Midterm II Flashcards
Gap Analysis
A technique businesses use to determine what steps need to be taken in order to move from its current state to desire, future state. Forces them to reflect on who they are and what they want to be. Consists of: 1. listing of characteristic factors (attributes, competencies, etc.) 2. listing factors needed to achieve future objectives 3. highlighting the gaps that exist and need to be filled.
Value
- Low price -discounting, penetration pricing 2. Everything I want in a service -prestige pricing, skimming pricing 3. Quality I get for the price I pay -market segmentation pricing 4. All that I get for all that I give -results-based pricing
Value-based pricing
Pricing strategy which sets prices primarily on the perceived value by the customer rather on the cost of the product or historical prices
Value-added pricing
Attaches value-added features and services to differentiate product, giving it a greater sense of value
Integrated marketing communications
The application of consistent brand messaging across both traditional and non-traditional marketing channels and using different promotional methods to reinforce each other
Permission marketing
Aims to sell good and serves only when the prospect gives consent in advance to receive the marketing information (i.e.opt-in email)
Niche (market)
Subset of the market on which a specific product is focused. Market niche defines the product features to satisfy specific market needs as well as price range, production quality, and the demographics that it is intended to impact
Product line filling
Strategy that involves increasing the number of products in an existing product line to take advantage of marketplace gaps and reduce competition
Push & Pull Strategy
Push- involves taking the product directly to the consumer, ensuring that they are aware of your brand at the point of purchase Pull- involves motivating customers to seek out your brand in an active process
Repositioning
Changing a brand’s status in comparison to that of the competing brands. Has to change the target market’s understanding of the product.
Blue Ocean Strategy
Business consists of two space- red and blue oceans. Blue oceans are all the industries not in existence today - untainted by competition Create blue oceans by companies giving rise to new industries, and create it from a red ocean (alter boundaries of an exiting industry)
Brand personality
A set of human characteristics associated with a brand. Gives the consumer something to relate to. Will increase brand equity by having a consistent set of traits.
Fixed vs. Variable cost
Fixed - includes items such as sales and marketing staff salaries, national campaigns, and promotional materials (not dependent on level of goods or services produced) Variable - costs that change in proportion to the good or service
Profit
The difference between the amount earned and the amount spent in buying, operating, or producing something
7 P’s of Service Marketing
- Product
- Price
- Promotion
- Place
- People (the service customers receive from staff)
- Process (systems used to deliver service - efficiency)
- Physical evidence (what the environment looks and feels like where you are receiving the service)
Product Life Cycle
- Product development-sales are zero and investment costs mount
- Introduction-slow sales growth and profits are nonexistent; high distribution and promotion expense
- Growth-rapid market acceptance and increasing profits
- Maturity-slowdown in sales growth and profits level off or decline (many suppliers, overcapacity leads to competition)
- Decline-sales fall off and profits drop
Reasons for new product failure
- Overestimation of market size
- Poor design
- Incorrect positioning
- Wrong timing
- Priced too high
- Ineffective promotion
- Management influence
- High development costs
- Competition
