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Commerce 1E03 - Business Environment > Managing the Marketing Mix - Chapter 15 > Flashcards

Managing the Marketing Mix - Chapter 15 Flashcards

1
Q

Value

A

Good quality at a fair price

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2
Q

Total product offer (value package):

A

Everything that customers evaluate when deciding whether to buy something

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3
Q

Product line

A

Group of products that are physically similar or intended for similar market. They usually face similar competition.

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4
Q

Product mix

A

The combination of product lines offered by an organized

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5
Q

Product differentiation

A

Creation of real or perceived product differences. Actual product differences are something quite small, so marketers must use a creative mix of branding, pricing, advertising, and packaging (value enhancers) to create a unique, attractive image.

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6
Q

What functions must packaging perform?

A
  1. Attract the buyers’ attention
  2. Protect the goods inside, stand up under handling & storage, be tamperproof & deter theft.
  3. Be easy to open & use
  4. Describe & give info abt the contents
  5. Explain the benefits of the good inside.
  6. Provide info on warranties, warnings, & other customer matters.
  7. Give some indication of price, value and uses
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7
Q

What is UPC short for?

A

Universal product codes

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8
Q

Universal product codes (UPCs)

A

They combine bar code & a preset # that gives the retailer info abt the producer’s price, size, colour & other attributes

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9
Q

Brand

A

name, or design, or combo that identifies the product of one seller or group of sellers & distinguishes them from the products of competitors

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10
Q

Brand equity

A

The value of the brand name, and associated symbols

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11
Q

Brand loyalty

A

The degree to which customers are satisfied, enjoy the brand and are committed to further purchases

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12
Q

Brand manager / product manager

A

The person in the company who has direct responsibility for one brand or one product line

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13
Q

Product life cycle

A

Theoretical model of what happens to sales & profits for a product pass over time

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14
Q

What are the popular objectives before developing an overall pricing strategy?

A
  1. Achieving a target return on investment or profit.
  2. Building traffic
  3. Achieving greater market share
  4. Creating an image
  5. Furthering, social objectives
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15
Q

What are the 3 major approaches to pricing strategy?

A
  1. Cost based
  2. Demand based (target costing)
  3. Competition based
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16
Q

Target costing

A

Designing a product so that it satisfies customers & meets the profit margins desired by the firm.

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17
Q

Competition-based pricing:

A

Pricing strategy based on what all the other competitors are doing. The price can be set at, above, or below competitors prices.

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18
Q

Price leadership

A

Strategy by which 1 or more dominant firms set pricing practices that all competitors in an industry then follow.

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19
Q

Break even analysis

A

The process used to determine profitability at various levels of sales

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20
Q

Break-even point formula

A

Total fixed cost (TFC)/ Price of 1 unit (P)-Variable Cost (VC) of 1 unit

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21
Q

Total Fixed Cost

A

All expenses that remain the same no matter how many products are made/sold

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22
Q

Variable costs

A

Change according to the level of production.

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23
Q

Skimming price strategy

A

A new product is priced high to make optimum profit while there’s little competition

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24
Q

Penetration price strategy

A

Product is priced low to attract many customers & discourage competitors

25
Q

What is ELP short for?

A

Everyday low pricing

26
Q

Everyday low pricing

A

Sets prices lower than competitors & doesn’t usually have special sales. Idea is to bring customers to the store whenever they want a bargain rather than waiting until there is a sale

27
Q

High-low pricing strategy

A

Set prices that are higher then edlp stores but offer many special sales where the prices are lower than competitors

28
Q

Psychological pricing

A

Pricing products at price points that make the product appear less expensive than it is

29
Q

Demand-oriented pricing

A

Since diff customers are willing to pay diff prices, marketers sometimes price on the basis of customer rather demand than cost or some other calculation

30
Q

Marketing intermediaries

A

Organizations that assist in moving products from B2B and from B2C

Called intermediaries bc they are in the middle of a series of org that join together to distribute goods from producers to consumers through the channel of distribution

31
Q

Channel of distribution

A

A whole set of marketing intermediaries such as agents, brokers, wholesalers and retailers, that join together to transport and store goods in their path from producers to consumers

32
Q

Agents and Brokers

A

Marketing intermediaries who bring buyers and sellers together and assist in negotiating an exchange, but don’t take title to the goods

33
Q

Wholesaler

A

Marketing intermediary that sells to other organizations such as retailers, manufacturers, and institutions

34
Q

Retailer

A

Organization that sells to ultimate consumers who buy for their own use

35
Q

Direct channel

A

Some manufacturers sell directly to customers

36
Q

Intensive distribution

A

Puts products into as many retail outlets as possible, including vending machines

37
Q

Selective distribution

A

Distribution that sends products to only a preferred group of retailers in an area

38
Q

Exclusive distribution

A

Distribution that sends products to only retail outlet in a given geographic area

39
Q

Online retailing

A

Selling products to ultimate consumers online

40
Q

Social commerce

A

Form of electronic commerce that uses social media and user contributions to assist in the online buying and selling of products

41
Q

Telemarking

A

Sale of products by telephone

42
Q

Direct selling

A

Selling to customers in their homes or where they work

43
Q

Promotion mix

A

Combination of promotional tools an organization uses

44
Q

What is IMC short for?

A

Integrated Marketing Communication

45
Q

IMC

A

All of the promotional tools into 1 comprehensive and unified promotional strategy

46
Q

Digital marketing

A

Promotion of products/brands via 1 or more forms of electronic media

47
Q

Advertising

A

Paid, non-personal communication through various media by organizations and individuals who are in some way identified in the message

48
Q

Personal selling

A

Face-to-face presentation and promotion of products, including the salesperson’s search for new prospects and follow-up service after the sale

49
Q

Public Relations (PR) :

A

The function that evaluates public attitudes, changes policies and procedures in response to the public’s requests, and executes a program of action and info to earn public understanding and acceptance.

50
Q

Publicity

A

Any info abt an individual, product, or organization that is distributed to the public through the media and isn’t paid for or controlled by the seller

51
Q

What are the disadvantages of publicity?

A
  1. Marketers have no control over whether, how and when the media will use the story. Media isn’t obligated to use a publicity release
  2. Media may alter the story so its not positive
    3.
52
Q

Sales promotion

A

Promotional tool that stimulates consumer purchasing and dealer interest by means of short term activities

53
Q

Direct marketing

A

Any activity that directly links manufacturers or intermediaries w the ultimate consumer

54
Q

Word of mouth promotion

A

Ppl tell other ppl abt products they have purchased or services they have used

55
Q

Viral marketing

A

Strategy that encourages ppl to pass on marketing message to others, creating exponential growth in the message’s influence

56
Q

Blog

A

Online diary that looks like a web page but is easier to create and update

57
Q

Podcasting

A

Distributing multimedia digital files online for downloading/streaming

58
Q

Push strategy

A

Producer uses advertising, personalizing feelings, and all other promotional tools to convince channel members (wholesalers, retailers, etc) to stock and sell merchandise, pushing products.

59
Q

Pull strategy

A

Heavy advertising and sales promotion efforts are direction toward consumers so that they will request the products from retailers

Commerce 1E03 - Business Environment (6 decks)

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