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Communication > Chapter 12, 13, 14 verhage > Flashcards

Chapter 12, 13, 14 verhage Flashcards

1
Q

profit equation

A

the role of price in a firm’s profitability is demonstrated by the so called profit equation

profit = total revenue - total costs
= (unit price x quantity sold) - total costs

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2
Q

price setting

A

the customer is the ideal place to start in price setting
the key question is how much money is the product or service worth to the buyer.
the art of the products value in the eye of the consumer into the amount of money he is willing to pay.

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3
Q

pricing strategy

A

in addition to demand and cost consideration you should also take into account the corporate and marketing strategy, competition, other components of the product mix, the resellers interest, and any legal and ethical constraints.

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4
Q

price

A

is the exchange value of the product expressed in terms of amount of money the buyer is willing to pay in return for the desired product or service.
for this you have to understand the consumers value perception

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5
Q

price discrimination

A

refers to charging different buyers, different prices for the same quantity of products or services.

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6
Q

loss leader

A

products that are sold at a lower than usual markup for the purpose of increasing store traffic

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7
Q

cost

A

pricing at less than cost is not a common strategy

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8
Q

variable cost

A

cost of raw materials, is a cost that varies directly with the number of units produced and marketed

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9
Q

fixed costs

A

often called overhead costs, tend to remain stable at any production level, this includes rent, lease payment and insurance premiums.

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10
Q

price leader

A

most companies will follow a price reduction by the price leader, but not a price increase.

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11
Q

complementary products

A

products sold or used jointly with other products, such as printers and ink cartridges.

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12
Q

middlemen

A

by setting price you must take conflicting interest of the middle man in account

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13
Q

margin

A

price negotiations begin with normal trade margins for the product.
the high gross margin for electronics retailers includes a supplier contribution to their promotion and service costs

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14
Q

cartel

A

many countries have laws designed to protect the general interest by prohibiting price fixing, cartels or other contracts of conspiracies that restrain trade

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15
Q

predatory pricing

A

a practice where one company tries to drive out competitors by temporarily pricing at such a low level that rivals cannot match their cuts and still profit.

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16
Q

revenue

A

is the per unit price multiplied by the number of units sold

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17
Q

price mechanism

A

has three vital functions

  1. comparison
  2. stimulation and reduction
  3. rationing
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18
Q

demand curve

A

shows the maximum number of products that customers will buy in a market during a period of time at various prices if all other factors remain the same

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19
Q

introductory price

A

once the initial price has been announced it may be difficult to change.

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20
Q

prestige products

A

or status products, because these appeal to status-conscious consumers, their price, should be relatively high.

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21
Q

price skimming

A

is a strategy of introducing a new product at an artificially high price.

works best for new types of durable consumer goods, such as high tech cellular phones, from which prestige buyers derive status.

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22
Q

penetration price strategy

A

opposite of price skimming a company using this strategy introduces a new product at a very low price to speed up ots market acceptance and drive sales upward.

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23
Q

pricing strategy

A

provides the framework through which we translate our pricing objectives into actual market pricing tactics.

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24
Q

pricing objectives

A

are formulated in various ways, some managers derive their pricing objectives straight from corporate goals.

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25
Q

price perception

A

reflects how consumers view or experience a price

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26
Q

price awareness

A

refers to the degree of consumer knowledge about the prices of alternative products and services that they are interested in buying.

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27
Q

price acceptance

A

by measuring the price acceptance, the marketing researcher can also discover if consumers think the prices charged are reasonable.

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28
Q

price treshold

A

the highest and lowest prices that buyers are willing to pay for a particular product or service.

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29
Q

price sensitivity

A

indicates the extent to which consumers will reach to small price changes.

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30
Q

market share objectives

A

the goal to maintain or increase their share of a particular market.

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31
Q

price wars

A

the primary advantage of meeting price cuts is that it will eliminate competitive advantage. it may also prevent price war with prices spiralling downward in successive rounds of price cuts actuated by competitors to maintain their unit sales or market shares.

