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