Rutgers Pollack Marketing Intro Final Review

StudyBlue printing of Rutgers Pollack Marketing Intro Final Review html, body, div, span, applet, object, iframe, h1, h2, h3, h4, h5, h6, p, blockquote, pre, a, abbr, acronym, address, big, cite, code, del, dfn, em, font, img, ins, kbd, q, s, samp, small, strike, strong, sub, sup, tt, var, b, u, i, center, fieldset, form, label, legend, table, caption, tbody, tfoot, thead, tr, th, td { margin: 0; padding: 0; border: 0; outline: 0; font-size: 100%; background: transparent; } body { line-height: 1; } blockquote, q { quotes: none; } blockquote:before, blockquote:after, q:before, q:after { content: ''; content: none; } /* remember to define focus styles! */ :focus { outline: 0; } /* remember to highlight inserts somehow! */ ins { text-decoration: none; } del { text-decoration: line-through; } /* tables still need 'cellspacing="0"' in the markup */ table { border-collapse: collapse; border-spacing: 0; } /* end RESET */ .header { min-width:800px; } .logo { padding:6px 20px 2px 20px; margin:0; font-size:25px; font-weight:bold; color:#808285; position:relative; border-bottom: 1px solid #c5c5c5; } .logo-blue { color:#70adc4; } .logo-desc { font-weight:normal; font-size:19px; color:#cccccc; margin-top:50px; position:absolute; display: none; } .back-button { position:absolute; top:20px; right:20px; font-size:13px; line-height:25px; color:rgb(0,175,225); font-weight:normal; } .back-button a { color:rgb(0,175,225); } .instructions { padding:0; margin:0; width:100%; position:relative; color:rgb(100,100,100); } .step-holder { border-left:1px solid #ededed; margin-left:20px; } .steps { padding:15px 0; float:left; width:24%; border-right:1px solid #ededed; text-align:center; } .steps-01 { } .steps-02 { } .steps-03 { } .steps-04 { } .label { padding:5px 10px; } .print-button { } .print-button a { background-color:rgb(0,175,225); color:white; line-height: 19px; padding:9px 8px 5px 30px; font-size:14px; text-decoration:none; background-image: url(images/printer.png); background-repeat: no-repeat; background-position: 7px 50%; -moz-border-radius: 5px; -webkit-border-radius: 5px; } .print-button a:hover { background-color:black; } .theNote .content { width: 8.0in !important; margin: 5px auto; padding:20px; background-color:white; } .theNote .header { border-bottom: 1px dashed #C8C8C8; font-size: 17px; padding: 0 0 10px; line-height: 19px; color: #00ADE1; min-width:500px; } .theNote .body { font-size: 14px; line-height: 19px; padding: 10px 0; } .theNote{ padding:6px 0; clear:both; background-color: rgb(200,200,200); } .theNote h3{ color: rgb(100,100,100); } .theNote h1, .theNote h3{ background-color:white; padding:2px 20px; width:8.0in !important; margin: 0 auto; font-size: 15px; } .theNote h1{ padding-top: 10px; font-size: 15px; } .theNote h1:first-child{ font-size: 20px; } .theNote h3 { font-size: 14px; font-weight: normal; } #options { border: 3px double #ccc; padding: 5px 12px; margin: 10px 50px 10px 20px; float: left; } #info { border-top: 1px solid #ccc; padding-top: 5px; font-style: italic; } li { margin: 5px 10px 5px 25px; } ul li { list-style: disc; } ol li { list-style: decimal; } img { border: 0; } table { clear: both; width: 100%; border: 1px solid #c5c5c5; border-width: 1px 0; margin: 0; page-break-after: always; } table#page { page-break-after: auto; } td { text-align: center; font-size: 12px; border-bottom: 1px dashed #c5c5c5; height: 1.75in; width: 50%; padding-left: 15px; } .leftside { border-right: 1px solid #cccccc; padding: 0 15px 0 0; } .bottom td { border-bottom: none; } .clearfix { clear:both; line-height:1px; height:1px; } img { max-width:80%; max-height:150px; margin:20px; } @media print {.header { display: none; } .content .header{ display:inherit; } table { border: 1px dashed #bbb; border-width: 1px 0; } .theNote{ background-color:white; } } Chapter 11 (286)- Discuss the four alternative branding strategies available to marketiers. 1. Multiproduct branding strategy -One name for all of its products in a product class -Family branding, corporate branding Advantages- capitalizing on brand equity, good experiences transfers feelings to products with the same name, product line extensions: using a current brand name to enter a new market segment in its product class Example- Campbell’s soup -Lower advertising costs -Problem with extensions- can stray customers away from other products they have, but goal is to take away from competitors. -Subbranding- combines a family brand with a new brand, i.e. Gatorade G2 -Brand extension- Honda- lawnmowers, motorcycles, etc, problem is diluting the brand name for consumers, i.e, arm & hammer 2. Multibranding strategy - each product gets a distinct name - Disney- Miramax for adult films Disney for kids price-quality segments -fighting brands- counteract competition -higher advertising costs , generate new awareness -no risk that product failure will effect other products 3. Private branding strategy -private label or reseller branding -manufactures products but sells them under the brand name of a wholesaler or retailer -Radio Shack, Costco, Sears -high profits for manufacturers and resellers - 1 in 5 products sold at a supermarket is a private brand 4. Mixed branding strategy -a firm markets profucts under its own name and a that of a reseller because the segment attracted to the reseller is different from its own market -Elizabeth Arden- sold through department stores Chapter 12 (299)- Describe the four I’s of services. 