question

Price

answer

amount of money charged for a product or service and sum of all values that you give up to gain a benefit

question

Customer value

answer

uses buyers perception of value as the key to pricing, price is considered before marketing program ex: steinway

question

competition-based pricing

answer

setting prices based on competitors strategies, prices, costs and market offerings

question

good-value pricing

answer

offering the right combination of quality and good service at a fair price ex: snap fitness

question

value-added pricing

answer

attaching value added features and services to differntiate a companies offer while charging higher prices

question

cost-based pricing

answer

setting prices based on the costs for producing distributing, and selling the product plus a fair rate of return for effort and risk

question

fixed costs overhead

answer

costs that do not vary with production or sales level

question

variable

answer

costs that vary directly with the level of production

question

cost-plus pricing

answer

adding a standard markup to the cost of the product

question

break-even pricing

answer

setting price to break even on the costs of making and marketing a product or setting price to make a target return

question

price elasticity

answer

a measure of the sensitivity of demand to changes in price.

question

inelastic demand

answer

demand hardly changes with a small change in price

question

elastic demand

answer

demand changes greatly with a small change in price

question

Mark-up calculations

answer

cost inflation, when product is over demanded

question

market segmentation

answer

dividing market into smaller segments of buyers with distinct needs, characteristics that may separate

question

Brand equity

answer

The differential effect that knowing the brand name has on customer response to the product or its marketing- customer response such as a slogan playing in your head after hearing the name of the brand

question

Value Propositions

answer

The full positioning of a brand-- the full mix of benefits on which it is positioned

question

Marketing channel

answer

A set of interdependent organizations that help make product or service available for use or consumption by the consumer or business user.

question

Disintermediation

answer

The cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries

question

Marketing logistics

answer

Planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit.

question

Direct marketing

answer

no intermediary levels- the company sells directly to the consumers.

question

Indirect marketing

answer

channels containing one or more intermediaries.

question

Intensive distribution

answer

A strategy in which they stock their products in as many outlets as possible. There products must be available where and when consumers want them.

question

Exclusive distribution

answer

The producer gives only a limited number of dealers that exclusive right to distribute its products in their territories. Often found in the distribution of luxury brands

question

Selective Distribution

answer

The use of more than one but fewer than all of the intermediaries who are willing to carry a company's products. Most television, furniture, and home appliance brands are distributed in this manner.

question

Specialty Store

answer

A store that carries a narrow product line with deep assortment.

question

Department Store

answer

A store that carries several product lines such as home furnishing, clothing. Each line is separated by departments.

question

Supermarket

answer

Large, low cost, low margin, high volume self service operation designed to serve the consumers total needs for grocery and household products.

question

Convenience store

answer

Small store located near residential areas, open long hours 7 days a week, carries a limited line of high turnover products at a higher price.

question

discount store

answer

A store that carries standard merchandise sold at lower prices with lower margins and high volumes.

question

off-price retailer

answer

A store that sells merchandise bought at less than regular wholesale prices and sold at less than retail.

question

superstore

answer

A very large store that meets consumers needs for routinely purchased food and nonfood items.

question

Corporate Chain

answer

Two or more outlets that are commonly owned and controlled

question

Voluntary Chain

answer

Sponsored by Wholesaler-independent retailers engaged in group buying and merchandising

question

Retailer Cooperative

answer

Group of independent retailers who jointly establish a central buying organization and conduct joint promotion efforts.

question

Franchise Organization

answer

Contractual association between a franchisor (manufacturer, wholesaler) and franchisees (independent business people who buy the right to own and operate one or more units in the franchise system.)

question

Promotion Mix

answer

Specific blend of promotion tools. Used by companies to engage customers, build customer relationships, and to communicate customer value persuasively.

question

Integrated Marketing Communications

answer

Carefully integrating and coordinating the company's many communications channels to deliver a clear, consistent, and compelling message about the organization and its products.

question

Personal selling

answer

Personal customer interactions by the firm's sales force for the purpose of making sales and building customer relationships

question

Sales Promotion

answer

Short-term incentives to encourage the purchase or sale of a product or a service

question

Consumer promotions

answer

Sales promotion tools used to boost short term customer buying and engagement or enhance long term customer relationships

question

trade promotions

answer

Sales promotion tools used to persuade resellers to carry a brand, give it shelf space, and promote it in advertising

question

Business promotion

answer

Used to generate business leads, stimulate purchases, reward customers, and motivate sales people. Include many of the same tools used for consumer or trade promotions

question

Direct Marketing

answer

Engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships

question

global firm

answer

A firm that, by operating in more than one country, gains R&D, production, marketing, and financial advantages in its costs and reputation that are not available to purely domestic competitors.

question

product adaptation

answer

adapting a product to meet local conditions or wants in foreign markets

question

product invention

answer

creating new products or services in foreign markets

question

consumerism

answer

is an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers.

question

environmentalism

answer

an organized movement of concerned citizens, businesses, and government agencies designed to protect and improve people's current and future living environment.

question

market-skimming pricing

answer

setting a high price to skim maximum revenues layer by layer from the segments willing to pay the high price, fewer but more profitable sales

question

market-penetration pricing

answer

setting low price to attract a large number of buyers and large market share

MKTG 2500 WMU Final Exam review – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards