Basic Marketing & economic systems Flashcards
Odd pricing such as $19.95
Conveys an image of value independent of actual price
Even pricing such as $50
Conveys an image of status
Tools used for promotion (communication)
- Personal selling
- Product promotion
- Public relations
- Advertising
Value=
Value= benefits + cost
What is the basis of capitalism?
- Self interest
- Competition
- Private ownership
Who is Adam Smith?
The father of economics and capitalism
What kinds of things would we not have under a pure capitalist economy?
- Social security
- Child labor laws
- Minimum wage
What are the four p’s of marketing?
- Product
- Price
- Place
- Promotion
What are the four C’s of marketing?
- Customer
- Cost
- Convenience
- Communication
What are the stages of the product life cycle?
- Development
- Introductory
- Growth
- Maturity
- Decline
What are the characteristics of the introductory stage?
- Low sales
- Possible losses
- Few competitors
What are the characteristics of the growth stage?
- Rapidly rising sales
- Very high profits
- Growing number of competitors
What are the characteristics of the maturity stage?
- Peak sales
- Declining profits
- Stable number of competitors followed by a decline
What are the characteristics of the decline stage?
- Falling sales
- Profits may fall to become losses
- Declining number of competitors
What life cycle stage has declining profits?
Maturity
What life cycle stage has peak peak sales?
Maturity
What life cycle stage has low sales?
Introduction
What is a skimming strategy?
Price skimming occurs when a company sets relatively high prices and slowly lowers them.
There must be high demand and no immediate competition
What is a penetration strategy?
Initially offering the lowest price to get a larger share of the market
- Used when you have lots of competition
- Works only if you can absorb little or no profits in the short term