1.Intangibility - services can’t be held, touched, or seen before the purchase decision - more difficult to evaluate than with products - American express- tangible benefits, membership rewards 2.Inconsistency -quality of developing, pricing, promoting, delivering services, depends on the person who provides the services -more of a problem in services - soprano at the opera could have a cold -organizations attempt to reduce inconsistency through standardization and training 3. Inseparability -consumer does not usually separate the deliverer of the service from the service itself - attend a university of a high quality, but if the instructers and counselors are poor they may have a bad experience associated with it -self service makes things less personal at times 4.Inventory -inventory carrying costs are more subjective and related to idle production capacity, which is when the service provider is available but there’s no demand - carrying costs are higher when a physician is hired hourly but no patients come in -commission avoids higher carrying costs real estate- little expensive equipment -production capacity, importance of time to today’s customers Chapter 13 (324)- Discuss the various pricing objectives and pricing constraints. Pricing objectiv3- specifying role of price in an organization’s marketing and strategic plans, set objectives for marketing managers responsible for an individual brand Profit -Measured in terms of return on investment or return on assets -Objectives: managing for long-run profits, companies give up immediate profit by developing quality products to penetrate competitive markets over the long term. Products priced low compared to their costs, but expects to make greater profits later -Maximizing current profit objective: for a quarter or a year, common because the targets can be set and measured easily, mostly American companies -Target return objective- set a profit goal usually determined by its board of directors Sales - objective may be to increase sales revenue if profit is high enough to remain in business, lead to increase in market share and profit -translated more easily into meaningful targets for marketing managers than profit objectives -cutting price on one product may increase sales revenue but reduce those of related products Market Share - ratio of firm’s sales revenues or unit sales to those of the industry -pursue market share objective when industry sales are flat or declining -some firms find it successful, but Boeing tried to maintain theirs in 1990 and came into a huge loss Unit Volume - quantity produces or sold -pricing objective -multiple produces at different prices, need to match demand by customer with price and production capacity -can be counterproductive if a volume objective is achieves by drastic price cutting which drives down profit Survival - sometimes survival is more important than other objectives -i.e. FAO Schwartz faces survival problems because prices are cut by Wal Mart and Target Social Responsibility -pricing objective that recognizes its obligations to cutomers and society in general -Medtronics- first heart pacemaker PRICING CONSTRAINTS Set for factors that limit the range of prices a firm may set, consumer demand effects price Demand for the product class, product, and brand -number of potential buyers effects price -luxury versus necessity -greater demand, higher price -baseball- higher prices based on team Newness of the product: stage in the product lifestyle - the newer a product and the earlier it is in the life cycle, the higher the price - limited competition early in its life cycle - fads, like beanie babies Single product versus a product line - latitude in selling a price if is the only product of its type, like walkman -now, price has to be consistent with the others based on features provided because there are different varieties Cost of producing and marketing the product -in long run, firm’s price must cover all costs of producing and marketing a product -fails if not, a firm’s cost set a floor under its price Cost of charging prices and time period they apply -companies must consider costs of changing prices and the time period for which they apply in developing price lists for catalog items Type of competitive market - seller’s price is constrained by the type of market in which it competes - four competition, pure competition: prices set by marketplace, monopolistic competition: price competition and non price competition exist, oligopoly: avoid price wars, can be differentiated or undifferentiated, pure monopoly: initially high prices work but eventually fall - changes the nature of product differentiation and extent of advertising Competitors’ Prices - firm must know the prices present and potential competitors are charging now and will charge in the future Chapter 14 (346-354)- Discuss 4 common approaches to find appropriate pricing level DEMAND-ORIENTED - weigh factors underlying expected customer tastes and preferences than cost, profit, and competition - skimming pricing: sets highest initial price that customers really desiring the product are willing to pay, used for a new or innovative product, eventually lowering the price as the demand is satisfied - penetration pricing: setting a low initial price to appeal to mass market, discouraging competition, example Wii - prestige pricing: setting a high price so that quality or status conscious consumers will be attracted to the product to buy item, ex. Chanel jewelry - Price lining: selling a line of products at different pricing points - Odd-even pricing: setting prices a few dollars or cents under an even number - Target pricing: manufacturer deliberately adjusts the composition and features of a product to achieve the target price to consumers - Bundle pricing: marketing of two or more products in a single package price - Yield management pricing: charging of different prices to maximize revenue for a set amount of capacity at any given time COST-ORIENTED Stresses the cost side of the pricing problem - standard markup pricing: entails adding a fixed percentage to the cost of all items in a specific product class, varying on retail store and on the product - cost-plus: involves summing the total unit cost of providing a product or service and adding a specific amount to arrive at a price, sometimes a percentage, sometimes a fee - experience curve pricing: based on the learning effect, which holds that the unit cost of many products and services declines by 10 to 30 perfect each time a firm’s experience at producing and selling them doubles, decline in price possible, like dvd players PROFIT-ORIENTED price setter may choose to balance both revenues and costs to set price using this approach - target profit pricing: annual target of a specific dollar volume of profit - target return-on-sales pricing: set typical prices that will give them a profit that is a specific percentage of sales volume - target return-on-investing pricing: large, publicly owned corporations set annual return on investment targets COMPETITION-ORIENTED Price setter stresses what competitors are doing - Customary Pricing: tradition, standardizing channel of distribution or other competitive factors dictate price, like chocolate bars - Above, at, or below market pricing: difficult to identify specific market price, marketing managers have a subjective feel to competitors’ price, and chosoe whether they want to be at, above, or below market price - Loss-lender pricing: attract customers in hopes they will buy other products as well, like Best Buy, Target etc, and sell other items at markups Chapter 15 (390)- Discuss the 3 major types of vertical marketing systems. Vertical marketing systems- professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact Corporate systems - Combination of successive stages of production and ownership - Producer might own the intermediary at the next level down in the channel, forward integration - Retailer might own a manufacturing operation, backward integration - Tiffany manufactures half of its own products - Do so to reduce distributing costs and gain greater control over supply sources or resale of their products Contractual Systems - Independent production and distribution firms integrate their efforts on a contractual basis to obtain greater functional economies and marketing impact than they could achieve alone - Most popular type - Wholesaler-sponsored voluntary chains: wholesaler develops a contractual relationship with small, independent retailers to standardize and coordinate buying practices, merchandising programs, and inventory management efforts - Retailer-sponsored cooperatives: small, independent retailers form an organization that operates a wholesaler and plan collaborative promotional and pricing activities (ace hardware) - Franchising: contractual agreement between a parent company and an individual or firm that allows the franchisee to operate a certain type of business under an established name according to rules, manufacturer sponsored retail franchise systems, manufacturer sponsored wholesale systems, service sponsored retail franchise systems, service sponsored franchise systems Administrative Systems - Achieve coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership - Proctor & gamble, gets supermarkets to promote Chapter 16 (412)- Discuss various factors that supply chain managers balance total logistics costs against customer service factors. Total Logistics Costs Concept - Includes expenses associated with transportation, materials, handling and warehousing, inventory, stock outs, order processing, and return goods handling - Many are interrelated - Example, firm attempts to minimize transportation costs by shipping larger quantities, which will increase inventory levels, - Important to study the impact on all logistics decision areas - Strategy: have a number of warehouses, which receive shipments in large quantities, and then redistribute to customers in smaller quantities - Number of warehouses increases, inventory costs rise, transportation costs fall - Minimizes total logistics cost Customer Service Concept - End of the supply chain is service delivered to customers - Can be expensive - Firm’s goal should be to provide superior customer service