MKGT 3650 Final UNT Strutton Marketing

target market

one or more specific groups of potential consumers toward and organization directs its marketing program.

hedonic treadmill

people are temporarily satisfied with whatever new thing they wanted but then find themselves lustfully moving forward toward wanting something else that is new.

goods

physical objects, such as toothpaste, cameras, or computers that satisfy consumer needs.

Targeted pricing

pricing based on a strategic estimate of the amount. no less, no more. Consumers or business clients would be willing to pay for a product. The goldilocks pricing strategy.

What are the four marketing mix elements that make up the organization's marketing program?

product, price, promotion, and place

Value

ratio of perceived benefits to a price, perceived benefits/ price

prestige pricing

setting higher prices base on the premise that quality or status conscious buyers will be attracted to the products and be more likely to purchase it. ex:bugatti

An organization can't satisfy the needs of all consumers, so it must focus on one or more subgroups called

target market

laws

tell us what we can and cannot do.

principles

tell us what works

utility

the benefits or customer value received by users of the product. This utility is the result of the marketing exchange process and the way society benefits from marketing.

Marketing concept

the idea that an organization should 1. strive to satisfy the needs of consumers 2. while also trying to achieve the organization's goals.

customer experience

the internal response that customers have to all aspects of an organization and its offering. Includes indirect and direct contacts with the seller.

barter

the practice of exchanging products and service for other products and services rather than for money.

value-pricing

the practice of simultaneously increasing product and service benefits while maintaining or decreasing prices.

customer relationship management

the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace.

exchange

the trade of things of value between buyer and seller so that each is better off after the trade.

societal marketing concept

the view that organizations should satisfy the needs of consumers in a way that provides for society's well-being.

Organizational buyers

those manufacturers, wholesalers, retailers and government agencies that buy products and services for their own use or for resale.

Marketing's major function

to make meaning out of meaninglessness by bringing together diverse demand and misc. supply.

Ultimate consumers

use the products and services purchased for a household.

EDLP

walmart. every day low prices strategy. Cost efficiencies within the supply chain.

Need occurs

when a person feels deprived of basic necessities such as food, clothing, and shelter.

psychological pricing

****IN WITH PPL'S HEADS. $199.95 instead of $200 (ODD EVEN PRICING)

What are the 6 major steps in the process organizations go through in price setting?

1. Identify pricing objectives and constraints. 2. Estimate demand and revenue. 3. Determine cost, volume, and profit relationships. 4. Select an approximate price level. 5. Set list or quoted price 6. Make special adjustments to list or quoted price.

The 10 marketing Laws

1. Leadership 2. Category 3. Mind 4. Perception 5.Focus 6.Attributes 7. Concentration 8. candor 9.Opposite 10. Unpredictability

three common definitions for marketing are:

1. Marketing is the performance of business activities that direct the flow of goods and services from producers to consumers. 2. Marketing is a SOCIAL AND MANAGERIAL PROCESS THROUGH WHICH INDIVIDUALS AND GROUPS OBTAIN WHAT THEY WANT OF NEED BY CREATING AND EXCHANGEING VALUE WITH OTHERS. 3. An organizational function and set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

Robert M. McMath suggests

1. focus on what the customer benefit is and 2. learn from the past

What are the four distinct stages in the lives of firms?

1. the production era (-20's) 2. sales era (20's-60's) 3. marketing concept era (50's) 4.market orientation (now)

What are the four factors needed for marketing to occur?

1.Two or more parties with unsatisfied needs, 2. a desire and ability to have their needs satisfied, 3. a way for the parties to communicated, 4. something to exchange.

BREAK- EVEN ANALYSIS

A TECHNIQUE THAT ANALYZES THE RELATIONSHIP BETWEEN TOTAL REVENUE AND TOTAL COST TO DETERMINE PROFIT ABILITY AT VARIOUS LEVELS OF OUTPUT

Social Responsibility

A firm may forgo higher profit on sales and follow a pricing objective that recognizes it obligations to customers and society in general.

Market Share

A firm's percentage of the total sales volume generated by all competitors in a given market.

What is the difference between a movement along and a shift in a demand curve?

A movement along a demand curve for a product occurs when its price is lowered/ increased and the quantity demanded for it increases/decreases, assuming that the other factors such as consumer tastes, promotion, price and availability of substitute products, and/or consumer incomes, remain unchanged. However, if one or more of these factors do change, then the demand curve for a product will shift to the right or left based on whether the change was favorable or not.

marketing program

A plan the integrates the marketing mix to provide a good, service, or idea to prospective buyers.

The two key characteristics of the marketing concept

AN organization should 1. strive to satisfy the needs of consumers 2. while also trying to achieve the organization's goals

PRICE ELASTICITY

ASSESSES OR EVALUATES HOW CHANGES IN PRICE WILL ELICIT CHANGES IN DEMAND FOR THE PRODUCT BEING PRICED.

marginal analysis

CONTINUING, CONCISE TRADE-OFF OF INCREMENTAL COSTS AGAINST INCREMENTAL REVENUES.

differentiation

Creating the perception that the brand is different from another.

Cost based pricing

Determining a price and working around that price to design, market, distribute and manufacture for the specific ideal price.

