Marketing class finals.

Cost-based pricing:

-Cost-based pricing: setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk. -Whereas customer-value perceptions set the price ceiling, costs set the floor for the price that the company can charge.

Type of people in social networking sites Creators: Bonders: Professionals: Sharers:

-Creators: those hip, cool contributors, sit at the cutting edge and plan to stay there. Social media give them new ways to post and share their creative, clever ideas. -Bonders: are social butterflies who use social media to enhance and expand their relationships, which they consider all-important in their lives. -Professionals: who are constantly on the go and busy, want to appear efficient, with everything together, so they use social media to demonstrate just how smart they are. -Sharers: really want to help others, and the best way to do so is by being constantly well informed so that they can provide genuine insights to others.

distribution center

A distribution center is a facility for the receipt, storage, and redistribution of goods to company stores or customers. Retailers, manufacturers, or distribution specialists can operate these centers.

family brand

A firm's own corporate name used to brand its product lines and products. the individual brands benefit from the overall brand awareness associated with the family name. (Check Text Book)

extreme value retailer

A general merchandise discount store found in lower-income urban or rural areas. ex: family dollar

corporate vertical marketing system.

A system in which the parent company has complete control and can dictate the priorities and objectives of the supply chain; it may own facilities such as manufacturing plants, warehouse facilities, retail outlets, and design studios.

off-price-retailers

A type of retailer that offers an inconsistent assortment of merchandise at relatively low prices. ex: Tjmaxx, Marshalls, Overstock

Consumer Self-Selection:

Consumer Self-Selection: Design your product in such a way that would induce, with proper incentives, customers to choose what you desire them to choose.

Cost-plus pricing

Cost-plus pricing adds a standard markup to the cost of the product. Benefits: Sellers are certain about costs Prices are similar in industry and price competition is minimized Buyers feel it is fair Disadvantages: Ignores demand and competitor prices

Customer value-based pricing:

Customer value-based pricing: uses buyers' perceptions of value as the key to pricing. Value-based pricing means that the marketer cannot design a product and marketing program and then set the price. It's important to remember that "good value" is not the same as "low price."

Experience or learning curve:

Experience or learning curve is when average cost falls as production increases because fixed costs are spread over more units.

Retailer/store brands

Retailer/store brands: also called private-label brands, are products developed by retailers. In some cases, retailers manufacture their own products, whereas in other cases they develop the design and specifications for their retailer/store brands and then contract with manufacturers to produce those products.

Sales promotions:

Sales promotions are special incentives or excitement-building programs that encourage the purchase of a product or service, such as coupons, rebates, contests, free samples, and point-of-purchase displays. Marketers typically design these incentives for use in conjunction with other advertising or personal selling programs.

Social media

Social media is media content distributed through social interactions. The three most popular facilitators of social media are YouTube, Facebook, and Twitter.

Social network sites

Social network sites are an excellent way for marketers to create excitement, the first of the 4 Es. People can interact with friends, and business acquaintance.

Targeted pricing segmented pricing

Targeted Pricing: Firm select different (types of) customers to pay different prices. Segmented Pricing: A situation that occurs when a company sets more than one price for a product without experiencing significant differences in the costs of producing or distributing the product.

line extension

The use of the same brand name within the same product line and represents an increase in a product line's depth.Line Extensions occur when a company introduces additional items in the same product category under the same brand name such as new flavors, forms, colors, added ingredients, package sizes.

brand equity:

brand equity: The value of a brand or the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service.

objective-and-task

objective-and-task method determines the budget required to undertake specific tasks to accomplish communication objectives. This process—set objectives, choose media, and determine costs—must be repeated for each product or service

public relations:

public relations: The organizational function that manages the firm's communications to achieve a variety of objectives, including building and maintaining a positive image, handling or heading off unfavorable stories or events, and maintaining positive relationships with the media.

reach,

reach: describes the percentage of the target population exposed to a specific marketing communication.

sales management:

sales management: Involves the planning, direction, and control of personal selling activities, including recruiting, selecting, training, motivating, compensating, and evaluating, as they apply to the sales force.

sales orientation strategy:

sales orientation strategy: set prices with an eye towards increasing sales volume rather than increasing profits. That might mean cutting prices in the short-term to gain consumer acceptance, and then slowly raising the price after the product has a positive customer reputation in order to increase profits

search engine marketing

search engine marketing (SEM):A type of Web advertising whereby companies pay for keywords that are used to catch consumers' attention while browsing a search engine.

services retailers:

services retailers, or firms that primarily sell services rather than merchandise.

