tangibles, reliability, responsiveness, assurance, and empathy

what the quality of a service is judged on

utility

the power to satisfy needs

value

relative measurement of the worth of a product in exchange for other products/what the customer feels they give up

price

value expressed in monetary terms/a measure of deferred opportunities

uneasiness, recognizing value, predicting demand, matching pricing policies, competitive pressure, and assessing cost

difficulties in determining price

return on investment

comparing the profit from doing something to what is being invested to do it

profit oriented, sales oriented, and status-quo

pricing objectives

profit oriented

get desired return and maximize overall profit

sales oriented

increase sales volume, capture more customers, and move into new markets

status quo

keeping something as-is stabilize prices, meet competition

cost-plus

method for establishing price the cost of making/acquiring goods + other variable costs to sell the goods + predetermined markup

target pricing

compares a price based on cost plus to a price based on market forces

supply and demand pricing

pricing at the point on the demand curve that maximizes profit

competitor based pricing

matching competitors pricing, pricing below/above competitors

quantity discounts

one-time purchase, pay less per unit for large amounts of units purchased

cumulative discounts

discount increases over a set period of time with multiple purchases

trade discount

selling at a discounted price to buyers in a targeted industry - mechanic/repair shops

cash discounts

discount if the customer pays upfront or within a set amount of time; to encourage immediate payment or encourage a customer who pays on credit to pay quickly

Robinson-Patman Act

a business cannot sell to one business customer for less than it sells to another business customer if it injures competition or unless the price differential = the cost differential (B -to - B only) enforces by the FTC

geographic pricing

impacts where the business is most competitive

F.O.B. destination

seller pays shipping

F.O.B. shipping point

buyer pays shipping

F.O.B.

Free on Board

market skimming

pricing a new product at a high initial price; maximizes the return from each sale

market penetration

low initial price; larger initial market share

leader pricing

pricing one product low to encourage customers to visit your store, so they buy other products at that time, or must continue to buy products to continue using their purchased product in the future

loss leader

selling at less than what it cost to produce; illegal in most states (with exceptions)

odd pricing

setting prices in irregular amounts; makes product seem cheaper than it is

promotion

the communications function of marketing

promotion mix

advertising, personal selling, sales promotions, publicity

advertising

paid-for mass communication

personal selling

one-to-one communication that the business pays for

sales promotions

any attempt to generate interest or excitement in a company's products or the business as a whole (paid-for)

publicity

communication about the business or its products that is not paid for by the business

objective of advertising, personal selling, and sales promotion

move the demand curve for the company's products to the right

advertising may attempt to

persuade, inform, and remind

direct action

intends to move customers to take action in the near future

product advertising

only gives information about the product

competitive advertising

gives information about your product and something about how it's better than your competition in general without giving any names

comparative advertising

names the competitor(s) and tells how your product is better than theirs

indirect advertising

image/brand building; trying to project a positive image of your products or business

advertising campaigns

all promotions need to be done in a way that is structured and fits with the business's overall strategy and goals

ad-hoc advertising

last-minute; rarely works

consumer's mental steps

attention, interest, desire, and action

step 1 of ad campaigns

select target market and know your objectives

step 2 of ad campaigns

determine your objectives; increase short/long-term sales, increase brand awareness, influence stakeholders

step 3 of ad campaigns

determine the budget; know your objective, know what it will take to get there, determine the cost of getting there

step 4 of ad campaigns

select the appeal (creative strategy); emotional appeal or other appeals

emotional appeals

fear, anger, humor, nostalgia, and caring

other appeals

celebrity endorsement, sex, subliminal, and product placement

step 5 of ad campaigns

choose the media

media class

TV, radio, magazines, newspaper, outdoors, direct mail, internet (email or website), and social media

media vehicle

specific site, paper, station, etc.

media schedule

time; sunday, evening news, etc.

step 6 of ad campaigns

evaluate effectiveness; pre-testing and post-testing, aided vs. unaided recall, evaluate based on objectives, difficult to measure

sales promotions

anything that does not fit into one of the other promotion mix strategies

consumer sales promotion techniques

price deals, coupons, rebates, contests, cross-promotions, sampling, and advertising specialties

advertising specialties

to be used in public by a consumer and continue to promote product; merch

forward buying

buy more when there is a sale/promotion, but not more in general

digital media

electronic media that functions using digital codes; available via devices that have been released in recent years

digital marketing

the use of all digital media, including the internet and mobile and interactive channels, to develop communication and exchange with customers

electronic (e-) marketing

distributing, pricing, and promoting products using digital marketing

social network

website where users can create a profile and interact with others

blogs

web-based journals

wiki

type of software that allows users to add to or edit the contents of some types of websites

omni-channel

various marketing channels- mobile, desktop, or traditional retain spaces that provide seamless customer experiences

distribution online

involves a push-pull dynamic

characteristics of digital marketing

interactivity, accessibility, connectivity, control, and addressability

qualitative metrics

customers feelings about the product

quantitative metrics

numbers-based; KPI, click-through rate, etc.