final (cumulative) (14+15, 16 , 18+19 ,20) Flashcards

Question

Apple Product Positioning and Branding, Pricing

Answer 1

Customer Value Pricing •Odd number pricing

Answer 2

-Sales oriented -Profit oriented -Market share oriented

Answer 3

Sales oriented goal: If the company’s goal is to increase sales, set the price to maximize sales revenue. Profit oriented goal: Set the price to maximize gross margin. Market share oriented goal: In general, set the price to maximize unit sales.

Answer 4

Elastic demand Inelastic demand

Answer 5

- elastic (price sensitive) - inelastic (price insensitive) -- For pricing, elasticity is a crucial concept. Price elasticity of demand measures how changes in a price affect the quantity of the product demanded. Specifically, it is the ratio of the percentage change in quantity demanded to the percentage change in price

Answer 6

%change in quantity demanded/ % change in price

Answer 7

Price elasticity is high. - If you raise your price, the sales will decrease. - If you cut your price, the sales will increase. In general, there is a short-term illusion that raising price increases total sales revenue. But, eventually the sale revenue decreases with raising price.

Answer 8

Price elasticity is low. - If you raise your price, the sales will not change much. - If you cut your price, the sales will not change much. In general, firms are inclined to raise prices. Government typically intervenes pricings of necessity goods

Answer 9

Customer income - As customer income increases, customers become price insensitive (price elasticity drops). They will buy higher-priced alternatives. Substitution - The greater the availability of substitute products, the customers become price sensitive (price elasticity increases). Price change of other products - If the price Mountain Dew rises, the demand for Doritos will decrease and the demand for Sprit will increase.

Answer 10

its a price war

Answer 11

supply chain and marketing channel management

Answer 12

supply chain and distribution channel

Answer 13

Without distribution channel, any business would be strictly local. Catrina’s Kitchen wanted to put its Southern Seasoned Flour and spices on a national scale.

Answer 14

distribution channel is not completely controllable ( cuz theyre already a big player of the industry) "a sign read 'we are no longer selling this brand due to unacceptable price increases, on a carrefour store shelf in january 2024 in paris

Answer 15

-If one channel member is dominant, it can exert power over the others. -The dominant firm has the means or ability to dictate the actions of another. -For instance, Walmart can easily exert power over small manufacturer like Catrina’s Kitchen, but with large, powerful suppliers such as P&G, the power relationship is more balanced. -Convincing Walmart to sell Catrina’s Kitchen product is not easy -Submit an initial application -Make a pitch to Walmart -Adhere to the Walmart’s strict packaging, labeling and shipping requirement. -- Execution of marketing strategy for a brand becomes a big challenge when firm lacks a power in distribution channel.

Answer 16

Distribution channels deal with flows of product, money, and information. -- image: product flow: manu -> dist chan->end customer money flow: manu <- dist chan <- end customer information flow: manu <-> dist chan<-> end customer

Answer 17

Distribution channels are systems consisting of possibly many interrelated organizations. amazon is a retailer manu >wholesaler>retailer>end customer manu>retailer>end customer manu > end customer

Answer 18

Amazon is online “retailer”, ”distribution platform” as well as “service provider.” Amazon revenue by segment Online stores – buy and sell Physical stores – Amazon Fresh Third-party seller services - commissions - related fulfilment and shipping fees - other services Subscription services - Amazon Prime - Digital video, audiobook, digital music, etc. Advertising services AWS (Amazon Web Services) -- Most sellers pay Amazon about a 15% referral fee on average. But these fees can range from 6% to 45%, depending on which categories your products fall under. https://fitsmallbusiness.com/amazon-seller-fees/ `

Answer 19

Distribution platform: Third-party seller services Amazon has enabled producers/manufacturers sell directly to end customers.

Answer 20

Would our distribution channels do as we wish to do? Some we may control directly, others we may not control at all; Some share our goals, and others have goals of their own.

