week 5

marketing mix

the levers that marketing managers pull to create a marketing plan

what are the 4ps?

product, price, promotion, place

what is product for marketers?

anything offered to a market to satisfy a need or want

what are the 4 elements of the BCG boston consulting group business portfolio matrix?

stars, question marks, cash cows, dogs

4 growth strategies

market penetration, market development, product development, diversification

product life cycle (PLC)

intro, growth, maturity, decline

5 different pricing strategies

cost oriented, competitive, demand, value, discrimination

what is cost oriented pricing

a company sets its prices as costs + markup percentage or fixed amount

what does competitive oriented pricing result in

price stagnant market

what is a price stagnant market

if prices increase, lose market share
if prices decrease, others follow

what is gabor-granger

customers indicate their buying intention at a price level then turned into probabilities

pros of gabor granger

simple design, one measurement per price level, robust

cons of gabor granger

no margins of error, assumes data accuracy, assumes optimal price is actually measured

how to implement revenue management

estimate demand, update demand, allocate remaining space to max profit

advertising budgeting methods

affordable, percent of sales, competitive parity, objective, model based

3 promotional types

trade, consumer, retailer

elements of product

brand, packaging, services, functionality

elements of price

list price, discounts, credit terms, bundling

elements of promotion

advertising, sales force, publicity, sales promotion

elements of place

channels, inventory, logistics, distribution

examples of cost oriented pricing

markup, cost plus

what is the effect of inelastic demand on markup over marginal cost

high

going/imitative pricing

a firm tries to keep its price at the average level charged by the industry

common characteristics used to price discriminate

age, income/education, profession, membership

4 things a firm needs to know to model promotional effects

objectives, characteristics of promotion types, effectiveness of promotions, range of promotion decisions

3 contributions of sales promotion techniques

communication, incentive, invitation

what need to be known to set appropriate prices

customers willingness to pay, production cost, reactions

4C’s

clear, clean, concise, captivating

exploratory vs explanatory

exploratory is looking at whole graph