Podcast
Questions and Answers
In media selection, marketers aim to reach their audience through ______ methods.
In media selection, marketers aim to reach their audience through ______ methods.
targeted
One of the advertising budget methods is the ______ method, where past expenditures guide future allocations.
One of the advertising budget methods is the ______ method, where past expenditures guide future allocations.
historical
Effective message creation should incorporate ______ techniques to influence consumer behavior.
Effective message creation should incorporate ______ techniques to influence consumer behavior.
persuasive
An objective of persuasive advertising is to build brand ______.
An objective of persuasive advertising is to build brand ______.
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An advertising objective focused on informing customers about a new product is called ______ advertising.
An advertising objective focused on informing customers about a new product is called ______ advertising.
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The shift from broadcasting to ______ reflects changes in consumer behavior and marketing strategies.
The shift from broadcasting to ______ reflects changes in consumer behavior and marketing strategies.
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Persuasive advertising often includes techniques that encourage customers to ______ a brand.
Persuasive advertising often includes techniques that encourage customers to ______ a brand.
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A key advantage of advertising is its ability to communicate a ______ message to a large audience.
A key advantage of advertising is its ability to communicate a ______ message to a large audience.
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The percentage-of-______ method sets the advertising budget as a percentage of current or forecasted sales.
The percentage-of-______ method sets the advertising budget as a percentage of current or forecasted sales.
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The ______ method involves matching competitors' outlays to establish an advertising budget.
The ______ method involves matching competitors' outlays to establish an advertising budget.
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Developing a budget by defining specific objectives and estimating the costs of performing these tasks is known as the ______ method.
Developing a budget by defining specific objectives and estimating the costs of performing these tasks is known as the ______ method.
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One of the key factors in selecting advertising media is to decide on reach, frequency, and ______.
One of the key factors in selecting advertising media is to decide on reach, frequency, and ______.
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Creating a compelling and memorable ______ concept is essential in advertising message development.
Creating a compelling and memorable ______ concept is essential in advertising message development.
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Advertising appeals must be meaningful, believable, and ______.
Advertising appeals must be meaningful, believable, and ______.
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The method of scheduling ads evenly within a given period is known as ______.
The method of scheduling ads evenly within a given period is known as ______.
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A budget method where the return on advertising investment is calculated as net return divided by costs is known as ______.
A budget method where the return on advertising investment is calculated as net return divided by costs is known as ______.
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Maintaining customer relationships by reminding consumers when the product may be needed is a key aspect of ______ advertising.
Maintaining customer relationships by reminding consumers when the product may be needed is a key aspect of ______ advertising.
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In public relations, creating and placing newsworthy information in the news media is referred to as ______.
In public relations, creating and placing newsworthy information in the news media is referred to as ______.
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The advertising ______ consists of creating messages and executing strategies to achieve objectives.
The advertising ______ consists of creating messages and executing strategies to achieve objectives.
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The personal presentation made by a firm’s sales force to build customer relationships is called ______.
The personal presentation made by a firm’s sales force to build customer relationships is called ______.
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______ strategy focuses on deciding what general message will be communicated to consumers.
______ strategy focuses on deciding what general message will be communicated to consumers.
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The strategy involving assigning a salesperson to a specific geographic territory is known as ______ sales force structure.
The strategy involving assigning a salesperson to a specific geographic territory is known as ______ sales force structure.
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In advertising, the goal is often to create ______ that persuades the audience to take action.
In advertising, the goal is often to create ______ that persuades the audience to take action.
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Public relations aims to build good relations with various ______ of the company.
Public relations aims to build good relations with various ______ of the company.
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Study Notes
Pricing Strategies
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Price: The amount of money charged for a product or service. It's the sum of values customers exchange for the benefits of using the product.
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Major Pricing Strategies: Cost-based and value-based pricing. Major pricing strategies include cost-plus pricing and break-even pricing (target return pricing).
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Customer Value-Based Pricing: Uses buyers' perceptions of value, not seller's cost, as the key.
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Good-value pricing: Offering the right combination of quality and service at a fair price.
- Everyday low pricing (EDLP): Charging a consistent, low price with few temporary discounts. (e.g., Daiso, Walmart).
- High/low pricing: Charging higher prices regularly but offering temporary discounts on select items. (e.g., 10.10, holiday sales)
- Value-added pricing: Attaching value-added features and services, and charging a higher price.
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Good-value pricing: Offering the right combination of quality and service at a fair price.
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Cost-Based Pricing: Setting prices based on production, distribution, and selling costs plus a fair return for effort and risk.
- Cost-plus pricing (markup pricing): Adding a standard markup to the cost of the product.
- Break-even pricing (target return pricing): Setting price to cover all costs (making/marketing) and generating a target return.
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Types of Costs:
- Fixed costs: Overhead costs that don't vary with production or sales (e.g., rent, insurance)
- Variable costs: Costs that directly vary with production levels (e.g., materials)
Pricing in Different Market Structures
- Pure competition: Many buyers and sellers trading uniform commodities. Price is usually determined by market forces.
- Monopolistic competition: Many sellers offering differentiated products. Prices are influenced by branding and differentiation.
