Unit 3 Flashcards
Explain the 4 stages of a product life cycle
Introduction:
product is first introduced in the marketplace, focus is on promoting consumer awareness and getting consumer to try the product.
Growth:
more competitors enter the marketplace
to stay competitive the product may be improved by adding new features or new products in that line
Maturity:
sales begin to slow down, maintain sales
repeat customers may stop buying
Decline:
sales and profit begin to drop, loyal customers may still continue to buy
Explain the 3 channels of distribution
Direct: the path a product takes without the help of intermediaries (no one in between, no broker) between the producer and consumer, such as restaurants, nike, subscribing to a streaming service
Indirect: Indirect Channel: the path a product takes using intermediaries such as Agent between the producer and the consumer,
Multiple Channels: involves more than one type of distribution channel to reach customers. Such as nikes website (direct), retail stores (direct), sells to retailers such as foot locker (indirect)
Explain pricing strategies
Prestige Pricing: Very expensive sports apparel will be priced well above the average market price to attract consumers who may judge a product’s quality by its price
Odd - even pricing: Pricing goods with either an odd number or an even number to match a product’s image
Odd priced items ($25.99) suggest a bargain, even priced items ($100) may reflect quality and more expensive items
Target pricing: Pricing goods according to what the customer is willing to pay.
Markup Pricing: Markup is the difference between the retail or wholesale price and cost of an item the markup must be high enough to cover expenses and ensure a profit
Cost - Plus Pricing: pricing products by calculating all costs and expenses and difference between revenue and expenses
Explain price fixing and give an example
an illegal practice whereby competitors conspire to set the same price, for example all apple companies all agree to charge 5000 bucks for the iphone 15
Explain predatory pricing and give an example
is setting a very low price in order to drive competitors out of business , apple can charge 300 bucks for the new iphone 15 and sell so many to drive competitors out of business
Explain Multi-branding, multi-product branding, generic branding, intermediary branding, co-branding
Multi - Product Branding: used when the manufacturer uses one name for all its products, for example such as Nike, all their products have the name “nike”
Multi - Branding: each product in a product line has a distinctive name, such as procter & gamble, they have Tide Detergent, Pampers, Charmin and are all made by P&G and have a different name for each product line
Co - Branding: combines one or more brands to increase customer loyalty and sales for each product, similar to cross - promotion, for example american express partnered with air miles, and you can gain air miles while using an american express credit card
Intermediary Brands: carries a named developed by the wholesaler intermediaries contract with manufacturers to make products that are sold under their own private labels, such as Costco - Kirkland
Generic Brands: represents a general product category and does not carry a company or brand name, such as No Frills has No Name, Shoppers Drug Mart has Life
Explain Brand, Brand name, Brand equity
- Brand: a name, word or words, symbol or design that identifies an organization and its products, such as the “nike swoosh”
- Brand Name
a word or words, letters, or numbers representing a brand, such as “nike” - Brand equity
the value a brand has beyond its actual functional benefits, brand equity has financial value through licensing
Explain Promotional and Institutional Advertising and give an example
promotional advertising: (advertising with a goal of selling an item being promoted) - ads in washrooms such as Nivea body wash
institutional advertising: (advertising with a goal of developing goodwill or positive image) - sports teams sending emails thanking fans
Explain Licensing
an agreement which gives a company the right to use another’s brand name, patent or other intellectual property for a royalty or fee, sports teams athletes and entertainment companies may have licensing agreements with product manufacturers
Explain endorsements and give an example
approval or support of a product, service or idea usually by a celebrity, celebrities endorse the product or service, for example Lebron James endorses Nike
Explain sponsorships and give an example
promotion of a company in association with a property, such the soccer team Juventus who are sponsored by Jeep and Adidas
Explain multi-product branding vs multi branding and give an example
Multi - Product Branding:
used when the manufacturer uses one name for all its products, such as Nike, all their products have the name “nike”
Multi - Branding: each product in a product line has a distinctive name own distinct image, such as P&G
What is the promotional mix
Advertising, Sales Promotion, Publicity, Personal Selling
What is a press release and explain why teams do it
A newsworthy article that provides the basic information to answer questions such as who, what, where, when, and why. and is done to alert the media in hopes of getting media coverage, companies, teams, and individuals prepare press kits and press releases
What is a marketing plan
a document that provides direction for the marketing activities for a specific time
