
8
Q
Gopros new strategy plan
A
professional medical use,
9
Q
energizer product recomendations
A
offer customization, engraving, partner with cell phone brands
10
Q
energizer distribution recomendations
A
Expand to cell phone carrier stores
11
Q
energizer promotion strategy
A
advertise on public trans, on smarphone apps
12
Q
Four I’s of service
A
intangibility, inconsistency, inseparability, inventory
13
Q
Idle Production Capacity
A
when the service provider is available but there is no demand for the service
14
Q
gap analysis
A
analyzing the difference between consumers’ expectations and experience
15
Q
off peak pricing
A
charging different prices during diff times of day to match variations in demand
16
Q
internal marketing
A
based on the notion that a service org. must focus on its employees or internal market before successful programs can be directed at customers.
17
Q
Customer experience managment
A
the process of managing the entire customer experience with the company.
18
Q
Value
A
the ratio of precieved benefits to price or value
19
Q
Value-Pricing
A
the practice of simultaneously increasing product and service benefits while maintaining or decreasing price
20
Q
Profit Equation
A
profit=total revenue-total cost= (unit price*quantity sold)+(Fixed cost + variable cost)
21
Q
pricing objectives
A
specifying the role of price in an organizations marketing and strategic plans
22
Q
Pricing constraints
A
factors that limit the range of prices a firm may set
23
Q
pure competition
A
set by marketplace
24
Q
monopolistic competition
A
price competition exists
25
oligopoly
avoids competition
26
pure monopoly
no price competition at all
27
Total revenue
total money recieved from the sale of a product. The unit price *quantity
28
Average revenue
is the average amount of money received for selling one unit of a product, or simply the price of that unit. Average revenue is the total revenue divided by the quantity sold:
AR=(TR)/Q = P
29
Marginal Revenue(MR)
is the change in total revenue that results from producing and marketing one additional unit of a product
30
Price Elasticity of Demand
percent change in quantity demand relative to a percent change in price
31
Elastic Demand
when a 1 percent decrease in price produces more than a 1% increase in quantity demanded (increasing sales revenue)
32
Inelastic Demand
exists when a 1 percent decrease in price produces less than a 1% increase in quantity demanded (decreasing sales revenue)
33
Unitary Demand
exists when the % change is identical
34
Total cost
total expense incurred by a firm in producing/marketing a product
35
fixed cost
sum of the expenses of the firm that are stable and do not change with quantity
36
variable cost
sum of expenses of the firm that vary with quantity
37
marginal analysis
people will continue to do something as long as the incramental return exceeds the incremental cost
38
break even analysis
analyzes the relationship between total revenue and total cost to determine profitability at various levels of output
39
break even point
quantity at which total revenue = total cost
40
skimming pricing
setting the highest initial price that customers really wanting the product are willing to pay. As the demand for the customers who really want decrease, firm decreases the price to satisfy other customers
41
when is skimming pricing effective
- customer willing to buy immediately
- the high initial price wont attract competitors
- lowering price only has a minor effect on increasing sales volume
- customers interpret high price as high quality
42
Penetration Pricing
setting low initial price to appeal immpediately to mass market
43
When is penetration pricing effective
- market is price sensitive
- low initial price discourages competitors
- unit production and marketing costs fall dramatically as production volumes increase
44
Prestige pricing
setting high price so quality concious consumers attracted to it
45
price lining
firm that offer a line of product may price them at a number of diff pricing points
46
target pricing
deliberately adjusting the consumption and features of a product to achieve the target price
47
standard markup pricing
adding fixed percentage to the cost of all items in a specific product class. Used when lots of products.
