Chapter 12 Flashcards
(87 cards)
1
Q
Definition for marketing mix
A
Four marketing **decisions **needed for the effective marketing of a product.
2
Q
Definition for four Ps
A
The right product at the right price with the right promotion in the right place.
Packaging=fifth P(Separate element)
3
Q
Definition for product
A
The goods and services produced to satisfy a customer need or want.
4
Q
Definition for brand
3 mian things
A
A name, image or symbol that distinguishes a product from competitors’ products.
5
Q
Definition for brand image
A
The general impression of a product held by consumers.
6
Q
Definition for product life cycle
产品生命周期
A
The pattern of sales 销售模式of a product from introduction to its withdrawal退出 from the market.
7
Q
Definition for extension strategies
市场延伸策略
A
Marketing activities to extend the maturity stage成熟期 of a product.
（旨在延缓产品进入衰退期，维持或提升市场份额）
8
Q
Definition for price
A
The amount paid by the customer to the supplier when buying a good or service.
9
Q
Definition for product quality
A
The product meets the needs and expectations of consumers.
10
Q
Definition for market skimming
市场撇脂定价法
A
Setting a high price for a new product that is unique or very different from any other product on the market.
(在产品上市初期设定高价以快速回收投资并获取高额利润，随后逐步降价以适应更广泛的市场需求)
11
Q
Definition for penetration pricing
市场渗透定价法
A
Setting a low price to attract consumers to buy a new product.
12
Q
Definition for competitive pricing
竞争性定价
A
Setting a price similar to that of competitors’ products, which already established in the market.
(将产品价格设定为与市场上已站稳脚跟的竞争对手产品相近的定价策略)
13
Q
Definition for price leadership
价格领导（定价）
A
Smaller firms set their price based on the price set by the dominant 占优势的firm in the industry.
14
Q
Definition for loss-leader pricing
亏本促销定价法（或亏损先导定价法）
A
Setting the price of a small number of products at the low cost to attract customers into the outlet奥特莱斯,折扣店, in the hope that they will buy other products priced to earn profit.
（通过“低价引流品”带动整体销售额和利润）
15
Q
Definition for cost-plus pricing
成本加成定价法
A
Setting price by adding a fixed amount or percentage to the cost of making or buying the product.
16
Q
Definition for demand
需求
A
The quantity of goods and services consumers are willing and able to buy.
17
Q
Definition for price elasticity of demand
需求价格弹性
A
Measures by how much demand (sales) for a product changes when there is a change in its price.
价格微变➡️需求量巨变【富有弹性】
价格变动➡️需求量影响小【缺乏弹性】
需求价格弹性：衡量商品需求量对其价格变动敏感程度的指标。
18
Q
Definition for price inelastic demand
需求缺乏价格弹性(无价格弹性需求)
A
The percentage change in demand (sales) is less than the percentage change in price.
指需求量对价格变动敏感度低的市场现象，即需求价格弹性系数绝对值小于1。
19
Q
Definition for price elastic demand
需求富有价格弹性（或富有弹性的需求）
A
The percentage change in demand is greater than the percentage change in price.
20
Q
Definition for revenue
收入
A
The amount a business earns from the sale of its products.
21
Q
What does product means?
A
Goods and Services
22
Q
How to build brand and develop consumer loyalty and brand loyalty?
Three characters
A
Produce the
1.right product that
2.meets the needs and expectations of consumer, and
3.charge at a low price to encourage consumers to buy.
23
Q
Examples
Meet the expectations of the consumer and not
A
Under promise
5 days ➡️ 2 days (received)
Over promise
2 days ➡️ 5 days (not received)
24
Q
What is easy and hard for businesses to reach goals when launching new products?
A
Attractinterest with new product is easy, but developing consumer loyalty is hard.
25
What does the *survival* and *continuous success* of business *development* based on?
Meet the changing **needs** and **expectations** of consumers.
26
# Costs and benefits of new product development
What can business do to keep survival and continuous success?(3)
1.Develop **new products**.
2.Change an existing product to **meet** the **changing tastes** of consumers.
3.Change an existing product to enter a **new market**.
