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3 Types of Convenience Products: Staples, Impulse &EmergencyCapital Item(necessary element in setting price) – Long lasting product that can be depreciated (examples: an installation, buildings, land rights, major equiopment in business/company. For tax purposes, the cost is spread over a number of years.Mass Marketing– lowest level that doesn’t involve any segmentation at all.Micro-Marketing– highest level where firms try to offer products/services to suit individual customers’ needs.Niche Marketing– caters to segments within segments of customers.Segment Marketing– offers different products for different groups of customer (not at individual levels).Macro Marketing– marketing at the societal level Unitary Elasticity– occurs when the total revenue stays the same when the price of a product is changed.Advertising Standard Commission Rate is 15%.(example: what would ad agency receive for a magazine ad that cost $20,000? $20,000 x 15% = $3,000.)Pleasing Products– are not good for consumers’ in the long run, but do give immediate satisfication. i.e,disposable diapers.Desirable Products– gives immediate satisfaction and is good for consumers in the long run.Deficient Products– do not satisfy consumers in the long run or provide immediate satisfication.Salutary Products– are good for cosnumers in the long run, but do not give consumers immediate satisfaction.Descriptive Buying Method– form of buying a product through a written/verbal description and is often done without inspection.Inspection Buying– inspecting (careful examination) every item before you buy it.Sampling Buying- looking at only part of the potential purchase, making the assumption that the whole purchase will be of the same standards.Negotiated Contract Buying– agreeing to a contract to purchase, but the contract allows for changes in the purchasing arrangements.Regrouping Activities– adjust the quantities and assortments of products handled.Bulk-breaking– dividing larger quantities into smaller quantitiesPerceptual Map– 2-dimensional diagram that depicts a brand’s “position” along 2 product attributes in relation to its competition. (Used in product positioning)Nonbusiness Marketing– marketing activities undertaken by groups without an objective of profit, ROI (Return on Investment), or market share. (ex: beer manufacturer running ad campaign to reduce teenage drinking).Learning– change in a person’s thought processes caused by prior experience.Cue– product sign, ad, or other stimuli in the environment.Responses– efforts to satisfy a strong stimulus that encourages action.
Oligopoly– competitive structure existing when a few sellers control the supply of a large proportion of a product.Reverse Channels– used to retrieve products that consumers no longer want.Exclusive Dealing– forbids an intermediary to carry products of a competing manufacturer.A Tying Agreement- requires a channel member to buy other products from a supplier besides the one preferred by the channel member.