Answer 21

all channel members understand that their ultimate goal is to create and capture value for and from the end consumer. Not easy! Because of ….. -Conflicting goals within the channel -Difficulties in transmitting information, particularly about the end consumer within the channel -Human element for channel alignment. (Humans inevitably execute a channel strategy.) -- Even if we manage to fully align the objectives of all channel partners, humans differ in their emotional, physical, social, and intellectual capacity to execute tactics that will achieve these objectives. Humans make mistakes, they get tired, they get confused, they get frustrated, and they get angry.

Answer 22

-DeWalt wants Home Depot to carry all its tools but not the tools of its competitors. -But, Home Depot carries all tool brands to maximize its sales.

Answer 23

Channels are governed by: Ownership Contract, esp. for exclusive relations Mutual interests and trust

Answer 24

A) Ownership of channel members `

Answer 25

vertically integrated distribution channel

Answer 26

Channel length (direct ---- indirect distribution) Channel breadth (exclusive ----- intensive distribution) Channel depth (not integrated ---- integrated)

Answer 27

Channel length. The number of channel members in a particular value chain. Direct distribution. A structure with few or no intermediaries between the manufacturer and the end- customer. Indirect distribution. A longer channel structure with more members.

Answer 28

Q1. Ans: B Q2. Ans: A Our choice of goal and time frame will also influence our channel strategy. A short-term time frame may lead us to rely on existing indirect channels to quickly build distribution. On the other hand, a profit goal suggests that we might want to remove channel members.

Answer 29

Channel breadth refers to the number of outlets that participate in distributing the end-product to the consumer. Exclusive distribution - a very limited number of outlets Selective distribution – in between Intensive or mass distribution - as many outlets as possible -- Channel breadth can range from exclusive distribution through a very limited number of outlets, to selective distribution through more outlets with a certain level of sales training and service, to intensive or mass distribution via as many outlets as possible, which minimizes travel and search costs for the end consumer.

Answer 30

Very often the breadth of the channel depends on the type of product attribute the firm is seeking to promote. Cartier watches – distributed by exclusive channel Volvo – sold by selective channel Huggies diapers – distributed by intensive channel

Answer 31

Ans: c Consider a case of exclusive distribution: Cartier watches, distributed only in limited, upscale locations by authorized retailers. These high-end watches are awash in credence attributes, and the channel itself helps establish these attributes for consumers. The exclusive Cartier retailer is thus an important part of the packaging and promotion for the product. Read the following carefully as well! When the firm seeks to emphasize search attributes, particularly for a more complex product such as an automobile, a selective distribution strategy is more appropriate. Here we limit the number of outlets not only to establish an image, but also to ensure our ability to properly educate the sales force as they market our product. The added value of the Volvo dealer is product utility in the form of the salesperson who can identify the needs of the customer and match them to the right product and features.

Answer 32

A credence attribute is one that we cannot evaluate, even after consuming the product. Credence attributes are most important when customers have high ego involvement in a category. Many of luxury goods

Answer 33

A search attribute is an aspect of the product that can be evaluated prior to product purchase and consumption. Price, package size, performance attributes such as EPA ratings or miles per gallon and guarantees or warranties.

Answer 34

An experience attribute is an aspect of a product that only can be evaluated after consumption. Actual (as opposed to predicted) fuel efficiency, cleaning ability of detergents, and shoe comfort. If our product has powerful experience attributes, we will be interested in getting potential consumers to try it.

Answer 35

Channel depth refers to the extent to which the channel is controlled, via forward and/or backward integration. In a highly integrated channel, the company may own firms that perform many different channel functions: raw materials procurement, manufacturing, transportation, warehousing, and/or retail distribution. In a less-integrated channel, different, independent companies perform each of these functions.

Answer 36

sunkist: not integrated channel; Sunkist Growers, Incorporated is an American citrus growers' non-stock membership cooperative composed of 6,000 members from California and Arizona. EI Gallo Winery;highly integrated channel; Gallo Winery owns vineyards, cork and bottle manufacturers, trucks, and distributors, enabling it to control virtually all aspects of the wine production and distribution process. -- E & J Gallo Winery is a winery and distributor headquartered in Modesto, California. It was founded in 1933 by Ernest Gallo and Julio Gallo, and is the largest exporter of California wines. E & J Gallo Winery is the largest family-owned winery in the United States.