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32
Q

value pricing

A

compete on the basis of a superior price/quality relationship.

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33
Q

non-price competition

A

instead of emphasizing low prices, they could focus on creative use of other marketing instruments.

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34
Q

distribution

A

a company has to decide which distribution channels are most suitable or delivering its products and which retailers are best to engage for that purpose.

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35
Q

distribution channel

A

the distribution channel is a network of independent organisations that, combined, perform all of the activities necessary to link producers and end customers.

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36
Q

distribution strategy

A

involves the analysis, planning, implementation and control of the activities that make the right products available to the target market at the right time, at the right place and at the lowest possible cost.

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37
Q

intermediary

A

functioning as exporters, brokerage firms, importers, agents, wholesalers and retailers, are organisations or individuals that operate between the producer and consumer in a channel of distribution

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38
Q

channel structure

A

the shape or form that a distribution channel takes

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39
Q

channel length

A

the channels vary in number

40
Q

direct channel

A

the movement of products and services from producers to consumers without the use of independent intermediaries

41
Q

indirect channel

A

if it is not a producer -> consumer channel but entails more than one like
producter -> retailers -> consumer
producer -> wholesalers ->retailers -> consumer
producer -> agents -> wholesalers -> retailers -> consumer

42
Q

single channel strategy

A

reach several segments with a single product

43
Q

dual distribution

A

also called a multichannel distribution system
by using this firms can expand their market coverage, lower marketing costs and offer greater opportunities for customisation, which all help increase sales

44
Q

hybrid system

A

in which the channel members perform complementary tasks for the same consumer instead of for different segments

45
Q

distribution functions

A 
as a producer moves down the distribution channel from producer to consumer it changes hands more than once as independent channel members perform various tasks or distribution functions
many of these require special skills.
six of the most important functions are
1. relationship building
2. promotion
3. sorting
4. inventory control
5. financing
6. reasearch and marketing information
46
Q

upstream management

A

fouses on managing raw materials, inbound logistics and warehouse and storage facilities

47
Q

downstream management

A

focuses on managing finishes product storage, outbound logistics, marketing and sales, and customer service

48
Q

supply chain

A

the complete sequence of suppliers and activities that contribute to the creation and delivery of products and services

49
Q

value delivery network

A

the cooporation between the company and its suppliers, distributors and ultimately costumers who partner with each other to enhance the performance of the entire system and provide buyers with the highest possible value results

50
Q

supply chain management

A

through supply chain management the channel members form long term partnerships in an effort to minimise transportation, inventory, administrative and handling costs by eliminating inefficiencies

51
Q

distribution intensity

A

the number of outlets used to distribute a product or service in a particular market

52
Q

intensive distribution

A

the product or service is made available to buyers through as many outlets as possible, in effect all suitable wholesalers and retail stores willing to stock and sell the product

53
Q

selective distribution

A

is the level of distribution at which a product is sold by a number of retailers but not by all potential retailers in a market area

54
Q

exclusive distribution

A

is the extreme opposite of intensive distribution because a single retail outlet in a particular market is allowed to sell the company’s products

55
Q

retailing

A

includes all activities involved in selling products and services directly to ultimate consumers for their personal, family or household use

56
Q

sorting

A

assembling assortments od products and services from various suppliers to sell

57
Q

wheel of retailing

A

according to this theory, new types of retailers that try to fill niches in the retailing environment enter the market as low margin, low status discounters.

58
Q

merchandise mix

A

the total set of all product lines and products offered for sale by a retailer

59
Q

specialty store

A

relatively small stores offering a great deal of product depth within a narrow range of product lines.

60
Q

specialisation

A

may take the form of offering consumption related items or may be based on appealing to a specific consumer segment

61
Q

convenience store

A

a small shop located near a residential area that carries a limited assortment of food products and high turnover convenience goods.

