marketing330
types of new product pricing
$ skimming and penetration pricing
marketing intermediaries 6 concerns
1) price 2) promotion 3) physical distribution 4) facilitating exchanges 5) marketing information 6) marketing management
Traditional speciality retailers
A store that carries a narrow product mix with deep product lines
Off-price retailers
A type of retailer that offers an inconsistent assortment of merchandise at relatively low prices
Inseparability
Cannot take service home hotels, airlines, hair cuts, ubers, doctors
Vertical Channel Integration
Combining two or more stages of the marketing channel under one management
etail store invests the most in atmospherics
Neiman Marcus
3 types of speciality retailers
Traditional specialty retailers Category killers Off-price retailers
Intensive Distribution
Uses all available outlets to distribute a product For most convenience products Multiple channels may be used Convenience products (coke or batteries)
full-line discount
Walmart, Sears, JCP
Which of the following is a large-scale, members-only, retailer that combines cash-and-carry wholesaling with discount retailing?
Warehouse club
Channel Power
ability of one channel member to influence another channel member's goal achievement
channel management
all activities related to selling, service, and the development of long-term customer relationships
Credence Qualities
attributes that customers may be unable to evaluate after purchasing and consuming a service
Intangibility
autocare, medical care, insurance difficult to set and justify prices difficult to advertise and display
brokers
bring buyer and seller together on a temporary basis
Michael's, PetSmart, and Staples are all examples of
category killers
Ashley is currently working on a video to introduce a new line of athletic wear for women. She is using signs and symbols to represent the concept and meaning of the new athletic wear. Ashley is most likely working on the ____ for this promotional video.
coding process
Horizontal Channel Integration
combining organizations at the same level of operation under one management not the best method for improving distribution
private warehouses
company-operated facilities for storing and shipping products
Category Killer
competes on the basis of low prices and product availability takes business away from smaller, high-cost retail outlets (Home Depot, Staples, Best Buy, Petco, Barnes & Noble, Office Depot, Lowe's, Office Max)
Often when a company introduces a new product or line extension, its promotion will focus on ____ in order to initiate the product-adoption process.
creating awareness
Dentists find it difficult to attract customers because many customers cannot distinguish whether or not the product offered is beneficial. This aspect of the dentist's product is called ____ quality.
credence
In general, differences between goods and services are determined by the
degree of tangibility
buzz marketing
electronic WOM creates excitement
A commonly used computerized means of integrating order processing with production, inventory, accounting, and transportation is
electronic data interchange
Promotional efforts designed to reduce the risk to consumers for using a product for the first time seek to
encourage product trial
safety stock
extra inventory a firm keeps
Malcolm Lewis has come up with the idea of a system for picking up people's cars while they are at work, washing and waxing them, and returning them for a fee. Having been a big success in his home city, Malcolm plans to expand his operation into other cities. The service described here seems best suited to
franchising
retail stores
general merchandise specialty
marketing channel
group of people that direct the flow of products from producers to customers within the supply chain
The fact that the first massage Gretchen gives each day is better than the last massage demonstrates the ____ of services.
heterogeneity
To expand the number of its retail outlets in the Washington, D.C. area, Whole Foods bought out a small chain of organic food stores in northern Virginia. This type of integration is called
horizontal
Brittany recently moved to a new city and is trying to find a new mechanic to do maintenance and repair on her car. She visits several places to judge their overall appearance, cleanliness, and organization and finally chooses a mechanic. Brittany was trying to overcome the ____ aspect of services.
intangibility
Symbols such as the Travelers' Financial Services umbrella are designed to help customers overcome the ____ of services.
intangibility
The coordination of promotion and other marketing efforts for maximum informational and persuasive impact defines
integrated marketing communications
The kinds of products being sold and the availability of public transportation are both factors that influence a retailer's decision about
location
indirect channel
manufacture-retailer-customer
direct channel
manufacturer- customer
Marketing Intermediaries
middlemen that link producers to other intermediaries or ultimate consumers through contractual arrangement or through the purchase and reselling products manufacture- wholesaler-retailer-customer
Stores that buy manufacturers' seconds, overruns, returns, and off-season production runs at below wholesale prices. These firms resell this merchandise to consumers at deep discounts, and are called
off-price retailers
supplementary services
one or more supportive services used to differentiate the service bundle from competitors'
secondary market pricing
one price for the primary target market and a different price for another market
The fact the services cannot be inventoried and then sold at a later date is called
perishability
Generally, promotion mixes for companies with extremely limited promotional budgets tend to concentrate on
personal selling
Michael is planning a promotional program for AirFam. AirFam is a supplier of new energy-saving engines used to produce air conditioners. His company needs to promote these engines to manufacturers of air conditioners, so he is most likely to use ___, because it provides immediate feedback. The disadvantage is that it is _____ than advertising to reach one customer.
personal selling; most costly
Consumers receive the benefits of place utility when
products are available in locations where consumers want to buy them
price leaders
products priced near or below cost
decoded message
putting into concepts and ideas
An advertisement from a ski lodge extolling the benefits of a summer getaway in the mountains uses promotion to
reduce sales fluctuations
When Sophie buys organic produce for her household using a channel with only one intermediary, that intermediary is classified as a
retailer
Direct-response marketing
retailer advertises a product and makes it available through mail or telephone orders
Honey Farms is a maker of fine chocolates. The company's latest product, Fudge-Dipped Strawberries, is the premier product in its Fudge-Dipped line. The product is very expensive and targeted to upscale consumers. Which form of distribution would Honey Farms be likely to use for its new product?
selective
cash flow
set price levels to encourage rapid sales
Selective Distribution
shopping products (iPods, tvs, shoes) Desirable when a special effort is important to customers uses only some available outlets to distribute a product
Fragile products that require special handling are more likely to be distributed through
shorter channels
Extreme value retailers
small discount stores often in lower income neighborhoods or towns
A person, group, or organization that has a meaning it intends and attempts to share with a receiver or an audience is a
source
Walmart is working with its suppliers, using tools such as electronic billing, purchase order verification, and bar code technology, to integrate data used to improve overall performance. This is an example of
supply chain management
promotions of services
tangible cues personal selling word-of-mouth communication
Services are usually provided through ____ directed at people or objects.
the application of human or mechanical efforts
core service
the basic service experience a customer expects to receive
receiver
the one decoding a coded message
usage rate
the rate at which inventory is used/sold
Retail sales in #1 Service Job
true
Perishability
unused service capacity from one time period cannot be stored for future use overbooked flights
Exclusive Distribution
uses a single outlet in a daily large geographic area to distribute a product (BMW)
Heterogeneity
variations in quality but hard to control easier to standardize increases labor as intensiveness increases
general-merchandise retailer offers
variety of product lines stocked in depth
Benetton, a leading manufacturer of knitwear in Italy, expanded its operations to include retail outlets in the United States and South America. This type of channel is called
vertical integration
department stores
wide product mix organized into serape departments
Stephanie sets up her new interior decorating business and advertises her expertise in high-quality draperies and other window treatments. One of her first customers is extremely dissatisfied with Stephanie's work, so Stephanie redoes the job at her own expense because she knows how powerful ____ is (are) for services and wants to stay in business.
word-of-mouth communication
Business services have grown as the business environment becomes more complex
services are 70% of U.S. employment