Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Marketing Unit Three
| Question | Answer |
|---|---|
| Product life cycle | Stages a new product goes through in the marketplace: introduction, growth, maturity, and decline |
| Penetration pricing | Pricing strategy helps build unit volume, but a company must closely monitor costs. Initially pricing low |
| Skimming | Pricing high initially |
| Deletion | Dropping the product from the company's product line, is the most drastic strategy |
| Harvesting | Company retains the product but reduces marketing costs |
| Fashion product | Sign of times. Introduced, decline, and then return |
| Fad product | Rapid sales on introduction and then equally rapid decline |
| Product class | Entire product category or industry, such as prerecorded music |
| Product form | Variations of a product within the product class |
| Product/brand manager | Manages the marketing efforts for a close-knit family of products or brands |
| Product modification | Altering one or more of a product’s characteristics, such as its quality, performance, or appearance to increase the product’s value to customers and increase sales |
| Market modification | Company tries to find new customers, increase a product’s use among existing customers, or create new use situations |
| Trading up | Adding value to the product (or line) through additional features or higher-quality materials |
| Trading down | Reducing a product’s number of features, quality, or price |
| Branding | Organization uses a name, phrase, design, symbols, or combination of these to identify its products and distinguish them from those of competitors |
| Brand name | Any word, devise, or combination of these used to distinguish a seller’s products or services |
| Brand personality | Set of human characteristics associated with a brand name |
| Brand equity | Added value a brand name gives to a product beyond the functional benefits provided |
| Brand Licensing | Contractual agreement whereby one company (licensor) allows its brand name(s) or trademark(s) to be used with products or services offered by another company (licensee) for a royalty or fee |
| Packaging | Component of a product refers to any container in which it is offered for sale and on which label information is conveyed |
| Label | Integral part of the package and typically identifies the product or brand, who made it, where and when it was made, how it is to be used, and package contents and ingredients |
| Communication benefit | Information for consumers |
| Functional benefit | Storage, convenience, or protection |
| Services | INTANGIBLE activities or benefits (such as airline trips, financial advice, or automobile repair) than an organization provides to satisfy consumers’ needs in exchange for money or something else of value |
| Four I's of services | Four unique elements of services- intangibility, inconsistency, inseparability; and inventory |
| Idle production capacity | When the service provider is available but there is no demand for this service |
| Inventory | Cost is paying the person even if no customers |
| Intangibility | Cannot hold a service before purchase |
| Inconsistency | Services depend on people and quality varies |
| Inseperability | Cannot separate the deliverer of the service from the service itself |
| Service continuum | Range of product-dominant to service-dominant offerings |
| Gap analysis | Differences between the consumer’s expectations and experience are identified through |
| Customer contact audit | FLOWCHART of the points of interaction between consumers and the service provider |
| Seven Ps of services marketing | In addition to the four Ps, the services marketing mix includes people, the physical environment, and the process |
| Off-peak pricing | Consists of charging different prices during different times of the day or during different days of the week to reflect variations in demand for the service |
| Internal marketing | Based on the notion that a service organization must focus on its employees, or internal market, before successful programs can be directed at customers |
| Customer experience management (CEM) | Process of managing the entire customer service with the company |
| Capacity management | Integrating the service component of the marketing mix with efforts to influence consumer demand |
| Price (P) | Money or other considerations (including other products and services) exchanged for the ownership or use of a product or service |
| Barter | Exchanging products and services for other products and services rather than for money |
| Price equation | Final price= list price - (incentives and allowances) + extra fees |
| Value | Ratio of perceived benefits to price, or value=perceived benefits/price |
| Value pricing | Practice of simultaneously increasing product and service benefits while maintaining or decreasing price |
| Profit equation | Profit= total revenue - total cost |
| Pricing objectives | Specify the role of pricing in an organization’s marketing and strategic plans |
| Pricing constraints | Factors that limit the range of prices a firm may set |
| Demand curve | Graph that relates the quantity sold and price, showing the maximum number of units that will be sold at a given price |
| Demand factors | Factors that determine consumers’ willingness and ability to pay for products and services |
| Price elasticity of demand | Percentage change in quantity demanded relative to a percentage change in price |
| Elastic | 1 percent decrease in price produces more than a 1 percent increase in quantity demanded |
| Inelastic | 1 percent decrease in price produces less than a 1 percent increase in quantity demanded |
| Total revenue (TR) | Price (P) times the quantity sold (Q) |
| Total Cost (TC) | Total expense incurred by a firm in producing and marketing a product. Is the sum of fixed and variable costs |
| Break-even analysis | Technique that analyses the relationship between total revenue and total cost to determine profitability at various levels of output |
| Fixed costs (FC) | Sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold. Examples are rent on the building, executive salaries, and insurance |
| Variable cost (VC) | Sum of the expenses of the firm that vary directly with the quantity of a product that is product that is produced and sold. For example, as the quantity sold doubles, the variable cost doubles |
| Skimming pricing | Setting the highest initial price that customers really desiring the product are willing to pay when introducing a new or innovative product |
| Penetration pricing | Setting a low initial price on a new product to appeal immediately to the mass market |
| Prestige pricing | Setting a high price so that quality-or status-conscious consumers will be attracted to the product and buy it |
