Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business Administration > Ch13 > Flashcards

Ch13 Flashcards

1
Q

pricing objectives

A

goals that sellers hope to achieve in pricing products for sale

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

market share (market penetration)

A

company’s percentage of the total industry sales for a specific product type

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

price-setting tools

A

cost-oriented pricing and breakeven analysis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

cost-oriented pricing

A

pricing that considers the firm’s desire to make profit and its need to cover production costs (selling price = seller’s costs + profit)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

markup

A

amount added to an item’s purchase cost to sell it at a profit
markup percentage = markup/sales price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

variable cost

A

cost that changes with the quantity of a product produced and sold

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

fixed cost

A

cost that is incurred regardless of the quantity of a product produced and sold

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

breakeven analysis

A

for a particular selling price, assessment of a seller’s costs versus revenues at various sales volumes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

breakeven point

A

sales volume at which the seller’s total revenue equals total costs
- total fixed cost /(price-variable cost) or profit = total revenue – total fixed cost plus total variable cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

price skimming

A

setting an initially high price to cover new product costs and generate profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

penetration pricing

A

setting an initially low price to establish a new product in the market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

two types of pricing

A

fixed and dynamic

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

pricing tactics

A

price lining, psychological pricing, odd-even pricing, discounts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

price lining

A

setting a limited number of prices for certain categories of products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

psychological pricing

A

pricing tactic that takes advantage of the fact that consumers do not always respond rationally to stated prices

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

odd-even pricing

A

psychological pricing tactic based on premise that customers prefer prices not stated in even dollar amounts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

promotion

A

aspect of marketing mix concerned with the most effective techniques for communicating info about and selling a product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

push strategy

A

promotional strategy where a company aggressively pushes its product thru wholesalers and retailers, which persuade customers to buy it

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

pull strategy

A

promo strategy where company appeals directly to customers who demand the product from retailers who demand product from wholesalers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

promotional mix

A

portion of marketing concerned with choosing the best combination of advertising, personal selling, sales promotions, and publicity to sell a product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

five stages in buyer decision process

A
  1. consumers first recognize need to buy. marketers make buyers aware of products
  2. consumers look for info on product. marketers advertise and use personal selling to educate them
  3. sales reps can demonstrate product quality, features, benefits, and performance
  4. buyers are ready to purchase. sales promotion gives consumers incentives to buy
  5. after buying, advertisers remind customers that they made a wise purchase
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

advertising

A

paid, non-personal communication by which an identified sponsor informs an audience about a product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

advertising media

A

specific communication device – tv, radio, internet, direct mail, etc – used to advertise a firm’s message to potential customers

24
Q

personal selling

A

promotional tool in which a salesperson communicates one to one with potential customers

25
Q

sales promotions

A

short-term promotional activities designed to stimulate consumer buying or cooperation from distributors and other members of the trade

26
Q

types of sales promotions

A

coupon, premium, point-of-purchase display, trade show

27
Q

coupon

A

type of sales promotion where one is given a certificate that entitles them to savings off regular price

28
Q

premium

A

method of sales promotion where an item is offered free or at a bargain price to ppl in return for buying a specific product

29
Q

point of purchase display

A

product display is located in a retail store to encourage consumers to buy product

30
Q

trade show

A

members of a particular industry gather for displays and product demonstrations designed to sell products to customers

31
Q

publicity

A

info about a company, product, or event transmitted by general mass media

32
Q

public relations

A

company-influenced info directed at building goodwill with the public or dealing with unfavourable events

33
Q

distribution mix

A

combination of distribution channels by which a firm gets its products to consumers

34
Q

intermediaries

A

person or firm that helps distribute a product

35
Q

wholesaler

A

intermediary who sells products to other companies for resale to final consumers

36
Q

retailer

A

intermediary who sells products directly to consumers

37
Q

distribution channel

A

network of interdependent companies through which a product passes from producer to end user

38
Q

direct channel

A

distribution channel where a product travels from producer to consumer without intermediaries

39
Q

sales agent

A

independent intermediary who generally deals in the related product lines of a few producers and forms long-term relationships to represent those producers and meet the needs of many customers

40
Q

broker

A

independent intermediary who matches numerous sellers and buyers as needed, often without knowing in advance who they will be

41
Q

pros and cons of non-direct distribution

A

cons – higher prices

pros – efficient (saves money, time, and energy for the consumer)

42
Q

distribution strategies

A

intensive distribution, exclusive distribution, selective distribution

43
Q

intensive distribution

A

distribution strategy where a product is distributed in nearly every possible outlet, using many channels and channel members

44
Q

exclusive distribution

A

distribution strategy in which a product’s distribution is limited to only one wholesaler or retailer in a given geographic area

45
Q

selective distribution

A

distribution strategy that falls between intensive and exclusive distribution, calling for the use of a limited number of outlets for a product

46
Q

channel conflict

A

conflict arising when members of a distribution channel disagree over the roles they should play or the rewards they should receive

47
Q

channel captain

A

channel member that is the most powerful in determining the roles and rewards of organizations involved in a given channel of distribution

48
Q

vertical marketing system (vms)

A

system where there is a high degree of coordination among all the units in the distribution channel so that a product moves efficiently from manufacturer to consumer

49
Q

three classifications for retail stores

A

product-line retailers, bargain retailers, and convenience stores

50
Q

direct-response retail

A

form of non-store retailing in which firms directly interact with customers to inform them of products and receive sales orders (ex mail order catalogue marketing, telemarketing, direct selling, video/tv, etc)

51
Q

e-intermediary

A

internet distribution channel member that assists in delivering products to customers or that collects info about various sellers to be presented to consumers

52
Q

shopping agent )e-agent)

A

e-intermediary in the internet distribution channel that helps ppl find products and prices but doesn’t take possession of the products

53
Q

electronic retailing (online retailing)

A

non-store retailing where info about the seller’s products and services is connected to consumers’ computers, allowing consumers to receive the info and purchase products at home (ex amazon)

54
Q

interactive retailing

A

non-store retail that uses a website to provide real-time sales and customer service

55
Q

physical distribution

A

activities needed to move a product efficiently from manufacturer to consumer

56
Q

warehousing

A

physical distribution operation concerned with the storage of goods

57
Q

examples of ways to transport goods

A

trucks, planes, digital transmission

Business Administration (14 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions