Final Exam Study (chap 6,8,9) Flashcards
describe the geographic, demographic, psychographics, and behavioural personas of target markets of university students
geographic: living on campus. working part time.
demographic: 18-23. $10,00 a year. university education level. single and no kids.
psychographic: value their education, social lives, family and friends. interested in going out, working out. habits of waking up, going to class, then going out with friends.
behavioural: they shop, go to bars, workout, work part time job, study. spend money on these things ^. into tv shows, YouTube videos, tiktok
what is the new product lifecycle (describe each of the 4 stages) and list 2-3 products in each stage.
- introduction: company is trying to build awareness around product or service (rainbow silverware, portable blender)
- growth: increasing acceptance/awareness around products. (reusable straws, electric cars)
- maturity: sales will peak then slow down. usually longest stage (coco-cola, Honda)
- decline: when sales begin to decline as product demand decreases. (typewriters, blackberry phones)
describe the 4 P’s of marketing
1 . product (the actual good/service)
- pricing (what the consumer pays)
- placement (location where marketed)
- promotion (how it is advertised)
what is the adoption curve
reflects who buys your products and when. It takes the product lifecycle and considers what happens at different points
why do new products fail?
poor product / market fit, failure to understand customer needs (or fixing a non-existing problem), to a lack of internal capabilities, timing.
what is market penetration
a measure of how much a product or service is being used by customers compared to the total estimated market for that product or service. EX: assume 500 million people live in a country, and 100 million of them own an iPhone. So, the market penetration for iPhones would be 20%.
what is market development
a strategic step taken by a company to develop the existing market rather than looking for a new market. a growth strategy put in place by companies or organizations to introduce their product or solution to target audiences they have not yet reached or are not yet currently serving.
what is market diversification
a strategy in which a company seeks growth by adding products and markets of a kind unrelated to its existing products and markets. EX: an auto company may diversify by adding a new car model or by expanding into a related market like trucks.
what is pricing penetration
a marketing strategy used by businesses to attract customers to a new product or service by offering a lower price during its initial offering.
what is price skimming
producer sets a high introductory price to attract buyers with a strong desire for the product and the resources to buy it, and then gradually reduces the price to attract the next and subsequent layers of the market.
what is status quo pricing
when you choose to sell your products at a set price that everyone else sells their product for.
what is premium pricing
a strategy that involves tactically pricing your company’s product higher than your immediate competition. The purpose of pricing your product at a premium is to cultivate a sense in the market of your product being just that bit higher in quality than the rest
what is umbrella pricing
a pricing effect often created by a dominant company, in which competing firms can find buyers as long as they set their price at or below the level of the dominant one
what is break even analysis and the formula
the amount of money, or change in value, for which an asset must be sold to cover the costs of acquiring and owning it.
Break Even = Fixed Costs / (Unit Price - Unit Variable Cost)
calculate the following break even equation fixed costs = 300,000 unit price = $20 unit variable cost = $2 (round to nearest whole number)
$16,667
