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29 Cards in this Set
- Front
- Back
How do you design a customer driven marketing strategy?
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segmentation
targeting differentiation positioning create value |
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Product
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something you can acquire, use, or consume and it satisfies a want or need
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Service
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something offered for sale, but does not result in the ownership of anything
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Three levels of product
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core customer- value
actual product- brand name augmented product- warranty |
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4 types of products and services for consumers
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convenience
Shopping Specialty Unsought goods |
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Product mix decisions
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width
length depth |
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width
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the # of different product lines the company carries
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length
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the # of items in a line
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depth
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the # of versions offered of each product in the line
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Why do new products fail?
(name 2) |
overestimation of market size
product design problems incorrectly positioned, priced, or advertised pushed by high level execution despite poor marketing research findings |
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Core customer value
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What the customer is really buying
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Actual product
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Brand name
includes the brand name, features, design, packaging, and quality level |
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Augmented product:
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Additional services and benefits such as delivery and credit, instructions, installation, warranty, and service.
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Three parts of commercialization
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Timing
Where Market roll out |
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Value- based pricing
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Setting prices based on buyers perceptions of value rather than the seller's cost
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Cost Pricing
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Setting prices based on the cost of producing, distributing, and selling product at a fair rate of return
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Cost-based pricing
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Costs set the floor for the price that the company can charge.
Product-driven, rather than value-driven. |
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Fixed Costs
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Do not vary with production or sales level.
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Variable Costs
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Vary directly with the level of production.
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Competition- based pricing
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Setting prices based on competitors strategies, costs, prices, and market offerings
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Market- Skimming pricing
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Setting a high price for a new product to "skim" revenues layer-by layer from those willing to pay the higher price
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Market- Penetration pricing
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setting a low initial price in order to "penetrate" the market quickly and deeply
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Upstream Firms
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Firms that supply the raw materials, components, parts, and other elements necessary to create a good.
Apple Nike |
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Downstream Firms
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Marketing channel partners that link the firm to the customer.
best buy target |
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How do channel members add value
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Contacts
Experience Specialization |
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Horizontal conflict
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occurs among firms at the same level of the channel (e.g., retailer to retailer).
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Vertical conflict
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occurs between different levels of the same channel (e.g., wholesaler to retailer).
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3 types of retailers
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Self-service retailers
Limited- service retailers Full service retailers |
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wholesaling
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All activities involved in selling goods and services to those buying for resale or business
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