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Ignore demand, costs, or both. Hard to evaluate a service because it lacks search qualities.
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Unfair Trade practice acts laws that prohibit wholesalers and retailers from selling below cost, meant to protect small firms, lax enforcement Price Fixing an agreement between two or more firms on the price that they will charge for a product, vigorous enforcement.
Advertising, social media, publicity, and other works to gain leads. Requires gear up for mass production, large volumes at low prices, strategy to gain market share may fail Status Quo Pricing charging price identical or very close to competitors pricing. Consumer must seek out the product. Must find a way to synchronize supply and demand Revenue oriented pricing maximizing the surplus of income over costs Operations oriented match supply and demand by varying proces Patronage oriented maximize the number of customers using the service Retailers firms that sell mainly to consumers Merchant Wholesaler an institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers and that receives and takes title to goods, stores them in its own warehouses, and later Nancy sirianni dating game them Agents and Brokers wholesaling intermediaries who do not take the title to a product but facilitate its sale from producer to end user by representing retailers, wholesalers, or manufactures Intensive Distribution a form of distribution aimed at having a product available in every outlet where target customers might want to buy it.
One or a few dealers in a certain area and people often have to travel to buy the product. Must rely on tangible cues to market services. Predatory Pricing charging a very low price for a product with the intent of driving competitors out of business or out of a market.
Retailers' willingness to carry items tends to control manufacturer's ability to achieve this Selective Distribution a form of distribution achieved by screening dealers to eliminate all but a few in a single area.
Allows firm to recover product development costs quickly. Simple and safe for small Tinder type dating apps. Anchoring- high priced item used for basing other items Penetration pricing charging a relatively low price for a product as a way to reach the mass market.
Once out then the firm raises its prices. Services exhibit more experience and credence qualities. Will encourage competitors to enter the market.
Personal experience and reasoning, social influences, marketing influences Consumers can reduce cognitive dissonance by: Consumer specialty goods, a few shopping goods, and major industrial equipment.
Exclusive Distribution a form of distribution that establishes or a few dealers in a given area. Blocked entry of competition: Can also happen within a retailer's sotre when they refuse to sell competing brands.
Post-purchase behavior Evoked Set a group of brands resulting from an information search, from which a buyer can choose. Most prove trying to weed out competition and prices below variable costs.
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Works best when people are wiling to pay a higher price. Discourages or blocks competition, boosts sales and provides profit increases, can justify production expansion, and effective in a price sensitive market.
Rely less on group norms, well educated, and use scientific sources. A low value product that is purchased frequently may have a lengthy channel. TCU- Nancy Sirianni Spring STUDY PLAY Marketing Orientation a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product Marketing Concept the idea that the social and economic justification for an organization's existance is the satisfaction of customer wants and needs while meeting organizational objectives Marketing Objectives a statement of what is to be accomplished through marketing activities must be: FOB origin pricing buyer absorbs the freight costs from the shipping point free on board Uniformed delivered pricing the seller pays the actual freight charges and bills every purchaser an identical flat freight charge Zone pricing US is divided into zones and there is a flat rate depending upon the zone that the customer is located in Freight Absorption pricing seller pays all or part of the actual freight charges and does not pass them onto the buyer Basing-point pricing seller designates a location as a basing point and charges all buyers the freight cost from that point regardless of the city from which the goods were shipped Features.
Services are also inseparable from their provider and therefore the quality of employees is important Heterogeneity the variability of the inputs and outputs of services, which causes services to tend to be less standardized and uniform than goods, consistency and quality control can be hard to achieve Perishability the inability of services to be stored, warehoused, or inventoried.
Effective communication, follow-up, guarantees, warranties Selective Exposure consumer notices certain stimuli and ignores others Selective Distortion consumer changes or distorts information that conflicts with feelings or beliefs Selective Retention consumer remembers only that info that supports personal belief Belief an organized pattern of knowledge that an individual holds as true about his or her world Attitude a learned tendency to respond consistently toward a given object Criteria for successful market segmentation: Aimed at maximum market coverage.
Inseparability the inability of the production and consumption of a service to be separated; consumers must be present during the production.
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