Marketing VI Flashcards
Folie 73 - 87
What is Product Modification involved with?
It occurs in the growth phase and can be because of
- first sales analysis
- new market constellations
- legal issues
What is Product differentiation concerned with?
Achieving advantages in product features over competitors
How can Product Differentiation can be achieved?
- Varying Features
- Customization
- Performance quality
- Durability
- Reliability
- Repairability
- Style
- Aesthetics
What ways of Elimination of a Product do you know?
- from Sales range
- from Product range
- from both
What reasons for Elimination of a product are you aware of?
- after flop
- after phase of decay
- because generally weaker product
- quality / quantity reasons
Why is the price in the marketing mix important?
Price = f(Demand;Cost;Value Perception)
- most flexible tool
- most competitive tool
- most problematic
Which factors in price are important?
- company and marketing objectives
- demand consideration
- cost consideration
- competitor / market consideration
- consumers’ perception of product value
What is the overall Pricing Policy of a firm concerned with?
- Pricing of products
- Price changes
- Pricing differentation to product cycle
- Terms of payment
- Delivery terms
- Financing of purchases
What is demand-oriented pricing?
Revenue= Price x Quantity
Market determines price based on demand and availability / supply. Oftentimes calculated by the “product’s demand curve” and “Marginal analysis”.
What is Marginal Analysis?
It calculates the change in Revenue derived from selling one additional unit at a specific price.
P= a- bQ
What does the Price Elasticity tells you?
It tells you how much a price can be changed without disturbing the demand.
>1 = elastic 1 = unitary elastic <1 = inelastic
