POM exam 2 other

what is a marketing channel

a path that enables products to flow from producers to end users

an example of a logistical channel function

financing a purchase

an advantage of direct distribution

greater control over the selling environment

a disadvantage of direct distribution

large upfront fixed-cost investment

a company sells its products directly through its own website instead of using a traditional retailer. This is an example of:

disintermediation/DTC

disintermediation

a source of channel conflict that occurs when a channel member bypasses another member and sells or buys products direct

what strategy provides distribution through a single wholesaler and/or retailer in a market

exclusive

A luxury brand chooses only one retailer in each geographic market to sell its products. Which distribution intensity is this?

exclusive

Nike allows customers to use its app while shopping inside a physical store. Customers can scan QR codes, access products on their phones, and use the app to make the store experience easier.

Which concept does this BEST demonstrate?

hybrid distribution

hybrid distribution

combines direct and indirect selling methods so a manufacturer or brand reaches consumers through multiple channels at the same time

Apple sells products through its own stores rather than relying entirely on third-party retailers.

Which TWO advantages of direct distribution does this create?

Greater control over the selling environment

Closer contact with end users

imagine a furniture company sells directly to consumers. The company designs, assembles, stores, and ships its own furniture.

Compared with a traditional furniture channel, what is the main advantage of controlling more of these activities?

The company can coordinate more of the distribution system itself

A small clothing brand currently sells through department stores. The company is considering selling entirely through its own website.

• Give one advantage and one disadvantage

• Advantage: Higher margins and greater control over the selling environment.

• Disadvantage: Large upfront fixed costs and potentially less breadth of outlets.

A customer discovers the product on the company's website, visits a store to try it, and then uses the company's app to purchase it.

hybrid distribution

ACCORD Model

A: advantage

C: Compatibility

C: Complexity

O: Observability

R: Risk

D: Divisibility

cost-based pricing

a business sets the selling price of a product or service by adding a fixed percentage or dollar markup to the total cost of production

what is a major limitation of cost-based pricing?

The cost of producing a product may have little to do with what customers are willing to pay.

A company develops a new light bulb that costs customers less to operate because it uses less electricity. The company sets its price based on the money customers expect to save.

Value-based pricing

What is the main objective of skimming pricing?

Recover investment and profit from customers willing to pay a high initial price

A company launches an innovative product with early adopters willing to pay a premium.

skimming pricing

What is the main objective of penetration pricing?

Gain market share and deter competition

Price discrimination

Charging high-WTP consumers more than low-WTP consumers

Temporal-based price discrimination

business charges different prices for the same product or service at different times based on varying consumer willingness to pay

• wendys article

• leisure travelers vs business travelers

A new company enters an established market where several large competitors already exist. The company launches its product at a very low price to attract customers and gain market share.

Which strategy is this?

penetration

A grocery store gives customers a coupon that lowers the price of a product from $5 to $3.

Why might this work as a form of price discrimination?

Customers reveal something about their price sensitivity through whether they use the coupon.

A customer sees a watch priced at $500 and then sees another watch priced at $300. The $300 watch now seems relatively inexpensive.

What concept is influencing the customer's judgment?

anchoring

anchoring

a pricing and sales strategy that uses the first piece of information a customer sees—the "anchor"—as a baseline to make subsequent prices or offers look like a much better deal

A consumer thinks a $100 bottle of wine must be better than a $20 bottle, even though the wines are actually identical.

This demonstrates:

Price-quality heuristic

In the 6M framework, which “M” answers the question “Who should we talk to?”

market

Which part of the 6M framework asks, “What do we want to happen?”

mission

Which part of the 6M framework determines what the company should communicate to consumers?

message

Which part of the 6M framework addresses where, when, and how often a company communicates?

media

A communication objective should be aligned with:

The overall objective of the marketing strategy

During the information-search portion of the consumer journey, an important communication objective is to:

Build awareness and describe product benefits

An advertisement tries to make viewers feel happy and excited about a brand without giving many product facts.

Affective appeal

An advertisement compares a laptop's battery life, storage, processor speed, and price against competitors.

Cognitive appeal

“Sign up today and receive 20% off your first order” is primarily a:

Behavioral appeal

Which appeal is specifically intended to prompt immediate action rather than simply changing awareness or feelings?

Behavioral

Cognitive appeals are especially appropriate when:

Consumers have high involvement

6M framework

1. market

2. mission

3. message

4. media

5. money

6. measurement

affective appeal

influencing feelings

cognitive appeal

influencing thoughts and beliefs

behavioral appeal

influencing how one acts

Consumers say they like a subscription service and intend to purchase it, but very few actually subscribe. This suggests the company should investigate the:

the Behavior change gap

A consumer has many acquaintances connecting them to several different social circles. Why might this person be valuable for creating virality?

They have many weak ties that can act as bridges

A brand targeting college students discovers its audience spends much more time on social media than reading print newspapers. When choosing media, the company should primarily consider:

The target customer's media consumption habits

flighting schedule

periods of advertising are scheduled between periods of no advertising to reflect seasonal demand

pulsing schedule

a flighting schedule is combined with a continuous schedule because of increases in demand, heavy periods of promotion, or introduction of a new product

what best describes objective-and-task budgeting?

It matches the budget to communication objectives

market penetration

acts as a low-risk business growth strategy to sell more existing products in current markets

A financial service company needs to choose a channel for delivering their retirement products for novice investors. Which consumer need should they consider the most strongly when choosing a channel?

 

information needs

information needs

a gap in a person's knowledge or understanding that they aim to fill by finding facts, data, or ideas from an external source

cost-plus pricing

involves summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price

Lays potato chips are widely available in supermarkets, convenience stores, gas stations, and vending machines. What is the brand's distribution intensity strategy, and what is a key challenge this creates for retailers?

 

Intensive distribution, forcing retailers to compete more aggressively to attract customers