Term
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Definition
| the value paid for a product in a marketing exchange |
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Term
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Definition
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Term
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Definition
| emphasizing price as an issue and matching or beating competitors' prices |
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Term
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Definition
| emphasizing factors other than price to distinguish a product from competing brands |
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Term
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Definition
| a graph of the quantity of products expected to be sold at various prices if other factors remain constant |
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Term
| price elasticity of demand |
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Definition
| a measure of the sensitivity of demand to changes in price |
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Term
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Definition
| costs that do not vary with changes in the number of units produced or sold |
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Term
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Definition
| the fixed cost per unit produced |
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Term
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Definition
| costs that vary directly with changes in the number of units produced or sold |
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Term
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Definition
| the variable cost per unit produced |
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Term
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Definition
the sum of average fixed and average variable costs times the quantity produced
(AFC + AVC)QTY |
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Term
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Definition
the sum of the average fixed cost and the average variable cost
AFC + AVC |
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Term
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Definition
| the extra cost incurred by producing one more unit of a product |
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Term
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Definition
| the change in total revenue resulting from the sale of an additional unit of a product |
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Term
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Definition
the point at which the costs of producing a product equal the revenue made from selling the product
Break-Even Pt = (Fixed Costs)/(Per-Unit Contribution to Fixed Costs)
= (Fixed Costs)/(Price-Variable Costs) |
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Term
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Definition
| a price developed in the buyer's mind through experience with the product |
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Term
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Definition
| a comparison price provided by others |
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Term
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Definition
| concerned about price and quality of a product |
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Term
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Definition
| striving to pay low prices |
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Term
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Definition
| drawn to products that signify prominence and status |
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Term
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Definition
| employing price differentials that injure competition by giving one or more buyers a competitive advantage |
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Term
| trade, or functional, discount |
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Definition
| a reduction off the list price a producer gives to an intermediary for performing certain functions |
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Term
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Definition
| deductions from the list price for purchasing in large quantities |
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Term
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Definition
| quantity discounts aggregated over a stated time period |
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Term
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Definition
| onetime price reductions based on the number of units purchased, the dollar value of the order, or the product mix purchased |
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Term
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Definition
| price reductions given to buyers for prompt payment or cash payment |
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Term
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Definition
| a price reduction given to buyers for purchasing goods or services out of season |
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Term
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Definition
| a concession in price to achieve a desired goal |
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Term
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Definition
| reductions for transportation and other costs related to the physical distance between buyer and seller |
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Term
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Definition
| the price of merchandise at the factory before shipment |
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Term
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Definition
| a price indicating the producer is absorbing shipping costs |
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Term
| uniform geographic pricing |
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Definition
| charging all customers the same price, regardless of geographic location |
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Term
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Definition
| pricing based on transportation costs within major geographic zones |
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Term
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Definition
| geographic pricing that combines factory price and freight charges from the base point nearest the buyer |
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Term
| freight absorption pricing |
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Definition
| absorption of all or part of actual freight costs by the seller |
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Term
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Definition
| prices charged in sales between an organization's units |
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Term
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Definition
| goals that describe what a firm wants to achieve through pricing |
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Term
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Definition
| adding a dollar amount or percentage to the cost of the product |
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Term
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Definition
| adding a specified dollar amount or percentage to the seller's cost |
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Term
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Definition
adding to the cost of the product a predetermined percentage of that cost
Markup as Percentage of Cost = (Markup)/(Cost)
Markup as Percentage of Selling Price = (Markup)/(Selling Price) |
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Term
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Definition
| pricing based on the level of demand for the product |
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Term
| competition-based pricing |
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Definition
| pricing influenced primarily by competitors' prices |
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Term
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Definition
| charging different prices to different buyers for the same quality and quantity of product |
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Term
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Definition
| establishing a final price through bargaining between seller and customer |
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Term
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Definition
| setting one price for the primary target market and a different price for another market |
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Term
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Definition
| temporary reduction of prices on a patterned or systematic basis |
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Term
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Definition
| temporary reduction of prices on an unsystematic basis |
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Term
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Definition
| charging the highest possible price that buyers who most desire the product will pay |
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Term
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Definition
| setting prices below those of competing brands to penetrate a market and gain a significant market share quickly |
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Term
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Definition
| establishing and adjusting prices of multiple products within a product line |
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Term
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Definition
| pricing the basic product line low, while pricing related items higher |
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Term
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Definition
| pricing the highest-quality or most versatile products higher than other models in the product line |
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Term
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Definition
| pricing an item in a product line low with the intention of selling a higher-priced item in the line |
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Term
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Definition
| setting a limited number of prices for selected groups or lines of merchandise |
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Term
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Definition
| pricing that attempts to influence a customer's perception of price to make a product's price more attractive |
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Term
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Definition
| pricing a product at a moderate level and displaying it next to a more expensive model or brand |
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Term
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Definition
| packaging together two or more complementary products and selling them at a single price |
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Term
