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84 Cards in this Set
- Front
- Back
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Actual self-image
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The Image that an individual has of himself or herself as a certain kind of person, with certain characteristics traits, habits, possessions, relationships, and behavior.
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Brand personification
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Specific "personality-type" traits or characteristics ascribed by consumers seek in a product.
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Cognitive Personality
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Need for cognition and visualizers versus verbalizers are two cognitive personality traits that influence consumer behavior.
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Compulsive Consumption
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Consumers who are compulsive buyers have an addiction; in some repects, the are out of control and their actions may have damaging consequences to them and to those around them.
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Consumer Ethnocentrism
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A consumers predisposition to accept or reject foreign-made products.
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Consumer Innovativeness
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The degree to which consumers are receptive to new products, new services, or new practices.
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Consumer Innovators
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Those who are among the first to purchase a new product.
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Consumer Materialism
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A personality-like trait of individuals who regard possessions as particularly essential to their identities and lives.
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Dogmatism
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A personality trait that reflects the degree of rigidity a person displays toward the unfamiliar and toward information that is contrary to his or her own established beliefs.
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Expected Self
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How individuals expect to see themselves at some specified future time.
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value delivery network definition
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the network made up of the company, suppliers, distributors, and ultimately customers who "partner" with each other to improve the performance of the entire system
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nature and importance of marketing channels
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channel choices affect other decisions in the marketing mix, strong distribution system can be competitive advantage, channel decisions involve long term commitments to other firms
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how do channel members add value
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intermediaries
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how to add value through intermediaries
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fewer contacts to move product to final purchaser helps match product assortment demand with supply, bridges major time, place and possession gaps
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key functions performed by channel members
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information, promotion, contact, matching, negotiation, physical distribution, financing, risk taking
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information function of channel members
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helps a company reach out more narrowly to specific target audience
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promotion function of channel members
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can be direct marketing, publicity, sales promotion
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negotiation function of channel members
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especially for large ticket items. rely on dealers to negotiate
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financing function of channel members
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big purchases, work with credit card companies. might provide professional advice at purchasing point
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risk taking function of channel members
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on the part of the dealer; dealer has to undertake risks associated
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cons of having a larger consumer marketing channel
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the more people involved in marketing channels, the more mark ups and less control over quality of services
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what does the number of channel levels mean?
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indicates the length of a marketing channel, can be direct or indirect channels.
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what is channel conflict?
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occurs when channel members disagree on roles, activities or rewards
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types of channel conflict
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horizontal and vertical conflict
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what is a horizontal conflict
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occurs among firms at the same channel level e.g. between different franchises
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what is a vertical conflict
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occurs among firms at different channel levels e.g. when different dealers undercut each other conventional vs vertical marketing systems
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different types of vertical marketing systems
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corporate, administered, contractual
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different subgroups of contractual VMS
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manufacturer-sponsored retailer franchise system manufacturer-sponsored wholesaler franchise system service-firm-sponsored retailer franchise system
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what is administered VMS?
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one major player having the dominant say based on market share, knowledge of industry etc.
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what is horizontal marketing systems?
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two or more companies at one level join together to follow a new marketing opportunity
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what is a multichannel distribution system?
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can choose 2 or 3, but must justify how it works can choose 2 or 3, but must justify how it works
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when does one use multichannel distribution systems?
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occurs when a firm uses two or more marketing channels, has many advantages. increases audience if there is both physical and online channels
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what are the steps taken in channel design decisions
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analyzing consumer needs, setting channel objectives, identifying major alternatives, evaluating major alternatives
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step 1 of channel design decisions
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analyzing consumer needs: cost and feasibility of meeting needs must be considered
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step 2 of channel design decisions
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setting channel objectives: in terms of customer service; many factors influence channel objectives
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step 3 of channel design decisions
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identifying major alternatives: types of intermediaries and number of marketing intermediaries
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types of intermediaries
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company sales force, manufacturer's agency, industrial distributors
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number of intermediaries
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intensive distribution, selective distribution, exclusive distribution
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step 4 of channel design decisions
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evaluating major alternatives: economic criteria (sales, profitability, costs), control issues, adaptive criteria
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key challenges in designing international distribution channels
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channels may be complex or hard to penetrate may be scattered, inefficient or totally lacking, no infrastructure in villages
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3 major channel management decisions
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selecting channel members, managing and motivating channel members, evaluating channel members
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how to select channel members?
