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Lecture 5

AFM131 Lecture Notes - Lecture 5: Psychological Pricing, Marketing Buzz, Brand Equity


Department
Accounting & Financial Management
Course Code
AFM131
Professor
Thomas Manning
Lecture
5

Page:
of 4
Start October 13/15
AFM Module 5
oexplain the concept of a total product offer and the functions of packaging;
odefine key terms in branding;
odescribe the product life cycle;
oidentify various pricing objectives and strategies;
oexplain the concept of marketing channels and the value of marketing intermediaries;
odiscuss retailing and the various kinds of non-store retailing; and
oevaluate the traditional tools that make up the promotion mix.
CHAPTER 15 TEXTBOOK
Product dierentiation: creation of real
or perceived product di"erences
The total product o"er:
Packaging
functions
Attract attention
Protection
Easy to use
Describe contents
Explain bene*ts
Detail warranties, warnings
Indication of price/value
The Total Product Oer:
Product Line: group of products that are
physically similar or intended for a similar market
Product Mix: combination of product lines o"ered
Branding: Identi*able
name, symbol, or design (or combination) that identi*es the
goods/services
of a seller
Buyer perspective
Seller perspective
Brand awareness:
how quickly a brans name comes to
mind when a product category is
mentioned
Brand loyalty:
degree to which customers are
satis*ed, enjoy the brand, and are committed to further
purchase
Total product
oer:
everything that
consumers
evaluate
when deciding to
buy
values:
getting
good quality
at a fair
price
consider
tangible and
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Start October 13/15
Product Life Cycle: Di"erent stages in the product life cycle
call for di"erent marketing strategies
What can you do at the
maturity stage?
product
price
place
promotion
Not all individual
products follow the life
cycle
Crayons
2
Start October 13/15
How market forces a"ect
pricing
Demand-oriented
pricing: di"erent
customers may be willing
to pay di"erent prices
Distribution/
Marketing Intermediaries:
organizations that
assist in moving goods/services from producers to business and
consumer users
B2B: Connecting producers to businesses
B2C: Connecting businesses to consumers
Channel of distribution: marketing intermediaries that join together
to transport/store goods in their path from producers to consumers
(transportation, agents/brokers, wholesalers, retailer
Each product requires its own
pricing strategy.
Some strategies are:
achieving a target return
on investment
building trac
achieving greater market
share
creating an image
Furthering social objectives
3