Marketing II: Price & Promotion

Question 1

Pricing policy

Preis und Konditionenpolitik

Answer 1

Marketing activity which is complex (many variables are involved) and important (success and survival of the company - on the long term - depend on it).
!! Discounts are also part of the price policy

Question 2

Cash-and-carry price

Answer 2

“Naked” product to be picked up and paid for immediately by the buyer.

Question 3

Premium price

Prestigepreis, Qualitätsmarke

Answer 3

E.g. a watch (Rolex) positioned and advertised as a prestige gift
=> higher price

Question 4

Market-skimming pricing

Answer 4

= Skim-the-cream pricing

The skimming (smantana; spuma societatii) strategy involves charging a high initial price (like Nikon cameras for professional photographers); then, they graduately lower the price with time.

Question 5

Market-penetration pricing

Answer 5

Setting an inital low price to reach the mass market immediately.

Question 6

Loss-leader pricing

Lockvogelangebot

Answer 6

!!! RETAILERS ONLY !!!

Best known promotional pricing tool; it requires setting a price that is below it’s costs (even if one makes losses)
One use of a loss leader is to draw customers into his store to buy the (now) cheap product while buying other products from the store
=> loss from the “cheap” product + higher profits from other goods in the store = profit

Question 7

Good value

Answer 7

Generationg profits from an established product by maximizing sales rather than margins.

Question 8

Promotion (products)

Kommunikationspolitik

Answer 8

An exercise in persuasive communication, the idea being to inform, persuade and influence customers in order to increase sales without resorting to price competition.

Question 9

Promotional mix

Kommunikations-mix

Answer 9

A combination of promotional tools - eg advertising, PR, personal selling, sales promotion etc - used to inform, persuade and influence a particular target group.
Depends on the nature of the target market, promotional budget etc.

Question 10

Advertising

Werbung

Answer 10

Promotional tool used to inform, persuade and influence a particular target group with the view of modifying the behavior in some way desirable for the advertiser.
It involves dissemination of messages over the mass media and is paid by an identified sponsor.

Question 11

Advertising medium

Werbeträger

Answer 11

All those means used to communicate advertisements to a chosen audience (mass media). Advertisers have the task of selecting the medium suitable for the particular purpose: vechicle (eg radio) and an advertising schedule (appropriate time for running the advertisement).

Question 12

Advertisement

Werbemittel

Answer 12

Also known as AD; A message or announcement presented in a medium at the expense of the advertiser to persuade a particular target audience to accept an idea or to buy a product.

Question 13

Advertising agency

Werbeagentur

Answer 13

A firm providing not only advertising services (planning and implementing advertising campaigns), but also other marketing services (sales promotion, direct marketing, market research etc).

Question 14

Public relations

Öffentlichkeitsarbeit

Answer 14

The deliberate effort to establish and maintain mutual confidence btw an organisation and its public (general public, employees, shareholders etc).
Arrange: press conferences, cultural events, handle complaints, organise lobbying.

Question 15

Lobbying

Answer 15

Attempt to influence decisions made by officials in the government.

Question 16

Personal selling

persönlicher Verkauf

Answer 16

May be carried out either behind the counter (in retail outlets) or in the field by SALES REPRESENATIVES/ SALES FORCE. Since it involves face-to-face contact it gives feedback to the seller (he is able to modify the presentation in mid-course); tends to lead directly to a sale.

Question 17

Sales force

Mitarbeiter im Außendienst

Answer 17

Collective term denoting those employees of a firm who are engaged in selling its products; normally referes only to people selling in the field: SALES REPRESENTATIVES.

Question 18

Trade fair

Messe

Answer 18

Complex promotional events staged to enable a company to exibit their products, meet customers and, possible, snoop on competitors.

Question 19

Sales promotion

Verkaufsförderung

Answer 19

It can be subdivided into customer promotions and sales-force promotion; tends to have a short-term focus (eg this week’s special offer).

Question 20

Premium

Werbegeschenk

Answer 20

May refer to a small item given away in conjunction with the purchase of another article.

Question 21

Direct marketing

Direktmarketing

Answer 21

Direct mail or telemarketing; somewhere btw personal selling and advertising (cand suna la telefon si te intreaba daca vrei sa cumperi ceva).

Question 22

Captive product pricing

Answer 22

Pricing strategy cand charge high price for products without which you cannot use the other product (cartuse cartridges for printers)