Exam 2 Review Flashcards
What are competitive frames of reference?
Nature of competition. Target Market.
What are Points of difference (POD’s)?
Desirable to consumer. Deliverable by the brand. Differentiating from competitors.
What are points of parity (POP’s)?
Negate competitor points-of-difference. Demonstrate category credentials.
What are atmospherics?
Elements in the store’s design that appeal to consumers’ emotions and encourage buying.
Are these interior atmospherics or exterior atmospherics? store front • display windows • entrance • accessibility
Exterior
Are these interior or exterior atmospherics? lighting • wall decorations • color • floors • fixtures • merchandise displays • signage • layout • smell • temperature • music • video screens • mannequins • cleanliness (restrooms)
Interior
What is product assortment?
The breadth and depth of the product line.
What is the breath of a product line?
Number of difference product lines
What is the depth of a product line?
Number of products within a line.
What are the benefits of using intermediaries?
Break bulk, provide assortment(variety of products), hold inventory(get the product when you want it), offer services(promotion, delivery, warranty), market efficiency (buy from a few sellers instead of many).
What is intensive distribution?
Maximum market coverage–firm seeks to make the product available in every outlet where customers might want to buy it. Convenience goods
What is selective distribution?
A level of distribution intensity whereby a firm selects a few retail outlets in a specific geographical area. Shopping and specialty goods
What is exclusive distribution?
A level of distribution intensity whereby only one retail outlet in a specific geographical area carries the firm’s products.
Specialty goods
What happens to the demand curve because of promotion?
It shifts outward (increase in demand) and makes the demand curve more inelastic. (consumers are less price sensitive)
What is the order of Push strategy?
Producer- Intermediaries- End Users. (Remember PIE)
What is the order of Pull strategy?
End users- intermediaries- Producer- End users.
What is the order of importance of promotion mix of consumer goods (B2C)?
Advertising, Sales Promotion, Personal selling, Direct marketing, Public relations. (A SaPpy PerSon Does More PooRly)
What is the order of importance of promotion mix of business goods (B2B)?
Personal selling, sales promotion, direct marketing, advertising, public relations. PS, SP, DM, A, PR
What is cognitive, affective, and behavioral?
build awareness, gain liking, stimulate action.
What does a creative brief consist of?
- Brand legacy- background info. 2. Copy strategy- what do we want to communicate? What is the key benefit? 3. Executional considerations. (cognitive, affective, behavioral) 4. Key customer groups. Who and where are they? 5. Key competitors- who are they?
Profit=
(price X quantity) - (FC + VC X Q)
Which has a direct impact on profit, price and quantity, or fc + vc X q?
pXq
Which has an indirect impact on profit? pXq or fc + vc X q?
fc+ vc X q
Unit margin/ unit contribution=
price- unit variable cost.
Percent margin=
Unit margin/ Price
Break Even point=
fixed cost/ price- unit VC. or Fixed cost/ Unit contribution
What determines price?
Consumer willingness to pay
Cost plus pricing
add a specific amount to the cost
target return pricing
profit, sales, ROI
Skimming pricing
high price to skim the market
Penetration pricing
low price to penetrate the market
prestige pricing
high price to signal quality, status
Price lining-
different prices for different products in a product line
Odd even pricing
$19.99
Bundle pricing
two or more products in a single package
Yield management-
match demand and supply for set capacity
Going rate pricing
follow the competition
Perceived value pricing
what the customer is willing to pay
What is The process of grouping customers into relatively
homogeneous sets such that customers within a
segment are similar to one another in the way they
respond to the marketing effort directed at them.
Market segmentation.
