MARK101 weeks 5 - 10 Flashcards
(43 cards)
what are the challenges of Market Segmentation
Hard to design one product that satisfies all consumers.
What are difficulties of differentiated marketing?
Higher costs and more complex planning and promotion.
What are difficulties of concentrated marketing?
Higher costs and logistical challenges in meeting diverse needs.
the difficulties of micromarketing
Costly research, privacy concerns, and changing or small segments.
Name four customer touchpoints where differentiation can occur
Product, Services, Channels, People.
What is a brand value proposition?
A brand value proposition is the overall promise a brand makes to its customers about the value and benefits they will receive. e.g. more for more, more for less
Give examples of brand value propositions.
More for more, More for the same, More for less, The same for less, Less for much less.
What are the three levels of a product?
Core customer value, Actual product, Augmented product
What is core customer value?
The fundamental benefit or solution the customer is really buying.
example: Enjoyment or entertainment while driving (bc good speakers)
not tanagible benefits like a car having good speakers.
What is the actual product?
The physical product including features, brand, design, and quality.
What is the augmented product?
Additional services or benefits like warranty or support.
What is customer value-based pricing?
Pricing based on the buyer’s perceived value, not cost.
What is cost-based pricing?
Pricing based on production cost plus a markup.
What is competition-based pricing?
Setting prices based on competitors’ prices and strategies.
What is market skimming pricing?
Starting with a high price to maximize profits from early buyers.
What is market penetration pricing?
Starting with a low price to gain market share quickly.
what are the 5 types of pricing strategies
- market penetration pricing
- market skimming pricing
- competition-based pricing
- cost-based pricing
- customer value-based pricing
Name three product-mix pricing strategies
Product line pricing, Optional product pricing, Product bundle pricing.
What is psychological pricing?
Setting prices to influence perception (e.g., $9.99 vs. $10).
What are the main steps in the personal selling process?
Prospecting and quantifying:
Pre approach:
Approach: dress appropriately and clean.
Presentation and demonstration:
Handling objections:
Closing:
Follow up:
what is the personal selling process
a series of steps a salesperson follows to build relationships with customers, understand their needs, and convince them to buy a product or service
Name three types of sales promotion targets.
Consumer promotions, Trade promotions, Business promotions.
consumer targeted promotions
Consumer Promotions
Target: Final buyers (individual customers)
Purpose: Encourage short-term buying or try new products.
Examples:
Samples (e.g., tastings, test drives)
Coupons (discount vouchers)
Cash refunds/rebates
Price packs (e.g., “2 for $5” deals)
what are trade promotions
Target: Retailers or wholesalers
Purpose: Get resellers to stock and promote the product.
Examples:
Discounts for bulk or early purchases
Allowances for special displays or promotions
Free goods (extra stock)
