MKT 701 – Chapter 6: The Marketing Program – Flashcards

product, price, distribution, and promotion. has as its outcome a complete offering that consists of an array of physical (tangible), service (intangible), and symbolic (perceptual) attributes designed to satisfy customers' needs and wants. strives to overcome commoditization by enhancing the service and symbolic elements of the offering.

lies at the heart of every organization in that it defines what the organization does and why it exists. is about delivering benefits that enhance a customer's situation or solve a customer's problems.

is used in both consumer (convenience, shopping, specialty, and unsought products) and business (raw materials, component parts, process materials, MRO supplies, accessory equipment, installations, and business services) markets. is used in most firms due to the advantages of selling a variety of products rather than a single product.

consists of a group of closely related product items (product lines) and the total group of products offered by the firm (product mix). involves strategic decisions such as the number of product lines to offer (variety), as well as the depth of each product line (assortment). can create a number of important benefits for firms, including economies of scale, package uniformity, standardization, sales and distribution efficiency, and equivalent quality beliefs.

can create a number of important benefits for firms, including economies of scale, package uniformity, standardization, sales and distribution efficiency, and equivalent quality beliefs.

stem mainly from the fact that services are intangible. Other challenging characteristics of services include simultaneous production and consumption, perishability, heterogeneity, and client-based relationships.

include the following issues: service firms experience problems in balancing supply {capacity) with demand. service demand is time-and-place dependent because customers or their possessions must be present for deliveries

customers have a difficult time evaluating the quality of a service before it is purchased and consumed. service quality is often inconsistent and very difficult to standardize across many customers.

the need for some services is not always apparent to customers. Consequently, service marketers often have trouble trying their offering directly to customers' needs

New-to-the-world products (discontinuous innovations)which involve a pioneering effort by a firm that leads to the creation of an entirely new market. New product lines-which represent new offerings by the firm., but they become introduced into established The challenges of service products; Product line extensions-which supplement an existing product line with new styles, models, features, or flavors. Improvements or revisions of existing products which offer customers improved performance or greater perceived value. Repositioning-which involves targeting existing products at new markets or segments. Cost reductions-which involves modifying products to offer performance similar to competing products at a lower price. depends on the ability of the firm to create a differential advantage for the new product. typically proceeds through five stages: idea generation screening and evaluation, development, test marketing and commercialization.

the firm's cost structure. perceived value. price/revenue relationship. pricing objectives. price elasticity.

is typically associated with pricing through the use of breakeven analysis or cost-plus pricing should not be the driving force behind pricing strategy because different firms have different cost structures. should be used to establish a floor below which prices cannot be set for an extended period of period of time.

is a difficult term to define because it means different things to different people. is defined as a customer's subjective evaluation of benefits relative to costs to determine the worth of a firm's product offering relative to other product offerings

is usually based on two general pricing myths (1) when business is good, a price cut will capture a greater market share, and (2) when business is bad a price cut will stimulate sales. means that firms should not always cut prices, but should instead find ways to build value into the product and justify the current , or higher, price

refers to customers , responsiveness or sensitivity to changes in price can increase under these conditions: when substitute products are widely available when the total expenditure is high when changes in price are noticeable to customers when price comparison among competing products is easy

is a key factor in producing revenue for a firm is the easiest of all marketing variables to change is an important consideration in competitive intelligence is considered to be the only real means of differentiation in mature markets plagued by commoditization. is among the most complex decisions to be made in developing a marketing plan

is critical because price may be only the only cue to quality that is available in the advance of the purchase experience becomes more important - and more difficult - when: service quality is hard to detect prior to the purchase the cost associated with providing the service are difficult to determine. customers are unfamiliar with the service process brand names are not well established the customer can perform the service themselves the service has poorly defined units of consumption advertising within a service category is limited the total price of the service experience is difficult to state beforehand is often based on yield management systems that allow firm to simultaneously control capacity and demand in order to maximize revenue and capacity utilization

price skimming. price penetration prestige pricing value-based pricing (EDLP). competitive matching non-price strategies.

discounting. reference pricing. price lining. odd pricing. price bundling.

trade discounts discounts and allowances. geographic pricing. transfer pricing. barter and countertrade.

is one of the most important strategic decisions for many marketers. has remained essentially invisible to customers because the processes occur behind the scenes. is important to providing time, place, and possession utility for consumer and business buyers. consists of two interrelated components: marketing channels and physical distribution is only effectve when all channel members are integrated and committed to connectivi'ty, community, and collaboration.

