Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
74 Cards in this Set
- Front
- Back
Channel Design Decisions
|
Analyzing consumer needs
setting channel objective identifying major alternative evaluating the major alternative |
|
3 types of VMS
|
Corporate
Contractual Administered |
|
Administered Marketing System
|
Vertical marketing system that coordinates successive stages of prodution and distribution not through common ownership or contractual ties but through the size and power of the parties
e.g. Walmart |
|
Contactual VMS
|
independent firms at different levels of production and distribution through contracts to obtain more economies or sales impact than each could achieve alone
e.g. franchise organization |
|
Types of franchise organization
|
manufactured-sponsored retail franchise
E.g. Ford & network of independent dealers manufactured-sponsored wholesaler franchise e.g. coca-cola licensed bottlers service firm-sponsored retailer franchise e.g. McDonalds |
|
Corporate VMS
|
a vertical marketing system that combines successive stages of produ tion and distribution under single ownership
|
|
Types of flows
|
physical flow
flow of ownership payment flow information flow promotion flow |
|
inderect marketing channel
|
where there is intermediaries
also note that the more # of levels means less control and greater complexity |
|
Key functions of Marketng Channel Members
|
Inform
Promote Contact Match Negotiate Distribute Finace Take risk |
|
Marketing channel
|
a set of interdpendent organizations that help a product or service reach its destination
|
|
Value delivery network
|
company, suppliers, distributors, and ultimately customers who partner with each other to improve the performance of the entire system
|
|
Downstream partners
|
those who help get the product to the customer
intermediaries distributors |
|
upstream partners
|
supply the raw materials, components, parts, information, finances and expertise to create product
|
|
predatory pricing
|
sellling below cost with the intention of punishing a competitor or gaining long-run profits by putting competitors out of business
all intent though- hard to prove |
|
Sherman, Clayton, and Robinson-Patman Act
|
makes illegal
price maintenance price descrimination price -fixing predatory pricing |
|
price maintanence
|
a manufactrer cannot require a retailer to sell a specific price
|
|
price descrimination
|
towards retailers
no matter if sears or independent retailer` |
|
Dynamic Pricing
|
changing price continually to meet needs and wants of customers and situations
|
|
Geographical charging
Types |
setting prices for customers located in different parts of the world
Free On Board- origin pricing Uniform Zone Basing-Point Freight-absorption |
|
Promotional pricing
|
temporarily setting price lower
|
|
Reference Pricing
|
prices that buyer carry in their heads and refer to when they look at a given product
|
|
psychological pricing
|
how much are people willling to pay for this...
also reference pricing the higher the price the more you link with quality if you don't know much about product |
|
Segmented Pricing
|
selling a product or service at tow or more prices, where the differences in prices is not based on differences in costs
|
|
types of segmented pricing
|
customer-segmented
product form location pricing |
|
allowance
|
a way to reward retailers for promotion a product
there is trade-in and promotional |
|
Product Bundle Pricing
|
bundling at lower price
|
|
by product pricing
|
setting a price for a by-product in order to make the main product's price more competitive
manfacturer will accept any price that cover more than the cost of storing and delivering them |
|
captive product pricing
|
pricing for products that must be used along with a main product, such as blades for a razor and film for a camera
for service is fixed fee and variable usage |
|
optional-product princin
|
the pricing of optinal or accessory product along with a main product
things you can buy with ipad |
|
product line pricing
|
setting the price steps b/w various prodcts in a product line based on cost differences b/w the products, customer evaluation of different features, and the competitors' prices
|
|
product mix pricing strategies
|
product-line pricing
optional-product captive-product by-product product bundle |
|
Conditions for product penetration
|
market must be highly price sensative
production and distribution cost must decrease as sales increase and low price must help keep out the competition, and pentration pricer must maintain it low-price position |
|
market penetration pricing
|
setting low initial price in order to penetrate the market quickly and deeply
in order to attact large number of buyers quickl and win a large market share |
|
market -skimming pricing
|
setting the highest price
then lowerng level by level to maximize profits sale fewer but more profitable sales |
|
new product pricing strategies
|
skimming
or penetration |
|
price elasticity
|
a measure of the sensitivity of demand to changes in price
|
|
inelastic
|
if demand hardly changes with small change in price
as P increases R increases |
|
Elastic
|
demand changes greatly with small change in price
as P increases R decreases |
|
price elasticity of demand formula
|
% change in Q demanded/ % change in price
|
|
demand curve
|
a curve that shows the number of units the market will buy in a given time period, at different prices that might be changed.
normal case; demand and price are inversely related higher price= lower demand |
|
oligopolistic competition
|
few seller who are highly sensative to each other's pricing and marketing strategies
market is hard to enter |
|
monopolistic competition
|
many seller but with different pricing
because of product differentiation |
|
pure competition
|
many buyers and sellers trading at uniform commodity
no control on price |
|
Different types of markets
|
pure competition
monopolistic competition monopoly oligopolistic competition |
|
target costing
|
know what price you want to sell at and building a product and basing the cost on how much you want to sell it for
|
|
Break even point
|
a target profit pricing strategy
setting prices to breakeven on the cost of making and marketing a product or the desire profit |
|
Breakeven formula
|
Fixed Cost/ Price- Variable cost
|
|
cost-based pricing
|
the simplest pricing method
adding a standard markup price |
|
markup price formula
|
unit cost/ 1-desired return on sales
|
|
experience curve
|
theory that says that cost of production will decrease as you make a product for a longer period of time
average per-unit production cost drops aka. learning curve |
|
diseconomies of scale
|
too many workers or paperwork slowing down production
|
|
pricing power
|
power to escape price competition and to justify higher prices and margins without market share
if suppliers only sell on commodity there is no customer loyalty |
|
value-added pricing
|
attaching value-added features and services to differentiate a company's offers and to support changing higher prices.
used to increase pricing power |
|
good-value pricing
|
offering just the right conbination of quality and good service at a fair price
e.g. taco bell and mcdnald's value menues Everyday low pricing and high low pricing |
|
value-based pricing
|
setting prices based on buyer's perceptions fo value rather than on the seller's cost
|
|
Vertical marketing system types
|
contractual
corporate administered |
|
Types of intermidiaries
|
intensive
exclusive selective |
|
how to evaluate major alternatives
|
economic criteria
control issues adoptive criteria |
|
Channel Management Decisions
|
Select channel members
Manage and Motivate channel members Evaluate |
|
marketing logistics
|
getting the product from scratch to customer
inbound outbound reverse distribution |
|
Major logistic Functions
|
Warehousing
inventory management Transportation Logistic Management |
|
intemodal transportation
|
ground and air
|
|
multichannel distribution system
|
call, click, or visit
a distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments |
|
integrated logistics management
|
theory of scm emphazing teamwork
|
|
types of retailers
based on |
amount of service
price organization breath and depth of product line |
|
types of retailers
|
specialty stores
conviniece stores department strore supermarkets category killer superstore discount store |
|
off-price retailers
|
factory outlets, independent and warhouse clubs
|
|
voluntary chainse
|
wholesaler-sponsored groups of independent retailers engage in bulk buying and common merchandising
|
|
promotion mix
|
personal selling
PR advertising direct marketing sales promotion |
|
integrated marketing communications
|
make sure all channels say the same thing
|
|
Retail marketing decision
|
3 major variables
product assortment service mix store's atmosphere |
|
steps in developing effective communication
|
select target audience
determine comm objectives |
|
Setting the toatl promotion budget methodes
|
affordable
percentage of sales competitive-parity objective and task method |
|
promotion mix strategies
|
push and pull
|