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71 Cards in this Set
- Front
- Back
Marketing Mix and perspectives (4 P’s)
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Seller view (Buyer view )
-Product (Customer Satisfaction) -Price (Customer Cost) -Place (Convenience) -Promotion (Communication) |
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Market Targeting Strategy
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Undifferentiated mass marketing –> differentiated segmented marketing –> concentrated niche marketing –> micro marketing local or individuals
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Position
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Consumer perception of products
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Parts of a positioning strategy
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-Identify competitive advantages
-select competitive advantage -develop positioning strategy |
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Competitive advantage
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Differentiating characteristics gained by offering greater customer value / either through lower prices or by providing more benefits that justify higher prices
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Ways to differentiate
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Product / services / channels / people / image
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Possible value propositions
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More for more / more for the same / more for less / same for less / less for much less
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Marketing mix efforts do or do not support positioning strategy?
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they do support it
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New–Product Development stages
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Idea gen. –> Idea screening –> concept dev and testing –> mktg strategy dev –> business analysis –> product dev –> test mktg –> commercialization
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5 Stages of product life cycle
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-Product developement
-introduction -growth -maturity -decline |
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Product mix decisions deal with the 4 dimensions
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Width / length / depth / consistency
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3 Major MKTG Tasks to manage
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service differentiation & quality & productivity
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Brand
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the image which stands behind the name / symbol / icon / design / or combination of these / that identifies the maker or marketer of a product
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3 main branding strategy decisions
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Brand name / position / and sponsorship
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Brand equity
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A financial value attributed to the brand based largely on intangible qualities
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Brand personality
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Human attributes and the emotions they inspire toward customers
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4 choices when developing a brand
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line extension / multibrand / brand extension / new brand
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Risks of Line extensions
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over exposure of name
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Risks of multi brand
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may confuse image
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Risks of brand extension
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separate brands may be weak
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Risks of new brand
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new brands need lots of resources to launch
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Cost based pricing steps
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Design a good product –> determine product costs –> set price based on cost –> convince buyers of products value
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Value–Based pricing
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Asses customer needs/values –> set target price to match customer perceived value –> determine costs that can be incurred –> design product to deliver desired value at target price
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Value–Based considerations
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customer needs/perceptions/price based on perception of value
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Cost–Based considerations
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Totals costs (cost plus) / product driven (BreakEven)
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Competition Based consideration
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customers frame of reference / competitors offering position etc.
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Product–line pricing
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Setting price steps between various products in a product line based on cost differences / customer evaluations of features / and competitors’ prices (e.g. QuickTax products)
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Optional–product pricing
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Pricing optional or accessory products sold with the main product (e.g. GPS navigation system with a car)
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Captive–product pricing
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Pricing products that must be used with the main product (e.g. blades for razors)
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By–product pricing
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Pricing by–products to make a main product’s price more attractive (e.g. wood by–products)
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Product bundle pricing
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Combining several products and offering the bundle at a lower price (e.g. fast food combo meals)
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Price adjustment strategies
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Discounts and Allowances (Trade–ins)
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Segmented pricing
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selling product at 2 or more different prices but doesn’t reflect difference in cost
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Psychological Pricing
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considers consumer though process not just economics (Ryan Air)
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Value delivery network
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producers / suppliers / distributors / and customer who improve the performance of the entire system in delivering customer value
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Channel partners do what for the company?
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bridge time / place / and possession gaps that separate products from those who use them
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Direct marketing channels deliver
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products to consumers directly from a producer
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Indirect marketing channels involve
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intermediaries b/w the producer and consumer
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Vertical Marketing system (VMS)
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channel structure in which producers / wholesalers / and retailers act as a unified system
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Intensities of distribution in channels
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Intensive / selective / exclusive
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Retail trends
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experiential / instore tech / gift cards / shopper mktg / social media & mobile
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Role of supply chain management in distribution system
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Companies can gain a competitive advantage / Improved logistics can lower costs / Increased product variety has created a need for improved logistics management / Improvements in information technology have created gains in distribution efficiency / Logistics affect the environment and the company’s sustainability efforts
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Promotion mix consists of
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Ads / sales promo / PR / personal selling / Direct Marketing
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Integrated Marketing Communication (IMC)
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integration of communication channels to deliver a clear consistent and compelling message about the company and its products
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Advertising pros
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reach masses at low cost / repeat message / create trust
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Advertising cons
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impersonal / cost are sometimes high
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Personal selling pros
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communicate personally / build preferences actions / allow relationship building
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Personal selling cons
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requires long term commitment / most expensive
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Sales promotion pros
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wide assortment of tools / attract attention / offer incentives / quick responses
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Sales promotion cons
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effects are short lived
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PR pros
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legitimizes credibility / reach people resisting ads / save money
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PR cons
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usually an afterthought
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Direct MKTG pros
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communicate directly with target customers / interactive / one–one relationships
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Direct MKTG cons
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junk mail or spam
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Push strategy
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Producer –> retailer/wholesaler –> consumer / uses sales force to promote through channels
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Pull Strategy
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(Producer) <– retailer/wholesaler <– consumer <– (Producer) / directed towards final customers
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Advertising objective
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build relationships by communicating value
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Proactive PR
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obtain favorable publicity / communicate trustworthy image
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Reactive PR
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manage unexpected occurence (pos and neg)
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Corporate Social Responsibility (CSR)
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Organizations must DO the right thing but also must SAY what they are doing
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Cause Related Marketing
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Specific programs developed in collaboration with not–for–profit organizations to raise awareness / funds / or both
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6 steps in sales force MGMT
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design sales force strategy –> recruit sales people –> train salespeople –> compensate salespeople –> supervise salespeople –> evaluate salespeople
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Steps in selling process
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prospecting and qualifying –> pre approach –> approach –> presentation –> handling objections –> closing –> Follow–up
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Consideration in developing sales promotion program
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Decide on the size of the incentive –> Set conditions for participation –> Decide how to promote and distribute the promotion program –> Determine the length of the program –> Evaluate the promotion program
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Direct Mktg
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Connecting directly with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships / fast growing
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Buyer Benefits of Direct MKTG
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Convenient / easy to use / private / greater control / access to products / comparative info / available to all / immediate / interactive
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Seller Benefits of Direct MKTG
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Builds customer relationships / low cost market reach / flexible / access to all buyers
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Direct Mail MKTG Pros and Cons
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P–Largest medium/One–One &C–Junk Mail/In Decline
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Catalogue MKTG Pros and Cons
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P–Drive web traffic/convert to online easily & C–High Cost
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Telephone MKTG Pros and Cons
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P–High Success & C–Intrusion
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Direct Response TV MKTG Pros and Cons
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P–visual & C–perception of cheap
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