retail selling price Flashcards
Amount of
money required
in payment for
something
price
Method of
determining the
value a producer
will get in the
exchange of
goods and
services.
pricing
Can be set to
maximize
profitability from
each unit sold
pricing strategy
Difference between the cost of a good or service and its
selling price.
markup price
Retail Selling/Unit - Cost of Manufacturing=
Mark-up Price/Unit
Mark-up in Peso/Manufacturing Cost in Peso x 100=
percentage
to find retail
cost of manufacturing + markup price
types of distribution channels
direct distribution channel and indirect
Products or service leaves the
producer and goes directly to
the customer with no
middlemen involved.
direct distribution channel
Products does not go directly
to the consumer with
middlemen involved.
indirect distribution channel
A method of bringing the product to its customers
distribution
Example:
Farmers selling their produce to
the market.
direct
Beverage manufacturers sell
their products to retailers
(hypermarket).
hypermarket
types of DISTRIBUTION
CHANNELS
INTENSIVE
DISTRIBUTION
SELECTIVE
DISTRIBUTION
EXCLUSIVE
DISTRIBUTION
Aims to provide saturation coverage of the market
by using all available outlets.
Example:
convenience goods such as canned goods
intensive
Involves a producer using a limited number of
outlets.
Example:
branded clothing
selective
An extreme form of selective distribution in which
only one wholesaler, retailer, or distributor is used
in a specific geographical area.
Example:
7/11
exclusive