Answer 37

integrated marketing communication

Answer 38

public relations, customer service encounters, social media, event promotions, sponsorships, sales material, sales presentations, consumer promotions and of course, ADVERTISING "any time the consumer encounters the brand, marketing communication can take place

Answer 39

it should be consistent Integrated Marketing Communication (IMC) IMC is to assure that all brand contacts received by a customer are relevant to that person and consistent across all communication channels (=media)

Answer 40

marketing communications decisions can sometimes be more emotional logical However, marketer should consider - effectiveness of communication (Does it help achieving our strategic goal?) - efficiency of communications (return on our spending) "Measurement and accountability of marketing communications have been a big challenging issue"

Answer 41

c)changing communications campaigns frequently is necessary to strengthen brand equity

Answer 42

the objective of marketing communications 1.brand awareness 2.brand information 3.attitude change of brand behavior change (action) "its important to identify a primary objective- the most important goal for marketing communications to accomplish!" marketing comm -> brand awareness, brand info, attitude -> behavior (purchasing)

Answer 43

Aided recognition:Consumer’s ability, when presented with the brand name or logo, to acknowledge that he or she has seen it before. How to increase basic awareness? we must capture the attention of our target consumers - a creative work-interesting, differentiated -exposure of brand as many times as possible

Answer 44

unaided recall: - customers ability to identify the brand with th ebusiness category -consumers not only recognize our brand but also, they can recall it without aid. "what are the first three brands of EV that come to your mind?" Firms try to increase top of mind awareness when basic awareness is sufficiently high How to increase top of mind awareness? - having memorable names and symbols -reminding the brand that they already know -continually spending money on communications "i cant believe its not butter" is too long of a brand name How to increases top of mind awareness? - product placement -creative and social media campaign

Answer 45

communications intended to provide specific information about the brand The information must be focused on the positioning - a single minded campaign -a benefit differentiating us from the competition Tightly tie our brand to the information, so the brand and the benefit are recalled together ex: walmart's Always low prices, Kinko's open 24 hrs, Subaru has 4 wheel drive

Answer 46

To change an attitude toward or of image of our brand. Image campaigns to capture share of heart, evoking an emotional response in consumers. Most advertising for credence, subjective, emotional benefits has image objective.

Answer 47

brand awreness and brand info - mind attutude changes and behavior changes- heart

Answer 48

these two shares usually significantly drive overall market share

Answer 49

the focus of an image pbjective is the person in the target audience, as opposed to the brand. volvo initially focused on communicating information about its brand by emphasizing product features- volvo cares are safe cars As the brand matured, Volvo campaigns began to emphasize the Volvo drivers: Volvo drivers care about the safety of their family KIA EV9 in super bowl 2024 one of top three Ads

Answer 50

communication with a goal to cause an action or specific behavior in our terget audience call and place and order informercial advertising Measurement of an action objective is quite straightforward. We simply assess whether the behavior we are seeking occurs as a result of exposure to our marketing communications.

Answer 51

non adopters,our customers,competitors customers, multibrand users attract potential nonadopters,increae consumption among current users, attract competitive users,increase consumption among multibrand users

Answer 52

we are seeking tp bring new users to the category and the brand. To accomplish this, we must first pursue an awareness objective. We then pursue an information objective, promoting the category benefit where it is tied to our brand.

Answer 53

we compare ourselves to a key competitor we pursue: an informational objective to communicate our benefits vs the competition or a behavioral objective to encorage consumers to try our product and compare it with their current brand.

Answer 54

we are speaking to our current customers to deepen our relationship with them. To do so, we pursue an image objective. or We pursue a behavioral objective - encourage customers to use more of our product or use it in different situations.

Answer 55

we are speaking to customers who are using our brand as well as competitive brand IF we want them to convert from multi-brand users to exclusive users, we pursue an informational or behavior objective, to encourage consumers to compare and reconsider why they are using two brands instead of just ours. IF we want them use more of ours than competitor’s, we simply increase the frequency with which our customers choose us instead of the competitor by trying to maintain top-of-mind awareness.