Quantity Discount

'Quantity Discount' An incentive offered to a buyer that results in a decreased cost per unit of goods or materials when purchased in greater numbers. A quantity discount is often offered by sellers to entice buyers to purchase in larger quantities. Demand Based Reasons - in many instances, heavier users of a product are more price sensitive because they spend more on the product. - quantity discounts is therefore a means to lower price only to the heavier users of the product.

1)monopoly: 2)Oligopolistic: Price war. 3)Monopolistic: 4)Pure competition:

-A monopoly that restricts competition by controlling an industry can be deemed illegal and broken apart by the government. -Oligopolistic competition occurs in a market where only a few firms dominate the landscape. Just look at how PepsiCo and the Coca-Cola Company seem to rule the soda shelves at grocery and convenience stores. A price war can result. As each company tries to match the competitor's slashed fares, the bottom line for each firm might suffer because the lower price for tickets won't cover all the costs -Monopolistic competition is the most common form of competition. It occurs when there are many firms vying for customers in a given market, but each company's products are differentiated. The more options that are available to the consumer, the healthier the competition is between firms. -Pure competition occurs when a large number of sellers bring standardized products or commodities to the marketplace that the consumer considers interchangeable. For example, can you tell the difference between one farm's harvested wheat and another's? Probably not. -If a product starts out as a commodity, that doesn't mean the maker has to settle for pure competition. Tyson chicken, Chiquita bananas, and Dole pineapple are just a few examples of firms that decommoditized their products through branding and marketing efforts

Brand Elements: -Brand name -URL -Logos and symbols -characters -slogan -jingle/sound

-Brand name: a name given by the maker to a product or range of products, especially a trademark. -URL: Uniform Resource Locator and is a reference (an address) to a resource on the Internet. A URL has two main components: - Logos: are visual branding that stands for cooperate name or trademark. Symbols are logos without words. Characters: Brand symbols that can be human, animals, or animated. slogan: short phrases used to used to describe the brand or persuade consumer about some characteristic of the brand. Jingle/Sound: Audio messages that are composed of words or distinctive music.

Category specialists

-Category specialists are big box retailers or category killers that offer a narrow but deep assortment of merchandise. Most category specialists use a predominantly self-service approach, but they offer assistance to customers in some areas of the stores. For example, the office supply store Staples has a warehouse atmosphere with cartons of copy paper stacked on pallets, plus equipment in boxes on shelves. -By offering a complete assortment in a category at somewhat lower prices than their competition, category specialists can "kill" a category of merchandise for other retailers, which is why they are frequently called category killers.

The 4E framework of social media -excited -educate -experience -engage

-Excite customers with relevant offers. To excite customer the offer must be relevant to customers. Relevancy can be achieved by providing personalized offers, which are determined through insights and information obtained from customer relationship management and/or loyalty programs. -Educate them about the offering. Relevancy can be achieved by providing personalized offers, which are determined through insights and information obtained from customer relationship management and/or loyalty programs. Relevancy can be achieved by providing personalized offers, which are determined through insights and information obtained from customer relationship management and/or loyalty programs. -Help them Experience products, whether directly or indirectly. Relevancy can be achieved by providing personalized offers, which are determined through insights and information obtained from customer relationship management and/or loyalty programs. Or even by doing a video review and things of that nature. -Give them an opportunity to Engage with their social network. With engagement comes action, the potential for a relationship, and possibly even loyalty and commitment. Through social media tools such as blogging and microblogging, customers actively engage with firms and their own social networks. Such engagement can be negative or positive. Positively engaged consumers tend to be more profitable consumers, purchasing 20 to 40 percent more than less engaged customers.

CHOOSING A GLOBAL ENTRY STRATEGY Ways of entering global markets?

