Marketing Unit 2 test Part A Flashcards
what is Variable cost
Costs that change with production volume (e.g., raw materials).
what is fixed cost
Fixed Costs: Costs that remain constant regardless of production (e.g., rent).
Profit formula
Revenue minus total costs.
break even formula
Break Even Point (BEP) = Fixed Costs / (Selling Price - Variable Costs)
Cost Benefit Analysis: formula
Benefits - Costs = Net Benefit
Gross Profit Margin:formula
(Revenue - Cost of Goods Sold) / Revenue
Economies of Scale
Reduced costs per unit due to increased production.
Product Positioning
How a product is perceived in relation to competitors.
Premium pricing
Charging a high price to reflect exclusivity
Discount prices
reducing prices to attract costumers
Market Skimming
Setting a high price initially and lowering it later
Market Penetration:
Setting a low price to gain market share
Competitive Pricing
Setting prices based on competitors
Benchmark Pricing:
Using competitor prices as a reference point.
Channels of distrubution
Path products take from producer to consumer.
Intermediaries
Entities like wholesalers and retailers that facilitate distribution.
Types of disturbution
Intensive:
Selective: .
Exclusive:
Integrated
what is intensive distrubution
Products available at many outlets
Selective
Selective: Limited outlets (e.g., furniture brands).
Exclusive
Exclusive distribution rights (e.g., luxury brands).
Integrated
Control over the entire supply chain (e.g., Apple).
Major distribution challenges
Demand fluctuations, supply chain disruptions, transportation costs.
Transportation Methods
Trains: Cost-effective for bulk; slower.
Trucks: Flexible and fast; higher costs.
Airplanes: Fast; expensive.
Boats: Economical for large shipments; slow.
what is JIT
Minimizes inventory by ordering as needed
what is warhouse management system
Software for tracking inventory.
Material Requirement Planning
Planning inventory based on demand forecasts.
Overstocking
Excess inventory; risk of obsolescence.
Days Sales of Inventory
Average number of days to sell inventory.
Understocking
Insufficient inventory; risk of lost sales.
shrinkage and turnover
Shrinkage: Loss of inventory due to theft or error.
Turnover: Rate at which inventory is sold and replaced.
elements of promotion
Elements of Promotion:
Advertising,
Publicity,
Public Relations,
Sales Promotions,
Personal Selling.
Lobbyist
Advocate for a specific cause or industry to influence legislation.
Ad media tools
Ad Media Tools: Social media, influencers, digital marketing, traditional media
Goals of Marketing
Brand Awareness: Increase recognition.
Brand Trial: Encourage first-time use.
Brand Preference: Build preference over competitors.
Brand Reminder: Keep brand top-of-mind.
Brand Repositioning: Change brand image.
Parts of an Advertisement
Headline: Captures attention.
Visual: Engaging imagery.
Logo: Brand identifier.
Slogan: Memorable phrase.
Copy: Detailed information about the product.
APEALS
Appeals: Types include:
Biological: Basic needs.
Emotional: Feelings and connections.
Rational: Logical reasoning.
Social: Belonging and acceptance.