Answer 56

once we have established our communications objective, we must -develop our communications materials and determine how, and how much, we will spend on media

Answer 57

typically ad agencys creatives are the writers and designers responsible for bringing a copy strategy to life marketing communications are part art and part strategy; the strategy part is strategic focus and STP, esp, targeting, and positioning -- the marketing manager is the guardian guardian of the strategy. Gen. AI could help /replace creatives. But it does not replace marketing managers who has a strategic mind. -- the creative work should be believable, unique , memorable, and relevant ■ Believable: Is the execution believable? ■ Unique: Is the execution unique, or have we seen the same storyline in other product categories? ■ Memorable: Memorability goes hand in hand with uniqueness. ■ Relevant: Is the execution relevant to the target audience?

Answer 58

a.to cause a action

Answer 59

(c)to increase top of mind awareness

Answer 60

-level of competitive spending -historical spending -% of sales -whats left over

Answer 61

building a budget based on the objectives and strategies -first identify strategic focus and STP -second, decide target audience size and communication objective -third, estimate how many exposures needed to achieve our objectives -fourth decide specifics of campaigns, creative and media -finally, estimate total cost "Advertising spending should be budgeted taking into consideration the number of exposures we require, the number of customers we need to reach, the communications objective, and the media type."

Answer 62

advertising

Answer 63

-a paid form of communication delivered through media from an identifiable source about an organization, product,servce, or idea designed to persuade the reciever -because Ad is paid, we control what we want to say, how to say.

Answer 64

Online Ad include: Google Ad (search portal advertising) YouTube Ad Social media Ad

Answer 65

pull strategy- get consumers to pull the product into mrketing channel push strategy- increase demand by focusing on wholesalers,retailers, salespeople

Answer 66

focus of ad is corporation when the company uses 'umbrella' branding strategy the communication objective is mostly image/attitude "Most advertising is product focused. However, companies like Exxon advertise their commitment to the environment, not their products, to inform, persuade, and remind consumers of positive thoughts about the company, which can prompt the purchase of products and services. "

Answer 67

- behavioral segmentation works well most of time -smoker vs non smoker -joe voters vs trumo voters -advertising campsign should have clear sense of target audience -message should be carefully selected to lead the target audience have desired belief current do <- current belief -> customer proposition -> desired belief -> desired do

Answer 68

its getting more important PR involves managing communications and relationships: -To build and maintain a positive image of the firm. -To handle unfavorable stories or events. -To maintain positive relationships with the media. Typically, unpaid. -Influence of PR has become more powerful as consumers have become increasingly skeptical of marketing claims made in other media ads. In many instances, consumers view media coverage generated through PR as more credible and objective. "Public relations involves managing communications and relationships to achieve various objectives such as building and maintaining a positive image of the firm, handling or heading off unfavorable stories or events, and maintaining positive relationships with the media. In many cases, public relations activities support other promotional efforts by generating free media attention and general goodwill."

Answer 69

cause related marketing is a mutually beneficial collaboration between a corporation and a nonprofit designed to promote the former’s sales and the latter’s cause. "Chili's is proud to support St. Jude and has raised more than $114M since becoming a partner in 2002."

Answer 70

-event hositing (eg tesla robotaxi day event) -event sponsorship -press should be invited

Answer 71

-pr toolkits are needed: -to provide the information upon request -to generate media attention and disseminate information PR toolkits include: -Print media (press releases, newsletters, -brochures and any reports) -Videos -Website, social media sites -Press kit -Press kit should include company details, images and headshots, bios, facts, press release and anything that would be compelling enough for a journalist to want to cover your story.

Answer 72

Traditionally, the role of sales promotion has been to generate short-term results. Sales promotions are special incentives or excitement-building programs that encourage consumers to purchase product/service such as: Coupons Deals Premiums Contests Samples Loyalty programs Point-of-purchase displays Rebates Product placement

Answer 73

-Stimulates demand. -Allows for direct tracking of sales. -Traditionally, coupon redemption rates were low. But the redemption rates have increased.