-Exporting: Producing goods in one country and selling them in another. This entry strategy requires the least financial risk but also allows for only a limited return to the exporting firm. -Franchising -strategic alliance: A collaborative relationship between independent firms, though the partnering firms do not create an equity partnership; that is, they do not invest in one another. -Joint ventures: Formed when a firm entering a new market pools its resources with those of a local firm to form a new company in which ownership, control, and profits are shared. -Direct investment: When a firm maintains 100 percent ownership of its plants, operation facilities, and offices in a foreign country, often through the formation of wholly owned subsidiaries. This entry strategy requires the highest level of investment and exposes the firm to significant risks, including the loss of its operating and/or initial investments.

Determining advertising budget

-Firms need to determine how big of a role the advertising plays in accomplishing their overall objectives. In addition, the amount a company spends will fluctuate over the course of the product's life cycle. -A company might need a lot of upfront advertising dollars to build awareness, but then eventually get to a point where the product is successful enough to basically sell itself. -Finally, the nature of the market and the product itself will influence the size of the advertising budget. Typically, less money is spent on B2B (business to business) advertising than on B2C (business to consumer

Full-line discount stores

-Full-line discount stores are retailers that offer a broad variety of merchandise, limited service, and low prices. The largest full-line discount store chains are Walmart, Target, and Kmart. -Customers do not expect higher-end products in full-line discount stores. Rather, they are looking for value prices on these items and are willing to compromise on quality or cachet.

prestige products or services:

-Most goods for sale follow the traditional downward sloping demand curve, but there is an exception: prestige products or services. Consumers purchase prestige products for their status value rather than their functionality. The high price means that fewer customers are able to afford to buy the item. This increases the product's exclusivity and, as a result, drives up demand among this select market. -Unlike traditional products and services, a higher price on a prestige item can increase the quantity sold—but only up to a certain point. The customer needs to value the increase in prestige more than the price differential between the prestige product and other similar products. If the customer doesn't feel that the brand is rare enough, exclusive enough, or prestigious enough to pay extra for, then he'll settle for a less expensive version.

Personal selling

-Personal selling is the two-way flow of communication between a buyer and a seller that is designed to influence the buyer's purchase decision. Personal selling can take place in various settings: face-to-face, video teleconferencing, on the telephone, or over the Internet. Although consumers don't often interact with professional sales people, personal selling represents an important component of many IMC programs, especially in business-to-business (B2B) settings. -The cost of communicating directly with a potential customer is quite high compared with other forms of promotion, but it is simply the best and most efficient way to sell certain products and services.

What is price

-Price is the amount of money charged for a product or service. It is the sum of all the values that consumers give up in order to gain the benefits of having or using a product or service. -Price is the only element in the marketing mix that produces revenue; all other elements represent costs.

Chapt 14 Pricing. Pricing Objectives-

-Sales or Market Share -Competitive Effect -Customer Satisfaction -Image Enhancement -Profit

Convey the message

-Step four is the message. What does the company want to convey to the target market about its product or service that will get them interested enough to buy? A logical starting point is to tout the key benefits. -After a firm determines what it's going to say, next up is figuring out how to say it. -These appeals fall into two camps: informational and emotional.

Set Advertising Objectives: -advertising plan outlines, -push/pull

-The advertising plan outlines each specific goal, along with strategies to accomplish them, and provides a way for marketers to evaluate the campaign's success—or failure—after implementation. -Most advertising involves either a pull strategy, where customer demand for a product pulls it into the supply chain, or a push strategy, which is designed to increase demand by getting wholesalers, retailers, and salespeople to push the product into the consumer's hands.

Formality in a vertical marketing system

-The more formal the vertical marketing system, the less likely conflict will ensue. In an administered vertical marketing system, there is no common ownership and no contractual relationships, but the dominant channel member controls or holds the balance of power in the channel relationship. -Power in a marketing channel is when one firm has the means or ability to have control over the actions of another member in a channel at a different level of distribution, such as if a retailer like Walmart has power or control over a supplier.

convenience stores

-Type of retailer that provides a limited number of items at a convenient location in a small store with speedy checkout. -Type of retailer that provides a limited number of items at a convenient location in a small store with speedy checkout.

target profit: maximizing profits strategy: target return pricing:

-Ultimately, the price of a product should both stimulate sales and help the company earn a certain profit-per-unit. -Firms use the maximizing profits strategy to help them identify the price at which profits are maximized. -target return pricing, which is designed to produce a specific return on their investment, usually expressed as a percentage of sales.

substitution effect

-When a consumer buys another brand of the same type of product due to an increase in price or a decrease in value, this is referred to as the substitution effect. The more substitute products that are available, the higher the price elasticity of demand will be for that product type. -Value is another factor that needs to be considered: If consumers believe that Tropicana offers a better value than the competing brands, then they will probably not feel that these substitutes are adequate.

