SECTION –A
2. Production Concept is a concept where goods are produced without taking into consideration the choices or tastes of your customers.
It is one of the earliest marketing concepts where goods were just produced on the belief that they will be sold because consumers need them.
5. Subliminal Perception - An advertising message presented below the threshold of consciousness. A visual or auditory message that is allegedly perceived psychologically, but not consciously
6. Selective Distortion is a term that refers to the tendency of people to interpret information in a way that will support what they already believe.
This concept, along with selective attention and selective retention, makes it hard for marketers to get their message across and create good product perception.
7. Concentrated marketing is a market segmentation and market coverage strategy whereby a product is developed and marketed for a very well-defined, specific segment of the consumer population.
The marketing plan will be a highly specialized one catering to the needs of that specific consumer segment.
Concentrated marketing is particularly effective for small companies with limited resources because it enables the company to achieve a strong market position in the specific market segment it serves without mass production, mass distribution, or mass advertising
10. Competition based pricing is a price set by a company for a product to compete with another company's pricing. Production and distribution costs are ignored to drive demand towards another brand. This method of pricing can cause a long-term decrease in product perception and decrease a product's value for future profits.
12. A convenience store is a small store or shop that may sell items such as sweets, ice-cream, soft drinks, lottery tickets, cigarettes and other tobacco products, newspapers and magazines, along with a selection of processed food and perhaps some groceries.
SECTION-B
13. The selling concept takes an "inside-out" perspective (focuses on existing products and uses heavy promotion and selling efforts).
Marketing takes an outside-in perspective It starts with a well defined markert, focuses on customer needs, co-ordinates all the marketing activities affecting customers, and makes profits by creating customer satisfaction.
18. Skimming – Charging High Price during Introduction, Gradually reducing the price
Penetration - Low price , For capturing Maximum Market Share .
21. Need: Is something that is ESSENTIAL for a living (a good or service that you need for survival)
examples: Shelter, clothing & clean water
Want: Is something that you would like to have but it is not essential for living (a good or a service that if you don't have it, you would still survive) examples: Cars, laptops & game consoles
Demand: Simply, it is something that you want to have plus the money for purchasing it (a want that you are able to get because you have the money for getting it)
A product from FMCG like Coke, Pepsi or any other FMCG Goods can be used
22. BUYING SITUATIONS
a) New Task
A business buying situation in which the buyer purchases a product or service for the first time.
b) Modified Rebuy
A business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers.
c) Straight Rebuy
A business buying situation in which the buyer routinely reorders something without any modifications.
24. The product life cycle is generally considered to have four stages:
- Introduction: a period of slow program growth as it is introduced to the target market.
- Growth: a period of rapid market acceptance.
- Maturity: a period of a slowdown in sales growth due to acceptance by most of the potential buyers.
- Decline: the period when sales turn downward because the offering no longer meets the needs of the target market as it once did.
25. INTERNAL FACTORS AFFECTING PRICING
· Marketing objectives
· Marketing mix strategies
· Costs
· Organizational considerations
Marketing objectives
Market positioning influences pricing strategy
• Other pricing objectives:
§ Survival
§ Current profit maximization
§ Market share leadership
§ Product quality leadership
• Not-for-profit objectives:
§ Partial or full cost recovery
§ Social pricing
Marketing mix strategies
• Pricing must be carefully coordinated with the other marketing mix elements
• Target costing is often used to support product positioning strategies based on price
• Nonprice positioning can also be used
Costs
• Types of costs:
§ Variable
§ Fixed
§ Total costs
• How costs vary at different production levels will influence price setting
• Experience (learning) curve effects on price
Organizational considerations
• Who sets the price?
§ Small companies: CEO or top management
§ Large companies: Divisional or product line managers
• Price negotiation is common in industrial settings
• Some industries have pricing departments
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