Term
| Customer Value-Based Pricing |
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Definition
| Setting price based on buyers' perceptions of value rathern than on the seller's cost |
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Term
| Good Value (Every Day Low Pricing) |
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Definition
| offering the right combination of quality and good service at a fair price |
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Definition
| attaching value-added features and services to differentiate a company's offers while charging higher prices |
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Definition
| measure of sensitivity of demand to changes in price (the more a price changes with demand, the more elastic it is) |
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Definition
| setting a high price for a new product to skim a maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales |
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Term
| Market-penetration strategy |
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Definition
| setting a low price for a new product to attract a large number of buyers and a large market share |
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Term
| Product Mix Pricing (5 situations) |
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Definition
Product line pricing
Optional product pricing
Captive product pricing
By-product pricing
Product Bundle pricing |
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Term
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Definition
| setting prices across an entire product line |
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Term
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Definition
| pricing optional or accessory products sold with the main product |
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Definition
| pricing products that must be used with the main product |
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Term
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Definition
| pricing low-value by-products to get rid of or make money on them |
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Definition
| pricing bundles of products sold together |
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Term
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Definition
| a straight reduction in price on purchases made during a stated period of time or in larger quantities |
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Term
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Definition
| a reduction from the list price for buyer actions such as trade-ins or promotional and sales support |
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Term
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Definition
| pricing that considers the psychology of prices, not simply the economics; the price says something about the product |
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Term
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Definition
| prices that buyers carry in their minds and refer to when they look at a given product |
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Term
| Discount and allowance pricing |
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Definition
| reducing prices to reward customer responses such as paying early or promoting the product |
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Term
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Definition
| adjusting prices to allow for differences in customers, products, or locations |
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Term
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Definition
| adjusting prices for psychological effect |
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Term
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Definition
| temporarily reducing prices to spur short-run sales |
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Term
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Definition
| adjusting prices to account for the geographic location of customers |
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Term
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Definition
| adjusting prices continually to meet the characteristics and needs of individual customers and situations |
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Term
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Definition
| adjusting prices for international markets |
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Term
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Definition
| a promotion strategy in which the sales force and trade promotion are used to push the product through channels |
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Term
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Definition
| a promotion strategy in which a company spends a lot of money on consumer advertising and promotion to induce final consumers to buy the product, creating a demand vacuum that pulls the product through the channel |
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Term
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Definition
| percentage of people in the target market who are exposed to the ad campaign during a given period of time |
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Term
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Definition
| how many times the average person is exposed to the message |
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Term
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Definition
| qualitative value of message exposure through a given medium |
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Term
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Definition
| the dollars and other resources allocated to a product or a company advertising program |
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Term
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Definition
| what firm thinks it can afford |
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Term
| Percentage of sales strategy |
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Definition
| certain percentage of current or forecasted sales or as a percentage of the unit sales price |
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Term
| Competitive parity method |
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Definition
| match competitor’s outlay |
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Term
| Objective and task method |
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Definition
| define specific objectives, determine tasks that must be performed to achieve these objectives, and estimate the costs of performing these tasks (sum of them is budget) |
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Term
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Definition
| plan by which the company accomplishes its advertising objectives |
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Term
| Press relations or press agency |
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Definition
| creating and placing newsworthy information in the news media to attract attention to a person, product, or service |
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Term
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Definition
| publicizing specific products |
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Term
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Definition
| building & maintaining national or local community relationships |
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Term
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Definition
| building & maintaining relationships with legislators and government officials to influence legislation and regulation |
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Term
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Definition
| maintaining relationships with shareholders and others in the financial community |
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Term
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Definition
| working with donors or members of nonprofit organizations to gain financial or volunteer support |
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Term
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Definition
| marketing channel that has no intermediary levels |
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Term
| Indirect marketing channel |
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Definition
| contains one or more intermediary levels |
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Term
| Multi-channel distribution |
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Definition
| distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments |
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Term
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Definition
| cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries |
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Term
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Definition
| stocking the product in as many outlets as possible |
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Term
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Definition
| giving a limited number of dealers the exclusive right to distribute the company’s products in their territories |
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Term
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Definition
| use of more than one but fewer than all of intermediaries who are willing to carry the company’s products |
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Term
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Definition
| disagreements among marketing channel members on goals, roles, and rewards – who should do what and for what rewards |
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Term
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Definition
| store that carries a narrow product line with a deep assortment (e.g. apparel stores, sporting-goods stores, bookstores, etc.) |
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Term
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Definition
| store that carries several product lines-typically clothing, home furnishings, and household goods-with each line operated as a separate department managed by specialist buyers or merchandisers |
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Term
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Definition
| relatively large, low-cost, high-volume, self-service operation designed to serve the consumer’s total needs for groceries and household things |
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Term
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Definition
| relatively small store located near residential areas, open long hours seven days a sweek, and carrying a limited line of high-turnover convenience products at slightly higher prices |
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Term
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Definition
| store that carries standard merchandise sold at lower prices with lower margins and higher volumes |
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Term
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Definition
| store that sells merchandise bought at less-than-regular wholesale prices and sold at less than retail (factory outlets, warehouse clubs) |
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Term
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Definition
| a very large store that meets consumers’ total needs for routinely purchased food and nonfood items |
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Term
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Definition
| firm engaged primarily in wholesaling activities |
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Term
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Definition
| wholesaler who does not take title to goods and whose function is to bring buyers and sellers together and assist in negotiation |
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Term
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Definition
| wholesaler who represents buyers or sellers on a relatively permanent basis, performs only a few functions, and does not take title to goods |
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Term
| Regional free trade zones (economic communities) |
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Definition
| group of nations organized to work toward common goals in the regulation of international trade Market Entry Decisions |
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Term
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Definition
| international marketing approach that adjusts the marketing strategy and mix elements to each international target market which creates more costs but hopefully produces a larger market share and return |
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