3/26 Class

Question 1

vertical marketing

Answer 1

where someone owns all of the supply chain

Question 2

horizontal

Answer 2

where each section is owned by someone different

Question 3

disintermediation

Answer 3

when one chain disrupts another

Question 4

four p’s

Answer 4

product-creating value
place-delivering value
price-capturing value
promotion-communicating value

Question 5

price

Answer 5

to the seller: revenue

consumer: cost

Question 6

pricing and break even unit sales

Answer 6

variable cost .9
fixed costs: 45000
sales price 1.35
fixed cost/(unit sp-unit vc)

Question 7

keystoning

Answer 7

pricing model in certain chains, setting a price by taking a cost and doubling that

Question 8

cost/profit vs perceived value

Answer 8

cost based - product, cost, price, value, customers

value based - customer, value, price, ….

Question 9

price=quality

Answer 9

customers think

Question 10

cost plus pricing

Answer 10

?

Question 11

target profit pricing

Answer 11

?

Question 12

response to competition

Answer 12

reduce price
improve quality, raise price
launch low end fighter brand

Question 13

on the final exam

look at slide

Answer 13

marketing objectives

introduction: educate consumers, gaining awareness
growth: stress differentiation
maturity: maintain brand loyalty
decline: harvesting or deletion

Question 14

skimming

Answer 14

entering at a very high price to get certain consumers

then you drop to let others in and continue that trend

Question 15

Hi low

Answer 15

set prices high then give sales

Question 16

EDLP

Answer 16

always low prices always

Question 17

by product pricing

Answer 17

using by products to get more revenue

Question 18

even odd pricing

Answer 18

keeping something a penny lower

Question 19

reference pricing

Answer 19

when there is a price that is a start of the negotiation