Chapter 11 Flashcards
refers to an organization’s strategic and tactical decisions relating to its product/service offerings, pricing, distribution, and marketing communication efforts and approaches
marketing mix
brand ladder
- ———–brand comitment
- ———brand loyalty
- —–brand preference
- –brand awareness
refers to the ranking of products/services that purchasers develop for all the options available when making a purchase decision
○ I.e. willing to drive by several Timmies for a Starbucks coffee
predetermined purchase list
The ability to __________ ___________ _________ will enable us to minimize price as a major point of comparison, thereby reducing its influence on the decision-making process
effectively differentiate ourselves
the change in demand that is anticipates to occur at the various price points the organization is considering for its product and/or service
price elasticity
refers to the maximum price point that the customer is willing to pay for a product/service
consumer price threshold
key fundamentals to setting price
analyze your critical cost structure components
- understand your competitors cost structures
analyze the price elasticity that exists
- determine the degree of value proposition strength
represent the length of time required to recover, or earn back, the cost of an investment
payback period
refers to connecting directly with customers and handling the final sale of products/services and/or the delivery of services without the assistance of a channel intermediary
direct distribution
implies the use of a channel intermediary, such as a broker, wholesaler, or retailed, to facilitate the sales of a company’s products/services to its customers
indirect distribution
distribution systems that incorporate both direct and indirect distribution options within their distribution strategy
mixed distribution systems
products that are created by one company for sale by another company under this latter company’s own brand name
private label brands
refers to the incorporation of a number of different channel connections through which customers can purchase a P/S
multi-channel distribution
is a decision by an organization to distribute the P/S through as many locations or cannel outlets as possible
intensive distribution
goods purchased by customers on a regular basis, with minimum effort and little emotional connection (i.e. soda)
convenience goods
refers to a decision by an organization to sell its P/S through a limited number of channel intermediaries
selective distribution
refers to a decision by an organization to offer its P/S though a single market representative
exclusive distribution
inefficiencies within an organization’s marketing mix that result in margin erosion and loss of profit
profit leaks
a focused message, driven by a well-defined and developed value proposition, that is targeted specifically at a defined audience
○ Refers to making sure you are communicating the right P/S value proposition components, to the right audience, at the right time, via the right message mechanism
message rifling
All P/S go through a lifecycle of:
development introduction growth maturity decline
Length of maturity of P/S is determined by ability to
stimulate repeat purchases
Success within the lifecycle of a P/S comes down to : (3 steps)
possessing an effective positioning strategy
backed by a successful marketing effort
formulated around a meaningful value proposition (in the eyes of customers)
refers to the tendency for expenses associated with the organization’s various cost lines to rise due to inflationary pressures, union negotiated contracts, and so on
expense creep
