Possible Essay Questions for Prelim 3
What are the pricing objectives?
Marketshare, profit (short and long run), sales, unit volume, survival,
What are the functions performed by intermediaries (marketing channel)?
Transactional: buying, selling, risk taking (inventories)
Logistical: assorting, storing, sorting, and transportation
Facilitating: finance, grading, and market research
What are the pricing constraints?
Demand, stage in PLC, competition, cost for marketing actions, cost floor,
Legal: fixed pricing, deceptive, discriminatory, predatory
What are the different marketing channel structures?
Consumer marketing channel
Indirect (the most indirect): producer
It goes the most indirect route when there are many small
producers and retailers
consumer for small, low
value products that are bought frequently by consumers, i.e. candy,
consumer for large retailers and when the
product is too expensive to be kept in inventories at wholesalers
Business goods and services
A producer will sell directly if the product takes skilled
installation and education for the industrial user to use, the
buyers are large and well defined, intense negotiations on
industrial distributor (serves the
same purpose as a wholesaler in the consumer marketing channel