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41 Cards in this Set
- Front
- Back
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Product Concept
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Core – Fundamental Benefit
Actual – Physical good or service Augmented – Additional features & attributes |
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Nondurable Goods
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food and gas; typically shorter shelf life
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Durable Goods
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appliances and automobiles; typically longer shelf life
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Services
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doctor’s appointments, massage; typically no shelf life
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Characteristics of Services
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Intangible
Difficult to standardize Both provider and customer participate Cannot be inventoried |
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Types of "B2C Products"
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Convenience Products
Shopping Products Specialty Products Unsought Products |
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Product Life Cycle
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Introduction
Growth Maturity Decline |
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What is price
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What you charge the customer for you product. It is revenue for you.
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What is cost
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What something costs you (to make, buy, etc.). It is an expense for you.
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Pricing Objectives
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Survival
Profit Market share Product quality leadership. |
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Types of Cost
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Fixed cost
Variable cost. |
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Breakeven Point
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Break-even point is the unit or dollar sales at which an organization neither makes a profit nor loss.
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BE Quantity
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The amount of units you need to sell to break even
FixedCost/(UnitPrice -Unit Cost) |
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Elastic demand
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demand increase % > price decrease %
demand decrease % > price increase % |
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Inelastic demand
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demand increase % < price decrease %
demand decrease % < price increase % |
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Unitary demand (very rare)
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demand change % = price change %
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Types of markets
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Pure or Perfect competition
Monopolistic competition Oligopolistic competition Pure monopoly. |
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Product line pricing
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Setting price steps between product items
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Captive-product pricing
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Pricing products that must be used with
the main product |
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Product-bundle pricing
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Pricing bundles of products sold together
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Loss-leader pricing
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Taking a loss on a product to sell another.
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Segmented pricing
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Adjusting prices to allow for differences
in market segments. |
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Customary pricing
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Having the price considered customary for the product category
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Prestige pricing
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Setting prices artificially high for status
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Odd-Even Pricing
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99 cents, $1.97, $3999
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Psychological discounting
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Was $20; Now $15
Manufacturer’s price $50; Our Price $22. |
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Consumer Products Channels
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The routes that products take from firms to consumers
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Business to Business Channels
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The routes that products take from business to business
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Types of distribution Coverage
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Exclusive
Selective Intensive |
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Retail Store Classifications: by amount of service
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Self-service Retailers
Limited Service Retailers Full Service Retailers. |
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Retail Store Classifications: by amount of service
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Self-service Retailers
Limited Service Retailers Full Service Retailers. |
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Retail Store Classifications: by product line
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Specialty Stores
Department Stores Supermarkets Convenience Stores Superstores. |
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Retail Store Classifications: relative prices
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Discount Stores
Off-Price Retailers Dollar Stores Warehouse clubs. |
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Retail Store Classifications: organizational approach
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Independently owned
Part of a Chain Franchise. |
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Non-Store Retailing
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Online marketing
Direct Selling Vending machines Direct marketing |
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The Promotion Mix
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Advertising
Direct Marketing Sales Promotion Public relations Personal Selling |
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Ways to Setting the Advertising Budget
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Percentage of sales
Competitive parity All-you-can-afford Objective and task |
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How do you Evaluate Advertising Effectiveness
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Sales figures
Attitude test Recognition test Aided and unaided Recall. |
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Push Sales Promotion Methods
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Discounts
Higher margins Cooperative Advertising Contests Push Money. |
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Pull Sales Promotion Methods
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Discounts and Coupons
Rebates Frequent-User Incentives Free Samples Contests and Sweepstakes. |
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Public Relations Tools
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Press Releases
Press Conferences Special Events Charitable donations Company Reports |
