Chapter 15: Managing the Marketing Mix: Product, Price, Place, and Promotion – Flashcards
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Everything that customers evaluate when deciding whether to buy something
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Total Product Offer (Value Package)
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Good quality at a fair price
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Value
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Group of products that are physically similar or are intended for a similar market
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Product Line
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Combination of product lines offered by an organization
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Product Mix
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Creation of real or perceived product differences
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Product Differentiation
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The evaluation of packaging as a marketing function indicates that: B. packaging carries more of the promotional burden of the product.
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Packaging Functions
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1) Anheuser-Busch Companies, Inc. has been given the exclusive right to the name Budweiser and is legally protected from others using this name by the __________ they hold. 2) Pillsbury Doughboy
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Trademark
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Name, symbol, or design that identifies the goods or services of one seller or group of sellers, and distinguishes them from the goods and services of competitors
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Branding
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Value of the brand name and associated symbols
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Brand Equity
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Degree to which customers are satisfied, enjoy the brand, and are committed to further purchase
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Brand Loyalty
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Has direct responsibility for one brand or one product line
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Brand/Product Manager
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Theoretical model of what happens to sales and profits for a product class over time, consists of four stages: 1) Introduction 2) Growth 3) Maturity 4) Decline
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Product Life Cycle Example: Which of the following is a characteristic of the decline stage of the product life cycle? A. falling sales
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Jian has entered into a contract with the federal government to design a computer simulation for training helicopter pilots. The contract calls for the final price to be set at a fixed percentage profit over and above her cost of production.
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Cost-based Pricing
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• Designing a product so that it satisfies customers and meets the profit margins desired by the firm • Determining what the market is willing to pay, then subtracting a desired profit margin to determine a desired cost of production
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Target Costing
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Price can be set at, above, or below competitors' prices
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Competition-based Pricing
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One or more dominant firms set the pricing practices that all competitors in an industry then follow
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Price Leadership
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What does a break-even point of 100 units mean? D. If the firm sells 100 units, its total revenues will equal its total costs.
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Break-even Point
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All expenses that remain the same no matter how many products are made or sold
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Fixed Costs
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Costs that change according to the level of production Examples: labour, materials
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Variable Costs
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New product is priced high to make optimum profit while there is little competition
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Skimming Price Strategy
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Product is priced low to attract many customers and discourage competitors Example: Barker Brothers Pens utilizes a strategy of low prices to attract customers and discourage competition.
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Penetration Price Strategy
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Setting prices lower than competitors and then not having any special sales
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Everyday Low Pricing (EDLP)
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Set higher prices than EDLP stores; have many special sales where the prices are lower than competitors
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High-low Pricing Strategy
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Pricing goods and services at price points that make the product appear less expensive than it is
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Psychological Pricing
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Marketers often compete on product attributes other than price
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Non-Price Competition
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Assist in moving goods and services from producers to business and consumer users The types of utility commonly provided by marketing intermediaries include: B. time, place, possession, information, and service.
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Marketing Intermediaries
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Set of marketing intermediaries, such as agents, brokers, wholesalers, and retailers that join together to transport and store goods in their path (or channel) from producers to consumers Example: Patrick Bolger is convinced that his product idea has tremendous potential. He will be involved with production, but plans to use other firms who specialize in storing and transporting the product to help him move the product along its path to the final consumer.
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Channel of Distribution
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Marketing intermediaries that bring buyers and sellers together and assist in negotiating an exchange but do not take title to the goods
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Agents/Brokers
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Marketing intermediary that sells to other organizations
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Wholesaler
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An organization that sells to ultimate consumers
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Retailer
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Distribution that puts products into as many retail outlets as possible Example: Candy bars
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Intensive Distribution
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Distribution that sends products to only a preferred group of retailers in an area
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Selective Distribution
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Distribution that sends products to only one retail outlet in a given geographic area
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Exclusive Distribution
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Selling goods and services to ultimate customers over the Internet
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Electronic Retailing
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Form of electronic commerce that involves using social media and user contributions to assist in the online buying and selling of products and services
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Social Commerce
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Sale of goods and services by telephone
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Telemarketing
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Selling to customers in their homes or where they work
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Direct Selling
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Effort by marketers to inform and remind people in the target market about products and to persuade them to participate in an exchange
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Promotion
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Combination of promotional tools an organization uses
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Promotion Mix
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Combines all of the promotional tools into one comprehensive and unified promotional strategy
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Integrated Marketing Communication (IMC)
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Paid, non-personal communication through various media by organizations and individuals who are in some way identified in the advertising message
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Advertising
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Involves developing a product and promotional strategy implemented worldwide
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Global Advertising
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Face-to-face presentation and promotion of goods and services
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Personal Selling
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Approach - Ask questions - Make presentation - Close sale - Follow up
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B2C Sales Process
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• Evaluates public attitudes • Changes policies and procedures in response to the public's requests • Executes a program of action and information to earn public understanding and acceptance Example: Lenora just finished writing a news release regarding a new product developed by her firm. She intends to email the message to local radio stations and newspapers in hopes that they will find the information newsworthy and run a story about the product.
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Public Relations (PR)
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Any information about an individual, product, or organization that is distributed to the public through the media and that is not paid for or controlled by the seller
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Publicity
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Stimulates consumer purchasing and dealer interest by means of short-term activities Example: At a recent sporting event, a local beer distributor gave free beverage mugs to all adults with a paid admission
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Sales Promotion
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Any activity that directly links manufacturers or intermediaries with the ultimate customer
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Direct Marketing
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Involves people telling other people about products they have purchased Example: Professor A shared with his students the wonderful experience he had at a local Asian restaurant. He described the location in relation to campus and encouraged his students to give it a try.
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Word-of-mouth Promotion
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Encourages people to pass on a marketing message to others, creating exponential growth in the message's influence as the message reaches thousands to millions of potential customers
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Viral Marketing
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Means of distributing multimedia digital files on the Internet for downloading to a portable media player
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Podcasting
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Producer uses advertising, personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise
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Push Strategy
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Heavy advertising and sales promotion efforts are directed toward consumers so that they will request the products from retailers
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Pull Strategy
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A. evaluating various distribution alternatives to determine the best way to get the product to the consumer
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Which of the following tasks would be included in the marketing mix?