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Definition
| packaging together two or more identical products and selling them at a single price |
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Term
| everyday low prices (EDLP) |
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Definition
| pricing products low on a consistent basis |
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Term
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Definition
| ending the price with certain numbers to influence buyers' perceptions of the price or product |
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Term
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Definition
| pricing on the basis of tradition |
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Term
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Definition
| setting prices at an artificially high level to convey prestige or a quality image |
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Term
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Definition
| fees set by people with great skill or experience in a particular field |
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Term
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Definition
| a product priced below the usual markup, near cost, or below cost |
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Term
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Definition
| advertised sales or price cutting linked to a holiday, a season, or an event |
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Term
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Definition
| setting a price at a specific level and comparing it with a higher price |
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Term
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Definition
| the decisions and activities that make products available to customers when and where they want to purchase them |
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Term
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Definition
| all the activities associated with the flow and transformation of products from raw materials through to the end customer |
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Term
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Definition
| the total set of managerial activities used by an organization to transform resource inputs into products |
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Term
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Definition
| planning, implementing, and controlling the efficient and effective flow and storage of products and information from the point of origin to consumption to meet customers' needs and wants |
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Term
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Definition
| in its broadest form, refers to the processes that enable the progress of value from raw material to final customer and back to redesign and final disposition |
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Term
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Definition
| a set of approaches used to integrate the functions of operations management, logistics management, supply management, and marketing channel management so products are produced and distributed in the right quantities, to the right locations, and a the right time |
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Term
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Definition
| a group of individuals and organizations that direct the flow of products from producers to customers within the supply chain |
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Term
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Definition
| middlemen that link producers to other intermediaries or ultimate consumers through contractual arrangements or through the purchase and resale of products |
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Term
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Definition
| an independent business organization that takes title to industrial products and carries inventories |
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Term
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Definition
| the use of two or more marketing channels to distribute the same products to the same target market |
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Term
| strategic channel alliance |
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Definition
| an agreement whereby the products of one organization are distributed through the marketing channels of another |
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Term
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Definition
| using all available outlets to distribute a product |
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Term
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Definition
| using only some available outlets in an area to distribute a product |
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Term
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Definition
| using a single outlet in a fairly large geographic area to distribute a product |
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Term
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Definition
| the dominant leader of a marketing channel or a supply channel |
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Term
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Definition
| the ability of one channel member to influence another member's goal achievement |
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Term
| vertical channel integration |
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Definition
| combining two or more stages of the marketing channel under one management |
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Term
| vertical marketing systems (VMSs) |
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Definition
| a marketing channel managed by a single channel member to achieve efficient, low-cost distribution aimed at satisfying target market customers |
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Term
| horizontal channel integration |
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Definition
| combining organizations at the same level of operation under one management |
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Term
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Definition
| activities used to move products from producers to consumers and other end users |
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Term
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Definition
| the contracting of physical distribution tasks to third parties who do not have managerial authority within the marketing channel |
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Term
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Definition
| the time needed to complete a process |
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Term
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Definition
| the receipt and transmission of sales order information |
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Term
| electronic data interchange (EDI) |
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Definition
| a computerized means of integrating order processing with production, inventory, accounting, and transportation |
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Term
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Definition
| developing and maintaining adequate assortments of products to meet customers' needs |
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Term
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Definition
| an inventory-management approach in which supplies arrive just when needed for production or resale |
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Term
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Definition
| physical handling of tangible goods, supplies, and resources |
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Term
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Definition
| the design and operation of facilities for storing and moving goods |
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Term
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Definition
| company-operated facilities for storing and shipping products |
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Term
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Definition
| storage space and related physical distribution facilities that can be leased by companies |
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Term
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Definition
| large, centralized warehouses that focus on moving rather than storing goods |
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Term
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Definition
| the movement of products from where they are made to intermediaries and end users |
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Term
| intermodal transportation |
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Definition
| two or more transportation modes used in combination |
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Term
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Definition
| organizations that consolidate shipments from several firms into efficient lot sizes |
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Term
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Definition
| freight transportation firms that provide several modes of shipment |
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Term
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Definition
| an agreement in which a supplier furnishes a product to a channel member with the stipulation that the channel member must purchase other products as well |
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Term
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Definition
| a situation in which a manufacturer forbids an intermediary to carry products of competing manufacturers |
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Term
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Definition
| all transaction sin which the buyer intends to consume the product through personal, family, or household use |
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Term
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Definition
| an organization that purchases products for the purpose of reselling them to ultimate consumers |
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Term
| general-merchandise retailer |
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Definition
| a retail establishment that offers a variety of product lines that are stocked in considerable depth |
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Term
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Definition
| large retail organizations characterized by a wide product mix and organized into separate departments to facilitate marketing efforts and internal management |
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Term
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Definition
| self-service, general-merchandise stores that offer brand name and private brand products at low prices |
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Term
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Definition
| a small self-service store that is open long hours and carries a narrow assortment of products, usually convenience items |
