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Flashcards in AAA FINAL Deck (157):
1

What was the recomendation for Nike

diversification: new products, new markets

2

nike wrist, promotion strategy

mostly social media

3

Nike wrist thing pricing strategy

prestige

4

Nike product modifications

Heart rate chest strap, upgraded actimetry sensor(track sleep and REM)

5

Threats to gopro

smartphones

6

gopro promotion

social media, celebrity endorsements

7

Gopros recommended strategy

Market Development

8

Gopros new strategy plan

professional medical use,

9

energizer product recomendations

offer customization, engraving, partner with cell phone brands

10

energizer distribution recomendations

Expand to cell phone carrier stores

11

energizer promotion strategy

advertise on public trans, on smarphone apps

12

Four I's of service

intangibility, inconsistency, inseparability, inventory

13

Idle Production Capacity

when the service provider is available but there is no demand for the service

14

gap analysis

analyzing the difference between consumers' expectations and experience

15

off peak pricing

charging different prices during diff times of day to match variations in demand

16

internal marketing

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

Customer experience managment

the process of managing the entire customer experience with the company.

18

Value

the ratio of precieved benefits to price or value

19

Value-Pricing

the practice of simultaneously increasing product and service benefits while maintaining or decreasing price

20

Profit Equation

profit=total revenue-total cost= (unit price*quantity sold)+(Fixed cost + variable cost)

21

pricing objectives

specifying the role of price in an organizations marketing and strategic plans

22

Pricing constraints

factors that limit the range of prices a firm may set

23

pure competition

set by marketplace

24

monopolistic competition

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