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Intro to Marketing > Final > Flashcards

Final Flashcards

1
Q

What are the 5 C’s of Pricing?

A

Competition, Costs, Company Objectives, Customers, Channel Members

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2
Q

What are the four orientations a company can have as an objective?

A

Profit, Sales, Competitor, Customer

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3
Q

What is the issue with profit orientation?

A

It does not take into consideration the value customers have for the product. > Price being set below an optimal level

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4
Q

What is a goal associated with sales orientation?

A

Gaining market share

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5
Q

Why would firms adopt sales orientation?

A

To establish a position in the market by getting price sensitive consumers to change brands

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6
Q

What are the benefits of a competitor orientation strategy?

A

Setting the price equal to that of a competitor will help them be compared with the competitor, knowing consumers use reference prices to indicate quality

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7
Q

What is a customer orientation strategy?

A

Matching price to customer expectation. E.G. Tiffanys vs Costco diamonds

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8
Q

What types of products have upward sloping curves?

A

Prestigious products or services

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9
Q

What does it mean if a price is elastic?

A

Price sensitive

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10
Q

What does it mean if a price inelastic?

A

Price insensitive

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11
Q

What sorts of products are consumers less sensitive to price increases (which products are inelastic)?

A

Necessities

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12
Q

In what circumstance will raising the price not result in an increase in revenue?

A

In elastic markets, because the increase could drive consumers out of the market, which would lead to demand falling, and a loss of revenue

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13
Q

In what circumstance will raising the price result in an increase in revenue?

A

In elastic markets, because the relationship between price and demand is weak.

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14
Q

What is an example of a product with cross-elasticity?

A

Printer and ink cartridge

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15
Q

What are the three major types of costs?

A

Variable, Fixed & Total

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16
Q

What two types of competition are less price competition?

A

Monopoly, and Monopolistic Competition

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17
Q

Which two types of competition are more price competition?

A

Oligopoly and Pure competition

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18
Q

Which two types of competition have fewer firms?

A

Monopoly and Oligopoly

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19
Q

Which two types of competition have many firms?

A

Monopolistic Competition and Pure Competition

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20
Q

How has online shopping affected firms’ pricing strategies?

A

More sensitive to prices, alternatives and retailers

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21
Q

How does EDLP create value? How does High/Low create value?

A

EDLP: save search costs

High/Low: provides thrill of chase

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22
Q

What are the two new product pricing strategies?

A

Market Penetration & Price Skimming

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23
Q

What does penetration pricing require?

A

Consumers must be price elastic

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24
Q

What is an example of deceptive or illegal price advertising?

A

Merchandise is “put on sale” but was never really a higher price. Bait & Switch, sell something else instead

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25
What is predatory pricing?
Prices set low w/ intent to drive competitors our of business
26
When is price discrimination not illegal?
In B2B settings when giving quantity discounts
27
What is the difference between horizontal price fixing and vertical price fixing?
Vertical is parties ad different levels of same marketing channel. Horizontal is when competitors work together.
28
What is a degree of vertical integration?
A supply chain where the members act as a unified system
29
Why do larger firms choose to perform the channel functions themselves?
Gain more control, be more efficient and save money
30
What is an example of selective distribution intensity?
Pharmaceuticals
31
What is an example of exclusive distribution intensity?
Estee Lauder to only high end retailers
32
What is an example of intensive distribution intensity?
Soft drinks
33
What are the different types of food retailers?
Supermarkets, Supercenters, Warehouse Club, Convenience Stores
34
What does SKU stand for?
stock keeping units
35
What are the types of general merchandise retailers?
Department stores, Full-line discount stores, Specialty stores, drugstores, category specialist, extreme value and off-price
36
What is the most important thing that retailers do?
Provide assortment to customers
37
What are the benefits of stores for customers?
Browsing, touching and feeling, personal service, cash and credit, entertainment and social interaction, instant gratification, risk reduction
38
What are the benefits of the internet for customers?
personalization, deeper and broader selection, gain insights into consumer shopping behavior, increase customer satisfaction and loyalty, expand market presence
39
What is the AIDA model?
Attention/Interest/Desire/Action {}{}{} Think/Feel/Do
40
What does the AIDA model provide?
basis for understanding how marketing communication works
41
What is the lagged effect?
Delayed response to a marketing communication campaign
42
What are the four elements of a Integrated Communication Strategy?
Offline-Online Interactive-Passive
43
What is the most visible element of IMC?
advertising
44
What is advertainment?
Advertising that is focused on entertaining the end user
45
What is the most costly form of IMC?
Personal selling
46
What characteristics of direct marketing can explain its increased popularity?
Ability to personalize the message
47
What are two methods for setting and allocating the IMC budget?
Objective-and-task method and rule-of-thumb method
48
How can every communication be measured?
In terms of reach and frequency?
49
What is GRP?
Gross rating points
50
What does IMC stand for?
integrated marketing communications
51
What are the elements of an integrated marketing communication strategy?
Advertising, Public Relations, Sales Promotions, Personal Selling, Direct Marketing, Online Marketing,
52
What are rule of thumb methods?
competitive parity, percentage-of-sales, available budget
53
What is frequency?
Measure of how often the audience is exposed to a communication within a specific period of time
54
What is reach?
measure of consumers exposure to marketing communications; the % of the target population exposed to specific marketing communication
55
What are the steps to plan and execute an ad campaign?
1. Identify target audience 2. Set ad objectives 3. Determine ad budget 4. Convey message 5. Evaluate and select media 6. Create ads 7. Assess impact
56
What type of strategy does marketing focus on?
Pull, not push
57
What are advertising objectives?
Inform Persuade Remind
58
When does persuasive advertising generally happen?
Growth and early maturity stages of product life cycle, when competition is most intense
59
When does reminder advertising typically happen?
maturity stage of life cycle
60
What is USP?
Unique selling proposition
61
What is an example of an USP?
United Negro College Fund...A mind is a terrible thing to waste
62
What is niche media?
To reach a smaller more targeted audience
63
What is mass media?
To reach a large anonymous audience
64
What are advantages of the internet? What are disadvantages of the internet?
A- can be linked to detailed content, highly flexible and interactive, allows for specific targeting. D-becoming cluttered, ads can be blocked by software
65
What are advantages of direct mail? What are disadvantages of direct mail?
A-highly targeted, allows for personalization D-relatively expensive, can be considered junk mail.
66
What are the three types of advertising schedules?
Continuous- good for frequently purchased items like soda Flighting- seasonal goods, only advertised during certain times of year Pulsing- certain fluctuations in their demand and need to increase advertising during the periods of high or low demand.
67
What is the FTC?
Federal Trade Commission 1914- federal consumer protection laws
68
What is the FCC?
Federal Communications Commission 1934- regulates interstate and international communications
69
What is the FDA?
Food and Drug Administration 1930- regulates food and drugs...
70
What are the advantages of coupons? What are the disadvantages of coupons?
A-stimulate demand, allow for direct tracing of sales D-low redemption rates, high cost
71
What are the advantages of loyalty programs? What are the disadvantages of loyalty programs?
A-Creates loyalty, encourages repurchase D-has high cost to firm
72
What is a lift?
Additional sales caused by advertising

Intro to Marketing (1 decks)

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