460 exam 2

Term
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marketing communications
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Terms in this set (13)
marketing communications
process by which information about a firm and its offerings is dispersed to select markets
goals of marketing communications
induce initial trial,
achieve postpurchase satisfaction,
generate repeat sales
components of the marketing communications mix
advertising
sales promotion
direct marketing
public relations
personal selling
role of price
-generates revenue
-competitive tool
-positions the product in the market
-cannot be decided on in isolation
(first time pricing strategies)
skimming
-high price to help recover development costs.
-requires unique product and segment of consumers willing/able to pay premium
-success depends on ability to and speed with which competitors react
(first time pricing strategies)
marketing pricing
-competition-based pricing
-when similar/competing products already exist in targeted market segments
-requires strong knowledge of product costs and product life cycle duration
(first time pricing strategies)
penetration pricing
-low price to gain higher volume/early market share before competitors enter
-allows firm to realize economies of scale before competitors enter so this is a requirement for strategy to work
-lower price also deters competitors from entering the market
-requires large/mass markets with price sensitive customers and decreasing costs as sales volume increases to allow for economies of scale to be realized
distribution process
-handling and distribution of goods
-passage of ownership (title)
-buying and selling negotiations between: producers and middlemen, middlemen and customers
rules of international distribution (essay Q)
1. select distributors, dont let them select you
2. distributors capable of developing markets rather than those with a few obvious consumer contacts with status-quo focus (company fit rather than market fit)
3. treat local distributors as long term partners
4. commit money, managers, and proven marketing ideas from the start
5. maintain control over marketing strategy but involve distributors for their expertise
6. demand detailed market and financial performance data
7. build links among distributors
(Customer relationship groups)
-Strangers
the company will not gain anything by investing time and resources i developing relationships with these
(Customer relationship groups) -butterflies-for these, the company should create satisfying and profitable transactions capturing as much of their business as possible in the short time during which they buy from the company. efforts to convert them into loyal customers are rarely successful(Customer relationship groups) true friendsthese are loyal and have potential to generate good profit for the company. the firm should make continuous relationship investments to delight these customers and nurture, retain, and grow them (best scenario to have)(Customer relationship groups) barnaclesthese are highly loyal but not very profitable. there is limited fit between their needs and the company's offerings. the company may be able to improve the profitability of them by selling them more, raising their fees, or reducing service to them. However, if they cannot be made profitable, they should be fired.