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Definition
use price as a way to determine value for the product, not always money (Bartering)
Fastest way to change demand
determines prestige of product |
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Term
| Profit oriented pricing objective |
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Definition
profit mazimization- setting prices so revenues are as large as possible
Satisfactory profits-- reasonable, satisfactory to stock holders and managment |
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| sales oriented pricing objective |
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Definition
marketshare- focus on product sales for industry
(sales maximization) Hyvee ex. |
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Term
| status quo pricing objectives |
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Definition
| maintain exsisting prices to meet competition prices |
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Term
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Definition
consumer demand is sensitive to change in price (DVD player
MUST BE GREATER THAN 1 |
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Definition
an increase or decrease in price will not significantly affect demand of product (GAS)
MUST BE LESS THAN 1 |
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Term
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Definition
Ex: buy a t-shirt for $50 & sell for $100. Mark up= $50. Then take $150/2= 75% mark up.
(is a factor of cost) |
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Term
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Definition
EX: take $150/100= 50% margin
(is a factor of selling price) |
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Term
| Considerations affecting price decisions |
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Definition
channel member expectation-- (dominant backward pricing)--most manufacturers determine what customers will pay, works backwards
comparitive pricing |
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Term
| As competition changes... |
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Definition
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Term
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Definition
Set to protect consumers
ensure fair competition |
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Term
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Definition
| if someone enters a contract independantly they cant set prices (manufactuerer does not want product to lose value) |
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Definition
| At a gas station there is a low margin on the gas, high margin on food inside |
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Definition
not the number of competitive products but number of substitutes.
If coffee price goes up, we drink tea, or mountain dew |
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Term
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Definition
EX: Contact solution
a. eyedoctor 10$
b. hyvee 9$
c. walmart 6$
Eye doctor cannot buy in bulk like hyvee or walmart
hyvee cannot buy as much in bulk as walmart |
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Term
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Definition
starting at the manufactuer promote to next person on distribution chain
EX. Nike is going to promote sheels and sheels will promote nike to customer |
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Term
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Definition
The manufactuerer is going to go right to the consumer to promote.
Consumer will go and demand product from retailer
Retailer demands product from manufacuerer |
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Term
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Definition
gives incentive for buyers to pay quicker
2008 crisis: manufactuerers couldnt borrow money, so they needed cash from customers so they could pay back suppliers and get more goods |
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Term
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Definition
| manufactuerer gives discount, if retailer promises to promote product (less shelf time) |
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Definition
| people in marketing channels who negotiate, buy and sell, and facilitate change of ownership of product |
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Term
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Definition
a marketing channel is the people that sit between the manufactuerer and the retailer, they create efficiences and you should always try to create the most efficient channel
ONLY REASON YOU USE THIS IS IF THEY CAN BE EFFICIENT OTHERWISE JUST SAVE COST |
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Term
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Definition
Repair and warranty
local people come out to fix things insead of the consumer having to take it back to where it was manufactuered |
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Term
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Definition
Dual distribution
"Have multiple channels to produce many goals"
EX PATAGONIA |
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Term
| Horizontal Channel conflict |
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Definition
Occurs between members at the same level in channel
EX Walmart vs target
EX Active endeavors main provider is patagonia, some direct online sites lead consumers direct competition |
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Term
| Vertical channel conflict |
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Definition
| conflic between different levels in the marketing channel |
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Term
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Definition
Marketing channels: Product, price promotion and place
Sam Simmeon sold to trader joe which is a private lable branding |
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Term
| Companies distribution parody |
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Definition
EX: bose speakers lost prestiege when it started being sold at target
EX burts beeswax was bought by clorox and was sold at target, big help |
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Term
| Customer relationship management |
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Definition
Companies prioritze their marketing focus on different customer groups according to each groups long term value
EX hyvee vs. flower shop
manages relationships, then sells flowers |
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Term
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Definition
Occurs when demaind variability moves up in the supply chain becoming more eaxaggerates it moves up the chain like a whip
(Bulwhip effect) occurs when demand variability moves up the supply chain |
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Term
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Definition
When allowance or agreement happens between companies to use each others channels
EX Redbull guy distributed to nortwest iowa profits are not worth it to drive so he does a strategic alliance. They both sell in similar areas and share distribution cost |
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Term
| Source of competitive advantage in retail |
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Definition
| Location. look at demographics, traffic patterns |
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Term
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Definition
about having enough people in the store so customers dont have to wait inline. "invisible customer service"
EX Nordstromes decided to have world class customer service. the cost is that people are ripping them off |
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Term
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Definition
| Communication by marketers that informs, persuades or remindes consumers about a product |
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Term
| Whats the one thing dave can do that chuck norris cant |
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Definition
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Term
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Definition
New ways for marketers to manage image, connect with consumers and generate intrest and desire for product
MOST IMPORTANT IN COMMUNICATION MIX |
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Term
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Definition
Helps smaller organizations
quanities, majorable
Can control customer service by amount you send out not just bulk mail
can have a big impact on small market |
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Term
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Definition
