Advantages: - lead to lower cost per unit - discourages competition from market entry - boosts sales and provides large profit increases ``` Disadvantages: -requires gear up for mass production -selling large volumes at low prices -strategy to gain market share may fail . ```

Advantages: - simplicity - safest route to long-term survival for small firms Disadvantages: strategy may ignore demand and/or cost.

Institutional - corporate identity - advocacy Product - pioneering - competitive - comparitive

MKTG 361 Final Flashcards by Ryan Boorse

3 categories of pricing objectives

Profit oriented
Sales oriented
Status Quo

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Different advertising appeals that IMC might do

Profit
Health
Fear
Admiration
Convenience
Fun and Pleasure
Variety and Egotism
Environmental Consciousness.

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8 Stages of listening

1) without objective
2) tracking brand mentions
3) identifying market risks and opportunities
4) improving campaign efficiency
5) measuring customer satisfaction
6) responding to customer inquiry
7) Better understanding of customers
8) being proactive and anticipating customer demands

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Communication process with respect to social media

exchange info
collaborate with others
have conversations

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Elastic pricing

Consumers buy more or less of a product when the price changes

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Inelastic pricing

An increase or a decrease in price will not significantly affect demand.

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Status Quo pricing

maintain existing prices

- meet competition’s pricing

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Different Pricing Objectives

Profit oriented
-profit maximization
-target ROI
Sales oriented
-market share
-sales maximization
Status Quo
-maintain existing prices 
-meet competition's pricing

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Different types of media schedule

continuous-steadily throughout the period
seasonal-likely to be used
flighting-every other month or every 2 weeks
pulsing-combines flighted with pulsing

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Types of Fixed Costs

does not change as level of output changes

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Types of Variable Costs

varies with change in level of output

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3 Levels of a product

Core
Actual
Augmented

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Price Skimming Successful

Inelastic Demand
Unique advantage
legal protection of product
technological breakthrough
blocked entry to competitors

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Penetration Pricing

Advantages:

lead to lower cost per unit
discourages competition from market entry
boosts sales and provides large profit increases

Disadvantages:
-requires gear up for mass production
-selling large volumes at low prices
-strategy to gain market share may fail
.

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Status Quo Pricing

Advantages:

simplicity
safest route to long-term survival for small firms

Disadvantages:
strategy may ignore demand and/or cost.

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How is price determined based on augmented product

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Understand the different shipping and pricing policies.

FOB
Zone
Geographic

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Types of advertising

Institutional

corporate identity
advocacy

Product

pioneering
competitive
comparitive

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Know advertising strategies

-Sell product’s benefits, not its attributes.

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How does data mining help to understand and please a customer?

understands their buying habits

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Social Bookmarking

links shared with others that are voted up or down based on popularity

How do organizations benefit from being bookmarked?

links can go viral across the site and eventually the web

Pricing strategy for bookmarks (google listing)

Types of pricing position

What are some ways to motivate a sales force?

Compensation- reduces turnover

What are some negative consequences from motivating a sales force?

compensation may be too low and increase turnover

What are trends and expenses for IMC? (tv ads up or down)

Types of pricing objectives

Profit oriented Sales oriented Status Quo

Types of advertising appeals?

``` Profit Health Fear Admiration Convenience Fun and Pleasure Variety and Egotism Environmental Consciousness. ```

Sequence of events

RFI | RFP

2 Major classifications for selling

Traditional -no relationship -lone wolf Relationship

types of pricing policy

``` Profit oriented -profit maximization -target ROI Sales oriented -market share -sales maximization Status Quo -maintain existing prices -meet competition's pricing ```

Types of communication mediums

``` Newspapers Magazines Radio TV Outdoor Media Internet ```

What is involved in a service or goods exchange?

Types of selling

Traditional Relationship

Who is paying what

Costs of advertising?

RFP (request for proposal)

Illegal things about pricing?

Price fixing and predatory pricing

Pricing decisions

Price Skimming- a firm charges high intro prices, often coupled with heavy promotions Penetration Pricing- a firm charges a relatively low price for a product initially as a way to reach the mass market Status Quo Pricing- charging a price identical to or very close to the competition's price

What is it when someone else helps with ad costs?

Cooperative Advertising | an arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer's brand.

Supply and Demand Effecting pricing

high demand, high value low demand, low value supply increases, demand decreases

Break Even quantity

total costs = total revenue

Dagmar approach

Define Target Audience Define desired percentage change Define the time frame for change

Type of Discount

Quantity Promotional Seasonal

Bundling vs. Unbundling in pricing

Bundling- marketing 2 or more products in a single package for a special price Unbundling- reducing the bundle of services that comes with the basic product

Predatory pricing (walmart)

pricing below costs to drive competition out of business then raising costs again.

pricing based on geographic location

FOB origin- buyer absorbs the freight costs from the shipping point Uniform Delivered- seller pays the freight charges and bills the purchaser an identical, flat freight charge Zone- The U.S. is divided into zones, and a flat rate is charged to customers in a given zone Freight- the seller pays for all or part of the freight charges and does not pass them on to the buyer Basin-Point- seller charges freight from a basing point, regardless of the city from which the goods are shipped.

ROI formula

Net profit after taxes, divided by total assets

How much mark up is.

the cost of buying the product from the producer, plus amounts for profit and for expenses not otherwise accounted for Markup = cost + x% = Price

Services pricing (nike logo example)

How companies, small or large, have a benefit of advertising

Small companies have to spend more on advertising to reach a minimum level of exposure