Flashcards in Exam 3 Deck (46):
Technology helps marketers lower cost and deliver value.
What is People marketing?
Services produced and consumed at the same time, using people to physically market
Is perceived value as important as actual value?
Yes, everything is based on the consumer. So what they perceive may or may not benefit the company.
Marketing/Sponsoring athletic, cultural, or charitable events (olympics, Super bowl, etc.)
Public and private orgs marketing ideas meant to change the way people think or act (buckling seatbelt, recycling, donate blood, etc.)
Is it true that delivering value to customers is the only way to achieve long-term profitability?
Dividing the market into smaller groups based on measurable characteristics about people (age, income, ethnicity, gender)
Primary data vs. Secondary data
Primary- New data that marketers compile for a specific research project
Secondary- Existing data that marketers gather or purchase for a research project
Where do Consumer Markets direct their effort?
To people who are buying products for personal consumption (food, toothpaste, clothes)
Consumer discomfort with a purchase decision, typically for a higher priced item
Satisfies wants by smoothly transferring ownership of goods and services from seller to buyer
when customers buy a product from the same supplier again and again
Dividing the market based on where consumers live (easier to find surfboards in hawaii than nebraska)
How do you over-promise a customer?
by promising things you may not be able to deliver
As a marketer, what can you acheive from customer loyalty
valuable feedback, customers that may require less service, they may refer friends, competitive edge, helps you learn more about customer target.
focus on customer relationships, they may advocate for business in the future.
SImilarities between demographic and psychographic segmentation?
Both target certain consumers. Either people with certain views on environment, etc (psychographic) or certain age groups/incomes (demographic)
Two key aspects of producer quality
Quality level (how well the product performs its core functions)
Product consistency (how consistently the product delivers promised level of quality
what is co-branding?
When est. brands from different companies join forces to market the same product (DQ making Girlscout flavors, SW Airlines and Seaworld w/ shamu planes)
What constitutes dynamically continuous innovations?
marked changes to existing products. (cell phones, digital cameras), innovations that require some user learning for significant benefits
when brands launch products in different categories (Bic has pens, lighters, and razors). Sometimes brand extensions fail
When does cannibalization occur in regard to a productr
When companies add lower priced items, they lose money because higher priced items won't be bought as consistently
Product Life cycle
a pattern of sales and profits that typically changes over time. helps marketers plan future for existing and new products.
1. Introduction- low sales and no profit. Company invests in awareness of product
2.Growth- sales rise, profits peak
3. Maturity- sales peak, profits decline.
4. Decline- Sales and profits decline due to technological change or change in consumer needs.
.Does packaging have an impact in the customer decision-making process?
YES. consumers buy on impulse sometimes
The goods and services that hold little to negative interest for consumers. (disability insurance, prepaid burial plots, giving blood)
When does product diffusion happen?
When a product is new. 5 things:
Observability, Trialability, Complexity, Compatability, Relative advantage
aka Manufacturers' brands, brands that the producer owns and markets. (brand name oreos)
One benefit derived from licensing
More people will buy your product because of association (characters on cereal boxes)
How easily can consumers test out your product. This is why samples are given out & test driving cars.
Sponsorship in relation to a business
When businesses are involved in events the consumers care about, it can provide millions of dollars worth of advertisement
a group of products closely related to eachother
What items are included in a consumer promotion?
Promotional products, samples, coupons, rebates, displays
products that do not include any services
Total number of product lines and individual items sold by a single firm
The number of units needed to be sold in order to make cost of production 0
designed to drive traffic to retail stores by special sales on a limited # of products and highter everyday prices on others
Hiring independent contractors to sell products to their personal network of friends & recruit new salespeople. (mary kay, pampered chef)
Supply chain management (SCM)
Planning and coordinating the movement of products along the supply chain
Odd Pricing Strategy
Practice of ending prices below even $ and cents to create a perception of a greater value to consumer
What constitutes a supermarket in regard to its merchandise?
Offers a wide range of food items, plus limited nonfood items (Whole foods, trader joes)
What contitutes a Warehouse Club in regard to its merch?
Sells discounted food and general merch to club members in a warehouse format. (Costco, Sam's club)
Can a business determine upfront how much money it needs to make for each item it sells?
Yes, Breakeven analysis
BP = FC/P-VC
Everyday-Low Pricing (EDLP)
long-term discount pricing designed to achieve profitability through high sales volume (Walmart low prices)
Do companies in pricing strategies express volume goals in terms of profitability?
No, they express volume goals in terms of Return on Investment (ROI) and Return on Sales (ROS) to build profitability.
Composition of a true mode of Transportation
Factors to consider include (depending on needs of the business): cost, speed, dependability, flexibility, availability, and frequency of shipments.