48
Cost Plus Pricing
summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price
49
Target profit pricing
set an annual target of a specific dollar volume of profit
50
target return on sales pricing
set typical prices that will give them a profit that is a specified precentage
51
customary pricing
for products where tradition/standardized channel of distribution/competitive factors dictate the price
52
loss-leader pricing
not to increase sales but to attract customers in hopes they will buy other products as well
53
one-price policy
fixed pricing- setting one price for all buyers of a product or service
54
Flexible price policy
dynamic pricing- involves setting different prices for products/services depending on individual buyers and purchase situations
55
product line pricing
the setting of prices for all items in a product line. Make product on line as a whole not neccisarily each item
56
Quantity discounts
reductions in unit costs for a larger order
57
Trade discounts
to reward wholesalers/retailers for marketing functions they will preform in future
58
cash discounts
to encourage retailers to pay bills quickly
59
trade in allowances
price reductions given when a used product is part of payment
60
promotional allowances
money off for undertaking certain advertising or selling activities to promote a product
61
Everyday low pricing
practice of replacing promotional allowances with lower manufactures list prices
62
price fixing
illegal. Conspiracy among firms to set prices for a prdocut
63
price discrimination
illegal in most cases- practice of charging different prices to different buyers.
64
marketing channel
individuals and firms involved in the process of making a product or service available for use or consumption
65
transactional function of intermediaries
intermediaries buy and sell products and services. Shares risk with the producer.
66
direct channel
producer and ultimate consumer deal with eachother directly
67
Indirect channel
intermediaries are inserted between producer/consumer. Preform numerous channel functions
68
dual distribution
an arrangement where a firm reaches different segments of buyers by employing 2+ different types of channels for the same basic product.
69
strategic channel alliance
where one firms marketing channel is used to sell another firms products
70
vertical marketing systems
professional managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact
71
corporate vertical marketing system
combination of successive stages of production and distribution under a single ownership.
72
forward integration
firms owning intermediary at next level down
73
backward integration
when a retailer owns a manufacturing facilities
74
contractual vertical marketing system
independent product and distribution firms integrate their efforts on a contract to obtain greater marketing impact
75
wholesaler sponsored voluntary chains
wholesaler develops a contractual relationships with small independent retailers to standardize and coordinate buying practices
76
retail sponsored cooperatives
when small independent retailers form an organization that operates a wholesale facility cooperatively.
77
Manufacturer Sponsored- retail franchise systems
prominent in automobile. Manufacturer licenses dealers to sell item subject to various sales and service conditions.
78
Manufacturer Sponsored Wholesale Franchise Systems
- in soft drink industry. Where pepsi licenses wholesalers(bottlers) that purchase concentrate from pepsie and then carbonate, bottle, promote and distribute its products.
79
intensive distribution
firm tries to pace its products in as many outlets as possible. Usually chosed for convenience products
80
exclusive distribution
opposite of intensive distribution b/c the firm selects only one retailers in a specific geographical area
81
selective distribution
lies between intensive and exclusive. Firm selects a few retailers
82
channel conflict
when one channel member believes anither channel is engaged in behavior that prevents it from achieving its goals
83
vertical conflict
occurs between different levels in a marketing channel
84
disintermediation
when a channel member bypasses another
85
horizonal conflict
occurs between intermediaries at the same level
86
dual distribution
when a manufacturer distributes through its own vertically integrated channel in competition with independent wholesalers are retailers that also sell its products
87
retailing
all activities involved in selling renting and providing products and services to ultimate consumers
88
form of ownership
distinguishes outlets based on independent/corporate or contractual
89
level of service
describes the degree of service provided to the customer
90
independent retailer
owned just by an individual
91
corporate chain
multiple outlets under common ownership
92
contractual systems
involve indecently owned stores banded together like a chain
93
business-format franchises
like McDonalds, subway... Franchisor gives the whole layout and step by step procedures
94
product distribution franchises
ford dealerships, coca cola
95
self service
customers preform many functions during the purchase process
96
limited service
provide some services like credit/merchandise return
97
full service
provide everything to their customers
98
depth of product line
store carries large assortment of each item such as shoe store that offers running shoes, dress shoess...
99
breadth of product line
variety of different items a store carries
100
general merchandise stores
broad product line, limited depth
101
scrambled merchandising
offering several unrelated product lines in a single sotre
102
central business district
oldest retail setting, the communities downtown area
103
regional shopping centers
50-150 stores in an area
104
community shopping centers
20-50 smaller outlets
105
strip mall
composition less planned then malls
106
power center
huge shoopping strip with many anchor stores
107
shopper marketing
the use of displays coupons product samples and other brand communications to influence shopping enviroment
108
advertising
any paid forms of nonpersonal communication about an organization, product, servicce or idea by an identified sponsor.
