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| the complete process of bringing a new product to market |
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| the process of creating, developing, and communicating ideas which are abstract, concrete, or visual. The process includes the process of constructing through the idea, innovating the concept, developing the process, and bringing the concept to reality. |
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| the process of using quantitative methods and qualitative methods to evaluate consumer response to a product idea prior to the introduction of a product to the market. It can also be used to generate communication designed to alter consumer attitudes toward existing products. |
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| the cycle through which every product goes through from introduction to withdrawal or eventual demise. |
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| the amount of money charged for a product or service. It is the sum of all the values that consumers give up in order to gain the benefits of having or using a product or service. |
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| Customer value based pricing |
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| uses the buyers' perceptions of value, not the sellers cost, as the key to pricing. |
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| is product driven to design a product, determine product costs, set price based on cost, and convince buyers of product's value. |
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| offers the right combination of quality and good service at a fair price. |
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| Everyday low price strategy |
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| charging a constant everyday low price with a few or no temporary price discounts. |
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| charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items. |
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| attaches value-added features and services to differentiate offers, support higher prices, and build pricing power. |
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| business costs, such as rent that are constant whateber the quantity of goods or services produced. |
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| the costs that vary with the level of production (packaging, raw materials, etc.) |
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| how much an investor paid to acquire an investment. The cost includes commissions and trading fees. |
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| adds a standard markup to the cost of the product |
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| the price at which the firm will break even or make the profit it's seeking |
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| the price at which the firm will break even or make the profit it's seeking |
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| Competition based pricing |
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| setting prices based on competitors' strategies, costs, prices, and market offerings; consumers will base their judgments of a product's value on the prices that competitors charge for similar products. |
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| starts with an ideal selling price based on consumer value considerations and then target costs that will ensure that the price is met |
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| the amount of a commodity, product, or service, available and the desire or buyers for it, considered as factors regulating its price |
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| Monopolies and pure competition |
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| the exclusive possession or control of the supply or trade in a commodity or service |
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| occurs when demand hardly changes when there is a small change in price |
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| occurs when demand hardly changes when there is a small change in price |
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| a product price strategy by which a firm charges the highest initial price that customers will pay. As the demand of the first customers is satisfied, the firm lowers the price to attract another, more price-sensitive segment. |
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| Market penetration pricing |
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| a strategy adopted for quickly achieving a high volume of sales and deep market penetration of a new product. |
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| the act of placing several products or services together in a single package and selling for a lower price than would be charged if the items were sold separately. The package usually includes one big ticket product and at least one complementary good. |
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| a pricing/marketing strategy based on the theory that certain prices have a psychological impact. The retail prices are often expressed as "odd prices" a little less than a round number ($9.99 instead of $10). |
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| the act of offering a lower price temporarily in order to enhance the effectiveness of product sales efforts to cost sensitive consumers. For example, many businesses will offer promotional pricing as a sales incentive when initially launching a particular product line to potential consumers. |
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| adjusting an item's sale price based on the buyer's location |
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| a deduction from the usual cost of something, typically given for prompt or advance payment or to a special category of buyers |
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| tax-free amount (such as traveling allowance) subtracted from an income to arrive taxable income; amount paid to employees as part of their salary package, or to defray their out of pocket expenses incurred on behalf of the firm. |
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| the cost that consumers anticipate paying or consider reasonable to pay for a particular good or service. |
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| a product sold at a loss to attract consumers |
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| the difference in the cost of an asset or security from one period to another |
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| an agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price, or maintain the market conditions such that the price is maintained at a given level by controlling supply and demand. |
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| the pricing of goods or services at such a low level that other suppliers cannot compete and are forced to leave the market. |
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| the action of selling the same product at different prices to different buyers, in order to maximize sales and profits. |
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| the sequence of processes involved in the production and distribution of commodity. |
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| the upstream stage of the production process involves searching for and extracting raw materials |
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| the downstream stage in the production process involves processing the materials collected during the upstream stage into a finished product |
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| a person who acts as a link between people in order to try to bring about an agreement or reconciliation; a mediator |
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| Direct and indirect distribution systems |
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| a distribution channel can include wholesalers, retailers, distributors, and even the internet. Channels are broken into direct and indirect forms, with a “direct” channel allowing the consumer to buy the good from the manufacturer and an “indirect” channel allowing the consumer to buy the good from a wholesaler. Direct channels are considered “shorter” than “indirect” ones. |
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| a situation in which channel partners have to compete against one another or the vendor’s internal sales department. Can cost a company and its partners money as partners try to undercut one another. |
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| Vertical marketing systems (VMS) |
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| one in which the main members of a distribution channel – producer, wholesaler, and retailer – work together as a unified group in order to meet consumer needs. |
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| one of three business strategies a company may use in capturing market share; grant a franchise for the sale of (goods) or the operation of (a service). |
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| Horizontal marketing systems |
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| a distribution channel arrangement whereby two or more organizations at the same level join together for marketing purposes to capitalize on a new opportunity. |
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| a marketing strategy under which a company sells through as many outlets as possible, so that the consumers encounter the product virtually everywhere they go: supermarkets, drug stores, gas stations, and the life. Soft drinks are generally made available through intensive distribution. |
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| type of product distribution that lies between intensive and exclusive distribution, and in which only a few retail outlets cover a specific geographical area. Considered more suitable for high-end items such as ‘designer’ or prestige goods. |
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| situation where suppliers and distributors enter into an exclusive agreement that only allows the named distributor to sell a specific product. For example, Apple had an exclusive distribution deal with AT&T to provide the iPhone to consumers. |
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| planning, execution, and control of the procurement, movement, and stationing of personnel, material, and other resources to achieve the objectives of a campaign, plan, project, or strategy. It may be defined as the ‘management or inventory in motion and at rest.’ |
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| pull (demand) driven inventory system in which materials, parts, sub-assemblies, and support items are delivered just when needed and neither sooner nor later. Its objective is to eliminate product inventories from the supply chain. |
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| activities employed in maintaining the optimum number or amount of each inventory item. The objective or inventory management is to provide uninterrupted production, sales, and/or customer-service levels at the minimum cost |
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| commercial transaction in which a buyer intends to consume the good or service through personal, family, or household use. |
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| a business or person that sells goods to the consumer, as opposed to a wholesaler or supplier, who normally sell their goods to another business. |
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| a group of related products manufactured by a single company. |
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| the price of a commodity such as a good or service in terms of another; the ratio of two prices. |
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| the selling of goods and services outside the confines of a retail facility. It is a generic term describing retailing taking place outside of shops and stores |
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| the sale and distribution of goods to users other than end consumers. Wholesaling involves selling merchandise to retailers, wholesalers and merchants, or to industrial, commercial and institutional users. |
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