CH 11 BA 1301

relationship marketing

is a strategy that focuses on forging long term partnerships with customers. example: car dealers want you for life

pricing strategy

is based on demand for the product and the cost of producing that product

benefit segmentation

is based on what a product will do rather than on consumer characteristics

psychographic segmentation

is market segmentation by personality or lifestyle

customer satisfaction

is the customer's feeling that a product has met or exceeded expectations (or not)

culture

is the set of values, ideas, attitudes, and symbols created to shape human behavior

Which of the following is NOT an example of a convenience product?

lawn furniture

The _____ is based on the five P's.

marketing mix

service pricing

more complex: could be standard (haircut) or tailored (plant design)

not for profit marketing

not that different

Rap star Xzibit has signed an endorsement deal with athletic footwear manufacturer Dada to produce shoes. The line named "Pimp Your Kicks," alluding to Xzibit's role as host of the MTV show Pimp My Ride, became available in late 2005. Dada hopes Xzibit will act as a(n) _____ and influence consumers to buy the shoes.

opinion leader

place

getting it to the customer: can be online, physical store. deals with supply chain, image, perceived image

skimming

"early adopters" will pay much more to be the first to have something. after they are saturated you rise the price for normal people

influences on consumer decision making

- culture - social factor - individual influences - psychological influences

B2B purchase decision making

- often involve greater risk than purchases made by individual consumers. more data based - purchase volume is much higher - number of customers - far fewer customers for cranes - location of buyers - geographically concentrated - direct distribution - large volume means fewer "middle men"

the marketing concept

- the use of marketing data to focus on the needs and wants of customers in order to develop marketing strategies that not only satisfy the needs of the customers but also to accomplish the goals of the organization. - based on the "right" principle (never really started) of the right product, at the right place, in the right place

What do the United Way, the Sierra Club, the Girl Scouts of America, and the American Red Cross have in common?

-They all engage in environmental scanning. -They all have a target market. -They all have created a marketing mix -They all engage in not-for-profit marketing.

penetration pricing

a low initial price to introduce the product or induce brand switching. also deters competition

An example of a convenience product is a

bar of soap

volume segmentation

based on the amount of the product purchased

Price is:

based on the expected value you will receive from your purchase

leader pricing

below cost pricing to sell other products

product differentiation competitive advantage

brands, image, reliability. products perceived as superior or better

promotion

informing and influencing customers to buy

psychological influences

can be affected by a person's environment. do you "stock up" more bc of covid?

experiment

changes one or more variables - price, package, design, shelf space, advertising theme, or advertising expenditures - while observing the effects of those changes on another variable (usually sales)

product strategy

choosing a brand name, packaging, colors, a warranty, accessories, and a service program

social factors

consumers seek out the opinions of reference groups to reduce their search effort or uncertainty, more if perceived risk is high

promotion strategy

covers personal selling, traditional advertising, public relations, sales promotion, social media, and e commerce

place (distribution) strategy

creating the means (the channels) by which a product flows from the producer to the consumer

survey research

data is gathered from respondents - in person, through the internet, by telephone, or by mail - to obtain facts, opinions, and attitudes

demographic

different groups buy differently

accessories

do not have the same long run impact on the firm as installations, and they are less expensive and more standardized

internet impact

easy to find competitive pricing

component parts and materials

expense items that are built into the end product

raw materials

expense items that have undergone little or no processing

One-to-one marketing is synonymous with database marketing.

false

There are no significant differences between the consumer market and the business-to-business market.

false

individual influences

gender created differences, but personality within a gender can vary significantly

supplies

pencils, copy paper

marketing research

planning, collecting, and analyzing data relevant to a marketing decision

A pharmaceutical company with headquarters in India sells fluconazole, the generic version of Pfizer's anti-fungal drug Diflucan internationally for significantly less money than many U.S. generic drug manufacturers. The generic drugs industry in this country needs to rethink its _____ strategy to stay competitive.

pricing

Maria Manow is planning to sell handmade quilts over the Internet. As she decides what to charge for a full-sized quilt, Manow will calculate her fixed and variable costs. At this point, Manow will be developing her _____ strategy.

pricing

A (n) _____ is any good or service that satisfies wants, along with its perceived attributes and benefits.

product

product

product or service offered in exchange - the driver for actions and decisions. intangible or tangible

cost competitive advantage

profitably produce a product or service at a lower cost than competitors

odd even pricing

psychological pricing that supposed that you think $99.95 is a better deal than $100

In 2006, The Home Depot launched its first consumer and business rewards credit cards. The Home Depot Rewards MasterCard and The Home Depot Business Rewards MasterCard allows consumers and business owners earn rewards for everyday purchases. The Home Depot is engaged in:

relationship marketing

observation research

research that monitors respondents' actions without direct interaction

geographic

segmenting markets by region of the country, city or county size, market density, or climate

price

something given in exchange for a product. generally monetary but can be non monetary (like watching commercials)

services

support operations, janitor or consultant

niche competitive advantage

targets and effectively serves a single segment of the market

one to one marketing

the "big data" that they have on you used to appeal to you. once said that after 300 licks they know more about you than your spouse.

customer value

the ratio of benefits for the customer (organization or consumer) to the sacrifice (cost) necessary to obtain those benefits. the customer determines the value of both the benefits and the sacrifices

instalations

these are large, expensive capital items ( auto plant, refinery)

A target market is a specific group of consumers toward whom a firm directs its marketing effort.

true

Distribution strategy is another term for place strategy.

true

The idea behind bundling is to reach a segment of the market that would not be reached as effectively if the product were sold separately.

true

bundling

two of more related products

people

using employees (only included in this text) to market

service differentiation competitive advantage

viral reports of bad service can be devestating

prestige pricing

wine? services based on exclusivity