Marketing Final-Set 3

Front 1

marginal analysis

Back 1

focuses on the changes in total revenue and total cost from selling one more unit to find the most profitable price and quantity

Front 2

marginal revenue

Back 2

change in total revenue that results from the sale of one more unit of a product

Front 3

marginal cost

Back 3

change in total cost taht restuls from procuding one more unit

Front 4

rule for maximizing profit

Back 4

the highest profit is earned at the price where marginal cost is just less than or equal to marginal revenu

Front 5

price leader

Back 5

usually sets a price for all to follow, perhaps to mzximize profits or tto get a certain target return on investment

Front 6

reference price

Back 6

the rpcie they expect ot pay-for many of the products they purhcase, if firm's price is lower than a customer's refernce price, customers may view the product as a better value and demand may increase

Front 7

leader pricing

Back 7

meas setting some very low prices-real bargains to get customers into retail stores, sell large quantities of the ldeeader titem, but to get customers into store to buy other products

Front 8

bait pricing

Back 8

setting some very low prices to attract customers but trying to sell more expensive models or brands once the customer is in the store

Front 9

psychological pricing

Back 9

setting prices that hae speical appeal to ttarget customers (so price cuts in these ranges dotn incrase the quantity sold)

Front 10

odd-even pricing

Back 10

setting prices that end in certain numbers. ($24.95)

Front 11

price lining

Back 11

setting a few price leevels for a product line and than marking all items at these prices (20,30 , 40)
-main advantage: simplicity
-for retailers: can offer a bigger variety in each price class
-easier to get customers to make decisionwithin one price cclass

Front 12

demand-backward pricing

Back 12

setting an aceptable final consumer price and workgin backward to what a producer can chan ge(candy companies do this) (alter size of candy bar)

Front 13

prestige pricing

Back 13

setting a rather high price to suggest high quality or high status

Front 14

viral marketing

Back 14

current buzzword used by advertisers to describe the way a meassage can spread among Internet users

Front 15

cost-based decision

Back 15

relative costs should influence how to allocate the distribution activities (selling directly vs. relying on channel intermediaries)

Front 16

control based decision

Back 16

how mch control does manufacturer need over its channel partners

Front 17

product selection-retaier benefit offerings

Back 17

width and depth of assortment, quality

Front 18

special services-retaier benefit offerings

Back 18

home delivery, after-sales service, credit

Front 19

fairness in dealings-retaier benefit offerings

Back 19

return policy, honesty, correcting problems

Front 20

helpful information-retaier benefit offerings

Back 20

PRODUCT INFO, DEMONSTARTION, COUREOUS SALES HELP

Front 21

PRICES-retaier benefit offerings

Back 21

value, discount

Front 22

social image -retaier benefit offerings

Back 22

status, prestige

Front 23

shopping atmosphere-retaier benefit offerings

Back 23

comfort, safety, excitement

Front 24

high-low strategy

Back 24

regular price, some weeks have price cuts

Front 25

everyday low price

Back 25

everyday prices are low like wal-mart

Front 26

width of product assortment

Back 26

lots of idfferent product lines, cookie, juice, milk

Front 27

depth of product assortment

Back 27

ltos of products within one line, Barnes and Nobles-->lots of books

Front 28

specialty stores focus on

Back 28

service and depth assortment

Front 29

category killers focus on

Back 29

low price and deep assortment as well

Front 30

deptarmetn stores focus on

Back 30

wide asssortment, have beeter service than supermarkets

Front 31

super markets (and drug stores) focus on

Back 31

broad assortment

Front 32

mass-merchansdiser focus on

Back 32

similar to walmart, focus on price and brand

Front 33

convenience stores

Back 33

dont have width or depth , mostly only gas stations b/c they're niches were over taken by other stores

Front 34

discount

Back 34

buy products, buy @wholesale price, low pricing, sell alot

Front 35

off price

Back 35

get lower than wholesale price, some of them are defective goods

Front 36

factory outlets

Back 36

not selling well, will sell at outlet

Front 37

warehouse clubs

Back 37

lower than discount b/c act like wholesalers, sell in bulk, not piece by piece

Front 38

steps of effective advertising decisions

Back 38

-setting objectives
-determining advertising types
-selecting advertising media
-creacting advertsing message
-testing advertising effects

Front 39

selecting advertising media steps

Back 39

media has to match target market
-decide on exposure (reach, frequency) and impact
-choosing among major media types
-selecting specific media vehicles
-deciding on media timing

Front 40

reach

Back 40

number of peopel in the target market who are exposed to the ad campaign during a period of time
-example: 80% of the target market

Front 41

frequency

Back 41

how many time the average person in the target market is exposed to the message

Front 42

exposure

Back 42

reach x frequency
-common measure is GRP (Gross Rating Points)
-higher the GRP, higher the exposure
-% of peopele reached in target market x frequency x 100

Front 43

impact

Back 43

qualitative value of a message exposure through a given meidum

Front 44

television advantages

Back 44

good mass-market coverage; low cost per exposure; combines sight, sound, and motion
disadvantage: high absolute costs; high clutter; less audiecne selectivity

Front 45

newspapers advantages

Back 45

advantages: flexibble; good local coverage; timely
disadvantages: short life; poor reproduction quality; pretty local

Front 46

direct mail advantages

Back 46

adv: high audience selectivity; flexible; allows personalization; no ad competition within the same medium
disadvantage: relatievely hig cost per exposure; "junk mail" image

Front 47

radio advanatages

Back 47

advantages: good local acceptance; high geographic and demographic seleictivity; low dcost
disadvantage: audio only, low attention

Front 48

magazine advnatage

Back 48

high geographic and demographic selectiivey; allows details; high -quality reproduction long life; easy to reach target market
diadvantageslong ad-purchase lead time; high cost

Front 49

yellopages advanatge

Back 49

advanage: reach local customers seeking purchase info
disadv: many competitiors listed in the same place; hard to differentiate

Front 50

outdoor (billboards) advnatnges

Back 50

advanagaes: flexible; low cost; low message competitoin
diadv: littell audience selectivity; creative limitations; very short exposure

Front 51

internet advantages

Back 51

advantages: high audience selecitivty; interactive capabilities; immediate
disadvantages: small , demographically skwewed audience; audience controls exposure

Front 52

continuity vs. pulsing timing of advertising

Back 52

pulsin-advertise heavily, than stop