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Marketing 2 Melanie Shark
Pricing and Distribution
40
Marketing
Undergraduate 1
03/17/2013

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Cards

Term
Market
Definition
total volume of actual and potential users of product
Term
Target Market
Definition
volume of buyers [ours or competitors] in our category or segment
Term
Served Market
Definition
buyers with access to our products
Term
Buyers
Definition
our current sales
Term
Market Share Definition
Definition
our sales (or a competitor's sales) as % of total market/industry
Term
Cost of Goods Sold
Definition
same as variable cost- = direct manufacturing expenses, varies directly with volume
Term
Margin % or markup=
Definition
profit above variable cost
Term
Pure competition
Definition
commodity product
Term
Pure monopoly
Definition
one seller, one price
Term
Oligopoly
Definition
few, concentrated sellers
Term
Monopolistic Competition
Definition
many sellers, different prices
Term
Variable Cost
Definition
vary directly with the number of units produced and sold. Cost of having product available.
Term
Fixed Cost
Definition
costs whose total remains unchanged over given time or relevant range.
Term
Discretionary Costs
Definition
incurred at the discretion of management to increase sales volume [most marketing expenses]
Term
Customer value-based pricing
Definition
setting price based on buyers' perceptions of value rather than on the seller's cost
Term
Good-value pricing (type of value-based pricing)
Definition
Offering the right combination of quality and good service at a fair price
Term
Value-added pricing (type of VB)
Definition
attaching value-added features and services to differentiate a company's offers while charging higher prices
Term
Cost-Based Pricing
Definition
setting prices based on the costs for producing, distributing and selling the product plus a fair rate for effort and risk
Term
Cost-plus/markup pricing
Definition
adding a standard markup to the cost of the product
Term
Break-even pricing
Definition
setting price to break even on the costs of making and marketing a product, or setting price to make a target return
Term
Competition-based pricing
Definition
setting prices based on competitors strategies, prices, costs and market offerings
Term
Target Costing
Definition
pricing that starts with an ideal selling price and then targets costs that will ensure that the price is met
Term
Market-skimming/ Price skimming
Definition
Setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price.
Term
Market-Penetration Pricing
Definition
setting a low price for a new product to attract a large number of buyers and a large market share
Term
Product Line Pricing
Definition
Setting prices across an entire product line
Term
Optional Product Pricing
Definition
pricing optional or accessory products sold with the main product
Term
Captive Product Pricing
Definition
Pricing products that must be used with the main product
Term
By-product pricing
Definition
pricing low-value by-products to get rid of or make money on them
Term
Product bundle pricing
Definition
Pricing bundles of product sold together
Term
Discount and Allowance pricing
Definition
Reducing prices to reward
Term
Segmented Pricing
Definition
Adjusting prices to allow for differences in customers products or locations
Term
Psychological Pricing
Definition
Adjusting prices for psychological effect
Term
Promotional Pricing
Definition
temporarily reducing prices to spur short-run sales
Term
Geographical Pricing
Definition
adjusting prices to account for the geographic location of customers
Term
Dynamic Pricing
Definition
adjusting prices continuously to meet the characteristics and needs of individual customers and situations
Term
International Pricing
Definition
adjusting prices for international markets
Term
price-fixing
Definition
companies discussing prices to set a standard
Term
predatory
Definition
selling below cost with the intention of punishing a competitor or running them out of business
Term
retail price maintenance
Definition
when the seller requires dealers to charge a certain retail price
Term
deceptive pricing
Definition
seller states price or price savings that mislead consumers
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