MKT 305 1st EditionExam # 4 Study GuideChapters 11, 13-15Chapter 11 Price“The money or other considerations (including other products and services) exchanged for the ownership or use of a product service”.ValuePerceived benefit/PriceDemand-oriented Pricing ApproachesSkimmingPenetrationPrestigeOdd-evenTargetYield ManagementCost-oriented Pricing ApproachesStandard Mark-upCost-plusTarget ProfitTarget Return on SalesTarget Return on InvestmentCompetition-oriented Pricing ApproachesCustomary PricingAbove, At, or Below Marketing PricingLoss-LeaderChapter 13Retailing“Includes all activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use”.Forms of OwnershipIndependent Retailer (most common)Corporate ChainContractual Systems- Wholesaler-sponsored voluntary chains- Business-format franchises- Product-format franchisesLevel of ServiceSelf-service: gas stationLimited-service: grocery storeFull-service: restaurantDepth vs. Breadth of a LineDepth: Narrow amount of products, but huge selectionBreadth: Many product types, but little selectionWheel of Retailing1. Outlet starts with: low prices, low margins, low status2. Outlet now has: higher prices, higher margins, higher status3. Outlet now has: still higher prices, still higher margins, still higher status4. New form of outlet enters retailing environment with characteristics of outlet in step 1Retail Life CycleIntroduction, Growth, Maturity, DeclineChapter 14Promotional MixMade up of promotional elements: advertising, personal selling, sales promotion public relations, direct marketingCommunication ProcessSourceEncodeChannel of CommunicationMessageNoiseDecodeReceiverFeedback Loop: response, feedbackPromotional ObjectivesTo informTo persuadeTo remindTo phase out*overlap in the real worldPromotion Decision ProcessPlanning: developing the promotion program, pretestImplementation: executing the promotion programEvaluation: assessing the promotion programSpecifying Promotion ObjectivesAwarenessInterestEvaluationTrialAdoptionChapter 15Product AdvertisementsPioneering: new productCompetitive: comparativeReminder: remindInstitutional AdvertisementsAdvocacy: sad dog commercialPioneering: for organization, not its productsCompetitive: “Eat more vegetables”.Reminder: “Spend time with your kids”.Developing the Advertising ProgramIdentifying the target audienceSpecifying advertising objectivesSetting the advertising budgetDesigning the advertisingSelecting the right mediaDifferent Media AlternativesTV, radio, magazines, newspapers, yellow pages, internet, outdoor, direct mailScheduling the AdvertisingContinuous (steady) Schedule: When seasonal factors are unimportant, advertising is run at a continuous or steady schedule throughout the year.Flighting (intermittent) Schedule: Periods of advertising are scheduled between periods of no advertising to reflect seasonal demand.Pulse (burst) Schedule: A flighting schedule is combined with a continuous schedule because of increases in demand, heavy periods of promotion or the introduction of a new product. Publicity ToolsNews release: Announcement regarding changes in the company or the product line.New Conference: Used when new products are introduced or significant changes in corporate structure and leadership are being made.Public service Announcement: What, when where, why? Free space or time donated by the