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