are organized systems of marketing institutions through which products, resources, information, funds, and/or product ownership flow from the point of production to the final user. greatly increase contact efficiency by reducing the number of contacts necessary to exchange products. perform a variety of functions: sorting, breaking bulk, maintaining inventories, maintaining convenient locations, and providing services.

exclusive distribution, where a firm gives one merchant or outlet the sole right to sell a product within a defined geographic region. selective distribution, where a fii rm gives several merchants or outlets the right to sell a product in a defined geographic region. intensive distribution, which makes a product available in the maximum number of merchants or outlets in each area to gain as much exposure and as many sales opportunities as possible.

can lead to conflict as each firm attempts to fulfill its mission goals, objectives, and strategies by putting its own interests ahead of other firms. can result from five _different sources: legitimate power, reward power, coercive power, information power, and referent power.

technological improvements, such as the growth of electronic commerce and the increasing use of radio frequency identification (RFID). outsourcing and offshoring of work activities, particularly informatlon technology operations and supporting functions. the growth of nontraditional channels, such as ecommerce, catalog and direct marketing, direct selling, home shopping networks, vending, and direct response advertising. the growth of dual distribution, as firms use multiple channels to reach various markets. Integrated marketing communications:

includes conveying and sharing meaning between buyers and sellers, either as individuals, firms, or between individuals and firms. includes the traditional elements of the promotion mix: advertis.ing, public relations, personal selling, and sales promotion. refers to the strategic, coordinated use of promotion to create one consistent message across multiple channels to ensure maximum persuasive impact on the firm's current and potential customers. takes a 360-degree view of the customer that considers every contact that a customer or potential customer may have in his relationship with the firm. typically sets. goals and objectives for the promotional campaign using the AIDA model-attention, interest, desire and action. can change depending on whether the firm uses a pull or push strategy -with respect to its supply chain.

is identified as paid, nonpersonal communication transmitted through the media such as television radio magazines, newspapers, direct mail, outdoor displays, the internet, and mobile devices. is rapidly expanding online as consumers spend less time with traditional media. offers many benefits because it is extremely cost efficient when it reaches a large number of people. On the other hand, the initial outlay for advertising can be expensive. is hard to to measure in terms of its effectiveness in increasing sales.

is the element of an IMC program that tracks public attitudes, identifies issues that may elicit public concern and develops programs to create and maintain positive relationships between a firm and its stakeholders. can be used to promote the firm, its people, its ideas, and its image and even to create an internal shared understanding among employees. can improve the public's general awareness of a company and can create create specific images such as quality, innovativeness, value, or concern for social issues is often confused -with publicity; however, publicity is more narrowly defined to include the firm's activities designed to gain media attention through articles, editorials or news stories. can involve the use of a "Wide variety of methods including news or press releases, feature articles, whit~ papers, press conferences, event sponsorship, product placement, and employee relations.

is paid, personal communication that attempts to inform customers about products and persuade them to purchase those products. is the most precise form of communication because it assures companies that they are in direct contact -with an excellent prospect. has a serious drawback of high cost per contact. goals are typically associated with finding prospects, informing prospects, persuading prospects to buy, and keeping customers satisfied through follow-up service after the sale. has evolved to take on elements of customer service and marketing research in order to generate repeat sales and develop ongoing relationships with customers. and sales management activities include the development of sales force objectives, determining the size of the sales force, recruiting and training salespeople, and controlling and evaluating the sales force. has been greatly impacted by technological advances, especially online sales training and sales automation systems that push integrated customer, competitive, and product information toward the salesperson.

involves activities that create buyer incentives to purchase a product or that add value for the buyer or the trade can be targeted toward consumers, channel intermediaries, or the sales force. has one universal goal: to induce product trial and purchase. is typically used in support of advertising, public relations, or personal selling activities rather than as a stand-alone promotional element. directed toward consumers: can be initiated by any member of the supply chain, but manufacturers or retailers typically offer them. represents an effective way to introduce new products or promote established brands. can include such activities as coupons, rebates, samples, loyalty programs, point-of-purchase promotion, premiums, contests and sweepstakes, and direct mail. directed toward the trade {business markets): is undertaken to push products through the channel by increasing sales and encouraging increased effort among channel partners. uses many of the same promotional methods that are targeted toward consumers; however, it involves a number of unique methods including trade allowances, free merchandise, training assistance, cooperative advertising, and selling incentives offered to an intermediary's sales force.