Ch.15 (2) Flashcards
list the four pricing strategies
achieving a target profit, achieving a market share, creating an image and building traffic
describe “cost-based pricing”
producers often set the price based on the profit margin desired
describe “value pricing”
brand-name goods and services at fair prices
describe “competition-based pricing”
a strategy based on what all the other competitors are doing
describe “break-even analysis”
the point where net income = zero; nay profit will come on sale above this point
what are “total fixed costs”
all expenses that remain the same no matter how many products are made or sold
define “variable costs”
costs that change according to the level of production
describe the “every day low pricing” strategy (EDLP)
retailers promise consistently low prices on products, eliminating the need for customers to wait for sales or promotions
the idea of high-low pricing strategy is to …
have regular prices that are higher than those stores using EDLP but also have many special sales in which prices are lower than those of competitors
describe “demand-oriented pricing”
different customers may be willing to pay different prices; marketers sometimes price on the basis of consumer demand rather than cost or some other calculation
list the five attributes other than price that marketers tend to stress
product image, (consumer benefits such as) comfort, style, convenience and durability
a channel of distribution consists of …
a set of marketing intermediates, such as agents, brokers, wholesalers, and retailers, that join together to transport and store goods in their path from producers to consumers
agents and brokers are marketing intermediaries that …
bring buyers and sellers together and assist in negotiating an exchange but don’t take title to the goods-that is, at no point do they own the goods
why have marketing intermediaries?
intermediaries preform certain marketing tasks-such as transporting, storing, selling, advertising and relationship building-faster and cheaper than most manufacturing could
describe “intensive distribution”
puts products into as many retail outlets as possible, including vending machines
describe “selective distribution”
the use of only a preferred group of the available retailers in an area
describe “exclusive distribution”
the use of only one retail outlet in a given geographic area
what rights does the retailer have in exclusive distribution?
therefore, likely to …
exclusive rights to sell the product, carry a large inventory, give exceptional service, and pay more attention to this brand
non-store retailing categories include …
electronic retailing, telemarketing, vending machines, kiosks and carts, and direct selling
electronic retailing consists of …
selling products to ultimate consumers over the internet
telemarketing is … and is used to …
the sale of goods and services by telephone, supplement or replace in-store selling and to complement online selling
direct selling reaches … many businesses use this technique to sell products such as … (5)
customers in their homes or workplaces, cosmetics, household goods, lingerie, artwork and candles
