Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

MAR 255 > Test 2 > Flashcards

Test 2 Flashcards

1
Q

What is a product?

Firm perspective

A

Bundle of attributes designed to provide benefits to the consumer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is a product?

Customer perspective

A

Bundle of benefits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Uncertainty in releasing new products
Product Performance
Product Usage
Product Liking

A 
Product Performance (errors, bugs)
Product Usage (how your product will be used by those that purchase)
Product Liking (how much people will like the product)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Product Life Cycle (PLC)

A
  1. introduction
  2. growth
  3. maturity
  4. decline
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Patterns of Sales in a PLC

A
  1. Slow growth in sales
  2. Rapid growth in sales, Profit peaks
  3. Sales growth slows and flatten out, Sales peak
  4. Rapid decline in sales
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Perceived relative advantage

A

Differences and improvements from what is currently serving that need

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Compatibility

A

How compatible it is with existing products that may need to be used with it (i.e., Home video game)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Observability

A

How easily observable one person’s use is to another (i.e.,SolarPanel, New Car)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Complexity and trial-ability

A
  1. Level of expertise or learning required to use it

2. Ease of trying it without large costs (time or money)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Customer Lifetime Value (aka LTV: Lifetime Value)

A

represents the total amount of money a customer is expected to spend in your business, or on your products, during their lifetime.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Advantages of Customer LTV

A
  1. Management of customer relationship as an asset
  2. Determination of the optimal level of investments in
    marketing and sales activities
  3. Encourage marketers to focus on the long-term value of customers instead of investing resources in acquiring “cheap” customers with low total revenue value
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Key Levers to Increase Customer LTV

A
  1. Reduce customer acquisition cost
  2. Increase the margin
  3. Increase customer retention
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Role of Price on Marketing Strategy

A

A company’s pricing policy sends a message to the market.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Willingness to pay (WTP)

A

Maximum price at or below which a consumer will definitely buy one unit of a product.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Price Discrimination

A

Charge consumers with high WTP more than consumers with low WTP

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Intertemporal Price Discrimination

A

To divide consumers into high-demand and low-demand groups by charging a price that is high at first but falls later.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Choose a Price Strategy

A

A basic, long-term pricing framework that establishes the initial price for a product and the intended direction for price movements over the product life cycle.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Price Skimming

A

A firm charges a high introductory price, often coupled with heavy promotion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Penetration Pricing

A

A firm charges a relatively low price for a product initially as a way to quickly reach the mass market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Price Elasticity of Demand

A

Measure of the change in the quantity demanded in relation to its price change.

21
Q

Break-Even Quantity

A

the number of units a business must sell to cover all costs. At the break-even quantity, total revenues equal total expenses.

22
Q

Price Function

A

a mathematical relationship between a firm’s total profit and output. It equals total revenue minus total costs, and it is maximum when the firm’s marginal revenue equals its marginal cost

23
Q

What is a Distribution Channel?

A

Interdependent organizations that help make a product or service available for use or consumption

24
Q

Value Delivery Network:

A

A network composed of the company, suppliers, distributors, and, ultimately, customers who partner with each other to improve the performance of the entire system in delivering customer value

25
Q

Efficiency

A

How a distributor reduces the number of channel transactions

26
Q

Channel level

A

A layer of intermediaries that performs work in bringing the product and its ownership closer to the final buyer

27
Q

Direct marketing channel

A

No intermediary levels

28
Q

Indirect marketing channels

A

One or more intermediary levels

29
Q

Manufacturues

A

Produce the goods, using machines, raw materials and labor

30
Q

Manufacturers

A

Produce the goods, using machines, raw materials, and labor

31
Q

Wholesalers

A
  1. Purchase goods from manufacturers and sell them to retailers in bulk quantity
  2. A firm engaged primarily in wholesaling activities
32
Q

Retailers

A
  1. Sell the goods in small quantities to the end-user at a higher price
  2. Business whose sales come primarily from retailing
33
Q

Consumer

A

End-user who buys the goods (or “shops”) from the retailers for personal use

34
Q

Warehouse Club

A
  1. Retailer store,usually selling a wide varietyof merchandise, where customers may buy large quantities of the products
  2. Mainly targeting bargain-hunting individual customers and small business owners.
35
Q

Showrooming

A

The now common practice of viewing products in stores but buying them online, usually at a lower price.

36
Q

Incentives

A

Creating value

37
Q

Communications

A

Communicating Value

38
Q

Sales Promotions

A
  1. Short-term promotion activities to encourage purchase or sales of a product
  2. Can be directed at end-consumers or channel members
  3. Can be implemented quickly and get sales results sooner than “Communication”
39
Q

Short-run

A

Inform, persuade, and remind customers of the product

40
Q

Long-run

A

Contribute to brand equity (relationship, intangible)

41
Q

Integrated Marketing Communications

A
  1. All communications need to tell the same message
  2. Creating brand/product image
  3. The effectiveness of an offering’s communications depends on the extent to which it is coordinated with the other marketing mix variables.
42
Q

Pull strategy

A

To create demand for the company’s offering by promoting the offering to end users, who demand the offering from channels, and pull the demand to the channel.
Example: $500 Bonus Cash for Jeep buyers

43
Q

Push strategy

A

To incentivize channel members, who push
the product downstream to end users.
Example: Higher percentages of commission paid to a car salesperson for more cars sold above a certain goal

44
Q

Advertising

A

Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.

45
Q

To inform

A
  1. Tell the market about a new product

2. Describe attributes, benefits, uses, etc.

46
Q

To persuade

A
  1. Create/strengthen positive associations 2. Weaken negative associations
47
Q

To remind

A
  1. Remind current customers to purchase again/more

2. Keep the product in consumers’ mind during offseason

48
Q

Comparative Advertising

A

A marketing strategy in which a company’s product or service is presented as superior when compared to a competitor’s.

49
Q

Attributes

A

Solutions to customer needs

MAR 255 (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions