Chapter 9 Flashcards
Marketing
a set of processes for creating, communicating, and delivering value to customers and for improving customer relationships. It includes everything that organizations do to satisfy customers’ needs.
Marketing Concept
The philosophy of satisfying customers’ needs while meeting organizational profit goals
Market Strategy does two things:
selects a target market and then implements strategies for creating, pricing, promoting, and distributing products that satisfy customers’ needs.
Four market segment dividing factors:
Demographics
Geographics
Behavior
Psychographics
Four P’s of Marketing
product
price
place
promotion
Methods for collecting Primary Data:
surveys, personal interviews, and focus groups.
Private Branding
the maker sells a product to a retailer who resells it under its own name.
Generic Branding
a no-brand product contains no identification except for a description of the contents.
Manufacture Branding
a company sells products under its own brand names.
Brand Equity
When consumers have a favorable experience with a product
Skimming Approach
starting off with the highest price that keenly interested customers are willing to pay. This approach yields early profits but invites competition.
Cost-Based Pricing
a company determines the cost of making a product and then sets a price by adding a profit to the cost.
Penetration Approach
marketers begin by charging a low price, both to keep out competition and to grab as much market share as possible.
Demand-Based Pricing
marketers set the price that they think consumers will pay
Target Costing
figuring out how much consumers are willing to pay and then subtract a reasonable profit from this price to determine the amount that can be spent to make the product.