| Price lining | Setting the price of a line of products at a number of different specific pricing points |
| Odd-even pricing | Setting prices a few dollars or cents under a even number |
| Target pricing | Consists of (1) estimating the price that ultimate consumers would be willing to pay for a product (2) working backward through markups taken by retailers and wholes.. to charge wholes.. (3) deliberately adjusting the composition and features achieve pric |
| Bundle pricing | Marketing two or more products in a single package price |
| Yield management pricing | Charging different prices to maximize revenue for a set amount of capacity at any given time |
| Standard markup pricing | Adding a fixed percentage to the cost of all items in a specific product class |
| Cost-plus pricing | Summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price |
| Target profit pricing | Setting an annual target of a specific dollar volume of profit |
| Target return-on-sales pricing | Setting a price to achieve a profit that is a specified percentage of the sales volume |
| Target return-on-investment pricing | Setting a price to achieve an annual target return on investment (ROI) |
| Customary pricing | Setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors |
| Above-, at-, or below-market pricing | Setting a market price for a product or product class based on a subjective feel for the competitors' price or market price as the benchmark |
| Loss-leader pricing | Deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention to it in hopes that they will buy other products with large markups as well |
| Fixed-price policy (one-price policy) | Setting one price for all buyers of a product or service |
| Dynamic pricing policy (flexible-price policy) | Setting different prices for products and services in real time in response to supply and demand conditions |
| Product line pricing | Setting prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necesarily for each item |
| Price war | Successive price cutting by competitors to increase or maintain their unit sales or market share |
| Quantity discounts | Reducing in unit costs for a larger order |
| Promotional allowances | Cash payments or an extra amount of "free goods" awarded to sellers in the marketing channel for undertaking certain advertising or selling activities to promote a product |
| Everyday low pricing | Practice of replacing promotional allowances with lower manufacturer list prices |
| Price fixing | A conspiracy among firms to set prices for a product |
| Price discrimination | Charging different prices to different buyers for products of like grade and quality |
| Predatory pricing | Charging a very low price for a product with the intent of driving competitors out of business |
| What phase do sales grow in? | Growth |
| What phase do sales level off in? | Maturity |
| What phase do profits peak in? | Growth |
| What is the first marketing objective? | Gain awareness |
| What is the second marketing objective? | Stress differentiation |
| What is the third marketing objective? | Maintain brand loyalty |
| What is the fourth marketing objective? | Harvesting, deletion |
| What is the hallmark of the growth phase? | More competition |
| What phase do marginal competitors leave? | Maturity |
| What is step one in setting the price | Identifying pricing objectives and constraints |
| What is step two in setting the price | Estimate demand and revenue |
| What is step three in determining the price | Determine cost, volume, and profit relationships |
| What are possible objectives in step 1 | Profit, market share, and survival |
| What are pricing constraints | Cost of producing and marketing the product, profit for channel members, cost of changing prices and time period they apply, single product v. a product line, type of competition, competitors’ prices and consumers’ awareness and ability to easily purchase |
| What are demand factors | Consumer tastes, price and availability of similar products, consumer income |
| Marketing channel | Consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users |
| Transactional function | Buying, selling, risk taking |
| Logistical function | Assorting, storing, sorting, transporting |
| Facilitating function | Financing, grading, marketing information and research |
| Direct channel | Producer and ultimate consumers deal directly with each other. Ex. Schwan’s and business side IBM, marketing side Dell.com for computer |
| Indirect channel | Intermediaries are inserted between the producer and consumers to perform numerous channel functions |
| Direct-to-consumer marketing channels | Allow consumers to buy products by interacting with various print or electronic media without a face-to-face meeting with a salesperson |
| Multichannel marketing (omnichannel marketing) | Blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online |
| Dual distribution | Arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product |
| Vertical marketing systems | Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact. Ex. franchise. contractual |
| Contractual vertical marketing system | Independent production and distribution firms integrate their efforts on a contractual basis to obtain greater functional economies and marketing impact than they could achieve alone |
| Franchising | Contractual arrangement between a parent company (a franchisor) and an individual or firm (a franchisee) that allows the franchisee to operate a certain type of business under an established name and according to specific rules |
| Intensive distribution | Firm tries to place its products and services in as many outlets as possible. (coke,tide) |
| Extensive distribution | Extreme opposite of intensive distribution because only one retailer in a specific geographical area carries the firm’s products (Harley davidson, rolex) |
| Selective distribution | Lies between these two extremes and means that a firm selects a few retailers in a specific geographical area to carry its products |
| Buyer requirements | Information, convenience, variety, and pre- or postsale service |
| Channel conflict | One channel member believes another channel member is engaged in behavior that prevents it from achieving its goals |
| Disintermediation | Conflict arises when a channel member BYPASSES another member and sells or buys products direct |
| Vertical conflict | Occurs between different levels in a marketing channel |
| Horizontal conflict | Between intermediaries at the same level in a marketing channel |
| Logistics | Involves those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost |
| Supply chain | Various firms involved in performing the activities required to create and deliver a product or service to consumers or industrial users |
Created by:
user-2021742