Marketing Exam 3 Final - review all slides and textbook as well for what i missed

Determining the advertising appropriation

- Advertising Appropriation: money allocated for advertising during a specific time period - Objective and task: set desired objectives, list the required tasks, estimate cost of each task - Percent of sales: multiply past sales by stand percentage - Competition matching: match competitors' absolute dollars or percentage - Arbitrary: high-level executive determines budget

Factors affecting service quality

- Analysis of customer expectations- desired level, acceptable level, zone of tolerance - Service quality specifications- establish goals, teach employees - Employee performance- least-trained, lowest-paid, critical link to customers, empower employees - Management of service expectations- set realistic expectations, customers rely on promises

Create the ad message

- Basic content and advertising message - Copy: verbal portion of ad (headlines, body copy), identify desire or problem, tell product benefits... - Storyboard: series of mini screens showing major commercial scenes - Artwork: illustrations and layout - Illustrations: photos, drawings - Layout: arrangement of copy and illustrations

Public relations

- Communications used to create and maintain favorable relationships between the firm and its wide range of stakeholders - Can be directed at internal/external stakeholders - Focuses on enhancing the image of the total organization

Pricing of Services

- Consider pricing sensitivity, nature of transaction, and costs - Pricing based on: performance of special tasks, time spent performing tasks, demand for services - Peak demand- significant customer desire for service at same time - Price separately, in bundle, or in combination

Public relations tools

- Corporate identity materials: logos, signs, cards - Event sponsorship: firm pays for special event - Speeches

Services as theatre

- In the theater: Actors. In the service scape: service workers - In the theater: performance. In the service scape: service - In the theater: costumes. In the service scape: uniforms - In the theater: props. In the service scape: devices, music, machines

Types of advertising

- Institutional: images, ideas, and political issues - Advocacy: firm's position on public issue

What are services?

- Intangible product that involves a deed, performance, or effort not physically possessed - Human and/or mechanical efforts directed at people or objects - Service is not the same as customer service

Develop the media message

- Media plan: Selecting media outlets and schedule - Goal: to reach most people in target within budget > Reach: % of people exposed to ad > Frequency: # of times exposed to ad - Consideration for media outlets: consumer location and demographics, media reach, competition, message content, media cost - Considerations for schedule: target audience, product, seasonality, media, budget > Continuous schedule: constant > Flighting schedule: alternating times of on and off ads > Pulsing schedule: combination of the two

What is advertising?

- Paid non-personal communication transmitted through mass media - Used to promote goods, services, ideas, images, issues, and people - Advertising permeates our daily lives

Types of advertising: product

- Pioneer: demand for product category - Competitive: demand for specific brand - Comparative: compares brands on traits - Reminder: reminds about established brand - Reinforcement: assures customers who bought

Ethical issues in pricing

- Price gouging: pricing unreasonably high when need is great or consumers do not have a choice - Predatory pricing: selling product below cost to drive competition out of market - Price fixing: agreement among firms to charge one price for same good - Price discrimination: selling same good at different prices to different customers - Failure to disclose the full price - Personalized pricing: adjusting prices in real time to fit individual customer needs, situtations, locations

Publicity-based public relations tools

- Publicity: communication through news story - News/press releases: describes firm's events/product - Feature article: long manuscript for publication - Captioned photograph: image with description - Press conference: meeting called for major news

What are the different pricing objectives?

- Survival: temporary, increases sales volume - Profit: attainable, actual % of sales of $ - Return on investment: profit-related, recoup development - Market share: product sales related to total industry - Cash flow: generate capital quickly - Status quo: maintaining market share, prices, image - Product quality: prices tend to be higher, set apart

Demand-based pricing

A price-setting method based on estimates of demand at different prices

A target market is

A specific group of customers on whom an organization focuses its marketing efforts

The owner of a professional baseball team asks the account representative of an advertising agency to develop an advertising campaign to bring more teenagers to the ballpark. At this point, the account representative logically begins to discuss establishing __________ for the campaign.

Advertising objectives

All companies have a responsibility to ______ so they can provide a return on investment to their owners and investors, create jobs for the community, and contribute goods and services to the economy.

Be profitable

The effectiveness of an advertising campaign can be measured

Before, during, and after the campaign through the use of pretests

A market share objective

Can be used effectively whether total industry sales are rising or falling

The problem with using an undifferentiated strategy to market a "universal car" is that

Car buyers have heterogeneous needs

Differential pricing

Charging different prices to different buyers for the same quality and quantity of product

Price skimming

Charging the highest possible price that buyers who most desire the product will pay, during introduction stage

The main characteristic of a _____ is that customers are satisfied to the point that they use a service repeatedly over a period of time

Client-based relationship

Showing a product's price along with its previous price, the price of a competing brand, or the price at another retail outlet is called

Comparison discounting

Tectron Products Company advertises a specific product heavily, and Initech wants to offset the effects of that advertising. In this case, Initech would most likely employ ______ advertising

Competitive

A firm's unique symbols, personalities, and philosophies comprise its

Corporate identity

The federal government often uses ____ pricing when it grants defense contracts.

Cost-plus

What phrase indicates what customer value is?

Customer value = Customer benefits - customer costs

Client-based relationships

Customers use service repeatedly, close long-term relationships, ongoing basis, word-of-mouth is important

The three primary bases for developing prices are

Demand, competition, and cost

Segmentation variables for consumer markets are usually grouped into four categories:

Demographic, geographic, psychographic, and behavioristic

Issues of inventory levels and storage costs are concerns related to the _____ variable of the marketing mix

Distribution

Negotiated pricing

Establishing a final price through bargaining between seller and customer

Which one of the following CSR responsibilities relates to "Obligation to do what is right, just and fair?"