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Term
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Definition
| large, self-service stores that carry a complete line of food products, along with some non-food products |
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Term
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Definition
| giant retail outlets that carry food and non-food products found in supermarkets, as well as most routinely purchased consumer products |
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Term
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Definition
| stores that combine supermarket and discount store shopping in one location |
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Term
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Definition
| larger scale, members-only establishments that combine features of cash-and-carry wholesaling with discount retailing |
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Term
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Definition
| retail facilities in large, low-cost buildings with large on-premises inventories and minimal services |
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Term
| traditional specialty retailers |
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Definition
| stores that carry a narrow product mix with deep product lines |
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Term
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Definition
| a very large specialty store that concentrates on a major product category and competes on the basis of low prices and product availability |
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Term
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Definition
| stores that buy manufacturers' seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts |
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Term
| neighborhood shopping centers |
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Definition
| shopping centers usually consisting of several small convenience and specialty stores |
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Term
| community shopping centers |
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Definition
| shopping centers with one or two department stores, some specialty stores, and convenience stores |
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Term
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Definition
| a type of shopping center with the largest department stores, widest product mixes, and deepest product lines of all shopping centers |
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Term
| superregional shopping center |
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Definition
| a type of shopping center with the widest and deepest product mixes that attracts customers from many miles away |
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Term
| lifestyle shopping center |
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Definition
| a type of shopping center that is typically open air and features upscale specialty, dining, and entertainment stores |
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Term
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Definition
| a type of shopping center that combines off-price stores with category killers |
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Term
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Definition
| identifying an unserved or underserved market segment and serving it through a strategy that distinguishes the retailer from others in the minds of consumers in that segment |
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Term
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Definition
| the physical elements in a store's design that appeal to consumers' emotions and encourage buying |
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Term
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Definition
| a retail strategy of managing groups of similar, often substitutable products produced by different manufacturerers |
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Term
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Definition
| the addition of unrelated product lines to an existing product mix, particularly fast-moving items that can be sold in volume |
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Term
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Definition
| a hypothesis holding that new retailers usually enter the market as low-status, low-margin, low-price operators but eventually evolve into high-cost, high-price merchants |
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Term
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Definition
| the use of the telephone, internet, and nonpersonal media to introduce products to customers, who can then purchase them via mail, telephone, or the internet |
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Term
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Definition
| the selling of products outside the confines of a retail facility |
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Term
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Definition
| a type of marketing in which an organization provides a catalog from which customers make selections and place orders by mail, telephone, or the internet |
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Term
| direct-response marketing |
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Definition
| a type of marketing in which a retailer advises a product and makes it available through mail or telephone orders |
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Term
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Definition
| the performance of marketing-related activities by telephone |
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Term
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Definition
| a form of selling in which products are presented to television viewers, who can but them by calling a toll-free number and paying with a credit card |
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Term
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Definition
| retailing that makes products available to buyers through computer connections |
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Term
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Definition
| marketing products to ultimate consumers through face-to-face sales presentations at home or in the workplace |
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Term
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Definition
| the use of machines to dispense products |
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Term
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Definition
| an arrangement in which a supplier (franchiser) grants a dealer (franchisee) the right to sell products in exchange for some type of consideration |
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Term
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Definition
| transactions in which products are bought for resale, for making other products, or for general business operations |
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Term
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Definition
| an individual or organization that sells products that are bought for resale, for making other products, or for general business operations |
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Term
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Definition
| independently owned businesses that take title to goods, assume ownership risks, and buy and resell products to other wholesalers, business customers, or retailers |
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Term
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Definition
| merchant wholesalers that perform the widest range of wholesaling functions |
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Term
| general-merchandise wholesalers |
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Definition
| full-service wholesalers with a wide product mix but limited depth within product lines |
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Term
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Definition
| full-service wholesalers that carry only a few product lines but many products within those lines |
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Term
| specialty-line wholesalers |
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Definition
| full-service wholesalers that carry only a single product line or a few items within a product line |
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Term
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Definition
| full-service, specialty-line wholesalers that own and maintain display racks in stores |
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Term
| limited-service wholesalers |
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Definition
| merchant wholesalers that provide some services and specialize in a few functions |
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Term
| cash-and-carry wholesalers |
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Definition
| limited-service wholesalers whose customers pay cash and furnish transportation |
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Term
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Definition
| limited-service wholesalers that transport products directly to customers for inspection and selection |
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Term
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Definition
| limited-service wholesalers that take title to goods and negotiate sales but never actually take possession of products |
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Term
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Definition
| limited-service wholesalers that sell products through catalogs |
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Term
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Definition
| intermediaries that represent either buyers or sellers on a permanent basis |
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Term
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Definition
| intermediaries that bring buyers and sellers together temporarily |
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Term
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Definition
| independent intermediaries that represent two or more sellers and usually offers customers complete product lines |
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Term
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Definition
| intermediaries that market a whole product line or a manufacturer's entire output |
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Term
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Definition
| agents that receive goods on consignment from local sellers and negotiate sales in large, central markets |
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Term
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Definition
| manufacturer-owned intermediaries that sell products and provide support services to the manufacturer's sales force |
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Term
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Definition
| manufacturer-owned operations that provide services normally associated with agents |
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