Chapter 13.3 Flashcards
Publicity
Nonpersonal stimulation of demand for a good, service, place, idea, event, person, or organization by unpaid placement of information in print or broadcast media.
Public relations
Refers to an organizations communications and relationships with its various public audiences, such as customers, vendors, news media, employees, stockholders, the government, and the general public.
Pushing strategy
Relies on personal selling to market an item to wholesalers and retailers in a company’s distribution channel.
Cooperative advertising
In which they share the cost of local advertising of their firms product line with channel partners.
Pulling strategy
Attempts to promote a product by generating consumer demand for it, primarily through advertising and sales promotion appeals.
Price
The exchange value of a good or service.
Becomes a major factor in consumer buying decisions.
Profitability objectives
Marketers know that profits are the revenue the company brings in, minus it’s expenses.
Volume objectives
Bases pricing decisions on market share, the percentage of a market controlled by a certain company or product.
Prestige pricing
Establishes a relatively high price to develop and maintain an image of quality and exclusiveness.
Cost-based pricing
Formulas that calculate total costs per unit and then add markups to cover overhead costs and generate profits.
Breakeven analysis
To determine the minimum sales volume a product must generate at a certain price level to cover all costs.
Total cost
Is the sum of total variable costs and total fixed costs.
Variable costs
Change with the level of production
As labor and raw materials do.
Fixed costs
Such as insurance premiums and utility rates charged by water, natural gas, and electric power suppliers are constants regardless of the production level.
Total revenue
Is determined by multiplying price by the number of units sold.