| Its a good way to collect information |
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Term
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Definition
take a chance to win something - consideration
anyone can enter-- no consideration |
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Term
| what became a really big concern during the credit crisis? |
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Definition
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Term
| the reaseon why companies have been moved to collecting rebates is because of |
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Definition
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Term
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Definition
Organize how the customers use the product
have different uses
not all the same |
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Term
channel member expectations
(Dominant BAckward Pricing) |
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Definition
Most manufacturers determine what customers will pay by working backwards
comparative pricing |
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Term
| stages in product life cycle |
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Definition
1. introductory stage
2. growth stage
3. maturity stae
4. decline stage |
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Term
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Definition
reactive to society
EX not allowed to text and drive do it anyway. If you kill george clooney you will be in trouble |
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Term
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Definition
| an agreement between 2 or more firms on the price they will charge for a product |
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Term
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Definition
Survival-- in order to keep demand must lower price
Product quality-- people track quality on price
Unit Volume-- the product itself wont make money but little accessories will add to sales revenue
Sales-- focused on Cashflow
Market Share Pricing-- most often purchased product, must promote to stay competitive
ROI
Profit |
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Term
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Definition
Demand for product class/brand
newness
single product vs product line
cost of production/marketing
Cost of changing prices
Types of competition
Competitor prices
there is a problem when multiple products are out |
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Term
| why does walmart have such low prices |
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Definition
| the most efficient distribution in the world (transportation and logistical costs) |
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Term
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Definition
Non cumulative: if you by 10 its 10$ 20 8 a piece
Cumulative: u can buy 10 for 5 cents when u reach 50 its 3 cents |
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Term
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Definition
Perishability from services : ski resort low prices during summer
pre-season discount-- giving a discount for making an earlier purchase
Put winter clothing on sale during the summer |
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Term
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Definition
FOB origin Pricing--- buyer buys frieght
Uniforme delivery pricing-- Seller pays and bills every purchaser a flat fee
Zone pricing-- divides US into segmants
Freight absorbtion pricing -- seller pays all
basing point pricing-- charges freight from a given point |
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Term
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Definition
retailers
merchant and whole salers
agents and brokers |
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Term
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Definition
Transactional functions-- promote sale negotiate the sale and take the risk of owning inventory
Logistical funtions-- can help store distribute and sort the inventory and then transport it
facilitating function-- researching, financing |
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Term
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Definition
| we as consumers want choices and want to make sure if we have a problem then someone can fix it |
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Term
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Definition
| transactional, logistical, facilitating, serviced |
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Term
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Definition
want selective distribution so that products are not everywhere but in some places
EX buckle wants to be close to Abercrombie |
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Term
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Definition
| screening dealers to eliminate all but a few single areas |
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Term
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Definition
| establishes one or few dealers |
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Term
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Definition
high end products
EX rolex watches should only have one dealer one place |
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Term
logistical compontents
Supply chain |
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Definition
production scheduling-- consistantly thinking what customers want in 6 months
order processing-- customer is #1
EX Amazon |
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Term
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Definition
Mean differential -- customers more likley to buy
reduced costs-- close distribution store to actual
greater supply chain-- get product easy
improved Cust. Service
higher revenue |
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Term
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Definition
needs to balance customers requirments with the capabilities of the supply chain
mystry pack-- mistake by making too much product so throw all products together and call it mystery pack |
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Term
| Key processes of supply chain managment |
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Definition
| customer relationship managment |
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Term
| sustainability impacts on supply chain management |
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Definition
product design
product manufacturing
packaging
transportation & logistics
sourcing
product end of life |
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Term
| source of competitive advantage |
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Definition
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Term
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Definition
pricing
atmosphere
promotion
placment
store image
product |
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Term
| when buying a franchise you get |
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Definition
proven format
pricing
distribution
marketing
promotions
set procedurs
suppliers
financing
NEED TO DEAL W/ EMPLOYEES |
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Term
| integrated marketing communication |
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Definition
| having a consistent message at the right time using the most effective channel |
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Term
| goals of marketing communication |
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Definition
informing
persuading
reminding
CREATE BRAND ATTENTION |
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Term
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Definition
advertising--create disire
public relations-- how people feel
sals stimulus (NOT PROMOTION)- get them to do something by offering something |
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Term
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Definition
moral -- be green "have too"
rational _compare A to B
emotional--cherios
fear
sex
humor-- careful could go viral or be not funny |
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Term
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Definition
generate leads
qualify leads
probe the customers
develope solutions
handling objections
chosing the sale
follow up |
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Term
| integrated marketing communication |
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Definition
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Term
| single product vs product line |
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Definition
| Different pricing of ipads |
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