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MKT 350 > Exam 3 > Flashcards

Exam 3 Flashcards

(70 cards)

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1
Q

What is price?

A

The overall sacrifice consumers makes to acquire a specific product or service

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2
Q

What are some characteristics of price?

A
  • Controversial because of so many companies and departments

- Most difficult ā€œPā€ to get correct

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3
Q

What affects price?

A

Competition, costs, company objectives, customers, and channel members.

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4
Q

Company objectives

A

Where companies decide price by a strategy that reflects their goals. Customer oriented, sales oriented, profit oriented, and competitor oriented.

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5
Q

Profit orientation

A

Target profit pricing, maximizing profits, and Target return pricing. Company targets a goal in profit for each product.

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6
Q

Sales Orientation

A

Decrease price to encourage more sales

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7
Q

Competitor Orientation

A

Set prices low to drive competitors out of the market

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8
Q

Customer Orientation

A

With a method called premium pricing, the Company can set prices high to products or services that customers find beneficial and usually buy.

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9
Q

Elasticity of demand

A

Consumersā€™ responsiveness or sensitivity to changes in price

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10
Q

Dynamic pricing or Individualized pricing

A

Set prices according to specific customers or season, time, day, month.

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11
Q

Variable costs

A

Costs primarily labor and materials that vary with production level

EX: Pen(Ink, plastic covering, cap)

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12
Q

Fixed Costs

A

Costs that remain at the same level regardless of any changes in volume of production

EX: Rent

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13
Q

Factors affecting Price elasticity of demand

A

Substitution affect, income affect, Cross price elasticity

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14
Q

Revenue equation

A

QTY SOLD*PRICE

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15
Q

Profit Equation

A

REVENUE9(-)TOTAL COST

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16
Q

Contribution Per Unit Equation

A

PRICE(-)VARIABLE COST PER UNIT

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17
Q

Four levels of competition

A
  • Monopoly(few firms, less price competition). One firm controls the market for a good.
  • Oligopoly(few firms, more price competition). Handful of firms control the market.
  • Monopolistic Competition( more firms, more price competition) firms selling differentiated products at different prices.
  • Price competition(More firms, less price competition) Many firms competing by the same prices
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18
Q

Channel Members

A

Manufacturers, wholesalers, retailers

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19
Q

Market Penetrating pricing(NEW)

A

Set prices low to boost sales and market share. For immediate sales, drives competitors out of the market.

Disdain: Quality, capacity, and if market is willing to spend more for the product.

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20
Q

Price Skimming(NEW)

A

Innovators and early adopters are willing to pay more for product because it is new. Ultimately lowering the price slowly over time. (Riding down the demand curve)

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21
Q

Supply chain management

A

Refers to a set of approaches to integrate suppliers, manufacturers, warehouses, stores and transportation intermediaries to effectively and mange the distribution and production of goods to be the right quantities, right locations at the right time.

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22
Q

SCM Flow

A

Suppliers to manufacturers to wholesalers to distribution centers to fulfillment centers to retailers to transportation

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23
Q

Distribution Centers VS Fullfillment centers

A

DC distribute goods to retailers and fulfillment centers delivers goods directly to customers