27
# Costs and benefits of new product development
Costs of new product developments (4)
## Footnote
Disadvantages
1.**Market research** needs to be **carried out** to **identify** consumer **needs**, can be very *expensive*.
2.The development of a new product often **requires large capital expenditure**.
3.There is **no guarantee** that a new product will be a **success**. Some products never make it to market.
4.If the investment in a new product is **financed by borrowing**, and the product is **not a success**, then this could **threaten** the survival of the business.
28
# Costs and benefits of new product development
Benefits of new product investment (5)
## Footnote
Advantages
1.In **fast-changing** markets (involved with *high-tech* products) will not survive unless it **meets** the **changing needs** and **expectations** of consumers.
2.Developing new products **first** will bring **competitive advantages**. The businesses may be able to *charge* a **high price** and *achieve* **high sales**, *producing* **high profits**.
3.New products enter **new markets** increase **potential sales**, **revenue** and** profits**.
4.Developing **new products** to the business **spreads risk**.
5.The development of **new products** might help to **achieve growth**, and bring benefits from *economies of scale*.
29
# Brand image
What is brand image used for? (2)
1.Allows businesses to **extinguish** its **products** from its **competitors's**.
2.Increases businesses **sales** and **revenue**.
30
# Brand image
Why brand image can increase sales and revenue?
1.Easily **recognized**
2.Charged **higher price**
3.The business brand had a**lready been trusted** by consumers(they have *customer loyalty*).
31
Topics contain in *product* (4)
1.Costs and benefits of new product development
2.Brand image
3.The role of packaging
4.The product life cycle
32
How the product life cycle influences marketing decisions?
The **design** and **materials** used in the packaging of products can be important in **promoting the product**.
33
If the *design* and *quality* is *poor*, what will consumers think?
This may influence consumers, so they think the **product inside** is **not very good**.
34
If it is *well-designed* and *imaginative packaging* or what will consumers think?
It sends the message to consumers that this is a **good quality product**.
35
One limit of well-packaging
Businesses must not spend **too much money** or packaging, as this may increase the price above the level consumers are willing to pay.
36
Three *roles* of packaging
1.To **protect** the product
2.To **provide information** about the product
3.To help consumers **recognize** the product
37
Other two *purposes* of packaging
1.The packaging might have **an use** once the product **has been used up**.
2.To **keep** the product **fresh** once the packaging has been opened.
38
Introduction stage
1.The product is introduced into the market
2.Sales are low
3.Might be making a loss
4.As the cost of heavy advertising to gain product recognition
39
Growth stage
1.Product is better known to consumers
2.Sales are increasing
3.Usually starts to earn profit
40
Maturity stage
1.Sales are no longer growing, but are not falling.
2.Most profitable stage
41
Decline stage
1.Sales are falling
2.Product becomes unprofitable, and it's withdraw from the market.
42
Extension strategies is used to...
to keep the product in maturity stage for as long as possible.
| Aimed at prolonging延长 the life of the product.
43
Extension strategies include... (4)
1.Finding **new markets** for the product.
2.Finding **new uses** for the product.
3.**Adapting** the product or the **packaging** to improve its **appeal** to consumers.
4.**Increased advertising** and other **promotional activities**.
44
# Extension strategies
1.Finding new markets for the product
**Owners** and **manager** need to see **other markets** for the product, perhaps entering *foreign markets*.
45
# Extension strategies
2.Finding new uses for the product
The **research** and **development team** need to see **other uses** for the product than what it was originally intended for.
## Footnote
eg.Fizzy drink ➡️ sports drink.
46
# Extension strategies
3.Adapting the product/the packaging to improve its appeal to consumers
The **product does not change**, only the **packaging is redesigned** to give it a *fresh* and *up-to-date* appeal.
47
# Extension strategies
4.Increased advertising and other promotional activities
The *marketing function* need to look for **other ways of promoting** the product. Maybe a **new market**, or to **remain the existing market** that the product is *still available*.
