MARK 3321 Exam 4 Study Guide
MARK 3321 Exam 4 Study Guide MARK 3321
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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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