Marketing Essays #2

Front 1

Name and describe the three basic strategies for setting a price on a new good or service. In addition, discuss under what conditions is each of the three basic pricing methods successful?

Back 1

The 3 basic strategies for setting a price on a new good or service are: price skimming, penetration pricing, and status quo pricing.

Front 2

1. Price Skimming

Back 2

denotes a high price relative to the prices of competing products |||| enable management to recover its product development costs quickly

Front 3

1. Penetration Pricing

Back 3

pricing policy whereby a firm charges a relatively low price for a product when its first rolled out as a way to reach the mass market ||||can be effective if a experience curve will cause costs per unit to drop

Front 4

1. Status Quo Pricing

Back 4

charging a price identical or very close to the price of a competitor's |||| for a relatively small firm, matching the competitor maybe the safest route for long-term survivial

Front 5

Name and define the four categories of consumer products. For each category, provide one specific example of products that would most likely be classified in that category.

Back 5

The 4 categories of consumer products are convenience products, shopping products, specialty products and unsought products.

Front 6

Convenience Product

Back 6

relatively inexpensive item that merits little shopping |||| deodorant

Front 7

Shopping Product

Back 7

requires comparison shopping because it is usually more expensive than convenience and is found in fewer stores |||| washer or dryer

Front 8

Specialty Product

Back 8

a product for which a consumer has done extensive research on to find and is reluctant to accept substitutes |||| rolls-royce

Front 9

Unsought Product

Back 9

unknown by buyer or known product that buyer can not actively see |||| insurance

Front 10

Name and describe the six categories of new products. Give an example for each one.

Back 10

The 6 categories of new products are: new-to-the-world products, new product lines, additions to existing product lines, improvements or revisions of existing products, repositioned products, and lower-priced products.

Front 11

New-to-World Products

Back 11

create an entire new market and represent the smallest category of products |||| Polytron's transparent smartphone prototype

Front 12

New Product Lines

Back 12

which firm has not previously offered but allows them to enter into an established market ||||Moleskin's covered journals, and now iphone and ipad covers

Front 13

Additions to Existing Product Lines

Back 13

includes new products that supplements a firms established line ||||taco bell - doritos locos taco

Front 14

Improvements or Revisions to Existing Product Lines

Back 14

significant or small changes to an existing product |||| millercoors carries miller lite in restaurants

Front 15

Repositioned Products

Back 15

existing products target a new market or market segment |||| Mercedes repositioned it Maybach (luxury) to a sub-brand to appeal to more status-conscious customers

Front 16

Lower-Priced Products

Back 16

refers to products that provide performance similar to competitors but at a lower price |||| HP laserjet is scanner, copier, printer and fax machine

Front 17

There are four promotional strategies for dealing with the unique features of services. Name these strategies and give examples of each, using service experience.

Back 17

The 4 promotional strategies for dealing with the unique features of services are: intangible, inseparable, heterogeneous, and perishable.

Front 18

Intangible Strategy

Back 18

at the ritz hotel, if someone ask for directions within the hotel, employees are required to take them to their destination rather than just giving them directions

Front 19

Inseparable Strategy

Back 19

during a haircut or surgery, you are required as the customer to be present during the time that the service is completed

Front 20

Heterogeneous Strategy

Back 20

for a physician in a group practice or barber in a barbershop because they differ within each group in their technical and interpersonal skills

Front 21

Perishable Strategy

Back 21

airlines can only sell tickets prior to a flight, seats can not be saved for a later time

Front 22

Discount stores are retail chains that compete on the basis of low prices, high turnover, and high volume. Name and describe four types of discounters, and give an example of each type.

Back 22

The 4 types of discounters are: full-line discount stores, supercenters, warehouse club, and restaurants.

Front 23

Full-line Discount Stores

Back 23

discount stores offer consumers very limited service and carry a vast assortment of well-known, nationally branded goods such as housewares, toys, etc |||| Walmart

Front 24

Supercenters

Back 24

extend the full-line concept to include groceries and a variety of services, such as pharmacies, dry cleaning, etc. |||| Target

Front 25

Warehouse Club

Back 25

sells a limited selection of brand name appliances, household items, and groceries. |||| Costco

Front 26

Restaurants

Back 26

Restaurants provide both tangible products (ex: food and drink) and valuable services (food preparation and presentation). |||| Starbucks

Front 27

One model for reaching promotional objectives is called the AIDA concept. Suppose you are the promotional manager for the new Charge Bike (3-D in-house printed and manufactured bicycle). Describe the promotional activities you would recommend in each stage of AIDA model for the Charge Bike and explain why.

Back 27

A: Attention. Use social media to let consumers know what the Charge Bike is

I: Interest. Bring bike to events and demonstrations so bike buyer

D: Desire. Create posts that highlight how superior of a bike Charge bike is

A: Action. Consumers buy bike

Front 28

Consumer sales promotion seeks to reach new users, keep current users, and entice user to stock up. It can also be used to reinforce advertising for the good or service. Name and define at least five consumer sales promotional tools.

Back 28

Coupons, Rebates, Premium, Sweepstakes Contests, Sampling

Front 29

Coupons

Back 29

gives price reductions on products

Front 30

Rebates

Back 30

like coupons, but discount comes in mail at a later time

Front 31

Premium

Back 31

an extra offer that reinforces purchasing decision

Front 32

Sweepstakes

Back 32

giveaways to provide interest in a product

Front 33

Sampling

Back 33

allows consumers to try without risk

Front 34

Identify and discuss five ideas that marketing managers should consider when setting social media objectives.

Back 34

listen and learn, build relationships and awareness, promote products and services, manage your representation, improve customer services

Front 35

Listen and Learn

Back 35

pay attention to what people are saying baout your brand and competitors

Front 36

Build Relationship and Awareness

Back 36

be open with people and engage in conversations with them and answer their questions

Front 37

Promote Products and Services

Back 37

promote and get people talking about your products

Front 38

Manage Your Representation

Back 38

respond to comments and criticism; be active and engaged with your consumers

Front 39

Improve Customer Services

Back 39

actively search out displeased customers and work with them about the issue

Front 40

List and define the two primary determinants of price. What other factors can affect price setting? Give and example for each of these factors.

Back 40

Demand for the service/good and Supply of that service/good

Front 41

DEMAND

Back 41

the quantity of a product that will be solid in the market at a particular price.

Front 42

SUPPLY

Back 42

quantityof a product that will be offered to the market by a supplier or suppliers atvarious prices for a specified period

Front 43

OTHER PRICE DETERMINANTS

Back 43

competition, internet, relationship of price to quality

Front 44

Steve is a salesperson for Kolher, a company that sells plumbing fixtures. He has a prospect that is showing interest in learning more about his company’s products, so now he must qualify this sales lead. What will Steve do? List and describe his steps in the sales process.

Back 44

1. generating leads 2. qualifying leads 3. approaching customer 4. developing solutions 5. handling objections 6.closing the sale 7. following up

Front 45

Generating Leads

Back 45

networking and prospecting

Front 46

Qualifying Leads

Back 46

confirming there is a need, buying power

Front 47

Approaching the Customer

Back 47

if the customer is willing to meet, discuss potential sales

Front 48

Developing Solutions

Back 48

creating ideas of how to complete the sale and how both parties will benefit

Front 49

Handling Objections

Back 49

taking criticism and and compromising on certain things with the customer

Front 50

Closing the Sale

Back 50

completing the process of selling the product and making the transaction official

Front 51

Following Up

Back 51

checking in with the customer to answer any questions and make sure things are running smoothly