Value-added pricing

-rather than cutting prices to match competitors, they attach value-added features and services to differentiate their offers and thus support their higher prices. -attaches value-added features and services to differentiate offers, support higher prices, and build pricing power.

Categories for social media?

-social network sites, -media-sharing sites, -thought-sharing sites

Social media engagement process

1) Listen -sentiment analysis: A technique that allows marketers to analyze data from social media sites to collect consumer comments about companies and their products. 2) Analyze 3) Do

The Value Added by Personal Selling Relationship selling:

1) Salespeople Provide Information and Advice. 2) salepeople Save Time and Simplify Buying. 3) Salespeople Build Relationships Relationship selling: A sales philosophy and process that emphasizes a commitment to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial to all parties.

How to Do a Social Media Marketing Campaign

1)Identify strategy and goals. 2)Identify target audience. 3)Develop the campaign: experiment and engage. 4)Develop the budget. 5)Monitor and change.

To prevent the potentially negative consequences of brand extensions

1)Marketers should evaluate the fit between the product class of the core brand and that of the extension. If the fit between the product categories is high, consumers will consider the extension credible, and the brand association will be stronger for the extension. 2)Firms should evaluate consumer perceptions of the attributes of the core brand and seek out similar attributes for the extension because brand-specific associations are very important for extensions. 3)Firms should refrain from extending the brand name to too many products and product categories to avoid diluting the brand and damaging brand equity. 4)Firms should consider whether the brand extension will be distanced from the core brand, especially if the firm wants to use some but not all of the existing brand associations.

THE PERSONAL SELLING PROCESS 1)Generate qualify leads - Trade Shows: -Cold Calls: 2)Pre-approach 3) Sales presentation and overcoming reservation 4)Closing the sales 5)follow up

1)They might discover potential leads by talking to current customers, doing research on the Internet, or networking at events such as trade shows, industry conferences, or chamber of commerce meetings. The Internet has been a boon for generating and qualifying leads can also generate leads through cold calls. -Trade shows: Major events attended by buyers who choose to be exposed to products and services offered by potential suppliers in an industry. -Cold calls: are a method of prospecting in which salespeople telephone or go to see potential customers without appointments. Telemarketing is similar to a cold call, but it always occurs over the telephone. -However, cold calls and telemarketing have become less popular over time, primarily because their success rate is fairly low.

blog:

A blog (weblog)b contains periodic posts on a common webpage. A well-received blog can communicate trends, announce special events, create positive word of mouth, connect customers by forming a community, allow the company to respond directly to customers' comments, and develop a long-term relationship with the company. By its very nature, a blog is supposed to be transparent and contain authors' honest observations, which can help customers determine their trust and loyalty levels.

break-even analysis:

A break-even analysis enables managers to examine the relationships between cost, price, revenue, and profit over different levels of production and sales. The main purpose of this analysis is to calculate the break-even point—that is, the point at which the revenue from the number of units sold equals the company's total costs

Brand associations

Brand associations: reflect the mental links that consumers make between a brand and its key product attributes, such as a logo, slogan, or famous personality. These brand associations often result from a firm's advertising and promotional efforts.

Brand dilution

Brand dilution: occurs when the brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold

Brand licensing:

Brand licensing is a contractual arrangement between firms, whereby one firm allows another to use its brand name, logo, symbols, and/or characters in exchange for a negotiated fee. The firm that provides the right to use its brand (licensor) obtains revenues through royalty payments from the firm that has obtained the right to use the brand (licensee). One very popular form of licensing is the use of characters created in books and other media. -Licensing is an effective form of attracting visibility for the brand and thereby building brand equity while also generating additional revenue. -There are, however, some risks associated with it. For the licensor, the major risk is the dilution of its brand equity through overexposure of the brand, especially if the brand name and characters are used inappropriately

Brand loyalty:

Brand loyalty occurs when a consumer buys the same brand's product or service repeatedly over time rather than buy from multiple suppliers within the same category. Therefore, brand loyal customers are an important source of value for firms.

