Chapter 13 Flashcards

1
Q

Profit-maximizing

A

Pricing to maximize profit (bottom line) and may sacrifice unit sales to maximize profit

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2
Q

Market-share

A

Pricing to gain the greatest possible market percentage

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3
Q

Cost-oriented pricing

A

Considers the cost of the product and adds a “markup” to arrive at a final cost (retail costs vs. retailer costs - make more money)

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4
Q

Mark-up precentage

A

Markup/Sales Price x 100 = Markup Percentage

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5
Q

Break-Even Analysis

A

Cost–Volume–Profit Relationships (losses –> breakeven point –> turn to profits)

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6
Q

Pricing Strategy

A

The pricing plan is based on the marketing mix; how to price existing products (Above, below, or near market prices, Fixed vs. Dynamic Pricing for Online Business, pricing new products)

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7
Q

Price Skimming

A

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

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8
Q

Penetration Pricing

A

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

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9
Q

Price lining

A

Setting a limited number of prices for certain categories of products

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10
Q

Psychological pricing + Odd–even pricing

A

Consumers do not respond rationally to stated prices. Customers prefer items not stated in even dollar amounts

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11
Q

Discounting

A

Price reduction offered as an incentive to purchase

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12
Q

Promotion + key objective

A

Techniques to communicate information about products. It increases product awareness & knowledge, increases product preference, helps position products and add value, and help control/stabilize sales volume

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13
Q

Push strategy

A

The firm promotes aggressively to intermediaries

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14
Q

Pull strategy

A

The firm promotes directly to consumers, who demand the product from intermediaries

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15
Q

The promotional mix strategies

A

The combination of tools used to promote a product; ex. advertising, personal selling, sales promotions, publicity, and public relations

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16
Q

Advertising Promotions

A

Media mix; The specific communication device - television, radio, online, newspapers, direct mail, magazines, outdoor, mobile - used to carry a firm’s advertising message to potential customers

17
Q

Online consumer engagement

A

Companies are encouraging consumers to get involved and influence marketing decisions (Lays - new flavour idea, Starbucks - name a flavour, Crayola - new colour ideas)

18
Q

Personal Selling

A

Personal interaction with the customer. The most expensive form of promotion per contact. Things like real-estate and telemarketing are forms of this

19
Q

Sales Promotions

A

Short-term promotional activities designed to stimulate buying or cooperation from distributors (ex. coupons, point-of-purchase displays, purchase incentives/premiums, contests and sweepstakes, and trade shows)

20
Q

Publicity

A

Information made available to consumers via media outlets; Free, but the company has no control over it (Good or bad publicity)

21
Q

Public Relations

A

Company-influenced information aimed at building goodwill or dealing with an unfavourable event (making amends, public apologies, public service announcements)

22
Q

Intermediary

A

An entity other than the producer who distributes the product

23
Q

Wholesaler

A

An intermediary who sells products to other businesses for resale

24
Q

Retailer

A

An intermediary who sells products directly to consumers

25
Q

Distribution channel

A

The path a product follows to the end user
Channel 1: Direct Distribution
Channel 2: Retail Distribution
Channel 3: Wholesale Distribution
Channel 4: Distribution by Agents or Brokers

26
Q

Sales Agent

A

Independent intermediary, Deals in related product lines of a few producers, and Forms long-term relationships

27
Q

Broker

A

Independent intermediary, Matches numerous sellers and buyers as needed, displays many options to their client

28
Q

Intensive Distribution Strategy

A

Use as many channels and members as possible

29
Q

Selective Distribution Strategy

A

Use of a limited number of outlets

30
Q

Exclusive Distribution Strategy

A

Use of only one intermediary in a market area

31
Q

Channel Conflict

A

When members of a distribution channel disagree over the roles they should play and/or the rewards they should receive

32
Q

Types of Retail Outlets

A

Product line retailers (department stores, supermarkets, specialty stores, and category killers), Bargain retailers (discount houses, factory outlets, wholesale clubs), and convenience stores

33
Q

Non-store retailing

A

Direct-Response, Mail-Order, Telemarketing, Direct Selling (Amazon?), and Video/TV

34
Q

E-intermediaries

A

Internet-based channel members who perform one or both of two functions:
1. Collect information about sellers and present it to consumers
2. Help deliver internet products to buyers

35
Q

Physical Distribution

A

Activities needed to move a product efficiently from manufacturer to consumer

36
Q

Warehousing Operations

A

The storing of goods through the distribution process

37
Q

Transportation Modes

A

Trucks, Planes, Railroads, Water carriers, Pipelines, and Digital