MRKT 303 Final Exam Learning OUTCOMES

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Variable Cost

a cost that varies with changes in the level of output; an example of a ____________ is the cost of materials

Fixed Cost

does not change as output is increased or decreased. Examples include rent and executives' salaries

Markup Pricing

the most popular method used by wholesalers and retailers to establish a selling price, does not directly analyze the costs of production. Instead, ________________ uses the cost of buying the product from the producer, plus amounts for profit and for expenses not otherwise accounted for; the total determines the selling price

Markup Pricing Formula

Cost
____________________
1-desired return on sales

Price Strategy

The marketing manager's _______________ defines the initial price and gives direction for price movements over the product life cycle. The ___________ sets a competitive price in a speicifc market segment, based on a well-defined positioning strategy

Price Skimming

This is sometimes called "market-plus" approach to pricing because it denotes a high price relative to the prices of competing products. This term is derived from the phrase "skimming the cream off the top". Companies often use this strategy for new products when the product is perceived by the target market as having unique advantages. ________________ is a policy whereby firm charges a high introductory price, often coupled with heavy promotions, and then lower prices over time (this is called sliding down the demand curve)

Penetration Pricing

is at the opposite end of the spectrum from skimming. ____________________ means charging a low price for a product in order to reach the mass market. The low price is designed to capture a large share of substantial market, resulting in lower production costs. It does mean lower profit per unit. Therefore, to reach the break-even point, it requires a high volume of sales than would a skimming policy

Competitive Pricing

a marketing-oriented strategy whereby a service retailer sets its prices on the basis of the prices charged by competitors. The concept behind this frequently used pricing objective is to simply match the price established by an industry leader for a particular product. Since price difference is minimized with this strategy, a company focuses its efforts on other ways to attract new customers

Culture

is the essential character of a society that distinguishes it from other societal groups. The underlying elements of every __________ are the values, religion, language, myths, customs, rituals, and laws that shape the behavior of the people from one generation to another

Value

This is the most defining element of a culture. It is the enduring beliefs shared by a society that a specific mode of conduct is personally or socially preferable to another mode of conduct. People's __________ have a great effect on their consumer behavior i.e. Americans place a high value on convenience....breakfast bars, energy bars, nutrition bars, etc.

Family

socialization process, how cultural values and norms are passed down to children

Gender

physiological differences between men and women result in different needs, such as health and beauty products

Family Life Cycle

consumer tastes in food, clothing, cars, furniture, and recreation are often age related. The ________________ is an orderly series of stages through consumers' attitudes and behavioral tendencies evolve through maturity, experience, and changing income and status
-Young singles
-Young married with children
-Middle aged married without children

Personality

each consumer has a unique _____________. It is a broad concept that can be thought of as a way of organizing and grouping how an individual typically reacts to situations. Some marketers believe that ____________ influences the types and brands of products purchased, such as; type of car, clothes, or jewelry a consumer buys may reflect one or more ___________ traits.

Lifestyle

is a mode of living, as identified by a person's activities, interests, and opinions

Perceptions

the process by which people select, organize, and interpret these stimuli into a meaningful and coherent picture

Motivations

are the driving forces that cause a person to take action to satisfy specific needs

Learning

is the process that creates changes in behavior through experience and practice

Experiential Learning

occurs when an experience changes your behavior

Conceptual Learning

is not acquired through direct experience

Beliefs

an organized pattern of knowledge that an individual holds as true about his or her world. _________ may be based on knowledge, faith, or hearsay. Consumers tend to develop a set of these about a product's attributes and then, through these _______, form a brand image.

Brand Image

a set of beliefs about a particular brand that shapes the consumers' attitudes toward the product

Attitude

a learned tendency to respond consistently toward a given object, such as a brand. ____________ rest on an individual's value system, which represents personal standards of good and bad, right and wrong, etc.

Steps in the Decision Making Process

1) Need of Recognition
2) Information Search
3) Evaluation of Alternatives
4) Purchase
5) Post Purchase Behavior

Need of Recognition

occurs when consumers are faced with an imbalance between actual and desired states.....need vs. want

Information Search

consumers search for information about the various alternatives available to satisfy it

Evaluation of Alternatives

this is when the customer makes a decision

Post Purchase Behavior

is based upon how well the consumers' expectations are met and if they are satisfied or dissatisfied with the purchase

Publicity

any media that gives you information about a network

Advertising

paid communication in which the company is identified

Promotional Mix

what forms of advertising are put together

Why do some products fail within the first year?

1) They do not offer a benefit compared to the competition
2) Poor match between features and consumer needs
3) Incorrect positioning (the whole thing boils down to how you position it)
4) Prices too high or low

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