In Class Content Flashcards
CPM
Cost per Thousand
Frequency
How many times an ad is repeated in a given time period
Reach
How many people are exposed to the ad at least once
What is the “kinked” feature of sales promotion
- From the rise in sales during the time frame of promotions like : BOGO, Coupons, Rebates.
3 “More likely” characteristics of deal prone customers
- Larger houses
- Home Owner
- Larger Vehicles
4 “Less Likely characteristics of deal prone customers (coupon clippers?)
- People with Infants
- Smaller Houses
- Renting
- Smaller Vehicle
3 elements of Short Term Nature of Sales Promotion (Sales ___)
- Remain Elevated - happens 5% of time…and when people are trying a product out for the first time.
- Return to original - Best Case Scenario…Stealing market share from competitors
- Dip Below - Most common
Pros and Cons of Tv ads
Pros - Visual, Cost very little
Cons - A lot of clutter
The ______ _____ is a good way to measure ?effectiveness
Recall Test
Pros of newspaper
- You can Deliver Samples
2. Larger Ads than magazine
Cons of Print Media
- Clutter
- Reaches Fewer People
- Susceptible to placement
Features of Direct Mail Marketing
“opt in” direct mail is effective and versatile
Cost is high
For Specific products, it can be effective
What is the best form of Internet marketing?
Emailing, particularly if it is opt-in
Large Companies dont like Social Media Marketing because
Adds more cost than benefit
Everyone has to have an on-line presence
70% of businesses have a ______ and 40% of businesses have a ____/______
Facebook,Pintrest/Instagram
Demand Patterns
Penetration - straight horizontal line
Inelastic - Down hill (skimming)
Prestige - Backwards C (Inferring Quality from Price)
Odd-Even - Down Stairs (Consumers perceive prices in ranges)
Bundling - Used to sell new products or unpopular products (sell more for same price)
Skimming is
what you do in an inelastic market - high price doesn’t affect demand
Pricing Effects
Unique Value
Substitute Awareness (competitor effect)
Difficult Comparison
Total Expenditure
End Benefit
Sunk Investment
Shared Cost
Price-Quality
Inventory
Unique Value effect
The more unique, the higher you can charge (because people are less price sensitive
Substitute awareness effect
The more aware of competitors consumers are, the more price sensitive
Total Expenditure Effect
Low Expenditure, Low price sensitivity:
High Expenditure, High price Sensitivity
End Benefit
If it provides a needed benefit, Less price sensitive
electric scooter
Price-quality effect
True of Services
the greater perceived quality, the less sensitivity
Rielley’s Law
People are more sensitive to distance than population
Inconvenience/Convenience
Index of Retail Saturation (IRS)
Few Competitors and High Demand if High Ratio
(Demand$ / sqft of retail space) / category and zip code
Wheel of Retailing
Stores have life-cycles too
- New Catagory of stores = invariably low priced
- They Start diversifying from their core competencies
MUPC stands for
Markup based on COST
MUPR Stands for (retail)
Markup Based on Selling Price (retail)
Strategic Group Map
Line of Equal Value, Blue Clusters, Inter/Intra Competition
Intra is much weaker
4 Pricing Tactics
B, L, P, Y
Bait/Leader Pricing - retailers price nearly at cost to drive traffic to store
Loss Leader Pricing - Illegal (Bait and Switch)
Price Lining - Make Price irrelevant , people buy more (bargain bin all for $20)
Yield Pricing - Charging different amount for everybody (Airlines, Hotels)
Second Market Strategy
Pricing in a 2nd market has no fixed cost
Cost Plus Strategy
Fixed+Variable=Total Cost
Source Issues
C, A, P
Credible
Attractive
Powerful
d
d
