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MARK 3321 Exam 4 Study Guide

by: Faris Hijjazi

MARK 3321 Exam 4 Study Guide MARK 3321

Faris Hijjazi

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The document shown is a study guide for Exam 4. Elten Briggs - Principles of Marketing
Principles of Marketing
Elten D Briggs
Study Guide
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This 6 page Study Guide was uploaded by Faris Hijjazi on Wednesday April 20, 2016. The Study Guide belongs to MARK 3321 at University of Texas at Arlington taught by Elten D Briggs in Summer 2015. Since its upload, it has received 125 views. For similar materials see Principles of Marketing in Marketing at University of Texas at Arlington.


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Date Created: 04/20/16
Principles of Marketing 3321 – Study Guide Exam 4 Chapter 20: Pricing Concepts  What is price? Define price.   The importance of price to Marketing managers ­ Revenue ­ Profit   Pricing Objectives.  ­ Profit oriented ­ Sales oriented  ­ Status quo oriented  The demand determinant of price.  ­ Supply  ­ Demand  ­ Price equilibrium  ­ Elasticity of demand  ­ Understand the supply and demand graph.   Elasticity of demand. ­ Know the formula for calculating elasticity (Change in quantity  demanded / change in price)  ­ Inelastic demand  ­ Elastic demand  ­ Unitary demand  ­ Know how to distinguish between elastic and inelastic demand (when  price goes up, demand goes down, etc.)   Factors that affect the elasticity of demand:  ­ Availability of substitutes  ­ Price relative to purchasing power  ­ Product durability  ­ A product’s other uses  ­ Rate of inflation   Yield management systems. Define and understand.   The cost determinants of price.  ­ Fixed costs ­ Variable costs   Break­even pricing.  total ­ Break­even quantity =  ¿costs ¿ ¿costcontribution ­ Fixed cost contribution = price – average variable cost   Profit maximization pricing. ­ Profit maximization  ­ Marginal revenue  ­ Marginal cost  ­ Break­even analysis   Markup pricing. Define and understand  cost ­ Price =  1−desiredreturnonsales ­ Keystoning.   Other determinants of price:  ­ Stages of the product life cycle ­ Competition  ­ Distribution strategy  ­ Promotion strategy  ­ Perceived quality (prestige pricing) Chapter 21: Setting the right price   How to set a price on a product or service? Know the steps to establishing  the right price.   Choose a price strategy ­ Price strategy  ­ Price skimming  ­ Penetration pricing  ­ Status quo pricing   Situation when price skimming is successful. ­ Inelastic demand  ­ Unique advantages/superior  ­ Legal protection of product ­ Technological breakthrough ­ Blocked entry to competitors   Penetration pricing:  ­ Can lead to lower costs per unit as production expands ­ Discourages competition from market entry  ­ Most effective when the market price is sensitive   The legality of price strategy.  ­ Unfair trade practices  ­ Price fixing  ­ Price discrimination ­ Predatory pricing   Tactics for fine­tuning the base price, other pricing tactics.  ­ Single price tactic ­ Flexible pricing  ­ Trade­ins  ­ Professional services pricing  ­ Price lining  ­ Leader pricing  ­ Bait pricing  ­ Odd even pricing  ­ Price bundling  ­ Two­part pricing   ­ Pay what you want   Consumer penalties. Know when to incur penalties.   Product line pricing. ­ Product line pricing  ­ Joint costs ­ Read and be familiar with equations to determine fixed, costs,  variable costs, total costs, etc. These equations can be found in the  book or under Course Materials under BlackBoard.  Chapter 16: Marketing Communications   The role of promotion.  ­ Promotion  ­ Promotional strategy  ­ Competitive advantage   Communication:  ­ Communication. Define and understand   Categories of communication:  ­ Interpersonal communication ­ Mass communication   The communication process. Understand how the process ­ Encoding  ­ Decoding  ­ Noise  ­ Feedback  ­ Sender  ­ Receiver   Characteristics of the Elements in the Promotional Mix. Refer to Figure  16.4 in the textbook to read and understand these characteristics.   The AIDA concept. Understand and identify the parts of the AIDA concept.  ­ Attention  ­ Interest  ­ Desire  ­ Action   The promotional mix and AIDA. Refer to Exhibit 16.5 in the textbook.   Integrated marketing communications. Define and understand.  Factors affecting the promotional mix. ­ Nature of the product ­ Stage in PLC (Product Life Cycle) ­ Target market factors  ­ Type of buying decision  ­ Available funds  ­ Push or pull strategy (Refer to Exhibit 16.7 in the textbook to  understand more about the push and pull strategy)  Chapter 17: Advertising, Public Relations, and Sales Promotions.   The effects of advertising. ­ Advertising. Define and understand   Major types of advertising:  ­ Institutional advertising  ­ Product advertising  Pioneering   Competitive   Comparative  Creative decisions in advertising.  ­ Advertising campaign. Define and understand.  1. Determine the advertising objectives.  2. Make creative decisions/make media decisions.  3. Evaluate the campaign.   Setting objectives: The DAGMAR Approach.  ­ Define target audience  ­ Define desired percentage change  ­ Define the time frame for change   Common advertising appeals.  ­ Refer to Exhibit 17.1 in the textbook to read about the different types  of advertising appeals.   Unique selling position. Define and understand.   Media decisions in advertising. Know the advantages and disadvantages of  using the following advertising media.  ­ Newspapers  ­ Magazines  ­ Radio  ­ TV ­ Outdoor media   Media decisions in advertising.  ­ Internet  ­ Alternative media   Media selection considerations.  ­ Cost per contact ­ Cost per click  ­ Reach  ­ Frequency  ­ Audience selectivity  ­ Medium flexibility  ­ Noise level  ­ Medium life span   Media scheduling.  ­ Continuous  ­ Flighted  ­ Pulsing  ­ Seasonal   Public relations.  ­ Public relations. Define and understand.  ­ Public relations tools:   New product publicity   Product placement   Consumer education  Sponsorship  Experiential marketing   Company websites   Managing unfavorable publicity.  ­ Crisis management. Define and understand  Sales promotion.  ­ Sales promotion. Define and understand ­ Consumer sales promotion ­ Trade sales promotion  Tools for trade sales promotion:  ­ Trade allowance  ­ Push money   Coupons and Rebates. ­ Coupon. Define and understand  ­ Rebate. Define and understand  ­ Premium. Define and understand  Tools for consumer sales promotion: ­ Loyalty marketing programs  ­ Contests and sweepstakes  ­ Samples  ­ Point­of­purchase promotion ­ Online sales promotion


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