BUS243 Principles of Marketing Review

Flashcards created from the lecture notes on marketing principles to help review key concepts.

What are the two major pricing strategies discussed in marketing?

Value-based pricing and Cost-based pricing.

What characterizes cost-based pricing?

It involves designing a good product, determining product costs, and setting prices based on those costs.

What is the primary focus of value-based pricing?

Assessing customer needs and value perceptions to set a target price that matches perceived value.

What is the difference between fixed and variable costs?

Fixed costs do not change with the level of production, while variable costs vary directly with the level of production.

What does breakeven pricing indicate?

The point at which total revenue equals total costs, resulting in no profit or loss.

What does an inelastic demand curve indicate?

A situation where quantity demanded does not change significantly with a change in price.

Define market-skimming pricing.

A pricing strategy where a product is launched at a high price and gradually reduced over time.

Describe product line pricing.

Setting prices across an entire product line.

What is selective distribution?

A distribution strategy that assigns products to a limited number of outlets to maintain quality.

What causes channel conflict?

Disagreements of goals and roles among channel members.

How has COVID-19 impacted retailing?

It has caused disruptions, changes in consumer spending habits, and forced retailers to adapt to new value propositions.

What is the role of advertising in marketing communications?

To reach masses of buyers at a low cost per exposure and build long-term product images.

Explain the difference between push and pull strategies in marketing.

In a push strategy, products are pushed through the distribution channel; in a pull strategy, demand is created by direct promotion to consumers.

What is a key characteristic of public relations?

Building good relations with various publics and managing a company’s corporate image.

What is the purpose of evaluating advertising effectiveness?

To assess the return on advertising investment by measuring communication and sales effects.

What is essential when preparing a digital marketing campaign?

Developing a deep understanding of digital consumers and their navigation behavior.

What are digital consumer personas?

Detailed and tangible representations of prototypical consumers targeted by digital marketing campaigns.