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Side ASide B
the differences between the 3 categories in the Consumer Product Classification System
Convenience products are purchased frequently with little thought going into the process. Shopping products are purchased after comparison of price, quality, style and color. Specialty...
Total Quality Management
The effort to create and market high-quality goods and services, with constant monitoring and improvement of the product.
purpose of the ISO system?
To ensure consistent quality among products manufactured and sold.
difference between the 4 stages of the Product Life Cycle
The Introductory Stage is where a product is new and unknown to consumers. The Growth Stage is where sales of the product rise and consumers purchase and repurchase products. The...
examples of products in each of the 4 stages of the Product Life Cycle
Introductory – FIOS (fiber optic satellite systems); Growth – IPOD Touch/IPhone; Maturity – Laptop Computers; Decline – Analog televisions
difference between the 4 different product life extension strategies
Increasing Frequency of Use is where total sales will rise even though no new buyers enter the market. This happens when seasonal products are marketed throughout the year. Increasing...
examples of each of the 4 product life extension strategies
Increasing Frequency of Use – UGGS Boots; Increasing the Number of Users – bicycles; Finding New Uses – Aspirin; Changing Package Sizes, Labels, or Product Quality – Coke...
difference between direct selling, channels using intermediaries, dual distribution, and reverse channels
Direct selling is where there is direct sales contact with the final user. Channels using Marketing Intermediaries is when several different channels are used to deliver the product....
difference in the 3 levels of distribution intensity
Intensive Distribution distributes the product through all available channels. Selective Distribution is where a company chooses a limited number of retailers in a market to hand...
examples of products in each of the levels of distribution intensity
Intensive Distribution – M&Ms; Selective Distribution – Computers; Exclusive Distribution – Jaguar.
difference between horizontal and vertical channel conflict
Horizontal channel conflict is between channel members at the same level. Vertical channel conflict is between channel members at different levels.
describe the supply chain
Everyone who is involved in the manufacture, sale, and delivery of goods and services.
describe each of the 6 components of physical distribution
Customer service – how the distribution activities should be supported; Transportation – how the products should be shipped; Inventory control – the amount of inventory that...
difference in the 5 primary objectives of Promotion
Provide Information to Consumers and Others – provide product information to potential customers by advertisements in print, broadcasting, software, etc.; Increase Demand –...
Comparison of the Six Promotional Mix Elements
Personal Selling: Advertising: Sales Promotion: . Direct Marketing: Public Relations: Guerrilla Marketing
Personal Selling: Advantages,Disadvantages
Advantages -- Permits measurement of effectiveness, elicits an immediate response, tailors the message to fit the customer; Disadvantages – Relies almost exclusively on the ability...
Advertising: Advantages ; Disadvantages
Reaches a large group of potential consumers for a relatively low price per exposure, allows strict control over the final message, can be adapted to either mass audiences or specific...
Sales Promotion: Advantages Disadvantages
Advantages – Produces an immediate consumer response, attracts attention and creates product awareness, allows easy measurement of results, provides short-term sales increases;...
Direct Marketing: Advantages , Disadvantages
Advantages – Generates an immediate response, covers a wide audience with targeted advertising, allows complete, customized, persona message, produces measurable results; Disadvantages...
Public Relations: Advantages , Disadvantages
Advantages – Creates a positive attitude toward a product or company, enhances credibility of a product or company; Disadvantages – May not permit accurate measurement of effect...
Guerrilla Marketing: Advantages ; Disadvantages
Advantages – Is low cost, attracts attention because it is innovative, is less cluttered with competitors trying the same thing; Disadvantages – May not reach as many people,...
differences between a skimming pricing strategies, , penetration pricing strategies, and competitive pricing strategies
Skimming pricing strategies (market-plus pricing) involve intentionally setting a high initial price relative to the competition’s price. This provides high margins to support the...
examples of each of the different pricing strategies
Skimming – IPOD; Penetration – Emachines computers; Competitive – cell phone sales
differences between the three global pricing strategies
Standard worldwide price is possible if foreign marketing costs are low and do not affect overall costs; Dual pricing establishes separate domestic and export price strategies;...
Companies create competition within their own products by allowing sales on the internet and in retail stores
describe bundle pricing
Offering products bundled together for one price, even if the consumer does not desire all of the products in the bundle.