Brand repositioning or rebranding:

Brand repositioning or rebranding refers to a strategy in which marketers change a brand's focus to target new markets or realign the brand's core emphasis with changing market preferences.

Advantages of brand identity- Brands Facilitate Purchases: Brands Establish Loyalty:

Brands Facilitate Purchases: Brands are often easily recognized by consumers, and because they signify a certain quality level and contain familiar attributes, brands help consumers make quick decisions, especially about their purchases. Brands Establish Loyalty: Over time and with continued use, consumers learn to trust certain brands.

Advantages of brand identity- Brands Protect from Competition and Price Competition: Brands Are Assets For firms

Brands Protect from Competition and Price Competition: Strong brands are somewhat protected from competition from other firms and price competition. Because such brands are more established in the market and have a more loyal customer base, neither competitive pressures on price nor retail-level competition is as threatening to the firm. Brands Are Assets For firms: brands are also assets that can be legally protected through trademarks and copyrights and thus constitute a unique form of ownership. Firms sometimes have to fight to ensure their brand names are not being used, directly or indirectly, by others.

Co-branding:

Co-branding is the practice of marketing two or more brands together, on the same package, promotion, or store. Co-branding can enhance consumers' perceptions of product quality by signaling "unobservable" product quality through links between the firm's brand and a well-known quality. Yet co-branding also creates risks, especially when the customers of each of the brands turn out to be vastly different.

Competitive parity

Competitive parity extends to the level of service consumers can expect from a company. ex if one company decide to charge for package fee, then other companies might do it as well, just cause the customers are willing to do it.

Department stores

Department stores are retailers that carry a broad variety and deep assortment, offer customer services, and organize their stores into distinct departments for displaying merchandise. The largest department store chains in the United States include Sears, Macy's, Kohl's, JCPenney, and Nordstrom.

Direct marketing

Direct marketing, or marketing that communicates directly with target customers to generate a response or transaction.22 Direct marketing contains a variety of traditional and new forms of marketing communication initiatives.

Drugstores

Drugstores are specialty stores that concentrate on pharmaceuticals and health and personal grooming merchandise.

vertical channel conflict or vertical supply chain conflict: horizontal channel conflict:

Each supply chain member performs a specialized role, but if any of these entities misunderstand their duties or disagree with their assigned goals, vertical channel conflict or vertical supply chain conflict can result up and down the chain. When there is discord among members at the same level of the marketing channel, horizontal channel conflict can occur

customer orientation approach:

If a company believes that providing value is the ticket to increased profits, it will take a customer orientation approach to pricing. Value can come in any number of packages, whether it's providing better customer service or setting prices to match consumer expectations. -The consumer's perception of value is one of the most important factors a company considers when determining any pricing, advertising, or distribution strategy.

direct marketing channel

In a direct marketing channel there are no intermediaries between the buyer and Seller. Usually in this design, the seller is a manufacturer, such as when a bakery sells baked goods through its own store and online to individual consumers

two part pricing

In a two-part pricing system firms charge a fixed fee for the right to use their goods and then charge a per unit fee for each unit purchased. The benefit of two part pricing for firms with market power is that it allows them to garner larger profits than they normally would at the monopoly price.

Issues with "independent or conventional supply chain"

In an independent or conventional supply chain, each entity (a manufacturer, wholesaler, and retailer) is concerned with satisfying its own objectives and maximizing its own profits first, often at the expense of the other members. Supply chains that are closely aligned through ownership or a long-standing contract relationship share common goals and are more likely to work together to keep things humming along.

indirect marketing channel: Wholesalers:

In an indirect marketing channel, one or more intermediaries work with manufacturers to provide goods and services to customers. Wholesalers are utilized when a company does not buy in quantities that make it cost-effective for the manufacturer to deal directly with them

Independent agents

Independent agents, also known as manufacturer's representatives, or "reps," are salespeople who sell a manufacturer's products on an extended contract basis but are not employees of the manufacturer. They are compensated by commissions and do not take ownership or physical possession of the merchandise.

warehouse clubs

Large retailers with an irregular assortment, low service levels, and low prices that often require membership for shoppers. ex: costco

supercenters

Large stores combining full-line discount stores with supermarkets in one place. ex: Walmart

Promotion M-commerce (mobile commerce):

M-commerce (mobile commerce): Communicating with or selling to consumers through wireless handheld devices such as cellular phones.