Ethical

Corporate Social Responsibility (CSR) indicates an organization's obligation to maximize its negative impact on society while minimizing its positive impact on society

False

Political forces are beyond the control of marketers, and so they can only react to them

False

Product competitors market products with similar features and benefits to the same customers and similar prices

False

State and local government regulations do not affect the pricing of services

False

Which stage in the product life cycle is critical to a product's survival because competitive reactions to the product's success during this period will affect the product's life expectancy?

Growth

Services have six basic characteristics: intangibility, inseparability of production and consumption, perishability, client-based relationships, customer contact, and

Heterogeneity

The first stage in the development of any advertising campaign is

Identifying the advertising target audience

Depending on the length of time it takes them to adopt a new product, people can be divided into five major adopter categories: early adopters, early majority, late majority, laggards, and

Innovators

Pioneer advertising is most likely to be used during which of the following product life-cycle stages?

Introduction

The four major stages of a product life cycle include

Introduction, growth, maturity, and decline

Close customer contact

Level of interaction, high (people) vs low (technology), facility appearance, employee satisfaction training and empowerment

Which of the following statements about codes of conduct is true?

Most large corporations have formal codes of conduct

Products such as light bulbs, canned soft drinks, and ice cream sandwiches are usually priced using ____, which usually results in a ______.

Multiple-unit pricing; lower per unit price

During the introduction stage of a successful product, profits are usually

Negative and increasing

Marisol recently put her house on the market at an asking price of $260,000. She realizes, however that in order to sell the house, she may have to use

Negotiated pricing

____ marketing includes activities conducted by individuals and organizations to achieve some goal other than ordinary business goals such as profit

Nonprofit

intangiblity

Not physical good, cannot perceive without senses, cannot be physically possessed

If Kashi wants to gain a large market share quickly with its new line of reduced-fat snack crackers, it should use

Penetration pricing

If Acer uses ______________________________ pricing for its newest Chromebook, it is probably most interested in obtaining market share; and it is assuming

Penetration pricing; that other competitors could enter the market

You are the marketing manager for a multistate auto dealership in the southeast United States. It is that time of year when your company experiences a model year change. You are putting the final touches on your pricing strategy to facilitate this change in your inventory of autos. Which pricing strategy will you use to facilitate this model year change?

Periodic discounting

Which of the following pricing strategies often results in a retailer losing money on the product?

Price leader

Reference pricing

Pricing a product at a moderate level and displaying it next to a more expensive model or brand

Psychological pricing

Pricing goods and services at price points that make the product appear less expensive than it is

When Liv goes to the first class of her Operations Management course, she finds out that in addition to the textbook she already purchased, she also needs a specific type of calculator. With regards to the calculator, at which stage of the consumer buying decision process is Liv?

Problem recognition

When a cable television company uses bundling to combine phone, cable TV, and broadband internet access into a package with a single price, it is attempting to influence a consumer's perception of price to make a product's price more attractive and reduce "sticker shock." This is an example of using a ____ pricing strategy.

Psychological

___________ is a broad set of communication activities used to create and maintain favorable relations between the organization and its stakeholders.

Public relations

Age, rate of product use, location, and gender are all common examples of common

Segmentation variables

Markup is measured either as a percentage of ____ or a percentage of _____.

Selling price, cost

Inseparability

Service product cannot be separated from: service provider producing it, consumer consuming it. Simultaneous production and consumption, providers and consumers often must be present, co-creation of value

The three basic forms a product can take are

Services, ideas, and goods

Penetration pricing

Setting a low initial price on a new product to appeal immediately to the mass market

Competition-based pricing

Setting prices based on competitors' strategies, prices, costs, and market offerings

Cost-based pricing

Setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk

Product-line pricing

Setting prices for an entire line of products

Which pricing objective de-emphasizes price and can lead to a climate of nonprice competition in an industry?

Status quo

Cost-plus pricing

Summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price

Which of the following CSR issues relates to thinking about future generations and the long-term well-being of consumers?

Sustainability

Periodic discounting

Temporary reduction on a systematic basis

Random discounting

Temporary reduction on an unsystematic basis

Markup pricing

The cost of buying the product from the producer, plus amounts for profit and for expenses not otherwise accounted for

Bundle pricing

The marketing of two or more products in a single package price

Why would a company use the undifferentiated strategy?

The needs of individual consumers in the target market for a specific product are similar, so the organization can satisfy most customers with a single marketing mix

In a SWOT analysis, an example of a "weakness" would be

The poor quality of the products sold by the company

Tangibility Continuum

This describes how tangible a product is; ranges from pure good to service dominant; ex. sugar (sort of pure good) to restaurant (good-service mixed) to education (service-dominant); knowledge helps a company create a marketing strategy

What should marketers do to promote the consistency and reliability of their services most effectively?

Train employees and develop standard procedures for dealing with customers

The first adopters of a product are the innovators

True

The importance of price depends on the type of product, the type of target market, and the purchase situation

True

Perishability

Unused service cannot be stored, once its gone its gone, scheduling techniques

Which of the following is an example of a behavioristic segmentation variable?

Usage rate

Heterogeneity

Variations in quality due to human labor and participation, variation from person to person and firm to firm, employee training helps - establish service standards and train on rules for consistency, equipment-based service more consistent

Service characteristics

intangibility, inseparability, variability, perishability, heterogeneity, client-based relationships, close customer contact

Convenience products are

relatively inexpensive, frequently purchased items for which buyers exert only minimal purchasing effort

Dimensions of service quality

tangibles, reliability, responsiveness, assurance, empathy