What is Pure Competition?
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•In a pure competition, a large number of sellers offer relatively
standardized products or commodities
•The products are so undifferentiated that consumers view them as highly
substitutable for one another
•In purely competitive markets, price is typically set based on supply and
demand
What is a complementary product?
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, •A complementary product is a product that adds value to another good or
service when they are consumed together
•Demand for complementary products are positively correlated, meaning
they move up and down together
Ex: Hot dog and bun
What are In-Depth Interviews?
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•In an in-depth interview, trained researchers ask and record the answers to
pre-planned questions, with the freedom to pose additional questions to
clarify or expand on a particular issue
•In-depth interviews provide insights that help managers more deeply
understand consumer preferences
•However, in-depth interviews are relatively expensive and time-consuming
What are the four basic Growth Strategies when entering markets?
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-Market Penetration: (Ex: Chick-Fil-A launces a promotion
"Buy One, Get One Free" deal on their spicy chicken
sandwich. They are encouraging customers to consumer
more of their current product)
-Product Development: (Dove's expansion into deodorants,
shampoos, body washes).
-Market Development: For example, Pedialyte expanding
beyond target of parents and advertising its benefits to
endurance athletes, or Starbucks opening stores in Japan.)
-Diversification: (Ex: McDonald's adding a cafe area as they
, usually specialize in fast food but wants to expand into a
new market with a new product)
What is High/Low Pricing?
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•High/low pricing relies on sales promotions in which prices are
temporarily lowered to encourage purchases
•This kind of strategy attracts both consumers with a high willingness to pay
and consumers who love seeking out deals
•High/low pricing tactics are reliant on a consumer's use of a reference
price in determining the deal
Ex: TJ Max
Why are brands valuable to firms?
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Brand equity, or value derived from the brands itself, can:
ü Facilitate purchases through awareness and associations
ü Establish loyalty from consumers
ü Protect from price competition through perceived value
ü Serve as assets to the firm
ü Impact the market value of the firm
What are five specific Branding Strategies that companies create to manage their
brands?
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, -Private Labels
-Brand Families
-Line Extensions
-Co-Branding & Licensing
-Repositioning
What is Data Collection via Observation?
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Observation entails examining purchase and consumption
behaviors through:
•Personal or video camera recordings
•Tracking customers' movements electronically as they
move through a store or online experience.
Ex: Retail heatmaps show where consumers travel most
frequently in the store.
Red represents the hot zones where shoppers are the most,
yellow less, and blue least.
What is a Profit Oriented Pricing Strategy?
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•Although many firms have the goal of profitability, a profit orientation
strategy a specific way to reach that goal, and is implemented through:
•Target profit pricing
•Profit maximization (economic theory)
•Target return pricing
•A strategy focused on profit maximization relies heavily on principles of
economic theory
•Firms create models using all available data to predict sales and calculate
Give this one a try later!
•In a pure competition, a large number of sellers offer relatively
standardized products or commodities
•The products are so undifferentiated that consumers view them as highly
substitutable for one another
•In purely competitive markets, price is typically set based on supply and
demand
What is a complementary product?
Give this one a try later!
, •A complementary product is a product that adds value to another good or
service when they are consumed together
•Demand for complementary products are positively correlated, meaning
they move up and down together
Ex: Hot dog and bun
What are In-Depth Interviews?
Give this one a try later!
•In an in-depth interview, trained researchers ask and record the answers to
pre-planned questions, with the freedom to pose additional questions to
clarify or expand on a particular issue
•In-depth interviews provide insights that help managers more deeply
understand consumer preferences
•However, in-depth interviews are relatively expensive and time-consuming
What are the four basic Growth Strategies when entering markets?
Give this one a try later!
-Market Penetration: (Ex: Chick-Fil-A launces a promotion
"Buy One, Get One Free" deal on their spicy chicken
sandwich. They are encouraging customers to consumer
more of their current product)
-Product Development: (Dove's expansion into deodorants,
shampoos, body washes).
-Market Development: For example, Pedialyte expanding
beyond target of parents and advertising its benefits to
endurance athletes, or Starbucks opening stores in Japan.)
-Diversification: (Ex: McDonald's adding a cafe area as they
, usually specialize in fast food but wants to expand into a
new market with a new product)
What is High/Low Pricing?
Give this one a try later!
•High/low pricing relies on sales promotions in which prices are
temporarily lowered to encourage purchases
•This kind of strategy attracts both consumers with a high willingness to pay
and consumers who love seeking out deals
•High/low pricing tactics are reliant on a consumer's use of a reference
price in determining the deal
Ex: TJ Max
Why are brands valuable to firms?
Give this one a try later!
Brand equity, or value derived from the brands itself, can:
ü Facilitate purchases through awareness and associations
ü Establish loyalty from consumers
ü Protect from price competition through perceived value
ü Serve as assets to the firm
ü Impact the market value of the firm
What are five specific Branding Strategies that companies create to manage their
brands?
Give this one a try later!
, -Private Labels
-Brand Families
-Line Extensions
-Co-Branding & Licensing
-Repositioning
What is Data Collection via Observation?
Give this one a try later!
Observation entails examining purchase and consumption
behaviors through:
•Personal or video camera recordings
•Tracking customers' movements electronically as they
move through a store or online experience.
Ex: Retail heatmaps show where consumers travel most
frequently in the store.
Red represents the hot zones where shoppers are the most,
yellow less, and blue least.
What is a Profit Oriented Pricing Strategy?
Give this one a try later!
•Although many firms have the goal of profitability, a profit orientation
strategy a specific way to reach that goal, and is implemented through:
•Target profit pricing
•Profit maximization (economic theory)
•Target return pricing
•A strategy focused on profit maximization relies heavily on principles of
economic theory
•Firms create models using all available data to predict sales and calculate
