chapter 15 - Summary** Flashcards
What is total product offer?
everything that customers evaluate when deciding whether to buy something
whats included in TPO (total product offer) (PBS)
Includes:
price
brand name
satisfaction in use
What are the functions of packaging (7)
- attracts buyers attention
- protect the goods inside, stand up under handling and storage (temp proof, deter thief)
- be easy to open and use
- described the contents
- Explain the benefits of the product
- explains warranties, warming, hazards
- indicates price, value , uses
What is the product life cycle?
It is a theoretical model of what happens to sales and profits for a product class over time
What are the 4 stages of the product life cycle? (IGMD)
- introduction
- growth
- maturity
- decline
What are pricing objectives? (PMIST)
- achieving a target profit
- building traffic
- increasing market share
- creating an image
- Meeting social goals
What is the break-even point?
at the break-even point
total cost = total revenue
Sales beyond that point are profitable
What strategies can marketers use to determine a product’s price?
For new products:
A skimming price or a penetration price strategy is considered
other strategies
cost-oriented pricing
demand-oriented pricing
Competition-ordained pricing
pricing strategies
pricing -
one of the easiest marketing strategies to copy
this is why
- not a good long-run companies
Why do companies use non-price strategies?
- They are harder to copy
- including offering great service
- educating costumers
- establishing long term relationships with consumers
Marketing Channels (WBAR)
A channel of disruption consists of marketing intermediaries
- agents
- brokers
- whole salers
- retailers
** Join together to transport goods in their channel for producers to customers
marketing intermediaries (TRASS)
perform certain marketing tasks faster than manufacturers could
- transporting
- sorting
- selling
- advertising
- relationship building
What do marketing intermediaries ensure
these channels of disruption ensure
- that communication flows
- flow money
- the title of good
- right quantity available, where & when needed
What is a retaliator?
An organization that sells to consumers
Why is retailing important?
- it is important to the Canadian economy
- in 2020, retail trade was approximately $606 billion and employed more than 2 million people