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24
Q

Vertical integration

A

companies can perform more than one of the factors in the supply chain process

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25
Direct Marketing channel
Manufacturers to customers, no intermediaries
26
Indirect marketing Channel
One or two intermediaries involved to sell and deliver products to customers
27
Why do manu. go directly to stores?
Perishable goods, fashionable items, demand is high for it, large cities with many stores in an area.
28
Why deliver to distribution centers?
Allows the stores to carry less inventory, Stores don't have to carry a lot of inventory. Retail store space is more expensive than distribution center space. A lot less errors for sales forecast.
29
Retailing
adds value to products and services sold to consumers for their personal or family use.
30
Omnichannel Strategy
Selling in more than one channel
31
Factors for establishing a relationship with retailers
Choosing retailer partners, identifying types of retailers, developing a retail strategy, managing an omnichannel strategy.
32
Integrated marekting communication
Promotion p- Advertising, personal selling, direct marketing, public relations, sales promotion, and online marketing. The combination of all communication methods to provide a clear consistent and impactful message.
33
Public relations
Educating stakeholders while building and maintaining a positive image.
34
Sales promotion
special incentives or excitement building programs that encourage to try, buy, and buy more of a product or service. Samples, discounts, premiums.
35
Personal selling
two way communication between a buyer and seller designed to influence the buyer decision. greatest value to customer, as well as most effective and most expensive.
36
Advertising
The placement of announcements and persuasive messages in time or space and purchased in any mass media. Brand is identified and company pays for it. really expensive
37
Direct marketing
Marketing that communicates directly with target customers to generate responses or transactions. Personal info from loyalty programs or purchases. Emails from company.
38
Push vs Pull
When firms want to reach the end user it is the pull strategy, when firms want to reach intermediaries then it is push strategy.
39
AIDA
Awareness leads to interest which leads to desire which leads to action.
40
Encoding
the process of converting the senders ideas into a message which could be verbal visual or both. It important to interpret what is received and not what was sent.
41
Decoding
The process by which the receiver interprets the senders message
42
Noise
A lack of clarity in a message or a flaw in the medium, a problem for all communication channels
43
Sub goals of advertising
Inform, persuade, and remind
44
Institutional type of advertising
Used to promote the organization as a whole and is designed to establish change or maintain the organizations identity.
45
Advocacy Advertising
For profit company supporting a cause or issue
46
Public service announcements
Non profit company focusing on public welfare for the betterment of society generally religious groups trade associations or political groups
47
Product Type of advertisement
Informs persuades or reminds about a specific product or service
48
Product types
Pioneering, competitive, comparing, and reminder
49
Functions of PR
Press relations, Lobbying, Corporate communication, crisis management.
50
Press relations
Release interesting things into the media
51
Lobbying
Attempt to influence government actions.
52
Corporate Communication
Internal and external communication to stakeholders
53
Crisis management
Coordinating efforts to handle or head off publicity or events
54
Tools to handle PR
New product publicity, product placement, consumer education, event sponsorship, and issue sponsorship
55
New product publicity
info about a new product or service appearing in the mass media as a new news item
56
Product placement
Subtle promotion of an item using entertainment media
57
Consumer education
educating consumers how to better use your products or services
58
Event sponsorship
corporations support of an event usually in the cultural sports or entertainment sectors
59
Issue sponsorship
Corporations support of an issue
60
Cause related marketing
profit and a nonprofit work together to support an issue or cause
61
Types of sales promotion
Coupons, rebates, loyalty's, sweepstakes, contests, giveaways, sample, premiums, point of purchase
62
Personal selling process
1) Generate and qualify leads 2) Preapproach 3) Sales presentation and overcoming reservations 4) Closing the sale 5) Follow up
63
Characteristics of a good sales person
- Good personality - Optimism - Resilience - Self motivation - Empathy
64
Value of PS
- Inform customers and provide advice - Save customer time and make it easier for customer - Relationship selling
65
Relationship selling
A sales philosophy and process that emphasizes a commitment to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial to all parties.
66
How do firms develop strong strategic marketing channel partners?
Mutual trust, open communication, common goals, credible commitments.
67
What is the difference between direct and indirect marketing channels?
Direct marketing channel is the use of no intermediaries, while indirect is the use of one or more intermediaries.
68
What are the three types of vertical marketing systems?
Contractual, administrative, and corporate.
69
Niche Marketing
Firms attempts to reach a smaller audience in media marketing
70
Four steps for establishing a relationship with retailers
1. Choosing a retailer 2. Indentifying retailer types 3. Developing a retail strategy 4. Managing an omnichannel strategy

MKT 350 (2 decks)

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