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identify characteristics that distinguish the best channel members
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how to manage and motivate channel members?
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partner relationship management (PRM) is key
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how to evaluate channel members?
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performance should be checked against standards channel members should be rewarded or replaced as dictated by performance
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2 public policy and distribution decisions
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exclusive distribution and exclusive dealing
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what's the difference between exclusive dealing and distribution
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exclusive distribution: only certain outlets are allowed to carry a firm's products exclusive dealing: exclusive territorial agreements, tying agreements (by force)
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4 marketing logistics
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outbound distribution, inbound, reverse, involves the entire supply chain management system outline the supply chain management
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what are the major logistics function
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warehousing, inventory management, transportation, logistics info management
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what are the transportation carrier options
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truck, rail, water, pipeline, air, internet
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importance of having an integrated logistics management
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cross functional teamwork inside company is crucial logistics partnerships are also built through shared projects
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What are the 4 Marketing Objectives
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Survival, Current profit maximization, market share leadership, product leadership
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Survival
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Low prices to cover vairalbe costs and some fixed costs to stay in business
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Current profit maximization
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Choose the Price that produces the Maximum Current Profit
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Market Share Leadership
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Low as possible prices to become the market share leader
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Product leadership
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High Prices to Cover higher performance quality and Research and development.
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Fixed Costs
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Costs that dont Vary with sales or production levels
Example: Salaries and Rent |
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Variable Costs
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Costs that do Vary directly with the level of promotion.
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Total Costs
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Fixed plus Variable costs.
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External Factors Affecting pricing Decsisions
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1. Market and Demand
2. Competitors' Cost Prices and offers 3. External Factors |
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Other External Factors that affect pricing decisions
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Economic conditionsreseller needsgovernment actoinssocial concerns.
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4 types of markets in terms of pricing
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1.Pure Compeition
2. Monopolistic Competition 3. Oligopolistic Competition 4. Pure Monopoly |
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Pure Competition
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Many Buyer and Sellers who have little effect on the price
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Monopolistic Competition
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Many buyers and sellers who trade over a range of prices
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Oligopolistic Competition
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Few Sellers who are sensitive to each others pricing/marketing Strategies
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Pure Monopoly
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Single Seller
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Demand Curve
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Curve that Shows the Number of Units the Market Will Buy in a Given Time Period at Different Prices that Might be Charged.
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Price Elasticity
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Refers to How Responsive Demand Will be to a Change in Price.
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Price Elasticity of Demand equation
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% Change in Quantity Demanded divided by % Change in Price
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Break-even units
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= fixed costs / gross margin
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Gross Margin
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Price-Variable costs
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Cost Based Pricing
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Starts with ProductCostPriceValueCustomers
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Benefits Based Pricing
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Starts with CustomerValuePriceCostProduct
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Competition-Based Pricing
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Setting Prices based on what competitors are charging, or what the firm thinks competitors will charge in the future
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Intent of Skimming
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Capture “cream” - less price sensitive buyers
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Focus of Skimming
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High profit marginsacrifice volume
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Result of Skimming
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Invite competitors short-term profits for reinvestment
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Intent of Penetration
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Sell whole market at one price - no elite markets
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Focus of Penetration
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High volume sacrifice profit margin
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Result of Penetration
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Keep competition out achieve economies of scale
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Alternative Solutions?
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What alternatives do buyers have for solving their problems?
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Ease of Comparison
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How difficult is it for buyers to compare the products of other suppliers; observe benefits?
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Unique Benefits
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Does the product have any unique benefits that differentiate it? Are they important to customers
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Monetary Significance
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How significant are buyers’ expenditures, both in absolute and percentage terms?
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Complimentary Costs
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To what extent must buyers make complementary expenditures
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