University of Texas, Dallas - MKT 3300.0 MKT 3300: Exam 3 Review

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1. Key Terms 1) Rating: 2) Reach: 3) Frequency: 4) Gross rating points (GRPs): 5) Cost per thousand (CPM): 6) Infomercials: 7) Product placement: 8) Break-even point (BEP): 9) Fixed c... ost (FC): 10) Variable cost (VC): 11) Marginal cost (MC): 12) Price elasticity of demand: 13) Customary pricing: 14) A fixed-price policy 15) A dynamic pricing policy 16) A price war 17) Everyday low pricing (EDLP): 18) Price discrimination 19) Predatory pricing: 20) Marketing channel 21) Dual distribution: 22) Strategic channel alliance: 23) Channel conflict: 24) Channel captain: 25) Supply chain: 26) Markup: 27) Markdown: 28) Off-price retailing: 29) Ethics: 30) Laws: 31) Social Responsibility: 32) Profit responsibility: 33) Stakeholder responsibility: 34) Societal responsibility: 2. Knowledge and Application CH18 Advertising, Sales Promotion, and Public Relations 4. Advertising Media 1) Television 2) Radio 3) Magazines 4) Newspapers 5. Three Different Approaches to Schedule Advertising 6. Sales Promotion Methods 1) Coupons 2) Deals 3) Premiums 4) Contests 5) Sweepstakes 6) Samples 7) Loyalty programs 8) Point-of-Purchase Displays 9) Rebates 10) Product placement 7. Publicity Tools 1) News release 2) News conference 3) Public service announcements (PSAs) Nonprofit organizations rely heavily on public service announcements (PSAs), which are free space or time donated by the media. CH13 Building the Price Foundation 1. Price Equation Final price = List price – (Incentives + Allowances) + Extra fees 2. Pricing Objectives 1) Profit 2) Sales: 3) Market share: 4) Unit volume: 5) Survival: 6) Social responsibility: 3. Pricing Constraints Pricing constraints are factors that limit the latitude of prices a firm may set. 4. Factors Affecting Demand Of course, price is one factor. But price is not the complete story in estimating 5. Price Elasticity Elastic demand exists when a small percentage decrease in price produces a larger . 6. Calculating a Break-Even Point. 7. Profit Equation CH14 Building the Price Foundation 1. General Pricing Approaches 1) Demand-oriented— 2) Cost-oriented— 3) Profit-oriented—. 4) Competition-oriented— 2. Demand-oriented Pricing The price setter weighs factors underlying expected customer tastes and 1) Skimming pricing Skimming pricing involves setting the highest initial price that customers who 2) Penetration pricing Penetration pricing involves setting a low initial price on a new product to appeal 3) Prestige pricing Consumers may use price as a measure of the quality or prestige of an item so that 4) Price lining Price lining involves setting the price of a line of products at a number of different specific pricing points. 5) Odd-even pricing Odd-even pricing involves setting prices a few dollars or cents under an even number ($499.99 vs. $500.00). 6) Target pricing Manufacturers estimate the price that the ultimate consumer would be willing to 7) Bundle pricing Bundle pricing is selling two or more products in a single package price. Consumers are believed to value the package more than the individual items 8) Yield management pricing 3. Target Profit Pricing. Target profit pricing involves setting an annual target of a specific dollar volume of profit. P = $55 4. Target Return-on-Sales Pricing. To calculate a target profit price for a picture frame store: Target Return on Sales = 20%; UVC = $22; FC = $26,000; Q = 1,250. 250P = 1,250P – $53,500 250P = 1,250P – $53,500 1,000P = $53,500 P = $53.50 5. Competition-Oriented Pricing Approaches 1) Customary pricing. 2) Above-, at-, or below-market pricing. 3) Loss-leader pricing CH15 Managing Marketing Channels and Supply Chains 1. Functions Performed by Intermediaries. 1) Transactional function: buying, selling, and sharing risk with the producer by 2) Logistical function: the details of preparing and getting a product to buyers and 3) Facilitating function: assists producers in making the transactions of goods and A marketing channel consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users. The four main types of marketing channels are: 2) business product and service marketing channels, consisting of a) direct channels, 3) electronic marketing channels, which employs the Internet to make products and 3. Vertical Marketing Systems 1) Corporate vertical marketing systems combine successive stages of production and 2) Contractual vertical marketing systems consist of independent production and 3) Administered vertical marketing systems achieve coordination at successive stages of 4. Contractual VMS 1) Wholesaler-sponsored voluntary chains involve a wholesaler that develops a 2) Retailer-sponsored cooperatives exist when small, independent retailers form an. 3) A franchise program is a contractual arrangement between a parent company (a 5. Three Degrees of Distribution Density 1) Intensive distribution: when a firm places its offerings in as many outlets as possible. It 3) Exclusive distribution: is when only one retail outlet in a specific geographical area 3) Selective distribution: is when a firm selects a few retail outlets in a specific 6. Two Types of Channel Conflict 1) Vertical conflict. Vertical conflict occurs between different levels in a marketing channel, such as a manufacturer and a retailer. Three sources of vertical conflict are: a) Disintermediation is channel conflict that arises when a channel member bypasses another member and sells or buys products direct. b) Conflict over how profit margins are distributed among channel members. c) When manufacturers believe wholesalers or retailers are not giving their products adequate attention. 2) Horizontal conflict. Horizontal conflict occurs between intermediaries at the same level in a marketing CH16 Retailing and Wholesaling 1. Three Levels of Service Offered by Retail Outlets 2. Retail Positioning Matrix 3. Three Variations of Off-price Retailing 1) Warehouse clubs like Sam’s Clubs and Costco Warehouse Club. These large stores 2) Outlet stores like Van Heusen Factory Store, Bass Shoe Outlet, and Gap Factory Store. 3) Single-price or extreme value retailers such as Family Dollar, Dollar General, and CH4 Ethical and Social Responsibility in Marketing 1. Difference between Ethics and Laws 2. Factors That Influence Ethical Marketing Behavior The three major factors affecting business ethics are societal culture and norms, business culture and industry practices, and corporate culture and expectations. 3. Two Most Common Kinds of Unethical Competitive Behavior 1) Economic espionage is the clandestine collection of trade secrets or proprietary 2) The second form of unethical competitive behavior is giving and receiving bribes and 4. Two Types of Personal Moral Philosophy Moral idealism is a personal moral philosophy that considers certain individual Utilitarianism is a personal moral philosophy that focuses on “the greatest good 5. Three Concepts of Social Responsibility 1) Profit responsibility holds that companies have a simple duty to maximize profits for 2) Stakeholder responsibility focuses on the obligations organizations have to those who 3) Societal responsibility refers to obligations that organizations have to the preservation. 6. Green Marketing Green marketing refers to a company’s marketing efforts to produce, promote, 7. Cause Marketing Cause marketing occurs when the charitable contributions of a firm are tied [Show More]

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