Term
|
Definition
| A company that decides to market specifically to a segment of repeat customers would be segmenting based on what approach? |
|
|
Term
|
Definition
| __________ is an internal statement that resides on PowerPoints inside the organization. |
|
|
Term
|
Definition
| Marketers often think about positioning through a ____________ map that is based on data collected from consumers, and meant to capture the perceived similarity of providers in a market. |
|
|
Term
|
Definition
| Imagine you are learning about a new product introduced by a company, but they only advertise one key benefit in that product that you not interested in. What marketing mistake has been made? |
|
|
Term
|
Definition
| Imagine you are learning about a new product introduced by a company, but they advertise so many benefits in that product that you are not sure what the product is meant for or best at doing. What marketing mistake has been made? |
|
|
Term
|
Definition
| To visually compare the tastes of different customers, we use a graph called a ______________, where the different dimensions reflect different levels of attributes. |
|
|
Term
|
Definition
| When you segment a market based on traits such as affluence, by gender, religion, etc., then you are segmenting based on ______________. |
|
|
Term
| Positioning Statement example |
|
Definition
For
target market,
brand
is the only brand among all
products in category
that
unique value claim
because
reasons to believe
. |
|
|
Term
|
Definition
Targeted millennial Moms, but actual customers were dealseekers.
Tried to make JCPenny look cool
Millennials are actual a cohort/group not a unitary person.
- Wanted young people with money to hang out there
-
Ron Johnson tried to shift away from aging core customer. |
|
|
Term
|
Definition
Coupons
Customer wanted to be smart to get deal
Higher list prices, deeper sales
Moved Away from High end brands
Customers cared about VALUE!
PRODUCT:
-reversed decisions around PRODUCT
-St. John's Bay had been eliminated, returning CEO brought it back. Brought back lower brands like Liz Claiborne.
-Targeted plus-size women
-store-within a store shopping
-salons, haircuts survived. Went back into appliances.
Place (omnichannel!)
JC Penny App
Jc Penny catalog
in-store service
online offering to match in-store
Promotion:
twitter, social media,
https://edge.edx.org/courses/course-v1:UMD+BUSM612.2+3T2020/courseware/e8376ad6c4184bf79e06ce029aa94453/a7affdfc46db4414bf2418047d9edf0d/?child=first |
|
|
Term
| JC Penny Core competencies |
|
Definition
| a set of brands and retail locations failing to create value. |
|
|
Term
|
Definition
Store in upper north america.
Demographics
Growing demographics of millenials |
|
|
Term
|
Definition
millenials don't shop in malls
spend less on clothes
don't favorably view or connect with JCPenny brand |
|
|
Term
| Consumers incentive to purchase = |
|
Definition
|
|
Term
| Firms incentive to sell = |
|
Definition
|
|
Term
|
Definition
| a 1% improvement in price leads to a 11.1% improvement in |
|
|
Term
| a 1% improvement in price leads to |
|
Definition
| 11.1% avg improvement in operating profit |
|
|
Term
| 1% improvement in sales volume leads to |
|
Definition
| 3.3% avg increase in profitability |
|
|
Term
|
Definition
| Basing price of product on its value to chosen customers |
|
|
Term
|
Definition
| focus on the economic value created by an organization's product for a given customer |
|
|
Term
|
Definition
|
|
Term
|
Definition
| cost of next-best alternative + value of the performance differential |
|
|
Term
|
Definition
|
|
Term
| If a firm sells a product at or below COGS |
|
Definition
| they have no chance of profit. Must sell above price |
|
|
Term
|
Definition
| Higher levels of customer loyalty should lead to higher levels of ________________ |
|
|
Term
|
Definition
| Loyalty as observed through the actions of the customers is called: |
|
|
Term
|
Definition
| Loyalty that is measured through a series of questions asked to a customer is called: |
|
|
Term
|
Definition
| Firms with the largest market shares usually __________ the highest customer satisfaction. |
|
|
Term
|
Definition
| _________ demand means that for a small change in price you see a big change in quantity. |
|
|
Term
|
Definition
| Skimming: In skimming, we initially set a high price with hopes of “skimming off” or selling to those customers that have the highest willingness to pay. |
|
|
Term
|
Definition
| Penetration: Penetration pricing is the opposite. The firm sets a low price right from the outset and sells to the mass market at an affordable price. |
|
|
Term
|
Definition
|
|
Term
|
Definition
| [Unit Price - COGS] * Unit Sales Volume |
|
|
Term
|
Definition
One of biggest pricing mistakes made by corporations?