while controlling logistics costs - The ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience - Time: lead time for an item, the lag from ordering until it is received and ready for use or sale, reduce lead time so customer inventory levels may be minimized, another emphasis is make the process of reordering and receiving products as simple as possible, through electronic data and inventory systems called quick response delivery systems, reduce a retailer’s lead time and lower inventory investment and reduce logistics expense - Dependability: consistency of replenishment, consistent lead time, safe delivery, complete delivery - Communication: two-way link between buyer and seller that helps monitor service and anticipating future needs, status reports to consumers is an example, increased communication capability of transportation carriers has enhanced the accuracy of such tracing info and improves the ability of buyers to schedule shipments - Convenience: minimum of effort on the part of the buyer in doing business with the seller. Easy to order, available from many outlets, arrange transportation - Chapter 18 (471)- Discuss various ways of setting promotion budgets. Promotions needed to reach US household are enormous, need to decide how much to spend Percentage of Sales - Funds are allocated to promotion as a percentage of past or anticipated sales, in terms of dollars or units sold - Simple, provides financial safeguard by tying the promotion budget to sales - Implies that sales cause promotion - Company may reduce its promotion budget because of a downturn in sales, which may need promotion the most Competitive Party - Matching the competitor’s absolute level of spending or the promotion per point of market share - Important to consider competition in budgeting - Should not be the only determination All you can afford - ­ Allocate money only after all other budget items are covered Small businesses Objective and task - Best approach - Determines it promotion objective, outlines the tasks to accomplish these objectives, and determines the promotion cost of performing these tasks - Takes into account goals - Chapter 20 (526)- Discuss the stages and objectives of the selling process. Prospecting - Search for and qualify prospects - Starts the selling process - Prospects are produced through advertising, referrals, and cold canvassing Pre-approach - Gather information and decide how to approach the prospect - Information sources include personal observation, other customers, and own salespeople Approach - Gain a prospect’s attention, stimulate interest, and make transition to the presentation - First impression is critical - Gain attention and interest through reference to common acquaintances, a referral, or product deformation Presentation - Begin converting a prospect into a customer by creating a desire for the product or service - Different presentation formats are possible - Involving the customer in the product or service through attention to particular needs is critical - Important to deal professionally and ethically with prospect skepticism, indifference, or objections Close - Obtain a purchase commitment from the prospect and create a customer - Salesperson asks for the purchase - Different approaches include trial close and assumptive close Follow-up - Ensure that the customer is satisfied - Resolve any problems faced by the customer to ensure satisfaction and future sales possibilities Chapter 22 (578)- Discuss Porter’s generic business strategy - Michael E. Porter - Generic business strategy: can be adopted by any firm, regardless of the product or industry involved, to achieve a competitive advantage - Columns identify 2 alternatives: becoming the low-cost producer within the markets in which it competes, or differentiating itself from competitors by developing points of difference in its product offerings and programs - Rows identify the competitive scope: a broad target by competing in many market segments or a narrow target by competing in only a fgew segments or a single segment - This results in 4 generic business strategies Cost leadership strategy (cell one)- reduces expenses and lowers product prices while targeting a broad array of market segments -One way by securing raw materials from lower cost suppliers - Investments in capital equipment any be necessary to improve the production or distribution process and achieve lower unit costs - Still must have adequate quality levels -ex. Campbell’s soup Differentiation strategy cell 2-requires products to have significant points of difference in product offerings, brand image, higher quality, advanced technology, or superior service to charge a higher price while targeting a broad array of market segments -General mills cost focus strategy -controlling expenses and lowering product prices targeted at a narrow range of market segments -Retail chains targeting a few market segments in a restricted group -IKEA differentiation focus strategy- requires products to have significant points of difference to target one or only a few market segments -ex Toyota, who had older customers, they went to city people they said they needed smaller cars, which would be the point of difference for a narrow segment of buyers