Term
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Definition
| The overall sacrifice a consumer is willing to make to acquire a product or service |
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Term
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Definition
| Focusing on target profit pricing, maximizing profits, or target return pricing |
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Term
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Definition
| When they have a particular profit goal as their overriding concern. Firms use price to stimulate a certain level of sales at a certain profit per unit |
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Term
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Definition
| Relies primarily on economic theory. If a firm can accurately specify a mathematical model that captures all the factors required to explain and predict sales and profits, it should be able to identify the price at which its profits are maximized. The problem is gathering and coming up with the model is difficult. |
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Term
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Definition
| Pricing strategy designed to produce a specific return on their investment, usually expressed as a percentage of sales |
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Term
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Definition
| Increasing sales will help the firm more more than will increasing profits. Set prices low to generate new sales and take away from competitors. |
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Term
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Definition
| Firm deliberately prices a product above the prices set for competing products to capture those customers who always shop for the best or for whom price does not matter. (high-quality) |
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Term
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Definition
| Measuring themselves primarily against their competition. Set prices to low to discourage others from entering |
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Term
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Definition
| Set prices similar to those of their major competitors |
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Term
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Definition
| Changes prices only to meet those of competition. |
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Term
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Definition
| Invokes the concept of value. |
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Term
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Definition
| Shows how many units of a product or service consumers will demand during a specific period of time at different prices. |
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Term
| Prestige Products or Services |
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Definition
| Consumers purchase for their status rather than their functionality. Higher the price, the greater the status associated with it. |
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Term
| Price Elasticity of Demand |
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Definition
| Measures how changes in a price affect the quantity of the product demanded. =(%change in quantity demanded)/(%change in price) |
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Term
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Definition
| Less than -1. When a 1% decrease in price produces more than a 1% increase in quantity sold. |
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Term
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Definition
| Greater than -1. When a 1% decrease in price results in less than a 1% increase in quantity sold. |
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Term
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Definition
| The change in the quantity of a product demanded by consumers due to a change in their income |
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Term
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Definition
| Consumers' ability to substitute other products for the focal brand |
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Term
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Definition
| Percentage change in the quantity of product A demanded compared with the percentage change in price in product B. |
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Term
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Definition
| Products whose demands are positively related, such that they rise or fall together. |
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Term
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Definition
| Changes in demand are negatively related. I.E. Blueray players went down in price so DVD players demand also went down. |
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Term
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Definition
| # of units sold equals just enough revenue to equal the total costs. Fixed Costs/Price-VC |
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Term
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Definition
| One firm provides the product or service in a particular industry and as such results in less price competition. |
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Term
| Oligopolistic Competition |
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Definition
| Only a few firms dominate. Firms typically change prices in reaction to competition to keep a stable competitive environment. |
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Term
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Definition
| Happens when two or more firms compete primarily by lowering their prices. |
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Term
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Definition
| Firm sets one or more products at a very low price with the intent of putting its competition out of business. |
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Term
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Definition
| When there are many firms competing for customers in a given market but their products are differentiated |
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Term
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Definition
| There are a large number of sellers of standardized products or commodities that consumers perceive as substitutable. |
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Term
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Definition
| Employs irregular but not necessarily illegal methods; generally, it legally circumvents authorized channels of distribution to sell goods at prices lower than those intended by the manufacturer |
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Term
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Definition
| Pattern of buying both premium and low-priced merchandise or patronizing both expensive, status-oriented retailers and price-oriented retailers. |
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Term
| Cost-Based Pricing Method |
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Definition
| Determine the final price to charge by starting with the cost FC+VC/#produced all times the percent markup |
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Term
| Competitor-Based Pricing Method |
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Definition
| Must set their prices to reflect the way they want consumers to interpret their own prices relative to the competitors' offerings. |
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Term
| Value-Based Pricing Methods |
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Definition
| Approaches to setting prices that focus on the overall value of the product offering as perceived by the consumer. |
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Term
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Definition
| An estimate of how much more or less consumers are willing to pay for a product relative to other comparable products. |
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Term
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Definition
| Consumers may be willing to pay more for a particular product because, over its entire lifetime, it will eventually cost less to own that a cheaper alternative |
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Term
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Definition
| Companies stress the continuity of their retail prices at a level somewhere between the regular, nonsale price and the deep-discount sale prices their competitors may offer. |
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Term
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Definition
| Prices that end in 9. Sellers believe that consumers mentally truncate the actual price, making the perceived price appear lower than it really is |
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Term
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Definition
| Relies on the promotion of sales, during which prices are temporarily reduced to encourage purchases |
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Term
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Definition
| The price against which buyers compare the actual selling price of the product and that facilitates their evaluation process. |
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Term
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Definition
| Marketers establish price floor and ceiling then points in between to establish differences in quality. |
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Term
| Market Penetration Strategy |
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Definition
| Set the initial price low for the introduction of the new product or service. It builds sales and market share and profits quickly. |
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Term
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Definition
| Firms expect the unit cost to drop as the volume sold increases. As sales grow the costs continue to drop allowing even further reduction in price. |
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Term
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Definition
| Innovators and early adopters are willing to pay a higher price to obtain the new product or service. Appeals to consumers willing to pay the premium price to have the innovation first. |
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Term
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Definition
| Offer short-term methods to focus on select components of the five C's (Company objectives, costs, customers, competition, and channel members). Generally represents a response to a threat. |
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Term
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Definition
| Reductions retailers take on the initial selling price of the product or service. Usually done on items that aren't selling or seasonable items. |
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Term
