Part 1 : Mod 1 : Section B Flashcards
What are the four Ps of marketing?
Product, price, place, promotion
Why do we use marketing strategies?
Plan to achieve objectives, including expenditures, product mix, and allocation 
What if demand is greater than supply what levers can you pull on the marketing or operation side?
Marketing a higher price or longer leadtime
For operations: production flexibility, or inventory holding.
Are consumers sensitive to price changes on commodity products?
Yes
What is the equation for the total cost curve?
Total cost curve = (fixed + variable cost) x number of units
Break even units equation
Fixed costs / ( dollar per unit - variable cost)
What’s a loss leader?
Low margin item to gain market share
What does price skimming mean?
You’re a higher price when you’re alone in the market, but you lower prices when competitors arise
What is the main point of a transaction channel?
It captures ownership and funds.
What is the main purpose of a distribution channel?
To capture the movement of raw materials through consumption and travel - it’s based on type, quantity, market and product categories and their modes of transportation
What is the main point of market segmentation?
Disaggregate the market and the segments that share similar characteristics.
Position in the supply chain may impact your segmentation.
Supplier segmentation?
Sorting suppliers by the Silletti to promote performance.
Characteristics include your relationship type capabilities, customizations innovation, and leadtimes
These all drive costs and responsiveness
Who is an intermediate customer?
Not the end user
Who is an ultimate customer?
The end-user, whether that’s an organization or single person
