460 exam 2

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marketing communications
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Terms in this set (13)
-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
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) -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.