MARK Quiz #2

Calm tf down it's a 20-question quiz!!!!

Market-Skimming Pricing (Price Skimming)

Market-Skimming Pricing (Price Skimming)

Setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales.

Market-penetration Pricing

Setting a low price for a new product in order to attract a large number of buyers and a large market share.

Value-added Pricing

Attaching value-added features and services to differentiate a company’s offers and charging high prices.

Captive-Product Pricing (Razor Blade Pricing)

Setting a price for products that must be used along with a main product, such as blades for a razor and games for a video game console.

Optional Product Pricing

The pricing of optional or accessory products along with a main product.

Segmented Pricing

Selling a product or service at two or more prices, where the difference in price is not base on differences in costs.

Price Fixing

an agreement among competitors to raise, lower, maintain, or stabilize prices

Product Life Cycle (PLC)

The course of a product’s sales and profuts over its lifetime

1 Product Development

The company finds and develops a new product idea. During product development, sales are zero, and the company’s investment costs mount.

2 Introduction

A period of slow sales growth as the product is introduced in the market. Profits are nonexistent in this stage because of the heavy expenses of product introduction.

3 Growth

A period of rapid market acceptance and increasing profits.

4 Maturity - modify the market and product marketing strategy

A period of slowdown in sales growth because the product has achieved acceptance by most potential buyers. Profits level off or decline because of increased marketing outlays to defend the product against competition.

5 Decline

The period when sales fall off and profits drop.

Idea Screening

Screening new product ideas to spot good ones and drop poor ones as soon as possible

Idea Generation

The systemic search for new product ideas

Internal Idea Sources

The company can find new ideas through formal R&D.

Distributors and Suppliers as sources

close to the market and can pass along information about consumer problems and new product possibilities.

Competitors as a source

watch competitors’ ads to get clues about their new products.

Customers as a source

analyze customer questions and complaints to find new products that better solve consumer problems.

Crowdsourcing

Inviting broad communities of people, customers, employees, independent scientist, and researchers, and even the public at large into the new product innovation process.

Law of Leadership

It is better to be first than best.

Exclusive Territorial Agreements/Distribution

Producer agrees not to sell to other dealers in a given area or buyer agrees to sell only in its own territory

Intensive Distribution

Stocking the product in as many outlets as possible

Selective Distribution

The use of more than one but fewer than all of the intermediaries that are willing to carry the company’s products.

Exclusive Distribution

Giving a limited number of deals the exclusive right to distribute the company’s products in their territories.

Multichannel Distribution Systems

A distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments.

Direct Marketing Channel

A marketing channel that has no intermediary levels

Indirect Marketing Channels

A marketing channel containing one or more intermediary levels.

Information promotion contact matching negotiation

What functions can intermediaries perform?

Intermediaries

Offer producers greater efficiency in making goods available to target markets. Through their contacts, experience, specialization, and scale of operations, intermediaries usually offer the firm more than it can achieve on its own.

Marketing Channel

consists of firms that have partnered for their common good with each member playing a specialized role.

Inelastic Demand

demand doesn’t change when price changes

Elastic Demand

Demand changes significantly when Price changes

Multilevel Marketing Structure

sales structure where members of a company are encouraged to recruit new members.