Exam 2 - Modern Business Organizations

Price

money or other considerations for exchange, cost of exchange (sketchy or too far away)

Value

perceived benefits over price

PROFIT EQUATION

total revenue (unit price x # sold) minus total cost (fixed + variable costs)

can impact quantity sold

Break Even Point

total fixed cost over price per unit - variable cost

Factors determining price

Demand and Cost

Demand

nature of _____ and elasticity

Elasticity

change in price = change in demand

Cost

variable vs fixed

Fixed Cost

doesn’t change

Variable Cost

pricing can change

ROI

return on investment

PLC

product life cycle theory

PLC Stages

intro, growth, maturity, decline

Channels of Distribution

intermediaries (middlemen)

retailers and wholesalers

agents and brokers

longer the channel, more intermediaries

Pricing Strategies

skimming price, penetration price, EDLP, high-low, psychological

SCM

supply chain management

Value via Intermediaries

need the expertise/activities they provide

efficient marketing functions

create value that offsets cost

Consumer Benefits

form, time, place, possession, service, information

ex. Dr J family only buys electronics at best buy because they gain the service of geek squad

4 Ps (Marketing Mix) Dr.J Meaning

offering strategy, cost strategy, distribution strategy, communication strategy

Marketing

the activity, set of institutions (expectations), and processes for creating, communication, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. 

ex. institution of marriage

Consumer Decision Making Process

problem recognition, info search, evaluate alternatives, purchase, post purchase evaluation

Marketing Research

define the problem, collect data and info, analyze data, choose best solution

CRM

customer relationship management - in business refers to a system or set of strategies and technologies that help organizations manage interactions with current and potential customers.

4 Eras of Marketing

production era - 1920s

sales era - 1920-1940s focus on volume, mass production

marketing concept - 1940-1980s focus on value, customer/service/profit orientation

CRM - 1980s-now.  customer relationship management

B2B

business to business

B2C

business to consumer

Market Segmentation

segment according to benefits sought

multisegment strategy

niche marketing - smaller marketing

mass marketing - targeted to all

Niche Marketing

specialized market

Mass Marketing

targeted to everyone

Brand Name

name/symbol/design

distinguishes from others

Trade Name

legal/commercial name

Trademark

protection

registered brand

Brand Equity

value of brand itself

Environmental Scanning

process of identifying factors that can affect the market

B2B Goods are

Industrial

Environmental Scanning Factors

global, tech, sociocultural, competitive, and economic influences

3 Parts of the Marketing Concept

customer orientation, service orientation, profit orientation

Product Portfolio

all that we offer

items

specific product

lines

similar products

mix

combo of lines (similar products)

Distributed Product Development

handing off various parts of your innovation process—often to companies overseas

4 Categories of Consumer Goods

convenience, shopping, specialty, unsought

Convenience Goods

products that the consumer wants to purchase frequently and with a minimum of effort

Shopping Goods

products that the consumer buys only after comparing value, quality, price, and style from a variety of sellers

Specialty Goods

products with unique characteristics and brand identity. Because these products are perceived as having no reasonable substitute, the consumer puts forth a special effort to purchase them

Unsought Goods

products that consumers are unaware of, haven’t necessarily thought of buying, or find that they need to solve an unexpected problem

Product - 4p’s

offering strategy

Price - 4p’s

cost strategy

Place - 4p’s

distribution strategy

Promotion - 4p’s

communication strategy

New Product Development

idea generation, product screening, product analysis, development, testing, commercialization

CSR

corporate social responsibility

D2C

direct to consumer

Vertical Integration

take on ownership of certain aspects of supply chain

3PL

third party logistics

Distribution Systems

corporate, contractual, administered

Promotion (Communication Strategy) is to

inform, persuade, remind

Communication Process Model

sender → encode → channel → decode → feedback

Content Marketing

relevant info that resonates with audience

Tools for Communication

ads, public relations, personal selling, direct marketing, sales promotions

7 Steps of Personal Selling

prospecting, preapproach (research), approach, presentation, answer any objections, close the sale, follow up (FU)

Institutional Ads

ads that focus on values of business

Advocacy Ads

ads that focus on social matters