Marketing final test – Flashcards
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Price
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Price is that which is given up in an exchange to acquire a good or service.
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Revenue
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The price charged to customers multiplied by the number of units sold.
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Pricing objectives
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Must be specific, attainable, and measurable to survive in today's competitive market. 3 kinds: 1 Profit oriented, 2 sales oriented and 3 status quo
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ROI
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Net Profit after taxes/Total assets
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Yield management system
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A technique for adjusting prices that uses complex mathematical software to profitably fill unused capacity.
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Markup Pricing
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The cost of buying the product from the producer plus amounts for profit and for expenses not otherwise accounted for
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Keystoning
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The practice of marking up prices by 100 percent, or doubling the cost.
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Prestige pricing
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Charging a high price to help promote a high-quality image.
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Price skimming
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A firm charges a high introductory price, often coupled with heavy promotion.
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Status quo pricing
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Charging a price identical to or very close to the competition's price.
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Price fixing
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An agreement between two or more firms on the price they will charge for a product.
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Base price
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the general price level at which the company expects to sell a good or service.
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Cash discount
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A deduction that a vendor allows on the invoice amount to encourage prompt payment
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Quantity discount
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a price reduction offered to buyers buying in multiple units or above a specified dollar amount
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Seasonal discount
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a price reduction for buying merchandise out of season
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Leader pricing
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a price tactic in which a product is sold near or even below cost in the hope that shoppers will buy other items once they are in the store
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Odd-even pricing
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Psychological pricing technique based on the principle that prices ending in odd numbers ($5.99) communicate a bargain and prices ending in even numbers ($6.00) communicate quality.
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CRM
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Customer Relationship Management. A company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups.
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Rifle/shotgun approach
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The difference between CRM and traditional mass marketing can be compared to shooting a rifle and a shotgun. A rifle is the most efficient, if you have good aim. This is the CRM approach. A shotgun increases your odds of hitting the target when it is more difficult to focus. This is the mass marketing approach.
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CRM cycle
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1. Identify customer relationships 2. Understand interactions with a current customer base 3. Capture customer data based on interactions 4. Store & integrate customer data using information technology 5. Identify best customers 6. Leverage customer information
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Customer centric focus
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a philosophy under which the company customizes its product and service offering based on data generated through interactions between the customer and the company.
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Appointed sales interactions
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Data warehouse
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a central repository of customer data collected by an organization.
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Data mining
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A data analysis approach that identifies patterns of characteristics that relate to particular customers or customer groups.
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Cross selling
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the method of selling the customer additional related products tied to one name
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Empowerment
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delegation of authority to solve customers' problems quickly—usually by the first person the customer notifies regarding the problem.
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Lifetime value analysis
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A data manipulation technique that projects the future value of the customer over a period of years.
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Loyalty program
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A program that rewards loyal customers for making multiple purchases
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Social marketing
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the use of commercial marketing concepts and tools in programs designed to influence individuals' behavior to improve their well-being and that of society
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Different outlets of social marketing
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1 social networks 2 blogs 3 microblogs 4 media sharing sites
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After establishing a listening platform, an organization should do what?
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Metrics for measuring the benefits of social media are meaningless unless they are tied to key performance indicators.
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Listening's role in social media effectiveness
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Supporting's role in social media effectiveness
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Supporting's role in social media effectiveness
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What can organizations do to effectively use non corporate blogs to achieve social media goals?
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