- Oligopolistic competition: A few major sellers who are very sensitive to each other's pricing strategies and moves.
Price Adjustments
- Geographic pricing: Adjusting prices to account for location.
- Dynamic pricing: Continuously changing prices based on customer and market factors.
- International pricing: Adjusting prices for international markets.
Effective Action in Responding to Price Changes
- Reduce prices
- Raise perceived value
- Improve quality
- Launch low-price fighter brand
Pricing Across Channel Levels
- Price fixing: Collaborating with competitors to set prices.
- Predatory pricing: Selling below cost to harm a competitor or drive them out of business.
- Price discrimination: Charging different prices to different customers.
- Price maintenance: Requiring dealers to charge a specific retail price.
- Deceptive pricing: Misleading customers with advertised prices.
Marketing Channels
- Value delivery network: Company, suppliers, distributors, and customers collaborating to improve system performance.
- Marketing channel: Interdependent organizations facilitating product or service availability to consumers or businesses. Channel members add value.
- Channel levels: Number of intermediaries between producer and final customer. (e.g., manufacturer -> wholesaler -> retailer -> consumer) Direct and indirect channels exist.
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Channel conflict: Disagreements among channel members about goals, roles, or rewards.
- Horizontal conflict: Conflicts among firms at the same channel level.
- Vertical conflict: Conflicts between different levels in the same channel.
- Vertical marketing systems: Producers, wholesalers, and retailers acting as a unified system, rather than separately. (e.g., corporate, contractual).
- Disintermediation: Displacing traditional intermediaries with new types of intermediaries.
Marketing Channel Design and Number of Intermediaries
- Intensive distribution: Stocking the product in as many outlets as possible.
- Exclusive distribution: Limiting the number of dealers to distribute the company's products in a given region.
- Selective distribution: Using more than one but fewer than all available distributors.
Marketing Logistics (Physical Distribution)
- Inbound logistics: Moving products from suppliers to the factory.
- Outbound logistics: Moving products from factory to resellers (and subsequently, consumers).
- Reverse logistics: Moving broken, unwanted, or excess products back to the appropriate locations.
Transportation
- 5 main methods exist: Trucks, railroads, water carriers, pipelines, airfreight, and intermodal. Internet-driven transportation also crucial.
Advertising and Public Relations
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Promotion mix: Advertising, sales promotion, personal selling, public relations, and direct marketing.
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Advertising objectives: Creating awareness, informing consumers about new products, Persuasive advertising builds brand preference and encourages switching brands.
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Advertising budget: Several methods exist: affordable method, percentage-of-sales method, competitive-parity method, and objective-and-task method.
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Message decisions: Determine the message strategy and creative concept.
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Media decisions: Determine appropriate media type and vehicles.
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Advertising evaluation: Assessing the communication impact and sales/profit impact.
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Public relations: Building good relationships with the company's publics. This includes press relations (press releases), product publicity, public affairs, lobbying, and community relations.
Online Marketing
- Forms of online marketing: Kiosk marketing, digital direct marketing technologies, online marketing (click-only and click-and-mortar companies), consumer-to-consumer (C2C) marketing, business-to-consumer (B2C), business-to-business (B2B) channels.
Sustainable Marketing
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Socially and environmentally responsible marketing: Meeting present consumer needs while preserving future generations' ability to meet their needs.
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Marketing concept: Meeting customer's needs and wants more effectively and efficiently than competitors.
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Societal marketing concept: Considering the consumer's future welfare.
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Sustainable marketing principles: Consumer-oriented, customer-value, innovative, mission-driven, and societal marketing principles.
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Social criticisms of marketing: High prices; deceptive practices; high-pressure selling; shoddy/harmful products; planned obsolescence; insufficient service to disadvantaged groups including false wants/materialism, cultural pollution.
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Sustainable Marketing Ethics: Ethical marketing, including all stakeholders (consumers, company, society).
Sales Promotion
- Consumer promotions: Samples, coupons, cash refunds/rebates, price packs, premiums, advertising specialties, contests, sweepstakes, games and event marketing. These are short-term incentives encouraging purchase/sales.
- Trade promotions: Incentives aimed toward resellers to carry a brand/push it on to end consumers. Include discounts, allowances, free goods, push money, and advertising items.
- Business promotions: Incentives to build business leads, stimulate sales, reward customers, and motivate salespeople.
Personal Selling
- Inside and outside sales forces. Inside salespeople use phones/internet to sell to customers. Outside salespeople work directly with customers.
- Recruiting and selection of sales personnel: Companies look for motivated and skilled people.
- Sales Force structure: Strategies for organizing a company's sales force include territorial, product, and customer-based approaches.
- Compensation of Sales Personnel: Fixed and variable compensation structures exist, which includes commission and/or bonus.
- Supervising and motivating sales personnel: Companies emphasize this to ensure sales are met.
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Description
Explore key pricing strategies including cost-based and value-based approaches. This quiz delves into concepts like good-value pricing, everyday low pricing, and value-added pricing. Test your understanding of how these strategies impact customer perceptions and business success.
