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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
Q

What is predatory pricing?

A

Prices set low w/ intent to drive competitors our of business

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26
Q

When is price discrimination not illegal?

A

In B2B settings when giving quantity discounts

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27
Q

What is the difference between horizontal price fixing and vertical price fixing?

A

Vertical is parties ad different levels of same marketing channel. Horizontal is when competitors work together.

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28
Q

What is a degree of vertical integration?

A

A supply chain where the members act as a unified system

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29
Q

Why do larger firms choose to perform the channel functions themselves?

A

Gain more control, be more efficient and save money

30
Q

What is an example of selective distribution intensity?

A

Pharmaceuticals

31
Q

What is an example of exclusive distribution intensity?

A

Estee Lauder to only high end retailers

32
Q

What is an example of intensive distribution intensity?

A

Soft drinks

33
Q

What are the different types of food retailers?

A

Supermarkets, Supercenters, Warehouse Club, Convenience Stores

34
Q

What does SKU stand for?

A

stock keeping units

35
Q

What are the types of general merchandise retailers?

A

Department stores, Full-line discount stores, Specialty stores, drugstores, category specialist, extreme value and off-price

36
Q

What is the most important thing that retailers do?

A

Provide assortment to customers

37
Q

What are the benefits of stores for customers?

A

Browsing, touching and feeling, personal service, cash and credit, entertainment and social interaction, instant gratification, risk reduction

38
Q

What are the benefits of the internet for customers?

A

personalization, deeper and broader selection, gain insights into consumer shopping behavior, increase customer satisfaction and loyalty, expand market presence

39
Q

What is the AIDA model?

A

Attention/Interest/Desire/Action {}{}{} Think/Feel/Do

40
Q

What does the AIDA model provide?

A

basis for understanding how marketing communication works

41
Q

What is the lagged effect?

A

Delayed response to a marketing communication campaign

42
Q

What are the four elements of a Integrated Communication Strategy?

A

Offline-Online Interactive-Passive

43
Q

What is the most visible element of IMC?

A

advertising

44
Q

What is advertainment?

A

Advertising that is focused on entertaining the end user

45
Q

What is the most costly form of IMC?

A

Personal selling

46
Q

What characteristics of direct marketing can explain its increased popularity?

A

Ability to personalize the message

47
Q

What are two methods for setting and allocating the IMC budget?

A

Objective-and-task method and rule-of-thumb method

48
Q

How can every communication be measured?

A

In terms of reach and frequency?

49
Q

What is GRP?

A

Gross rating points

50
Q

What does IMC stand for?

A

integrated marketing communications

51
Q

What are the elements of an integrated marketing communication strategy?

A

Advertising, Public Relations, Sales Promotions, Personal Selling, Direct Marketing, Online Marketing,

52
Q

What are rule of thumb methods?

A

competitive parity, percentage-of-sales, available budget

53
Q

What is frequency?

A

Measure of how often the audience is exposed to a communication within a specific period of time

54
Q

What is reach?

A

measure of consumers exposure to marketing communications; the % of the target population exposed to specific marketing communication

55
Q

What are the steps to plan and execute an ad campaign?

A
  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
Q

What type of strategy does marketing focus on?

A

Pull, not push

57
Q

What are advertising objectives?

A

Inform
Persuade
Remind

58
Q

When does persuasive advertising generally happen?

A

Growth and early maturity stages of product life cycle, when competition is most intense

59
Q

When does reminder advertising typically happen?

A

maturity stage of life cycle

60
Q

What is USP?

A

Unique selling proposition

61
Q

What is an example of an USP?

A

United Negro College Fund…A mind is a terrible thing to waste

62
Q

What is niche media?

A

To reach a smaller more targeted audience

63
Q

What is mass media?

A

To reach a large anonymous audience

64
Q

What are advantages of the internet? What are disadvantages of the internet?

A

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
Q

What are advantages of direct mail? What are disadvantages of direct mail?

A

A-highly targeted, allows for personalization D-relatively expensive, can be considered junk mail.

66
Q

What are the three types of advertising schedules?

A

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
Q

What is the FTC?

A

Federal Trade Commission 1914- federal consumer protection laws

68
Q

What is the FCC?

A

Federal Communications Commission 1934- regulates interstate and international communications

69
Q

What is the FDA?

A

Food and Drug Administration 1930- regulates food and drugs…

70
Q

What are the advantages of coupons? What are the disadvantages of coupons?

A

A-stimulate demand, allow for direct tracing of sales D-low redemption rates, high cost

71
Q

What are the advantages of loyalty programs? What are the disadvantages of loyalty programs?

A

A-Creates loyalty, encourages repurchase D-has high cost to firm

72
Q

What is a lift?

A

Additional sales caused by advertising

Intro to Marketing (1 decks)

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