Study Guide Dr. Reynolds MKT 300 Exam 3Overall, it is a good idea to know all of the terms discussed in class and on the slides (and on this study guide). You should know be able to recognize an example of each. It is a good idea to read the chapters and the examples in the chapters to get a broader understanding of the concepts. You should study your notes for examples given in class that are not in the book, for information in the video clips, and for information from the guest speaker. The examples and current events/trends discussed in class WILL be on the exam.Chapter 14Price, value, the five Cs of pricingeverything that I covered in class hereMacro influencesChapter 15Overall the cost based, competitor based and value based considerationsEDLP and high/low; new product strategiesskimming and penetrationPricing tactics aimed at consumers and businessesLegal and ethical aspectsChapter 16SCM, Channels, logistics, value, distributionInformation flowdata warehouse, EDI, VMI, CPFR, RFIDMerchandise flowdistribution center vs. direct, activities in a distribution center and things associated with this, inventory managementChannel relationshipscharacteristicsChapter 17What is retailing, distribution intensityintensive, exclusive, selectiveTypes of retailersfood, general merchandise, services, otherRetail strategyfour psBenefits of stores, benefits of internet and multi-channel retailing; what is needed for effective multi-channel retailing?Chapter 18What is IMC?AdvertisingPublic RelationsSales promotion

Price, ValueEx price- Consumer will have to drive additional 20 miles. Decides time and travel costs are not worth the savings, judges overall cost of buying product to be lower. Price is the overall sacrifice consumer is willing to make to aquire good. Can include money to be paid to seller to aquire item, or value of time necessary to get item, travel costs, taxes, shipping costs.Value- relationship between the products benefits and consumers costs. Consumers judge benefits that product delivers against the sacrifice necessary to obtin it, then make purchasing decision. Key to successful pricing is to match p/s with consumers value perceptionsIn this equation price provides info. About quality of p/s Price set to low may signal poor quality, performance or other things Price is only part of MM that does not generate costs, instead generates revenue.100% markup = keystonning

5 cs1) Company objectivesGoals>pricing strategy pricing of p/s should help reach overall goalsReflect how firm intends to grow. 1.1) Profit orientation- focusing on target profit pricing, maximizing profits, target return pricing.a) Target profit pricing when firms have a particular profit goal as their overidding concern, firms use price to stimulate a certain level of sales at a certain profit per unit.b) Maximizing profits economic theory. mathmatical model captures all factors required to explain and predict sales and profits should identify the price where profits are maximized. Problem is that gathering data on factors and coming up with accurate model is difficult.c) Target return pricing pricing strategies designed to produce a specific return on investment usually % of sales. When firms are less concerned with absolute level of profits and more interested in the rate which profits are generated relative to investments.1.2) Sales orientation when firms set prices believe increasing sales will help firm more than increasing profits. When firm wants to get consumers familiar with new product. Fims may be concerned about overall market share rather than dollar sales because they believe market share shows their success better than sales alone. Does not always mean setting prices low, rarely is the lowest pricced item the domiant brand. Value is not over expressed in sales oriented strategies, it is at least implicit cause for sales to increase consumers must see greater value.1.3) Competitor Orientation- when firms strategize according to the premise that they should measure themselves against competition.a) competitive parity set prices that are similar to competitorsb) Status quo pricing changes prices onlu to meet those of competition. Value is only implicitly considered in competitor oriented strategies, but in the sense that competitors may be using value as part of pricing strategies, copying their strategy may provide value.1.4) Consumer oriented- when firm sets its pricing strategy based on how it can add value to its p/s. May offer high priced state of the art p/s in anticipation of limited sales. Designed to enhance companies rep. and image therby increase the companies value in concumers minds. Setting prices with close eye to how consumers develop perceptions of value can be the most effective price strategy, especially with advertising and distribution strategies.2nd step look forward toward consumer demand to lay foundation

1 Under Armor- Vert2 Which of the following- jewl3One thing makes p/s Services are int4Patricia- The competition5Typically man- Electronic6Spirit- a la carte7Compared to other IMC- creating awareness8New delta- Business travelers9Wal mart- everyday low10according to class- 80%1112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960616263646566676869707172737475