Term
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Definition
- Product
- Price
- Promotion
- Distribution (Place) |
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Term
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Definition
- Strengths (Internal)
- Weaknesses (Internal)
- Opportunities (External)
- Threats (External) |
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Term
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Definition
- Production Concept
- Sales Concept
- Marketing Concept
- Societal Marketing Concept |
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Term
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Definition
- 1860s-1920s
- companies should efficiently produce low cost products |
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Term
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Definition
- 1930s
- sell the product without regard for customer need |
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Term
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Definition
- 1950s
- find out what consumers want and product it for a profit |
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Term
| Societal Marketing Concept |
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Definition
- now
- includes externalities (like how your business affects the community and environment) |
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Term
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Definition
- looks at strategic business units
- considers: growth of the market; market share
- Classifications: Star; Cash Cow; Question Mark; Dog
- Problems: difficult to use; too much emphasis on market share; not enough foresight |
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Term
| Product Market Expansion Grid |
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Definition
- provides a strategy for identifying growth opportunities
- considers: nature of markets (new or existing); nature products (new or existing)
- Strategies: market penetration; market development; product development; product diversification |
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Term
| Marketing Penetration (Product/Market Expansion Grid) |
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Definition
- existing product; existing market
- coupons, discounts, and other promotional things to get customers in your current market to buy more of your product |
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Term
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Definition
- existing product; new market
- opening a store in the next town |
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Term
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Definition
- new product; existing market
- consider competitive advantage/ what you are good at doing
- if you sell motorcycles you might introduct motorcycle accessories |
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Term
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Definition
- new product; new market
- improve technology; develop new features |
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Term
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Definition
Can be: demographic, geographic, psychographic, behavioral
Segments should be: identifiable, accessible, substantial, unique, durable |
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Term
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Definition
a group of similar products sold by a company
- issues: product line "length"; line stretching; line filling |
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Term
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Definition
| all products a company has for sale |
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Term
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Definition
| number of products a company has for sale in a product line |
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Term
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Definition
| introducing new products into the same product line at different price points either higher or lower than current price points |
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Term
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Definition
| introduing new products into a product line in between your already existing categories |
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Term
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Definition
- Intangible
- Inseperable
- Inconsistent
- Inventory (can't be stored) |
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Term
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Definition
- Search
- Experience
- Credence |
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Term
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Definition
| observe quality through inspection (clothing) |
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Term
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Definition
| must be used to tell quality (song, wine, etc.) |
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Term
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Definition
| hard to evaluate quality even after use (doctors visit etc.) |
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Term
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Definition
sell product in a few representative cities
- high cost; takes a long time; exposes you to competitors; representative quality is good |
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Term
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Definition
panel of stores track and report purchase data
- lower cost; shorter time; less exposure to competitors; less representative quality |
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Term
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Definition
group is shown a bunch of adds then is let into a set up show room and given a certain amount of money to purchase thing with
- least cost; shortest time; least exposure to competitors; least representative quality |
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Term
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Definition
- introduction
- growth
- maturity
- decline |
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Term
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Definition
- starts when new product is launched
- sales growth is slow
- profits are low or negative
- basic versions of the product
- launch strategy must be consistent with positioning strategy |
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Term
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Definition
- sales climb quickly
- new competitors enter the market
- more distribution outlets
- profits climb |
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Term
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Definition
- sales growth slows
- overcapacity leads to price competition
- market shakeout (weaker competitors drop out) |
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Term
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Definition
- sale may dip or drop to zero
- products may become weak because: technological advances; consumer taste shift; competition
- management decisions: maintain; harvest; drop |
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Term
| What factors influence pricing? |
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Definition
Internal Factors
- positioning strategy: pure monopoly (one seller sets price); oligopoly (a few sellers are sensitive to each others' price); monopolistic competition (many sellers compete on non-price factors); pure competition (many sellers take the market price)
- Cost (fixed, variable, learning curve)
External
- demand
- price elasticity
- break-even analysis |
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Term
| Market Skimming (Princing Strategy) |
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Definition
| set highest price possible, then lower price to capture other market segments |
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Term
| Market Penetration (Pricing Strategy) |
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Definition
| set lowest price possible to build market share |
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Term
| Presige Pricing(Pricing Strategy) |
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Definition
| price high to appeal to prestige/status buyers |
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Term
| Price Lining (Pricing Strategy) |
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Definition
set prices at standards point in a product line
- $2000 suit; $1000 suit; $250 suit |
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Term
| Odd-even Pricing/Pricing in the 9s (Pricing Strategy) |
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Definition
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Term
| Bundle Pricing (Pricing Strategy) |
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Definition
| pricing two or more products together in a bundle (air, car, hotel deals) |
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Term
| Cost-Oriented Approaches (Pricing Strategies) |
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Definition
Standard Markup Pricing - industry may normally markup items by a certain percentage (like clothes are markedup at 50%); the bigger the company the lower the markup
Cost-Plus Pricing - marketer puts the cost on the consumer and charges for the product (time and materials)
Experience Curve Pricing - the more you make the lower production costs get and you can therefore lower your prices |
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Term
| Competition Oriented Approaches (Pricing Strategies) |
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Definition
Customary Pricing - tradition and expectations about what they price should be
Pricing At-, Above-, or Below- Market
Loss-Leader Pricing |
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Term
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Definition
- cost or technological advantage
- demand will increase if you do so
- price is confined to specific products or customers |
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Term
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Definition
Discounts (for performing some activity): lower cost for higher quantity purchse; seasonal pricing; lower price for cash instead of credit
Allowances: trade-in allowance; promotional allowance
Geographical - FOB (buyer takes title and pays shipping at origin); Uniform devlivered pricing (seller pays shipping costs) |
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