Answer 74

-A short-term price reduction -Encourages trial. -Reduces consumer risk. -May reduce perception of value.

Answer 75

-An item for free like a toy in McDonald’s Happy Meals -Builds goodwill. -Increases perception of value. -Problem! Consumers buy for premium, not product.

Answer 76

-A brand-sponsored competition. -Increases consumer involvement. -Generates excitement. -Social media enable many of contests. Domino’s offered $10,000 to Instagram users who could prove themselves to be “superfans” by following the pizza chain’s Instagram page and then posting creative pictures.

Answer 77

-Distributing samples is one of the most costly sales promotion tools but also one of the most effective. -Trials for new services are also considered as samples.

Answer 78

The realized margin from the promotion should be considered. Realized margin = Price – unit cost – promotion unit cost Demand surge. The potential loss suffered when customers switch to the promoted merchandise from more profitable products. The Long-term impact on sales of the promotion (expectation of promotion)

Answer 79

personal selling and sales management

Answer 80

Personal selling is the two-way flow of communication between a buyer and a seller, designed to influence the buyer’s purchase decision. Personal selling take place in variable situations: -F2F -Telephone -Online meeting

Answer 81

-Sales jobs are numerus. -There is a lot of flexibility. -There is a lot of variety in the job. -Some are highly paid. -Can be promoted to management position quickly.

Answer 82

general merchandise retailers food and bev retailers gasoline material and supplies dealers clothing and clothing accessories retailers it can be very lucrative ex: top paying for sales and related opportunities -securiries commodity contracts and other financial investments -pipeline transportation of crude oil -computer and peripheral equipment manu -scientific research and dev services -audio and video equipment manu

Answer 83

b. it is expensive.

Answer 84

Step 1: Generate and Qualify Leads Step 2: Pre-approach Step 3: Sales presentation and overcoming reservations Step 4: Closing the sales Step 5: Follow-up (many professional sellers have a good relationship with client, longterm relationship) Personal selling process is a funnel process! -- This graph introduces the personal selling process, which the following slides cover in depth. It also may be used alone in a shortened lecture.

Answer 85

-Generate a list of potential customers (leads) and assess their potential (qualify). -Without leads, no sales. Try hard to generate leads! -Outbound – salespeople initiates a contact Talking to current customers Networking online and offline Cold calls & emails The Internet (LinkedIn, Twitter) Attend trade shows (CES) -Inbound – Potential buyer initiates an inquiry (u dont go out u stay in here)

Answer 86

After generating leads, qualify those leads. Is it worthwhile to pursue them to turn into customers? In B2B setting, (i) the costs of preparing and making a presentation are so substantial AND (ii) the success rate of closing the deal is low.

Answer 87

A qualified lead requires a meeting. “You never get a second chance to make a first impression,” so salespeople must prepare carefully. THINGS TO DO: -Study the customer’s business. -Defined how the customer can benefit from our products/services. -Examine how the customer is currently addressing the needs they are wishing to fulfill. -Set the objectives of the meeting -Anticipate potential reservations and be prepared to deal with the reservations. -Practice sales presentation

Answer 88

During the first part of the meeting, salespersons need to get to know the customer, get the customer’s attention, and create interest in the presentation to follow. Don’t do all the talking. Ask good questions to find out the need and listen attentively.

Answer 89

-Obtain a commitment from the customer to make a purchase. -Often this is the most stressful part of the sales process. -A “no” one day may be the foundation for a “yes” another day

Answer 90

The sale is just the beginning of a customer relationship. Follow-up involves ensuring that customers are satisfied with their purchases. Handle the dissatisfaction or service failure/problem as soon as possible.

Answer 91

a. generate leads

Answer 92

a. Generating and qualifying leads.

Answer 93

b. preapproach

Answer 94

e. do all the talking.

Answer 95

-Friendly and sociable -Optimistic -Resilient -Self-motivated -Empathy (care about their customers, their issues and problems)

final (cumulative) (14+15, 16 , 18+19 ,20) Flashcards

(123 cards)