Quiz 2 Flashcards
(33 cards)
organizational function and a set of processes for creating, communicating, and delivering value to customers, and for managing customer relationships in ways that benefit the organization and its stakeholders
marketing
part of the marketing mix concerned with getting products from producers to consumers
place
aspect of the marketing mix concerned with the most effective techniques for communicating information about products
promotion
any form of paid non-personal communication used by an identified sponsor to persuade or inform potential buyers about a product
advertising
person to person sales
personal selling
short-term promotional activity designed to encourage consumer buying, industrial sales, or cooperation from distributors such as coupons, premiums, package inserts, point-of-sale displays, and loyalty programs
sales promotion
communication efforts directed at building goodwill and favorable attitudes in the minds of the public toward the organization and its products
public relations
good, service, or idea that is marketed to fill consumers’ needs and wants
product
- Not a lot of differentiation
- Ex. Toilet paper, milk
- Consumed rapidly and regularly
- Inexpensive
- Purchased often with little input of time and effort
convenience product
- Brand matters
- Target market is more defined
- Ex. Nike/under armor
- Purchase less often
- More expensive
- Consumers may shop around and compare products based on style, performance, color, price, and ither criteria
- Ex. Television set, tires, hotel reservation
shopping product
- Really narrow target market
- Expensive
- Consumer decides on a precise product and will not accept substitutions and spends a good deal of time choosing the “perfect” item
- Ex. Lamborghini, luxury jewelry, wedding gown, healthcare insurance
luxury/specialty product
process of determining the best price at which to sell a product
price
group of people who have similar wants and needs and can be expected to show interest in the same products
target market
cost that changes with the quantity of a product produced and sold
variable cost
cost that is incurred regardless of the quantity of a product produced and sold
fixed cost
the group of products that a firm makes available for sale
product mix
– group of products that are closely related because they function in a similar manner or are sold to the same customer group who will use them in similar ways
* Campbells chunky soup, Campbells microwave soup, campbells homestyle soup
product line
setting an initially high price to cover new product costs and generate a profit
price skimming
setting an initially low price to establish a new product in the market
penetration pricing
pricing tactic that takes advantage of the fact that consumers do not always respond rationally to stated prices
psychological pricing
psychological pricing tactic based on the premise that customers prefer prices not stated in even dollar amounts
odd-even pricing
price reduction offered as an incentive to purchase
discount
– for a particular selling price, assessment of the seller’s costs versus revenues at various sales volume
– this is how many we have to sell the breakeven
breakeven analysis
– pricing that considers the firm’s desire to make a profit and its need to cover production costs
– Selling price = Seller’s costs + Profit
cost-oriented pricing
