Post-Midterm Flashcards
Organization marketing
Person marketing
Place marketing
1) create, maintain, or change the attitudes and behaviour of customers and the general public toward an organization. 2)maintain or change attitudes or behaviour toward particular people. 3)change attitudes or behaviour toward particular places.
3 levels of a product
1) Core customer value- defining the core problem- solving benefits
2) Actual product- the product’s features and associated brand name
3) Augmented product- additional services and benefits that go with the product
Shopping products
Speciality products
Unsought products
Industrial products
1) purchased less often and shoppers compare carefully based on quality and price.
2) buying a product based on unique characteristics
3) buying a product that the consumer doesn’t know of
4) used for further processing or for the use in conducting business
Why new products fail (8)
Overestimated market
Poor design
Incorrect positioning
Error in pricing
Poor marketing communication
Production-orientation
Cost overrun
Competition
Product and service decisions (requires 3 levels)
1) individual product decision
2) decisions about the product lines, or groups of products
3) company’s overall portfolio or product mix
Product and service attributes (7)
1) product quality
2) product features
3) style and design
4) packing and labeling
5) sustainable packaging
6) labelling
7) product support services
Product line
group of products that are close related because they function in a similar manner and are sold to the same customer groups
Services Marketing:
Service intangibility
Service variability
Service inseparability
Service perishability
1) they cannot be seen, tasted or smelled before they are bought
2) their quality may vary greatly, depending on who provides them
3) produced and consumed at the same time
4) they cannot be stored for later sale or use
The service profit chain (5 links)
- links service firm profits with employee and customer satisfaction links
1) internal service quality- superior employee selection
2) satisfied and productive service employees- more satisfied and loyal hard working employees
3) greater service value- more effective and efficient customer value creation
4) satisfied and loyal customers- satisfied customer who remain loyal
5) healthy service profits and growth- superior service firm performance
Internal marketing
orienting and motivating customer contact employees and supporting service people to work as a team to provide customer satisfaction.
Stages in the product life cycle (4 stages)
1) Introduction stage- new product is launched.
2) Growth stage- If the new product satisfies the market, it will enter this stage in which sales begin to climb quickly. 3)Maturity stage- When the sales begin to slow down. 4)Decline stage- Products that will eventually decline and be replaced by new products
Brand equity
the dollar amount attributed to the value of the brand, based on all the intangible qualities that create that value.
Brand positioning
Brands are positioned based on product attributes.
Brand development (5)
1) Line extensions- extending an existing brand name to new forms of an existing product category.
2) Brand extensions- extend a current brand name to new or modified products in a new category.
3) Multi-brands- produces many different brands in a given product category.
4) New brands- deciding to adopt a new strategy
5) Ongoing brand management- most important role is brand manager.
Touchpoints
advertising, marketing communications, personal experience with the brand, word of mouth and anything else that brings a consumer into contact with a brand.
Ceiling for prices
Floor prices
1) customers perceptions of the product’s value
2) product’s cost
Cost-based pricing vs value-based pricing
Cost-based pricing- more product driven. Setting a price based on cost of making product.
Value-based pricing- company first asses the customers needs and value perceptions. Attaching value-added features and services to differentiate the product.
Good-value pricing
offering the right combination of quality and good service at a fair price.
(Price decisions)
Internal factors
External factors
1) overall marketing strategy, objectives, and marketing mix, as well as other organizational considerations.
2) include the nature of the market and the demand and other environmental factors.
Target costing
pricing that starts with an ideal selling price, and then targets costs that will ensure that the price is met.
Pricing in different types of markets (4)
Pure competition- many buyers and sellers trading in a uniform commodity.
Monopolistic competition- many buyers and sellers who trade over a range of prices rather than a single market price.
Oligopolistic competition-few sellers who are highly sensitive to each other’s pricing and marketing strategies.
Pure monopoly- the market only consists of one seller.
Price elasticity of demand
a measure of the sensitivity of demand to changes in price. Inelastic- demand hardly changes with a small change in price. Elastic- demand changes a lot when price changes.
Market-Skimming Pricing
Market-Penetration Pricing
Product Mix Pricing
Product Line Pricing
1) Setting a high price for a new product to skim maximum revenues
2) Setting a low initial price for a new product in order to attract a large number of buyers and a large market share.
3) product’s price often has to be changed. Looks for a set of prices that maximizes the profits on the total product mix.
4) Setting the price based on cost differences between the products, customer evaluations of different features, and competitors prices.
Optional-Product Pricing
Captive-Product Pricing
By-Product Pricing
Product Bundle Pricing
1)main product is sold at a low margin or near cost price, and the marketers focus on promoting the extras and upgrades 2)Setting a price for products that must be used along with a main product, such as blades for razor. 3)Setting a price for by-products to make the main product’s price more competitive. 4)Combining several products and offering the bundle at a reduced price.