Supply chain management

Makers turned to supply chain management to shorten the order-to-delivery system and solve a whole host of distribution problems in the process.

Manufacturer brands:

Manufacturer brands, also known as national brands, are owned and managed by the manufacturer. By owning their brands, manufacturers retain more control over their marketing strategy, are able to choose the appropriate market segments and positioning for the brand, and can build the brand and thereby create their own brand equity.

Mobile marketing

Mobile marketing is marketing through wireless handheld devices, such as cellular telephones.

Chapt 20- personal selling Personal selling:

Personal selling is the two-way flow of communication between a buyer or buyers and a seller, designed to influence the buyer's purchase decision. Personal selling can take place in various situations: face-to-face, via video teleconferencing, on the telephone, or over the Internet.

Price transparency

Price transparency is the ability to know all of the bid prices, ask prices, and trading quantities for a given stock, good, or service at any point in time.

Profit orientation:

Profit orientation focuses on three areas: target profit pricing, maximizing profits, and target return pricing.

step 3: Presentation

The Presentation Once all the background information has been obtained and the objectives for the meeting are set, the salesperson is ready for a person-to-person meeting. Handling Reservations An integral part of the sales presentation is handling reservations or objections that the buyer might have about the product or service. Although reservations can arise during each stage of the selling process, they are very likely to occur during the sales presentation.

evaluating and selecting media media mix: Media buy:

The content of an ad is tied closely to the type of media that's used to carry the message. Media planning refers to the process of evaluating and selecting the media mix. media mix: The combination of the media used and the frequency of advertising in each medium. Media buy: The actual purchase of airtime or print pages.

The demand Curve and its goals

The demand curve helps marketers understand how demand for their products will increase or decrease according to price. The goal is to choose 1) a price that maximizes consumer value, 2)drives up sales, 3)and works in concert with the firm's overall profitability goals.

assess impact -Pretesting: -Tracking: -Posttesting:

The effectiveness of an ad campaign must be assessed before, during, and after the campaign has run in order to truly gauge its success. -Pretesting: is done before launching an ad campaign to ensure that the various elements are working together as intended. -Tracking: is performed during the campaign so marketers get instant feedback on how each ad is impacting daily or weekly sales volume (among other key indicators). Tracking can also help uncover any problems with the message or chosen medium. -Posttesting: evaluates the impact of the campaign after it's been implemented in terms of sales and communication to the target market -The Precise impact on sales is hard to determine considering the many factors that influence the consumer's choices, purchasing behavior, and attitudes beyond the advertising itself.

brand extension

The use of the same brand name for new products being introduced to the same or new markets. ex: Colgate and Crest sell toothpaste, toothbrushes, and other dental hygiene products, even though their original product line was just toothpaste.

income effect

The price elasticity of demand can also be affected by outside factors, such as the income effect. When consumers have less money to buy new products, demand decreases and production drops. The price elasticity of dining out or booking hotel rooms often remains constant when people's incomes are rising overall; but if they drop, such as during the recent economic downturn, consumers turn to less expensive entertainment and vacation alternatives.

price elasticity of demand: elasticity: inelastic:

The price elasticity of demand measures how a change in a product's price affects the quantity demanded. Price elasticity of demand= %Change in Quantity demand/%Change in price. * how to do the equation on Chapt 14 module 3/ episode 3. -The market for a product or service is typically considered price sensitive or elastic if the price elasticity is less than -1. This means that a 1 percent decrease in price produces more than a 1 percent increase in quantity sold. In other words, small changes in price generate big changes in terms of quantity demanded. -Now, let's look at a scenario that's inelastic. When a 1 percent decrease in price results in less than a 1 percent increase in quantity sold, the market for the product is considered price insensitive or inelastic. In other words, lowering the price on inelastic products or services does not appreciably increase demand.

cross-price elasticity: complementary products:

The price elasticity of products can be compared by using cross-price elasticity, which looks at the quantity demanded of Product A compared with the percentage change in price in Product B. Interrelated products are sometimes referred to as complementary products, because the rise and fall of these products' sales are linked. For example, Blu-ray players go hand in hand with Blu-ray discs

individual brand

The use of individual brand names for each of a firm's products

Four type of level of competition, what are they?

