week 5 Marketing Mix

Question 1

What is a product?

Answer 1

A product is the item offered for sale. A product can be an item or service there is more to its physical shape or basic service function

Question 2

What is product for marketers?

Answer 2

goods, services, experience, events, people, place, information ideas…

Question 3

what’s in the actual product

Answer 3

• brand name
• quality level
• packaging
• features/design

Question 4

what’s BCG Product Portfolio Matrix

Answer 4

designed to help businesses with long-term strategic planning through consideration of growth opportunities by reviewing its product portfolio

Question 4

what’s in the associated product

Answer 4

-financing
- product warranty
- product support

Question 5

describe ansoff product marketing mix

Answer 5

described, correct

Question 6

what is price

Answer 6

the compensation (money, goods, or serviced) given hy one party to another in exchange for goods or services

Question 7

price as a signal

Answer 7

• can be too low or too high
• too low may signal low quality
• too high may signal low-value

Question 8

pricing method

Answer 8

1. Quantity demanded = f (Price)
2. Profit = Quantity (Price) × [Price – Unit Cost]
3. Find price to maximize profit (Find price where Marginal Cost =
   Marginal Revenue).
   Core Assumptions:
    focus on short run profit;
    focus on immediate customers;
    price is independent of advertising, promotion, etc.;
    demand and cost functions are known;
    unit cost is constant;
    firm has true control over price;
    competitors are ignored, etc.

Question 9

what is a cost-oriented pricing

Answer 9

when a company sets its prices as costs+ markup percentage or fixed amount

Question 10

what is a competitive-oriented pricing

Answer 10

When a company sets its price based on what its competitors are charging rather than on cost or demand
- oil, water

Question 11

what is a demand-oriented pricing

Answer 11

When a company sets its prices as a function of demand
- high demand= high price
- low demand = low price

Question 12

what is Gabor Granger

Answer 12

a technique used to determine the optimal price point for a product or service by gauging consumer willingness to pay at various price levels

Question 13

Pros of Gabor Granger

Answer 13

• simple design (easy read)
• constant measurement per price level
• Robust, proven method

Question 14

Cons of Garbor Granger

Answer 14

• assume data accuracy (30% or 50%)
• no margin of error
• risk of price being out of range

Question 15

describe revenue management

Answer 15

Revenue management is the art and science of selling the right product to the right customer for the
right price at the right time

Question 16

Explain Temporal Price Discrimination

Answer 16

pricing strategy where prices vary based on timing factors, such as when a service or product is purchased or consumed

Question 17

which two industries benefit from Temporal Price Discrimination

Answer 17

• high fixed cost industry
• service industry (hotels and airlines)

Question 18

How Temporal Price Discrimination works in hotels and airlines

Answer 18

• Time-of -day pricing
• Time when purchased
• Days of the week pricing
• Seasonal Pricing

Question 19

Processes of Revenue managemeny

Answer 19

1. estimate demand for each class of service
2. demand arrives over time– so update the demand function/remaining supply
3. allocate remaining space to maximize expected profitability or meet other criteria subject to situation-specific constrains

Question 20

what is advertising

Answer 20

advertising is any form of one-way mass communication which paid for by a marketer

Question 21

examples of traditional advertising media

Answer 21

• television, ratio, newspaper, magazines, billboard, websites, blog, etc.

Question 22

types of advertising budgeting

Answer 22

• Affordable method
• percentage of sales
• competitive parity method
• objective/task method
• model-based

Question 23

explain Affordable method

Answer 23

• companies set their advertising budget based on what they believe they can afford
• fluctuating advertising budget
• difficult to plan for long-range market development

Question 24

Explain percentage of sales

Answer 24

setting advertising expenditures at a specified percentage of sales.

Question 25

Explain Competitive parity method

Answer 25

Involves setting advertising budgets specifically to match competitors’
outlays

Question 26

Explain Objective/ task method

Answer 26

1. Defining advertising objectives as specifically as possible
2. Determine the tasks
3. Estimating the costs of those tasks

Question 27

Explain model-based approach

Answer 27

That is the advertising response model for online banner and keyword advertising offer firms