48
What does marketing decision refer to? (4)
1.Product
2.Pricing
3.Promotion
4.Place
49
# How the product life cycle influences marketing decisions?
Each stage of --- may require a different --. eg.- and - activity的投入 is likely to be a lot higher when a product is being - into the market than when it entering the - stage.
product life cycle;marketing mix;advertising;promotional;introduced;decline
50
# How the product life cycle influences marketing decisions?
*Product* in introduction stage
Only a **basic model** of the product is available.
51
# How the product life cycle influences marketing decisions?
*Price* in introduction stage
(2 situations)
1.Might be **lower** than **competitor** prices in order to **attract** consumers.
2.Might be **higher** if their product has **no immediate competition**.
52
# How the product life cycle influences marketing decisions?
*Promotion* in introduction stage
**High** promotional activity (eg.advertising), to *create* product **awareness** and *inform* consumers that the product is **on the market**.
53
# How the product life cycle influences marketing decisions?
*Place* in introduction stage
The product offers for sale in **special selected outlets**. This might be used as a *test market*.
54
# How the product life cycle influences marketing decisions?
*Product* in growth stage
**Changes** might **be made** to the product as a **result of feedback** from consumers in the *test market*.
55
# How the product life cycle influences marketing decisions?
*Price* in growth stage (2)
1.**Brand image** creates **costomer loyalty**
2.The **original low** price can **be** **increased** to one which is similar to that of **competitors'** products.
56
# How the product life cycle influences marketing decisions?
*Promotion* in growth stage
It投入 is **still high** to continue to **persuade** **existing** consumers to buy again and to **attract new** consumers.
57
# How the product life cycle influences marketing decisions?
*Place* in growth stage
It is more **widely available**, which helps to **increase sales**.
58
# How the product life cycle influences marketing decisions?
*Product* in maturity stage
**Extension strategies** might be used to **keep** the product in its most **profitable** stage of the **life cycle**.
59
# How the product life cycle influences marketing decisions?
*Price* in maturity stage (2 situations)
1.**Remain similar** to the *competitor's* product
2.If the **original** price was **high** due to the **uniqueness** of the product, then it probably needs to **be decreased** as *competitors* will have *introduced similar* products.
60
# How the product life cycle influences marketing decisions?
*Promotion* in maturity stage
(2 situations)
1.**Promotional activities** are used to **remind** consumers that the product is **still available** in the market, and to **show** the **differences** from **competitors'**.
2.If **extension strategy** is used, promotional activities will **increase**.
61
# How the product life cycle influences marketing decisions?
*Place* in maturity stage
The product is **available to purchase** through a **wide distribution network**分销网络.
62
# How the product life cycle influences marketing decisions?
*Product* in decline stage
The *product* and *packaging* are **not altered**.
| 产品和包装未被改动。
63
# How the product life cycle influences marketing decisions?
*Price* in decline stage
Might **be reduced** to **maintain sales** or **sell off** the **remaining inventory**库存.
64
# How the product life cycle influences marketing decisions?
*Promotion* in decline stage
Can **only** advertise the **low price** to sell the **remaining inventory**.
65
# How the product life cycle influences marketing decisions?
*Place* in decline stage
Product is **only available** in **profitable outlets**盈利网点.
66
The most common *pricing methods* （5）
1.Marketing skimming 撇脂定价
2.Penetration pricing 渗透定价
3.Cost plus pricing 成本加成定价
4.Competitive pricing 竞争性定价
5.Promotional pricing 促销定价
67
Factors of *price*
1.The **most important influence** on **customer demand** for a product (eg.Consumers are *more likely* to buy the *lower priced* product with *little difference* between the **quality and function**.)
2.Will **be affected** by the **availability of supply**
3.Some consumers **unable to afford** the **high price** for the better product.
4.Some consumers will **only buy** the **high priced** product as they can afford, and can give a **certain status**.
68
Market skimming
(4)
| 含uses
1.Used for **unique** new products
2.Set with a **high price**
3.Usually used for the **latest technology** and **medicine development**.
4.The **profit earned** when using it is very **high**.
eg.Customers may *want the status* of owning the *latest version*, and are prepared to *pay a high price* for it.
5.Not permanent, as competitors will enter with similar products.
69
Penetration pricing
(4)
1.Used for **new** products (not unique)
2.**Low price**, as there are **similar** products already on the market.
3.(low price)**Encourages** consumers **to try** the product. After **building up** the **customer loyalty**, it **increases the price** to a level similar to the competitors.
4.**Not permanent**, as competitors will enter with similar products.
70
Competitive pricing
(4)
## Footnote
2 Uses 1 examples 1用法
1.Used for pricing **new** & **existing** products.
2.*Often* used for pricing **similar** products with **no strong brand advantage**.
3.Business with **good brand image** & **customer loyalty** may use it when launching **new** products (already on the market). Customer will believe it has the **same high quality** as the **firm's other products**.
4.用法: The **greater** the **competition**, the **lower** the **prices** will be [*Competitive pricing*]
71
# Competitive pricing
Price leadership
**Large dominating companies** will **set** the market **price**.** Smaller firms** producing **similar** products are **difficult** to set a price that is **different **from the **market leader**.
72
Promotional pricing促销定价
1 explination+3 methods
1.All methods involve **pricin**g the product **as low as possible** for a **limited period** to get customer **to buy**.
2.Loss-leader pricing亏损先导定价法
3.Buy-one-get-one-free pricing买一送一定价法
4.Discounting the normal price对正常价格进行打折
73
Loss-leader pricing亏损先导定价法
(3)
| used by...用法(例子)... used to...
1.Often used by retailers (supermarkets)
2.Offer a **few** products **well below** the **normal price** or **at a loss**.
3.It is used to **attract customers** into the store and **buy other** products at their **normal**, **profitable prices**.
74
Buy-one-get-one-free pricing买一送一定价法
(1)
| used to
Used to *create* **product awareness** and *develop* **customer & brand loyalty**.
75
Discounting the normal price对正常价格进行打折
(2)
| 2 Used to...
1.Used to **sell off** *surplus inventory*过剩库存.
2.Used to *create* **product awareness** and *build* **customer loyalty**.
76
Cost-plus pricing成本加成定价法
1 used when...+2 methods
1.Used when **reselling** 转售the product to the **final consumer**.
2.Mark up pricing加价定价法
3.Full cost pricing完全成本定价法
77
Choosing a pricing method(6)
1.Is it a new or an existing product?
2.Is the product unique?
3.Is there a lot of competition in the market?
4.Does the business have a well known brand image?
5.What are the costs of making and supplying the product?
6.What are the marketing objects of the business?
78
Is it a new or an existing product?
1.**New** product in the market might be *priced lower* than a product in the **growth or maturity stage**.
2.In order to gain **sales** and develop **customer loyalty**.
79
Is the product unique?(2)
1.Using *skimming strategy* to charge a **high price** when a product has **no close substitutes**.
2.Once **similar** products enter, the competition will cause prices to **fall**.
80
Is there a lot of competition in the market?
The result is charging very **similar prices**, as consumers will buy the **least expensive**, if there is little to choose from.
81
Does the business have a well known brand image?(2)
1.Consumers *trust* the **brand** and considered it to have a **better quality**than **cheaper alternatives**.
2.Charge a **higher price**.
82
What are the costs of making and supplying the product?
The **price** has to be **greate**r as to **earn profit**.
83
What are the marketing objects of the business?
1.*Objective*: **increase market share** by volume of sales
2.*Action*: charge a **lower price** than competitor.
3*.Objective*: to **maximize profit**
4.*Action*: use **skimming pricing or penetration pricing**.
84
Price inelastic demand(3)
1.**Not very responsive** to changes in price.
2.The percentage **change in demand** will be **lower** than the percentage **change in price**.
3.For example, the demand for bottled water.
85
Price elastic demand(3)
1.**More responsive** to changes in price.
2.The percentage **change in demand** is **bigger** than the percentage **change in price**.
3.For example, the demand for cinema tickets.
86
Price elasticity of demand and pricing decisions
1.Using price elasticity of demand, managers can calculate the effect on sales of any possible increase or decrease in price.
2.How a changing price will affect revenue is more important than increase sales.
87
Two ways to increase revenue
1.**Increasing** the price if the product has **price inelastic demand**.
2.**Decreasing** the price if the product has **price elastic demand**.
