chapter 15 - Summary**

Question 1

What is total product offer?

Answer 1

everything that customers evaluate when deciding whether to buy something

Question 2

whats included in TPO (total product offer) (PBS)

Answer 2

Includes:
price
brand name
satisfaction in use

Question 3

What are the functions of packaging (7)

Answer 3

1. attracts buyers attention
2. protect the goods inside, stand up under handling and storage (temp proof, deter thief)
3. be easy to open and use
4. described the contents
5. Explain the benefits of the product
6. explains warranties, warming, hazards
7. indicates price, value , uses

Question 4

What is the product life cycle?

Answer 4

It is a theoretical model of what happens to sales and profits for a product class over time

Question 5

What are the 4 stages of the product life cycle? (IGMD)

Answer 5

1. introduction
2. growth
3. maturity
4. decline

Question 6

What are pricing objectives? (PMIST)

Answer 6

1. achieving a target profit
2. building traffic
3. increasing market share
4. creating an image
5. Meeting social goals

Question 7

What is the break-even point?

Answer 7

at the break-even point
total cost = total revenue

Sales beyond that point are profitable

Question 8

What strategies can marketers use to determine a product’s price?

Answer 8

For new products:
A skimming price or a penetration price strategy is considered

other strategies
cost-oriented pricing
demand-oriented pricing
Competition-ordained pricing

Question 9

pricing strategies

Answer 9

pricing -
one of the easiest marketing strategies to copy

this is why
- not a good long-run companies

Question 10

Why do companies use non-price strategies?

Answer 10

• They are harder to copy
• including offering great service
• educating costumers
• establishing long term relationships with consumers

Question 11

Marketing Channels (WBAR)

Answer 11

A channel of disruption consists of marketing intermediaries
- agents
- brokers
- whole salers
- retailers

** Join together to transport goods in their channel for producers to customers

Question 12

marketing intermediaries (TRASS)

Answer 12

perform certain marketing tasks faster than manufacturers could

• transporting
• sorting
• selling
• advertising
• relationship building

Question 13

What do marketing intermediaries ensure

Answer 13

these channels of disruption ensure

• that communication flows
• flow money
• the title of good
• right quantity available, where & when needed

Question 14

What is a retaliator?

Answer 14

An organization that sells to consumers

Question 15

Why is retailing important?

Answer 15

• it is important to the Canadian economy
• in 2020, retail trade was approximately $606 billion and employed more than 2 million people

Question 16

What is non-store retailing?

Answer 16

retailing done outside a traditional store

Examples:
- electronic retailing
- telemarking
- vending machines
- kiosks
- carts
- direct selling

Question 17

What is promotion ?

Answer 17

promotion is an effort by marketers to inform and remind people in the target market about products and persuade them to participate in exchange

Question 18

What are the 5 traditional promotion tools that make up the Promotional mix?(DAPPS)

Answer 18

1. advertising
2. personal selling
3. public relations
4. sales promotion
5. direct marketing (ex. telemarking)

Question 19

word of mouth promotion

Answer 19

• people tell other people about products they have purchased
• blogging
• podcasting
• mobile marking