MKTG 321- Test 3 notes

MKTG 321- Test 3 notes - MKTG 321 Test 3 notes 10/20/06...

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MKTG 321 – Test 3 notes 10/20/06 Example in the beginning of class: o Nike shoes benefits from urban teens, then Nike needs to benefit those teens, somehow. o Marchman – hire intern to run a program, benefit many students to earn an edge. Video: Wal-mart with Kleeber cookies [Ernie’s Safety Safari] o Kids have an enjoyable time at their local participating Wal-Mart o Made ID cards with their fingerprints and gave it to them o They interacted with their target market in a beneficial way o Gave out free cookies to promote new favors The Nature of Price o Price – the value exchanged for products in a marketing transaction. Everything the buyer gives up to consume a product. o Barter – the trading of products oldest form of exchange Ex: Pepsi – when the former USSR was in Russia, inflation went up ridiculously 1000%. Pepsi did a barter trade with the Russians, trading their products for Vodka. McDonald’s – after seeing Pepsi getting benefits from this type of trade, they went to Russia to do the same thing and bought a lot of real estate, in which was recaptured by the Russians, so it didn’t work as well as it did for Pepsi. The Importance of Price o It is readily changeable characteristic (under favorable circumstances) of a product. o Price is often the fastest, easiest change and easy for competitors to copy, they can easily copy and respond to changes. o It is a key element in the marketing mix because it relates directly to the generation of total revenue. o Price also has a psychological impact on customers, marketers can use it symbolically. o Price competition – emphasizing price as an issue and matching or beating competitors’ prices. An effective strategy in marketers with standardized products. Lowest-cost competitors (seller) will be most profitable Allows markets to respond quickly to competitors Price wars can weaken competing organization Example: Fiji vs. Kodak – Fiji lowered the price on the 35mm film due to advancement with technology (digital cameras). Kodak did
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the same thing. Both were having a price war all until they were making only $0.10 per film. o Nonprice competition – emphasizing factors other than price to distinguish a product from competing brands, such as: Product features Service Product quality Promotion Packaging Allows a company to increase a brand’s unit sales without changing the brand’s price. Advantage: firm can build costumer loyalty toward its brand.
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MKTG 321- Test 3 notes - MKTG 321 Test 3 notes 10/20/06...

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