109
personal selling
the two way flow of communications between a buyer and seller designed to influence a person's or group's purchase decision. Ususally face to face. No wasted coverage. Less consistent
110
push strategy
directing the promotional mix to channel members to gain their cooperation in ordering/storcking the product. Pushing product through channel, push to customers
111
pull strategy
consumers encourage retailers
112
precentage of sales promotion budget
funds are allocated to promotion as percentage of past or anticipated sales in terms of either dollars or units sold. Downside: lower sales shouldn’t always mean lower promotion
113
competitive parity
is matching the competitors absolute level of spending or the proportion per point of market share.
114
allyou can afford promotion budget
money allocated to promtion only after all other budget items are covered,
115
objective and task promition budget
Best approach. Company determines its promotion objectives, outlines the tasks it will undertake to accomplish those objective and determines the promotion cost of preforming those tasks.
116
lead generation
the result of an offer designed to generate interest
117
traffic generation
the outcome of an offer designed to motivate people to visit a business
118
pioneering advertisments
used in introductory stage. Tells what it is, what it can do, where to find it
119
Competitive advertisimnets
advertising that promotes a specific brands features and benefits. Persuade target market to buy this brand rather than other
120
Comparative advertising
shows one brands strength relative to those of competitors
121
reminder
used to reinforce previous knowledge of a product
122
reinforcement
assure current users they aredoing the right thing
123
advocacy ad
state the position of the company on an issue
124
Reach
number of people exposed to an ad
125
rating
% of households tuned in
126
frequency
when you reach a household
127
gross rating points
reach*frequency
128
cost per thousand
cost of reaching 1,000
129
wasted coverage
reach of people outside the market
130
buyer turnover
how often buyers enter the market
131
continuous advertising schedule
when seasonal factors are unimportant, advertising is run at a continuous or stead schedule thought the year
132
Flighting(intermittent) schedule
periods of advertising are scheduled between periods of no advertising to reflect seasonal demand
133
Pules (burst) schedule
a flighting schedule is combined with continuous because of increases in demand. Heavy period of promotion, or introduction of a new product.
134
portfolio tests
to test copy alternatives. The test ad is placed in a portfolio with several other ads and stories and consumers are asked to read through. After the subjects asked for impressions of the ads.
135
Jury Test
show the ad copy to a panel of consumers and having them rate how they liked it how much it drew their attention and how attractive they though it was.
136
Theater tests
most sophisticated. Consumers are invited to view new TV shows or movies in which test commercials are also shown viewers register their feelings about the ads either on handheld electronic recording devices used during the viewing or on questionnaires after.
137
coupons
sales promotions that usually offer a discounted price to a consumer
138
deals
short term price reductions commonly used to increase trial among potential customers
139
sweepstakes
sales promotion pure chance
140
contest
apply skills/abilities to try to win
141
Media richness
the degree of acoustic, visual and personal contact between two communication partners. The higher degree the greater social influence
142
self-disclosure
degree of self-disclosure about a person's thoughts, feelings, likes and dislikes. Where greater self-disclosure is likely to increase ones influence on those reached.
143
relationship selling
the practice of building ties to customers based on a salespersons attention and commitment to customer needs
144
partnership selling
Buyers and sellers combine their expertise and resources to create customized solutions; commit to joint planning; and share customer, completive and company info for their mutual benefits.
145
lead
a person who may be a possible customer
146
prospect
customer who wants or needs the products
147
qualified prospects
if individual wants and can afford
148
cold canvassing
opennening directory and picking a name and contacting them
149
marketplace
buyers engage in face to face exchange
150
marketspace
internet enabled digital enviroment
151
do all customers swithch to generic
no 15-20% brand loyal
152
pharmacy impact on sale of generic drugs
pharmacy makes more off generic. disperse as written calls
153
what do wine brokers do
they represent vinyards in an area, liason from winery to distributor.
154
comodity mentality- goodyear
thought tire is just a tire. brands arent different from eachother
155
goodyear push strategy
limited trade ads, showcased at functions, tradeshows
156
Visa-Mastercard trap
thought they had either a visa or master card. Didnt look at issuer as capital one
157
Mcfarlane toys distrubtion channels
video stores, retail outlets, walmart, toy stores
