Marketing Clep

decision making related to new and existing products

purchased frequently, minimum shopping effort (low involvement)

goods where: price comparison and visit of several stores before purchase

goods that have strong buyer loyalty. and buyer accepts no substitute

• have no demand
• no one wants it

basic materials the become part of teh end product.

low cost items that aid in production

can be described by color size or weight

me too products not new to market

search for new product opportunities

analyze based on product stregnth and weaknesses

• new ideas
• subject to public scrutiny

evaluation of comercial feasibility

ideas produced and limited marketing strategy created

process of customer learning about new products

first to buy - younger more affluent

second to buy.

usually above average socio economics- usually influenced by ads and sales people

• 4th level to purchase
• resistant to change (middle aged or older)

last to buy, price conscious

product perception

new groth opportunities

diverse products

smaller product lines

profits become positive

slowing sales, market saturation, consumer demand peaks, more price competition

sales decline

Created by manufacturers ie. Sears Die hard, Sears craftsman

created by middlemen or retailers (Walmart brand)

state benefits, short, spellabe, pronouncable, pleasant sounding, distinct and memorable

• Brand Insistance
• Brand Preference
• Brand recognition
• Brand non-recognition
• Brand rejection

same brand applied to multiple products

have no brand name

an established brand others pay to use (the name)

brand names, marks or characters to identify a product

protect, promote, inform

intangible, insepable from the provider, perishable (cannot be returned), variable (cannot be performed same every time)

designed on teh needs of seller

transport, inventory, customer service, research, promotion, product panning, sorting

Pooling small amount of items together to transport as a group

move goods from producer to consumer (barnes and noble online)

move goods using intermediary (seller using Amazon)

all of the members of the channel

use all channels who will sell to the end consumer

selles through select wholesalers and retailers

uses only 1 or 2 intermediaries in a market

one firm owns all channels

contract the specifies performance terms for members of a distribution channel

coordinate channel operations through dominant channel member (Market power of the other members is enough to secure voluntary cooperationi of other channel members)

acquire firms that operate different distribution channel levels

acquiring firms that operate at the same distribution channel level.

influence of other members

disagreements over distribution channel practices

firms having conflict at same distribution level

firms having conflict at different distribution level

uses promotion to insure intermediary cooperation

generates consumer demand to pull product through distribution channels. (Radio airplay to get distribution)

minimizing costs and satisfying customer demands are conflicting objectives. (How to provide good cust service at lowest cost?)

warehousing in relation to a market (Walmart)

reducing cost in one function that increase costs of other functions

different customes require different levels of customer service

shortage; carrying too little product

rate inventory sold

inventory on hand to avoid stock out

order size that minimizes the total cost of carrying inventory and ordering

two or more couriers for transport

resale of products to buyers or other wholesalers

take title of and posessionof the product they are wholesaling

full service merchant wholesalers (provide display racks in stores for their product)

buy product from manufacturer and arrange for delivery to retailers

do not take title of product they sell

brings buyers and sellers together (Amazon.com)

all of the activities related to the sale of products to the "Final" Consumer.

groups retail units into a group to enhance market power, advantage of being viewed as a chain

verticle marketing; provides use of name, trademarks, assistance, personnell, inventory to support they retailing efforts

adding products not a part of typical product line

internet marketing, tv, catalog, direct mail, infomercials,

ads, selling, publicity, pub relations, sales promotions

the medium where promotions is sent\delivered (Internet, radio etc)

percentage of target market exposed to an ad

• prospecting -identify leads
• pre approach - analyize buyer behavior
• approach - meet buyer
• presentation - canned presentation (meet objections raised by prospect, give any requested clarification)
• close - gain purchase commitment
• follow up - salesperson to assure customer satisfaction

the percent change in the units demanded divided by the percentage chane in the price of the product

increase in price produces decreas in demand

increase in price product decrease in demand and increase in revenue

change in demand is propertional to change in price and revenue is unchanged.

Monopoly illegal

wholesaler cannot discriminate against a buyer and charge higher price unless justified via cost savings or competition

• prestige pricing
• odd even pricing (pricing just below the dollar)

price to lead customer into building

second half of 19th century

1920s to 1950s

1950s +

1890 prevent business from practicing predatory pricing: monopolization and conspiracies

prevent wholesaler price descriminiation

introduce new products at high prices

introduce new products at low prices

proice as product of cost. Cost + ROI = price

price based on customer response to price. 1. prestige pricing 2. odd even pricing 3. price lining 4. leader pricing

same price to all buyers

different prices to different buyers (car dealer)

price reflecting differnt levels of transportation costs related to distance between buyers and seller (zone pricing - price set by zones or distance of shipping and snipping costs)

price per unit

when price reflects things other than profit maximization

high price to denote high value

prcin just below the dollar value -makes user feel like he has received a discount

selling below usual price to gain attention or get someone in store

setting price for different lines of a product via price levels.

reduction in price given as trade to perform a certain task

price reduction based on size of order

discount if paid in certain time. 2/10 Net 30 = 2% discount of paid in 10 days.

estimates impace of pricing policy based on levels of profit.

morals and ethics determined by consequences

morals and ethics are without exception

recycling

marketing products that do not harm the environment.

shaping of a product in the consumers mind

marketing strategy and steps to carry out the strategy

identifies threats, stregnths and weakness of marketing environment

specifies goals of firm that the marketing should acheive

how marketing mix is used to achieve organization goals

assess value of new opportunities. stregnths, weaknesses, opportunities and threats

high profits - High cost

high profits - low cost

low profits - high cost

low profits - no growth

narrow minded management loosing sight of the customer being first

purchase occasion, user status, user rate, brand loyalty

influence consumers pattern of living or lifestyle. (Activities, intrests, Opinions) AIO

• P - problem
• S - search for info
• E - evaluate alternatives
• P - purchase decision
• P - post purchase behavior

consumer evaluates purchase desicion after the sale has been made

purchased frequently

consumer usually make price and quality comparisons at several stores before purchase

buyers have strong buying loyalty. will accept no substitutes

analyze based on stregnths and weaknesses

subjecting new ideas to public scrutiny

evaluate commercial feasability

process of learning about a product

rate of adoption

• I - Innovators
• E - Early adoptoer
• E - Early majority
• L - late majority
• L - laggards

• I - ntroduction
• G - rowth
• M - aturity
• D - ecline

point at which profitability becomes positive

slowing sales, market saturation, price competition increase

Industry wide sales decline

acquire firms that operate at different channel levels

acquiring firms that operate at the same level

minimizing cost and satisfying customer demands are conflicting objectives

cost reduction that increases cost of other functions

customers require different levels of customer service

grouping retail units into a collective to allow for more competitive power

new retailers enter market as low status low price competitors

offering products outsisde typical product lines

address 3 goals of marketing mix

demand and price are proportional without changeing revenue

increase in price product decrease in demand

increase in price product decrease in demand but increase in revenue

(newprice - cost) /new price + %

(old price - new price)/oldprice = %