62
Q

supermarket

A

large department food stores that carry a limited range of non-food products

63
Q

scrambled merchandising

A

the practice of s single retailer selling unrelated lines of merchandise

64
Q

hypermarket

A

or superstores are huge establishments, originally introduced in europe are at least twice the size of supermarkets and sell everything

65
Q

supercentre

A

a combination of supermarkets and discount departments store that is not as mommoth as a hypermarket

66
Q

department store

A

a large service-oriented retail institution that carries a wide product mix of shopping and specialty goods, and offers a deep selection in product categories such as apparel, cosmetics, jewellery and household products.

67
Q

shop in the shop

A

when in department store you pay within each department rather than at a center check out point.

department stores are strategically located in attractive urban areas or occupy anchor positions in shopping malls.

68
Q

discount stores

A

offshoots of department stores they carry the same but at lower prices

69
Q

variety store

A

targets the mass market with an extensive range of low-priced products (in europe and latin america)

70
Q

warehouse club

A

the merchandise is usually displayed, in barebones building , in boxes or in pallets, reinforces the retailer bargain image among price conscious customers.

71
Q

factory outlet store

A

are operated by manufacturers of a national brand and typically dispose of surplus stocks or clearance merchandise.

72
Q

limited-line store

A

offers an extensive assortment of models within one product line or a few related lines.

73
Q

category killer

A

are special type of limited line store, by offering at low prices a huge selection of products in a single product line, these store dominate their narrow merchandise segments

74
Q

non store retaillers

A

online stores or phone stores

75
Q

direct selling

A

the marketing of products and services to ultimate consumers through personal interactions and sales presentations at home or at the work place

door - to - door selling

76
Q

party plan

A

a direct seller attend a get together at a host customers home to demonstrate products and take orders.

77
Q

networkd marketing

A

direct selling companies in which a so-called master distributor persuades other individuals to join the organisation as independent agents and then resells the company’s merchandise to these distributors who eventually sell it to consumers.

78
Q

pyramid scheme

A

an illegal network in which the initial distributors profit by selling merchandise to other distributors, with most of the products never reaching the ultimate consumer

79
Q

street peddling

A

for example people selling snacks and food items from pushcars on the street

80
Q

destination store

A

is a store with an established image and an attractive product assortment that consumers deliberately visit.

81
Q

planned shopping center

A

a group of retail stores, designed, coordinated, and market to shoppers in a geographic trade area in order to satisfy specific customer needs.

82
Q

balanced tenancy

A

so that the stores complement each other in variety and quality of their merchandise

83
Q

neighbourhood shopping centre

A

consists of ten or fifteen stores, provides sale of convenience products and personal services that meet the daily needs of an immediate neighbourhood area.

84
Q

community shopping centre

A

designed to serve approximately five times the number of people that a neighbourhood centre serves. draw consumers looking for specialty goods.

85
Q

regional shopping centre

A

or malls attract large number of shoppers willing to drive significant distances to find products and services not available in their home towns.

86
Q

factory outlet mall

A

these malls feature discount and manufactury owned outlet stores selling excess merchandise although some also offer upscale merchandise

87
Q

power center

A

shopping centre that does not include a traditional anchor department store

88
Q

off price retailer

A

stores that purchase manufacturers overruns returns seconds and off season products for resale to consumers at steep discounts

89
Q

lifestyle centre

A

open air retailing format appeals to upper income consumers who dislike malls

90
Q

e-commerce

A

refers to a company efforts to facilitate its online merchandise sales by using marketing principles to guide prospective buyers to a website

91
Q

e-marketing

A

is the means by which e-commerce is achieved

92
Q

e-retailing

A

is an integral compoonent of e-marketing:

the e-marketing efforts directed towards ultimate consumers

93
Q

online-marketing

A

also called internet marketing

aways involves an interactive computer system to connect sellers and buyers electronically

94
Q

brick and mortar

A

bring and click firms

operate as traditional stores but, as multichannel retailers, also have a significant web presence

95
Q

pure-click

A

internet only retailers limit themselves to conducting business online, making the internet the core of their marketing strategied

96
Q

interactive marketing

A

as soon as a consumer clicks on an area of the website to learn more about a products features and price the company can provide him with details he needs to make an informed purchased decision

Communication (7 decks)

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