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BUS M 241-- Final Sections 2 and 3
Terms in this set (40)
What are the three types of distribution?
What is the selective form of distribution?
-Selling through a limited number of qualified retailers
-Requires companies to take an active role in vetting and deciding on appropriate retailers
What is the exclusive form of distribution?
-The retailers has the exclusive right to distribute the product in their geographic area
-Limits total sales units of a product, but provides the setting, service, and exclusivity needed to support super-premium prices
What is the goal of the demand and supply curves?
With pricing we try to capture as much of the perceived value as possible without inviting over-powering competition
What are the different ways to segment a market?
-Demographic: most used
-Behavioral: most useful
What are channel intermediaries?
-Distributors, wholesalers, original equipment manufactures and retailers
-used because the intermediaries can transport the goods to customers less expensively, sell the goods to retailers more easily and sell the goods to a large group of consumers that already purchase from them
What is the push strategy?
Producer -> Intermediaries -> End users
What is the pull strategy?
Producer -> End users -> Intermediaries
What is the breakeven equation?
Fixed costs/(price per unit-cost per unit)
What is the margin percent equation?
Gross profit/sales price
What are the different types of promotions?
How does advertising help promote?
Paid placement of announcements and persuasive messages to inform, gain liking, and stimulate action
How does sales promotion promote?
Short-term incentives to encourage trial or increase purchase
How does personal selling promote?
Two-way communication between a buyer and a seller designed to influence a purchase decision
How does public relations promote?
Placement of news or media presentations with the deliberate attempt to manage the public's perception
How does direct marketing promote?
Promotional element that uses direct communication with consumer to generate a response in the form of an order, request for information, or visit to a retail outlet
What are the methods to set product prices?
1. Select the pricing objective
2. Determine demand
3. Estimate company costs
4. Know competitors' prices
5. Select pricing method
What are the three aspects of fairness of the transaction?
-nature of the product
What is the need to believe?
Which significant pain point does the product address that is personally relevant to your target audience?
What is the reason to believe?
How effective is the demonstration of the product's problem-solving benefits in capturing the imagination of your target market?
What are the product development stages?
-Idea Generation: customers, supplies
-Concept Testing: break down occurs most here
What are the types of pricing strategies?
-Cost Plus: add a specific amount to the cost
-Penetration: low price to penetrate the market
-Bundling: two or more products in a single package
-Competitive: understand competitors but don't understand customers
-Skimming: high price to skim the market
Why do marketers segment?
-To help marketing managers identify new opportunities
-Can be done by using demographic factors, consumer attitudes, benefits sough, and many other bases
What does CPM stand for?
Cost per thousand
What does GRP stand for?
Gross rating points
What does TRP stand for?
Target rating points
What is brand loyalty?
Consumers purchase only their favored brand
What is brand equity?
Brand loyalty is transferred to new products
What are the causes of conflict in the channel?
-Channel conflict arises when one channel member prevents anohter channel member from achieving its goal
-A primary cause of conflict is the distribution of profits among channel members
What is a demographic grouping?
Grouping based on differences in age, gender, income, level of education, social class, family composition, religion, and ethnicity
What is a behavioral grouping?
Grouping based on differences in the core benefits customers seek, usage situations, brand loyalty, usage rate, and price sensitivity
What is a psychographic grouping?
Grouping based on differences in geographic regions, population density, population size, and climate
What are the three objectives of an ad?
-Cognitive: build awareness
-Effect: gain interest, liking
-Behavioral: stimulate action
What are the points of parity?
Demonstrate category credentials
-Negate competitors points of difference
What are points of difference?F
Desirable to consumer
-Deliverable by the brand
-Differentiating from competitors
What is creativity?
Tweaking something familiar in a new way, new combination or taking something to a new usage situation
What are the five launching tactics?
1. Use marketing events to create buzz
2. Make the demonstration compelling
3. Create a catch phrase and/or jingle
4. Select the channel
5. Close the deal
What are the five rules of marketing events?
1. Make sure the distinctive product features take center stage
2. Make sure the quality and personality of the event mirror the quality and personality of the product
3. Connect the event with local cause when possible
4. Target the specific audience and marketing objective
5. Send home a personalized souvenir to drive home a brand experience
What makes a good catch phrase/jingle?
-Go out on a limb and take a risk
-A great catch phrase grabs attention by causing laughing
-Great catch phrase will wrap your benefit in bacon while putting heat on your competitors' weaknesses
What are the three big challenges to selling along with solutions to each?
-Entrepreneurs lack credibility (solution: gain credibility and establish trust)
-Power is with the buyer (solution: sell your angle)
-Ego: check your ego at the customer's door
THIS SET IS OFTEN IN FOLDERS WITH...
BUS M 241--Final Section 1
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