Chapter 13 Flashcards
Define market sharing
Pricing to gain greatest possible market percentage
Define profit-maximizing
Pricing to maximize profit, possibly sacrificing unit sales in order to do so
Define cost-oriented pricing
Price-setting tool considering cost of product and then adding markup
What is the markup% equation
Markup/saleprice x 100
What is the break even point
of units to be sold in order to cover both fixed and variable costs
Define pricing strategcy
Pricing plan based on marketing mix
What are the 3 ways of pricing existing products
Above, below, near market price
What is price skimming vs penetration
S: start at high prive to cover new product costs and generate profit
P: start at low price to establish new product into market
What are the 3 pricing tactics
Price lining
Psychological pricing
Discounting
Define promotion
Techniques used to communicate info about product
What are the goals of promoting
Increasing product awareness/knowledge
Increasing product pref
Helping position products and add value
Helping control/stabilize sales volume
What are the 2 types of promotion strats
Push (firm promoting aggressively)
Pull (promote directly to consumers, demand product from intermediaries)
What are the 9 factors making up a media mix
TV
Radio
Newspapers
Outdoors
Magazines
Direct mail
Internet
Mobile
Word of mouth
Define personal selling
Most expensive form of promotion per contact
Involves personal interaction
Telemarking popular choice bc low cost
Define sales promotions
Short-term activities designed to stimulate buying/cooperation from distributors ex:
Coupons
POS displays
Purchase incentives
Contests
Trade shows
Define publicity
Info made available to consumers via media outlets, free but company has no control over it
Define PR
Company-influenced info aimed at building good will or dealing with bad event
Define an intermediary
Entity other than producer distributing product
Define wholesaler
Intermediary selling products to other businesses for resale
Define retailer
Intermediary selling products directly to customers
Define a sales agent
Independent intermediary dealing in related product lines of some producers focused on long-term relationships
Define a broker
Independent intermediary matching numerous sellers and buyers as needed
What are the 4 types of distribution strategies
Intensive
Selective
Exclusive
Channel conflict
Define intensive distribution strat
Use as many channels and members as possible
Define selective distribution strat
Using limited numbers of outlets
Define exclusive distribution strat
Using only one intermediary in a market are
Define channel conflict distribution strat
Distribution channel members disagreeing over roles and rewards each has
What are the types of retail outlets
Product line retailers
Bargain retailers
Convenience stores
Direct response (non store)
Types of product line retailers
Deparmtent store
Supermarkets
Specialty store
Category killers
Define bargain retailers
Discount housing
Factory outlets
Wholesale clubs
Define direct response retailers
Mail order
Telemarketing
Direct selling
TV
Define E-intermediaries
Internet based channel members performing functions such as:
1. collecting info about sellers and presenting to consumers
2. helping deliver internet products to buyers
Define physical distribution
Activities needed to move product efficiently from manufacturer to consumer
Define warehousing operations
Storing goods through distribution process
What are the 5 types of transportation modes
Trucks
Plane
Railroads
Water carriers
Pipelines
How does distribution work as a marketing strat
Helps to gain comp adv and leverage distribution adv companies like
Walmart
Zara
Dell
