Term
| Blah blah, know the four p's |
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Definition
| product/price/place/promotion |
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Term
| what are the four main elements of the promotional mix, give examples,pros/cons |
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Definition
-advertising = paid form of non-personal communication in prime media, like a commercial...good to reach a lot of people, bad because it's impersonal, can leave questions
-personal selling= oral communication w/ potential buyers of a product w/ intention of making a sale. Pro: builds relationships, bad for reaching tons of people, also costly
-sales promotion=providing incentive to stimulate demand for a product - coupons, free car if you make a half-court shot, etc
-publicity - the communication of a g/s by public media w/o paying for it. pro: seen as more "credible," cheaper, con: can turn out badly. |
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Term
| what are the four main types of pricing strategies? |
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Definition
| -markup, new product, psychological, discount |
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Term
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Definition
| amount added to cost of item to determine the selling price |
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Term
| What are the types of new product pricing? (+define) |
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Definition
| skim, (charging high price while it's new, also covers R&D costs) competition, (charging lower price than your competitors) penetration (charging lower price for new product) |
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Term
| What are the types of psychological pricing? (+define) |
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Definition
| promotional, ("Back to school" means lower! NOT) odd-even, (ends in 5/9 for bargain, even for quality) and prestige (higher price conveys higher quality) |
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Term
| a loss leader is a form of what kind of pricing? |
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Definition
| psychological pricing, more specifically promotional pricing. |
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Term
| What are the types of discount pricing? (+define) |
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Definition
-seasonal (off-peak pricing in marketing class)
-cash discounts (2% discount if you pay w/in ten days, full amount in 30)
-quantity (definition: costco) |
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Term
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Definition
| a set of people who share similar wants and needs and who are capable of buying products |
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Term
| what are the three types of major markets? |
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Definition
| consumer, organizational, governmental. |
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Term
| Describe consumer markets |
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Definition
-"end users"
-found of market segmentation
-made of individuals/households that purchase goods |
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Term
| 3 ways to segment a market? |
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Definition
| -demographics, geographics, psychographics |
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Term
| define: product differentiation |
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Definition
| an advertising approach whereby a company suggests that its product is different and better than similar products offered by competitors. Ex: coke v pepsi |
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