using a brand name on a variety of related products
applying a successful brand name to a new product category
a measure of the sensitivity of demand to changes in price
business costs tat remain constant regardless of volume
costs that change with volume change
sales volume at a given price that will cover all of a company's cost/how to reach this sales volume
a method of setting prices based on production and marketing costs, rather than conditions in the marketplace
a method of setting prices based on customer perceptions of value
a computer-based pricing method that creates a demand curve for every product to help managers select a price that meets specific marketing objectives
charging a high price for a new product during the introductory stage and lowering the price later
introducing a new product at a low price in hope of building sales volume quickly
selling one product at a lass as a way to entice customers to consider other products
allowing customer to pay the amount they think a product is worth
a hybrid pricing strategy of offering some product for free while charging for others, or offering a product for free to some customers while charging some for others
temporary price reduction to stimulate sales or lower prices to encourage certain behaviors such as paying with cash
offering several products for a single price that is presumably lower than the total of the product' individual prices
continually adjusting prices to reflect changes in supply and demand
identify 9 common pricing methods
5.skim (selling expensive, then cheaper)
6.penetration (selling cheap to build volume)
7. loss-leader (selling one product at a loss)
8. dynamic (continually adjusting prices based on supply and demand)
9. discounts (temp price reductions)
a firm's overall plan for moving products through intermediaries and on to final customers
businesspeople and organizations that assist in moving and marketing goods and services between producers and customers
intermediaries that sell products to other intermediaries for resale or to organization for internal use
intermediaries that sell goods and services to individuals for their own personal use
independent wholesalers that take legal title to good they distribute. independently owned businesses that buy from producers.
merchant wholesalers that sell products to organizational customers for internal operations or the production of other goods, rather than to retailers for resale.
agents and brokers
independent wholesalers that do not take title to the goods they distribute buy may or may not take possession of those goods
ex: their primary role is to bring buyers and sellers together (they are generally paid a commission)
the role of wholesalers would be taken over by manufacturers on the upstream end of by customers (retailers and other organizational buyers) on the downstream end.
wheel of retailing
an evolutionary process by which stores that feature low prices gradually upgrade until they no longer appeal to price-sensitive shoppers and are replaced by a new generation of leaner, low-price competitors
large stores that carry a variety of products in multiple categories, such as clothing, house wares, gifts, bedding and furniture
stores that carry only a particular type of goods, often with deep selection in those specific categories
retailers that sell a variety of everyday goods below the market price by keeping their overheard low
stores that sell designer labels and other fashionable products at steep discounts
companies that use e-commerce technologies to sell over the Internet; included Internet-only retailers and the online arm of the store-based retailers
the application of Internet technologies to wholesaling and retailing
coordinated effort to reach consumers through more than one retail channel
retail stores are becoming a place to learn about cooking, socialize, to be entrained, etc.
ex: apple's stores are like an art gallery.
identify three major retailing formats and summarize six trends shaping the future of retailing
1. overcapacity: too many stores and not enough buyers
2. continued growth in online marketing: many store-based retailers are trying to lower their fixed costs by shifting more activity to the Internet
3. growth of multichannel retailing: today's customers increasingly combine online and in-store shopping. multichannel retailing coordinates this experience of moving from one outlet to the other.
4. format innovations: trying to change things up to get attention. Like hybrid stores (two different retailers in one) and pop-up stores (exist only for a short time)
5. retail theater: including entertainment and other fun stuff in the shopping experience
6. threat of disintermediation: retailers face the threat of disintermediation if suppliers of customers don't think they add sufficient value or if other types of retailers can do the job better.
a combination of intermediaries and channels a producers uses to reach target customers
ex: distributing power tools to hundreds of hardware stores OR selling top-of-the-line woodworking machines for professional use
requires wholesalers and retailers of many types. a market coverage strategy that tries to place a product in as many outlets as possible.
a market coverage strategy that uses a limited number of carefully chosen outlets to distribute products.
best for shopping goods like home appliances and autos because customers usually shop for these by comparing prices and features.
a market coverage strategy that gives intermediaries exclusive rights to sell a product in a specific geographic area.
individual channel members natually focus on running their own business and profitably as possible, which can lead to channel conflict.
this = disagreement over rights and responsibilites of the organization in a distribution channel.
conflict between full-service and discount stores because customers can do to full-service to explain and get all this info, and then buy from discount.
a way for producers and intermediaries to achieve coordination.
channel participants agree to operate as a cohesive system under the leadership of one of the participants.
identify 5 key attributes of distribution channel design and management
1. intensive distribution: putting your product in as many places as possible
2. selective distribution: putting products in a few place
3. exclusive distribution: putting products in 1-2 places
4. channel conflict: when members of a channel argue because each member wants the best for themselves, not the entire channel as a whole.
5. marketing systems: utilized to limit channel conflict
all the activities required to move finished products from the producer to the consumer.
includes forecasting, order processing, inventory control, warehousing and transportation
the planning and movement of goods and information throughout the supply chain.
as managers try to squeeze cost efficiences and competitive advantages everywhere they can, logistics has taken on key strategic important for many companies.
functions involved in receiving and filling customer orders
ex: checking customer's credit, recording the sale, making the appropriate accounting entries, arranging for the item to be shipped, billing the customer
to keep buyers happy, comapnies should establish ambitious standard for accuracy and timeliness in order fulfillment
facilities for storing inventory.
may be owned by the manufacturer, by an intermediary, or by a private company that leases space to others.
they serve as command posts for moving products to customers
typically goods produced at a variety of locations are collected, sorted, coed, and redistributed to fill customer orders.
shippers can combine the benefits of multiple nodes with this.
with containerized shipping, for instance, standard-size freight containers can be moves from trucks to railroads to ships for maximum flexibility.
highlight the major component of physical distribution and logistics
the different centers (warehouse, distribution center)
methods of transportation (tail, truck, ship, air, pipeline, digital network)
what is a distribution channel?
a means and method to move one product from place to place
what are the two main types of intermediaries, and how do they differ from one another?
wholesalers: selling to organizational customers, government agencies, companies, schools, etc. customers of wholesaler either resell the products or use them to make products of their own.
retailers: primarily sell products to consumers for personal use
what forms of utility do intermediaries create?
matching buyers and sellers: making seller's products available to multiple buyers
providing market information: gives customer data on who buys, how often and for how much.
providing promotional and sales support: assist with advertising
gathering assortment of goods: intermediaries receive bulk shipments from producers
transporting and storing products
assuming risks: when intermediaries accepts goods from manufactures, they usually take on the risks associated with damage, theft, etc.
providing financing: can provide loans to smaller producers
completing product solution: VARs?
facilitating transactions and supporting customers
what are some main causes of channel conflict?
how does a specialty store differ from a category killer and a discount store?
what are the four stages of a product life cycle?
what is test marketing?
what are the functions of packaging?
how many books will a publisher have to sell to break even if fixed costs are $100,000 and the selling price per book is $60 and the variable costs are $40 per book?
how does cost-based pricing differ from value-based pricing?
why are companies pushing for more accountability from the marketing function?
how does the organizational market differ from the consumer market?
what is strategic marketing planning, and what is its purpose?
what external environmental factors affect strategic marketing?
what are the four basic components of a marketing mix? define them