They include monopolies, oligopolistic competition, monopolistic competition, and pure competition.

private-label brands

Thus, many retailers have developed private-label brands (also called store brands), which are products developed and marketed by a retailer and available only from that retailer. For example, if you want a Giani Bernini leather hand bag, you have to go to Macy's.

conventional supermarket

Type of retailer that offers groceries, meat, and produce with limited sales of nonfood items, such as health and beauty aids and general merchandise, in a self-service format.

Websites

Websites Firms have increased their emphasis on communicating with customers through their websites. They use their websites to build their brand image and educate customers about their products or services, as well as where they can be purchased. Retailers and some manufacturers sell merchandise directly to consumers over the Internet.

advertising:

advertising: A paid form of communication from an identifiable source, delivered through a communication channel, and designed to persuade the receiver to take some action, now or in the future.

brand awareness:

brand awareness: Measures how many consumers in a market are familiar with the brand and what it stands for; created through repeated exposures of the various brand elements (brand name, logo, symbol, character, packaging, or slogan) in the firm's communications to consumers.

company sales force:

company sales force: Comprised of people who are employees of the selling company and are engaged in the selling process.

competitor orientation approach: competitive parity: status quo pricing:

competitor orientation approach: they primarily measure themselves against what the competition is doing. This pricing strategy takes two paths: The first is -competitive parity: where the firm sets prices so that it is in line with its major competitors; the second is -status quo pricing: where a company changes its prices only when the competition changes theirs.

contractual vertical marketing system: Franchising:

contractual vertical marketing system: This is when independent firms at different levels of the supply chain join together through contracts to obtain economies of scale and coordination and reduce conflict. Franchising: is the most common type of contractual vertical marketing system. It consists of an agreement between two parties that allows the franchisee to operate a retail outlet using the name and format developed and supported by the franchisor.

cooperative (co-op) advertising:

cooperative (co-op) advertising: An agreement between a manufacturer and retailer in which the manufacturer agrees to defray some advertising costs.

exclusive co-brand

exclusive co-brand is a brand that is developed by a national brand vendor, often in conjunction with a retailer, and is sold exclusively by the retailer

frequency

frequency of exposure—how often the audience is exposed to a communication within a specified period of time

good-value pricing strategies:

good-value pricing strategies: offering the right combination of quality and good service at a fair price

gross rating points (GRP):

gross rating points (GRP): Measure used for various media advertising—print, radio, or television; GRP = reach × frequency

Salesperson Duties order getter: order taker: sales support personnel:

order getting, order taking, and sales support. order getter: A salesperson whose primary responsibilities are identifying potential customers and engaging those customers in discussions to attempt to make a sale. order taker: A salesperson whose primary responsibility is to process routine orders or reorders or rebuys for products. sales support personnel: Employees who enhance and help with a firm's overall selling effort, such as by responding to the customer's technical questions or facilitating repairs. selling teams: Combinations of sales specialists whose primary duties are order getting, order taking, or sales support but who work together to service important accounts.

perceived value:

perceived value: The relationship between a product's or service's benefits and its cost. Customers usually determine the offering's value in relationship to that of its close competitors. If they believe a less expensive brand is about the same quality as a premium brand, the perceived value of that cheaper choice is high.

step 2: preapproach

preapproach: In the personal selling process, occurs prior to meeting the customer for the first time and extends the qualification of leads procedure; in this step, the salesperson conducts additional research and develops plans for meeting with the customer.

product bundling

product bundling is offering several products for sale as one combined product. It is a common feature in many imperfectly competitive product markets. Industries engaged in the practice include telecommunications, financial services, health care, and information.

specialty store:

specialty store: a type of retailer that concentrates on a limited number of complementary merchandise categories in a relatively small store.

Analyze -Visits: -bounce rate: -click path: -conversion rates: -keyword analysis:

visits: to a particular site or page, unique visitors to the site, and page views. bounce rate: percentage of times a visitor leaves the website almost immediately, such as after viewing only one page. click path: Shows how users proceed through the information on a website—not unlike how grocery stores try to track the way shoppers move through their aisles. conversion rates: Percentage of consumers who buy a product after viewing it. keyword analysis: An evaluation of what keywords people use to search on the Internet for their products and services.