Short answer Questions Flashcards
How does the concept behind the wheel of retailing explain changes observed in the retail marketplace?
The evolution of new and old retailers explains why none of the most popular retailers in 1962 exist today. When existing retailers raise their prices slowly because they are comfortable in the marketplace, new retailers move in
What are the different types or categories of retailers and what marketing considerations are used to classify them?
Types of retailers are categorized by considering the amount of service they offer, the breadth and depth of their new product lines, the relative prices they charge, and how they are organized. Major types are specialty stores, department stores, supermarkets, convenience stores, discount stores, off-price retailers, and superstores
What are the basic elements of the marketing communications mix and how does each element contribute to promotional strategy?
The marketing communications mix is the specific blend of promotional tools that the company uses to persuasively communicate customer value and build relationships. It includes advertising, sales promotion, personal selling, public relations, and direct marketing
What are the major decisions for the marketer in the planning and implementing of an advertising campaign?
- they must set advertising objectives (a specific communication task to accomplish with a specific target audience during a specific period of time)
- Set the advertising budget (the dollars and other resources allocated to a product or a company advertising program)
- Develop an advertising strategy (the plan by which a company accomplishes it advertising objectives. Selecting media is done by determining reach, frequency, and impact, and choosing media timing)
- Evaluating advertising campaigns (considering the return on advertisement investment)
What are the primary differences between a cost based and value based approach to pricing? Under which conditions would each approach make the most sense?
In cost based pricing you design a good product, determine product costs, set the price based on the cost, and convince buyers of the product’s value. In value based pricing you assess a customers needs and value perceptions, set target price to match customer perceived value, determine costs that can be incurred, and design a product to deliver the desired value at target price. Cost based pricing is best for companies like walmart who want low prices or for Apple who wants high prices that indicate quality. Value based pricing is good for companies like TRESemmé who promotes “a salon quality look for less”
What are the two primary pricing strategies used by marketers to launch new products? What is the rationale for each strategy and what are the likely results in the marketplace for each?
- Market skimming: setting a high price for a new product to skim the maximum revenues layer by layer from the segments willing to pay the high price. Fewer but more profitable sales
- Market Penetration: setting a low price for a new product to attract a large number of buyers and a large market share. More but less profitable sales
What are the natures and roles of marketing intermediaries in the development of distribution channels?
Intermediaries help make a product available to the consumer or business user. They add value to the product
How are distribution channels organized and what are the key decisions for the marketer in the design of channels?
Marketing channel members turn the product companies make into the product consumers want to buy. They buy large quantities from producers and break them down into the smaller quantities and broader assortments that consumers want. Marketers must analyze consumer needs, set channel objectives, identify major channel alternatives, and evaluate those alternatives to determine market design.