The platinum rule

Do unto others at the would have you do unto them, meaning slow down, listen, pay attention and learn to what customers want/need.

What are environmental forces?

Environmental forces are those that the organization's marketing department can't control. Includes social, economic, technological, competitive, and regulatory forces.

How does the TYPE OF competitive market a firm is in affect its range in setting prices?

IN A MARKET CHARACTERIZED BY PURE COMPETITION, THE MARKETPLACE DETERMINES THE PRICE AN INDIVIDUAL FIRM CAN SET. IN A MARKET CHARACTERIZED BY MONOPOLISTIC COMPETITION, THERE IS SOME PRICE COMPETITION AMONG FIRMS , WHICH ALLOWS AN INDIVIDUAL FIRM TO SET A PRICE WITHIN A RANGE OF PRICES. IN AN OLIGOPOLY, A FIRM MAY EITHER BE A PRICE LEADER AND SET THE MARKET PRICE THAT OTHER FIRMS FOLLOW, OR BE A PRICE FOLLOWER AND SET A PRICE BASED ON THE PRICES SET BY ITS COMPETITORS TO AVOID A PRICE WAR. IN A PURE MONOPOLY, THE FIRM BEING THE ONLY ONE IN THE MARKET, CAN SET ANY PRICE IT WANTS.

Sales

Increasing sales revenue, leading to increase market share and profit.

relationship marketing

Links the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit. ex:names on cups

Marketing

Marketing is the activity for creating, communicating, delivering, and exchanging offerings that benefit the organization, its stake-holders, and society at large.

REFERENCE PRICING

PRICES CONSUMERS CARRY IN THEIR MINDS AND MAKE REFERENCE TO WHEN CONSIDERING PURCHASING A GIVEN BRAND FROM A PARTICULAR PRODUCT CATEGORY.

COMMODITIES

PRODUCED AND OR SOLD BY MANY DIFFERENT COMPANIES. EX: OIL, TIMBER, ELECTRICITY, AND WHEAT.

What is price?

Price is the money or other considerations exchanged for the ownership or use of a product.

What is the difference between pricing objectives and pricing constraints?

Pricing objectives involve specifying the role of the price in an organization's marketing and strategic plans whereas pricing constraints are factors that limit the range of prices a firm may set.

What are the four P's? (of the marketing mix)

Product, Price, Promotion, and place. Also called controllable factors.

PENETRATION PRICING

SETTING A LOW INITIAL PRICE ON AN NEW PRODUCT TO APPEAL TO THE MASS MARKET

SKIMMING PRICING

SETTING THE HIGHEST INITIAL PRICE THAT CUSTOMERS REALLY DESIRING THE PRODUCT ARE WILLING TO PAY.

Survival

Some instances, profits, sales, and market share are less important of the firm than mere survival.

YIELD MANAGEMENT PRICING

THE CHARGING OF DIFFERENT PRICES TO MAXIMIZE REVENUE FOR A SET AMOUNT OF CAPACITY AT ANY GIVEN TIME.

BUNDLE PRICING

THE MARKETING OF TWO OR MORE PRODUCTS IN A SINGLE PACKAGE PRICE.

BREAK EVEN POINT

THE QUANTITY AT WHICH TOTAL REVENUE AND TOTAL COSTS ARE EQUAL.

Unit volume

THe quantity produced or sold as a pricing objective. These firms often sell multiple products at very different prices and need to match the unit volume demanded by customers with price and production capacity.

customer value proposition

The cluster of benefits that an organization promises customers to satisfy their needs.

Marketing successes

The ipod and anti-depressants. Marketers can develop and promote solutions to problems that did not or do no exist. IN doing so, they create the perception that problem exists.

Positioning

The place a product or brand occupies within a customer or prospects mind.

customer value

The unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery and both before-sale and after-sale at a specific price.

profit equation

Total Revenue- Total Cost, (UNIT PRICE X QUANTITY SOLD) - (FIXED COST + VARIABLE COST)

what is the difference between ultimate consumers and organizational buyers?

Ultimate consumers are the people who use goods and services purchased for a household. Organizational buyers are those manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use for resale.

PRICE LINING

WHEN A FIRM IS SELLING A LINE OF PRODUCTS AND PRICES THEM AT A NUMBER OF DIFFERENT SPECIFIC PRICING POINTS.

Marketing involves

a constant struggle for sustenance, status, stability, and survival in an ever-changing marketplace.

Product

a good, service or idea consisting of a bundle of tangible or intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value.

Want is

a need that is shaped by a person's knowledge, culture, and personality.

marketing affects

all individuals, all organizations, all industries, and all countries.

Marketing offering

anything offering value that can be exchanged

Marketing focuses on:

discovering and satisfying consumer needs.

Pricing contraints

factors that limit the range of prices a firm may set.

Market orientation

focuses its efforts on 1.continuously collecting information about customer's needs 2.sharing this information across departments and 3. using it to create customer value.

four different utilities

form, place, time, and possession.

What factors impact the list price to determine the final price?

incentives, such as cash discounts, allowances, and rebates, as well as extra fees or surcharges.

Pricing objectives

involve specifying the role of price in an organization's marketing and strategic plans.

Cost plus pricing

involves a standard markup to whatever it costs to make and market a product. ignores marketing demand and competitor's prices.