MRKTNG 3000 1nd Edition Exam 3 Study Guide Lectures 12 15 Lecture 12 April 2 Pricing strategy new products Penetration pricing set price low immediate market share Price skimming set price high quick large profits Conditions favoring new product pricing strategies Penetration Price elasticity high Standards issue present Technological change Low Entry barriers Low Skimming PE Low SI Absent TC High EB High Pricing strategy existing products Perishability distinctiveness nature of competition based on product characteristics Pricing methods Mark up pricing unit variable cost fixed costs unit sales unit cost Markup pricing calculation based on the selling price unit cost desired return on sales markup price Perceived value pricing Going rate competitive pricing Break even analysis Break even point that quantity of output at which total revenue equals total costs assuming a certain selling price Equals total fixed costs price unit variable costs Promotional pricing Loss leader Special event Cash rebates Low interest financing Longer payment terms Warranties and service contracts Psychological discounting deceptive reference prices Discriminatory pricing to consumers Legal as long as it doesn t hinder competition Price discrimination Texas Pharmaceuticals Top 5 drugs 131 higher Synthroid 1597 higher Should it be legal For it to work Market must be segmentable No selling across segments Servicing segments cannot be greater that profits gained Must not breed resentment or ill will Must be legal Lecture 13 April 7 Integrated marketing communications Personal selling Sales promotions Public Relations Advertising Concept of designing marketing activities advertising personal selling sales promotion public relations to provide a consistent message across all audiences is referred to as integrated marketing communications IMC Promotion Advertising paid form of nonpersonal communication Personal selling two way personal communication most expensive Public relations communications management that seeks to influence stakeholders Sales promotion short term inducement of value to arouse interests e g coupons samples contests etc Promotional mix Target audience stakeholders other than consumers Channel members Consumers Product life cycle 1 Intro a Publicity advertising to stimulate personal selling to channel members 2 Growth a Advertising differentiation personal selling to channel members 3 Maturity a Reminder advertising sales promotion 4 Decline a Very little promotion Stages of buying decision 1 Pre purchase 2 Purchase 3 Post purchase Channel strategies Push strategy Target channel members Personal selling Sales promotion Pull strategy Target consumers end users Lecture 14 April 9 Advertising Major advertising decisions Objectives setting budget decisions message decisions media decisions campaign evaluation Task Target Time advertising objectives Informative advertising build primary demand Persuasive advertising build selective demand Comparison advertising compares one brand to another Reminder advertising keeps consumer thinking about a product 5 Ms Mission sales communication goals Money Factors to consider Stage in the PLC Market share and consumer base Competition and clutter Advertising frequency Product substitutability Message Message generation social responsibility message execution message evaluation selection Media Reach frequency Impact major media types specific media vehicles media timing geographical media allocation Measurement Communication impact sales impact Lecture 15 April 14 Branding Name symbol that identifies a distinct product Keys to enduring brand leadership Vision of mass market Managerial persistence Financial commitment Relentless innovation Asset leverage Brand management challenges Brand proliferation Media fragmentation More knowledgeable consumers Building a brand Establish brand identity Design brand meaning Elicit brand imagery Create customer relationships P G is the king of branding Product line strength Line stretching down market up market two way Other Product characteristics Warranty terms of compensation for product failure Signal of quality Good packaging functional value attention getting provides info