Marketing exam Flashcards
Intangible
service as deed, cant taste
Tangible
defined as objects, devices
Inseparability
Customer is involved in the production, multiple customers are involved together
Cannibalization
2 products priced similary to kill 1 product sales
Internal Factors
Survival, Current profit maximization, Market-share Leadership, Product Quality Leadership
Marginal Cost
Cost per one additional unit
The Experience Curve
price lowers when volume increases
External Factors
Pricing in Different Type of Markets, Consumer Perceptions of Price & Value
Pure Competition
Market sets price
Monopolistic Competition
When you differentiate products, can charge whatever price
Oligiopolistic Competition
Few competitiors - sensitive to other prices
Pure Monoply
Charge wtv custo wants to pay
Inelastic Demand
lower price, revenue goes down
Elastic Demand
lower price, revenue goes up
Mark up on Cost Price
MU/CP x 100
Mark up on Sale Price
MU/TP x 100
Breakeven Point
Fixed Cost / Price Per Unit - Avg Var Cost per Unit
Cash Discount
2% discount if paid within 10 days, 30 days to pay full amount
Step 1
Define The Problem
Step 2
Develop Research
Step 3
Collect Relevant Information
Step 4
Develop find
Step 5
Take Marketing Action
Casual Research
is there a cause & effect relationship
Exploratory Research
explore & understand research question
Descriptive Research
Describes target market
Integrated Marketing Communications
how to coordinate marketing & make sure each msg has consistency (volkswagon game and ads)
Promotional Mix
- Advertising
- Direct Marketing
- Sales Promotion
- Publicity/public Relations
- Personal Selling
Principles of Salesmanship
- Prospecting
- Pre-approach
- Approach
- Presentation
- Trial
- Objection
- Meet Objection
- Trial Close
- Close
- Follow-up & Service
Heterogeneity/inconsistency
selecting right people
customize service - individualize
industrialized
Target Audience
- Inform
- Persuade
- Remind
- Add value
- Budget
- Message
- Media
- Advertising Evaluation
Decisions in building/managing sale
- Establish salesforce objective
- Designing salesforce strategy
- Recruiting sales people
- Train
- Supervise
- Evaluate Sales Rep
0-Level
Manufacture to Customer
1-Level
Manufacture -> Retailer -> Customer
2-Level
Manufacture -> Wholesaler -> Retailer -> Customer
3-Level
Manufacture -> Wholesaler -> Jobber -> Retailer -> Customer
Vertical Marketing - Corporate
store owned by a wholesaler
Vertical Marketing - Contractual
Franchises where the Company goes to family
Vertical Marketing - Administered
Walmart, Cinemark, anything that has corporated
Horizontal Marketing
Buying competitor
Intensive Distribution
All stores sell coke cause frequent purchase
Selective Distribution
Few stores like Polo in Macy
Exclusive Distribution
One store in town (lambo)
Legal Issues - Dual Distribution
creates second distributor to undermind first distributor
Legal Issues - Restricted Sales Territories
to reduce competition is illegal
Legal Issues - Tying Contract
Distribution cannot be forced to buy other products
Legal Issues - Exclusive Dealing
Prevents a distributor from selling the products of a different manufacturer
Legal Issues - Refusal to Deal
prevents harm to other competitors to enhance market power
Economic Order Quantity Formula
√ [2(annual usage in unit) (order cost in $ per order)] / [(price per unit)(carrying cost in % per year)]
Qualitative data
Data that is not numeric such as interviews, maps, images, mailbox mail
Push strategy
Push through channels such as sales men
Pull Strategy
Using external factors to pull customers
Pretesting
test the effectiveness of ad before it is used
Post Testing
How effective was the ad
Product-Line Pricing
set different prices
Optional Product Pricing
add options that are optional that add to price (fully loaded)
Captive Product Pricing
Giveaway razor handle but not blade (pay for blade)
By-Product Pricing
Crude Oil has by product that can be sold aswell
Odd Even Pricing
to make price look cheaper
Customary Pricing
price at particular location (walmart and cinemark candy)
Prestige Pricing
higher brand, higher price (toyota & lexus)
Price Lining
releasing multiple versions of same products at different price points at same time