Don't set price based on cost! Big mistake. |
|
|
Term
|
Definition
|
|
Term
| Perceived Value is influenced by |
|
Definition
marketing efforts
price of substitutes |
|
|
Term
| Customers Incentive to Purchase |
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| I chose it for how easy it is to tell the time, or for other functions it provides. |
|
|
Term
|
Definition
| I chose it for how it feels on my wrist, how heavy or light it is for activities I do, or how pleasing it is to touch/wear. |
|
|
Term
|
Definition
| I chose it because it indicates wealth, quality, coolness, beauty, or matches a trend that is popular now. |
|
|
Term
|
Definition
|
|
Term
|
Definition
| The change in sales that would result in the same level of profit (contribution) at new price as was achieve at the original price. |
|
|
Term
|
Definition
Place doesn’t mean geographic location, it means CHANNEL.
Target segment: preferences, attitudes, socio-economic level |
|
|
Term
|
Definition
Set highest possible price, focusing on high margins at the expense of volume. Skim prices are high in relation to what most buyers are convinced to pay. Usually relies on big communication value. Firms must have some source of competitive protection (patents).
- Iphone first season out price is super high.
- |
|
|
Term
|
Definition
Set low price enough to attract high volume of costumers
- low relative to perceived value
- common misconception that every market will respond to lower prices. THEY DONT. Think about a hotel in paris.
- Penetration makes sense when you have significant cost advantage.
- Makes sense when you have broad line of complementary products.
- firm is small so can increase sales without effecting competitors enough to provoke retaliation |
|
|
Term
|
Definition
choice to not use price to gain market share. Not allowing price to restrict it.
- selected when market conditions are not sufficient to support penetration or skimming. |
|
|
Term
|
Definition
| going for mid-range given extreme options (low or high quality) |
|
|
Term
|
Definition
| initial values serve as anchors- decision making cognitive bias. |
|
|
Term
| Unbundle ___ and unbundle |
|
Definition
|
|
Term
| One-size-fits-all approach |
|
Definition
| reduces profitability and intensifies customer pricing pressure |
|
|
Term
| What does not go into TEV |
|
Definition
1. Manufacturing cost
2. MAnufacturing cost of reference product (COGS of competitor)
3. Price! that's the unknown we're trying to solve doing TEV |
|
|
Term
| You can never charge more than your |
|
Definition
|
|
Term
|
Definition
| give me price ceiling and give me floor. |
|
|
Term
|
Definition
| Customer's benefit captured (net benefit) |
|
|
Term
| Net Benefit Captured by Customer = |
|
Definition
|
|
Term
|
Definition
| price of next best alternative + savings from product - operating costs |
|
|
Term
| With Positive Differentiation |
|
Definition
| Reference price is your floor! TEV is ceiling |
|
|
Term
|
Definition
| When you're negatively differentiated |
|
|
Term
|
Definition
| A company providing descriptions and reviews of a product in an online shopping space where customers engage in meaningful conversation about a product, would be advertising in what stage? |
|
|
Term
|
Definition
| The ____ process is when the consumer hasn’t yet recognized a need but notices an opportunity and then makes a decision to purchase, or not to purchase, a good or service. |
|
|
Term
|
Definition
| Developing ads to try and convince a customer they need your product, even before they may recognize that need themself is the ___________ stage. |
|
|
Term
|
Definition
| Often low-involvement items want to have the most marketing impact at the spot location (shelf, stand, store) where they are sold. This is referred to as the “________________.” |
|
|
Term
| How to create value for customers |
|
Definition
| Experiential, functional, economic, social |
|
|
