FINAL Flashcards
CH 14/15
price
the overall sacrifice a consumer is willing to make - money, time, energy - to acquire a specific product or service
5 C’s of pricing
- customer
- company objectives
- competition
- costs
- channel members
company objectives
objectives that typically reflect how a firm intends to grow
- 4 pricing orientations fall under said objectives
4 pricing orientations
- sales oriented
- profit oriented
- competitor oriented
- customer oriented
customer
understanding consumers reactions to different prices
costs
firms must understand their costs structures so they can determine the degree to which their products /services will be profitable at different prices
competition
channel members
demand curve
shows how many units of a product or service consumer will demand during a specific period at different prices
- knowing the demand curve for a product/service enables a firm to examine different prices in terms of the resulting demand and relative to its objectives
price elasticity of demand
measures how price change in a price affect the quantity of the product demanded (% change demanded/% change in price)
what are the variables used to determine the elasticity of demand? what product attributes influence the elasticity of demand
C: cross-price elasticity
S: substitution effect
I: income effect
income effect
the change in the quantity of a product demanded by consumers due to a change in their income
(ie: burger when poor, steak when rich)
substitution effect
consumers’ ability to substitute other products for the focal brand, thus increasing price elasticity of demand for the focal brand
cross price elasticity
The percent change in the quantity of product a demanded compared with the percentage change in price in product b
complementary products
products whose demand curves are positively related (a % increase for one results in a % increase for the other)
substitute products
products whose demand curves are negatively related (a % increase for one results. % decrease for the other)
in what ways can marketers utilize demand curves
marketers need to know how consumers will respond to a price increase or decrease for a specific product or brand so they can determine whether it makes sense for them to raise or lower prices
what is a price elasticity and why does it matter to marketers/how do they use it?
the measurement of responsiveness of quantity demand due to a change in price
elastic (price sensitive)
relatively small changes in price will generate fairly large changed in the quantity demanded
price elasticity of less than -1
inerlastic (price insensitve)
relatively small changed in price will NOT generate large changed in the quantity demanded
price elasticity greater than -1
dynamic pricing
the prices of charging different prices for goods/services based on the type of customer (think aunty ester)
how does brand loyalty impact a product’s demand curve?
customers loyal to a specific brand are willing to pay a higher price for a product/service bc they don’t see other brands as adequate substitutes
what are the components of a break-even analysis and what information can marketers gain from it?
JULIANNE
components of a breakeven analysis: break-even point, contribution/unit, price less the variable cost/unit
The relationships amongst cost, price, revenue, and profit over different levels of production and sales
what are the 4 levels of competition?
P: perfect competition
O: oligopoly
M: monopoly
—–
M: monopolistic competition
perfect competition
impact?
monopolistic competition
impact?
oligopoly
impact?
monopoly
impact?
what are market entry strategies may overcome pure competition
INSERT QUIZ ANSERS
CH 16 SUPPLY CHAIN
what is supply chain
a set of approaches and techniques firms employ t efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores, adn transportation intermediaries into a seamless value chain (aka marketing channel management)
how does supply chain relate to values creation delivery
describe the value of JIT and Quick Response (QR)
Understand and describe the purpose for the components of the supply chain from raw materials, transportation, manufacturing, warehousing, distribution centers, fulfillment centers, wholesaling, intermediaries, retailing, and the concept of vertical integration, why these decisions matter to marketers
Quick Response (QR)
whar is the role of intermediaries as B2B or B2C?
different power bases used in marketing relationships
C: coercive power
R: reward power
I: informational power
E: expert power
R: referent power
——
L: legitimate power
coercive power
?? how they may be leveraged by participants for their individual and mutual advantage
reward power
?? how they may be leveraged by participants for their individual and mutual advantage
informational power
?? how they may be leveraged by participants for their individual and mutual advantage
expert power
?? how they may be leveraged by participants for their individual and mutual advantage
referent power
?? how they may be leveraged by participants for their individual and mutual advantage
legitimate power
?? how they may be leveraged by participants for their individual and mutual advantage
What is vertical integration as it relates to the supply chain,
what are opportunities and challenges created by vertical integration as it relates to getting products to market?
CH 17
retail
how does the retail marketing channels relate to value creation
and delivery?
Retailers and manufacturers work together to meet the needs of the target, what do each need to know about the customer and how does this benefit the customer?
What are marketing channels,
who are potential intermediaries and what is their purpose?
What are the three distribution intensities?
S: selective distribution
I: intensive distribution
E: exclusive distribution
selective distribution
def:
applicable:
how aligns with product positioning and brand equity:
intensive distribution
def:
applicable:
how aligns with product positioning and brand equity:
exclusive distribution
def:
applicable:
how aligns with product positioning and brand equity:
value of omnichannel strategy and the value points for consumers and manufacturers
CH 18 IMC
Describe the steps in the communication process
why does this process matter to marketers, how do they use this knowledge in IMC messaging?
How does IMC influence consumer behavior? Are the results immediate and why?
What is the relationship between the value proposition, the six Ps, and integrated marketing communication messaging?
What is the AIDA model,
describe the value of IMC messaging aligning with the principles of the model.
six core promotional channels,
six core promotional channels, how and why might they be selected?
What are the channels of IMC communication, how might they be categorized as it relates to how messages transmitted and received,
what are the advantages and challenges of each method?
What is the eventual goal of IMC?
How do marketers assess the efficacy of their IMC messaging success?
How are IMC efforts measured within the different communication channels, what are some of the advantages and challenges related to effective measurements of IMC efforts?
CH 19
Define each of the standard promotional categories
what sets them apart from each
What is the relationship between SMART goals and advertising campaigns? How does this relationship guide marketing efforts?
Know the difference between push and pull strategies and why they may be employed and how they relate differently to demand?
What is the primary messaging focus for advertising, what is the importance of this focus?
Define media planning and media mix, how are they related and how are each of them used by marketers?
What are the two basic categories of advertising media channels and how the strategies for these categories differ?
What is the importance of scheduled advertising, how is this practice used to influence demand?
Name the three basic scheduling methods and their marketing purpose.
What is the marketing purpose for public relations, how does public relations differ from other methods of promotion when influencing consumers, and what forms does public relations take?
What is the marketing objective for sales promotions used, what form do they take?
