Marketing, Pricing and Sales - Words

Question 1

Cannibalization

Answer 1

When a firms sales of one product (or at one location) diminish its sales of another of its products (or at another of its locations)

Question 2

OEM

Answer 2

Original equipment manufacturer (or value-added reseller) a company that buys products (or components of products) from other manufacturers and assembles them or customizes them into a product that is then sold under the OEMs own name.

Question 3

Viral marketing

Answer 3

Sending information directly to targeted individuals in effort to stimulate word-of-mouth advertising. Individuals are typically chosen on the basis of their position or role in particular social networks.

Question 4

Retailers

Answer 4

Companies that sell goods to the public.

Question 5

Wholesalers

Answer 5

Companies that buy manufacturers product in bulk, and then resell them (often in smaller or more diverse bundles) to other supply channel members such as retailers. - Costco

Question 6

Freemium

Answer 6

A pricing model where a base product or service is offered for free, but a premium is charged for additional features or services

Question 7

Penetration pricing

Answer 7

When the price of a good is set very low, or free, to maximize the goods market share.

Question 8

Backward compatible

Answer 8

When products of a technological generation can work with products of a previous generation. For example, a computer is backward compatible if it can run the same software as a precious generation of the computer.