MM223 3rd Exam Reviewer.docx

**MM223 3^rd^ Exam Reviewer** **Lesson 2** **Manage Pricing Decisions**- is the process of determining and modifying the cost of goods or services in order to accomplish particular company goals, such boosting revenue, gaining market share, or gaining a competitive edge. It is the process of incor...

**MM223 3^rd^ Exam Reviewer** **Lesson 2** **Manage Pricing Decisions**- is the process of determining and modifying the cost of goods or services in order to accomplish particular company goals, such boosting revenue, gaining market share, or gaining a competitive edge. It is the process of incorporating every perspective and data as well essential to consistently arrive at ideal pricing decisions. **Simple Pricing**- It is setting a price based on what rival businesses charge for comparable goods and services. **Complex Pricing**- This relies on the distinctiveness of the good or service in question and what consumers are willing to pay for it. ***Factors Influencing Pricing*** **Internal Factors**- the factors that influence the increase and decrease in the price of a product internally **External Factors**- factors that have an impact on the increase and decrease in the price of a product. **Managing marketing channels logistics and supply chain**- involves overseeing the various activities and processes that ensure products and services move efficiently from production to the end consumer. **Marketing channels**- the pathways through which products or services flow from the manufacturer to the end consumer. They involve various intermediaries and can be direct or indirect. ***Types of Marketing Channels*** **Direct Channels**: The manufacturer sells directly to the consumer, bypassing intermediaries. **Indirect Channels**: Involves intermediaries such as wholesalers, distributors, and retailers who facilitate the sale of products to the end consumer. ***Channel Members*** **Wholesalers**: Purchase large quantities from manufacturers and sell to retailers or other businesses. **Distributors**: Act as intermediaries that handle the logistics and distribution of products to various retailers or directly to consumers. **Retailers**: Sell products directly to the final consumer. ***Channel Design and Management*** **Channel Structure**: Deciding on the number of intermediaries and their roles **Channel Relationships**: Building and managing relationships with channel partners to ensure cooperation and alignment with business goals. **Channel Strategy**: Developing strategies for channel selection, market coverage, and competitive advantage **Supply chain management (SCM**)- involves the coordination and management of all activities involved in sourcing, procurement, production, and distribution of goods. ***Key Components of Supply Chain Management*** **Sourcing and Procurement**: Identifying and managing suppliers, negotiating contracts, and ensuring the availability of raw materials or components. **Production**: Managing manufacturing processes, quality control, and inventory levels. **Logistics**: Overseeing the transportation, warehousing, and distribution of products. **Demand Planning**: Forecasting customer demand and aligning supply chain activities to meet that demand efficiently. **Order Fulfillment**: Ensuring that customer orders are processed, packed, and delivered accurately and on time. ***Supply Chain Strategies*** **Just-in-Time (JIT):** Reducing inventory levels by receiving goods only as they are needed in the production process. **Just-in-Case (JIC)**: Maintaining higher inventory levels to mitigate the risk of stockouts and disruptions. **Lean Supply Chain**: Streamlining operations to minimize waste and increase efficiency. **Agile Supply Chain**: Being flexible and responsive to changes in demand and market conditions **Lesson 3** **Promotion**- key component of marketing, utilizing various communication strategies to inform, persuade, or remind customers about a product, service, or brand. **Promotion mix-** is made up of five essential elements: digital and social media marketing, advertising, sales promotion, public relations, and personal selling. **Digital and Social Media Marketing**- Promotion using digital tools like computers and smartphones lets customers interact without needing a salesperson. **Advertising**- This refers to a paid form of marketing that is less personal and is used to reach one or more target markets **Sales Promotion**- This approach offers incentives to encourage customers to purchase a product or motivates salespeople or others in the distribution channel to sell it. **Public Relations**- This method systematically aims to shape the attitudes, opinions, and behaviors of customers and others. **Personal Selling**- This involves direct, one-on-one communication between a salesperson and a customer, either face-to-face or through other methods like phone calls or online channels. **Push strategy**- involves promoting the product to retailers or distributors who then push it to consumers **Pull strategy**- focuses on creating demand directly from consumers **Attention**- If target customers are essentially unaware of an offering, most of the investment in communication must be in raising awareness and gaining their attention. **Interest**- To translate customer attention into interest requires persuasive communication. **Desire**- Moving from interest to desire means that a customer has to move past a need and begin to really want that specific product. **Action**- The action stage is the purchase itself. ***Three Types of Digital Media*** **Paid Media**- refers to marketing communication channels requiring that the marketer pay someone else for customer access. **Owned Media**- refers to marketing communication channels that the marketer\'s organization has complete control over. **Earned Media**- refers to the case where either a customer or a commercial entity chooses to act as a marketing communication channel for the dissemination of information associated with the marketer\'s organization at no cost. **Digital advertising**- the creation and execution of an advertisement via any form of digital media. **Display Ads**- are displayed on a given page within a website that clearly demarcates the ad from the webpage\'s primary content. **Search Ads**- are displayed with the results produced by search engines, typically at the top of or along a column to the side of the search results on a webpage **Social Network Ads**- displayed on various forms of social media **Native Ads**- are designed to fit the format and style of content that is offered through the website on which the ad is being displayed. **E-Mail**- is the exchange of computer-stored messages from one user to one or more recipients via the internet. **Blogs**- An organization\'s blog serves as a repository of content they create to provide information of interest to customers in the form of blog posts, which can be one or more paragraphs in length and written to stand on their own or be thematically connected to other posts. **Search Engine Optimization**- the process of improving your website to increase its visibility in Google, Microsoft Bing, and other search engines whenever people search for. **Mobile Marketing**- Mobile communication devices have accelerated in sophisticated capabilities and are literally an omnipresent part of the daily lives of many customers. **Product Advertising**- focused on driving the purchase of a specific product or service. **Pioneering advertising**- used to stimulate primary demand, especially during the introductory and early growth stages of the Product Life Cycle **Competitive advertising**- aims to build brand sales by shifting towards emotional appeals and persuasion