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Definition
| When you buy more of a item or at a bigger size you get it for cheaper. |
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Term
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Definition
| Price reductions offered on products and services to stimulate demand during off-peak seasons. |
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Term
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Definition
| Discount on the price of specific items when they're purchased |
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Term
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Definition
| The manufacturer offers a refund in the form of cash to the buyer. Usually 90% do not redeem rebates. |
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Term
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Definition
| Consumers pay a fee to purchase the right to use a product for a specific amount of time |
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Term
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Definition
| Selling more than one product for a single, lower price. This is to encourage a trial of a new product, get rid of a less desirable product, or keep consumers from buying competing brands. |
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Term
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Definition
| Tactic that attempts to build store traffic by aggressively pricing and advertising a regularly purchased item, often priced at or just above the store's cost. |
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Term
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Definition
| Reduces the invoice cost if the buyer pays the invoice prior to the end of the discount period |
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Term
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Definition
| Reduction offered to retailers if they place their orders before the season so manufacturers can plan its production level |
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Term
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Definition
| Offers a price reduction to channel members if they agree to feature the manufacturer's product in their advertising and promotional efforts. |
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Term
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Definition
| Fees paid to retailers simply to get new products into stores or to gain more or better shelf space for their products. |
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Term
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Definition
| Provides a reduced price according to the amount purchased |
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Term
| Cumulative Quantity Discount |
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Definition
| Uses the amount purchased over a specified time period and usually involves several transactions |
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Term
| Noncumulative Quantity Discount |
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Definition
| Is based only on the amount purchased in a single order |
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Term
| Uniform Delivered Pricing |
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Definition
| The shipper charges one rate, no matter where the buyer is located, which makes things very simply for both the seller and the buyer |
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Term
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Definition
| Sets difference prices depending on a geographical division of the delivery areas |
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Term
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Definition
| Takes the tactic of lowering the price below the store's cost |
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Term
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Definition
| Lures customers in with a very low price of an item, only to aggressively pressure these customers into purchasing a higher-priced model by disparaging the low-priced item. |
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Term
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Definition
| Setting a very low price with the intent to drive competition our of business. Illegal under both the Sherman Act and the Federal Trade Commission Act. |
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Term
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Definition
| When firms sell the same product to different resellers at different prices. Hard to prove but illegal under the Clayton Act and Robinson-Patman Act. |
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Term
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Definition
| Practice of colluding with other firms to control prices |
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Term
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Definition
| Occurs when competitors that product and sell competing products or services collude to control prices, effectively taking price out of the decision process for consumers. Illegal under the Sherman Antitrust Act |
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Term
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Definition
| Occurs when parties at different levels of the same marketing channel(Retailers and manufacturers) agree to control the prices passed to consumers |
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Term
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Definition
| Set of business activities that add value to products and services sold to consumers for their personal or family use |
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Term
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Definition
| Involves selling in more than one channel(internet store catalog) |
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Term
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Definition
| The number of channel members to use at each level of marketing channel. intensive exclusive and selective. |
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Term
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Definition
| Designed to place products in as many outlets as possible |
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Term
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Definition
| Granting Exclusive geographic territories to one or very few retail customers so no other retailers in the territory can sell a particular brand. |
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Term
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Definition
| Relies on a few selected retail customers in a territory to sell products. |
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Term
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Definition
| Self-service retail food store offering groceries, meat, and produce with limited sales of nonfood items. 30,000 SKUs |
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Term
| Stock Keeping Unites (SKUs) |
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Definition
| represents a unique inventory item |
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Term
| Limited Assortment Supermarkets or Extreme Value Food Retailers |
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Definition
| Stock only 2,000 SKUs. Offers usually two brands, one of which is their. Designed to maximize efficiency and reduce costs. |
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Term
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Definition
| Large stores that combine a supermarket with a full-line discount store. |
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Term
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Definition
| Large retailers that offer a limited and irregular assortment of food and general merchandise, little service, and low prices to the general public and small business. (Sam's Club, BJ's) |
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Term
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Definition
| Provide a limited variety and assortment of merchandise at a convenient location with speedy checkout |
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Term
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Definition
| Retailers that carry a broad variety and deep assortment, offer customer services, and organize their stores into distinct department for displaying merchandise. (Macy's, Sears) |
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Term
| Full-Line Discount Stores |
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Definition
| Retailers that offer a broad variety of merchandise, limited service, and low prices. (Walmart, Target) |
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Term
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Definition
| Concentrate on a limited number of complementary merchandise categories and provide a high level of service. |
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Term
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Definition
| Specialty stores that concentrate on pharmaceuticals and health and personal grooming merchandise. (CVS, Rite Aid) |
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Term
| Category Specialists (Big Box Retailers or Category Killers) |
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Definition
| Narrow but deep assortment of merchandise. (Staples) Offers some service for some departments, but because they offer a complete category at lower prices they can "kill" competition |
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Term
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Definition
| Category Specialist offering equipment and material used by do-it-yourselfers and contractors to make home improvements. |
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Term
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Definition
| Small, full-line discount stores that offer a limited merchandise assortment at very low prices (Dollar General, Family Dollar) |
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Term
| Off-Price Retailers (Close-Out Retailers) |
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Definition
| Offer an inconsistent assortment of bran name merchandise at a significant discount from the MRSP (TJMaxx) |
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Term
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Definition
| Merchandise with minor mistakes in construction |
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Term
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Definition
| Off-price retailers owned by manufacturers or department specialty store chains |
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Term
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Definition
| Outlet stores owned by manufacturers. Improve revenues from irregulars, production overruns and merchandise returned by retailers. |
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Term
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Definition
| Firms that primarily sell services rather than merchandise, are a large and growing part of the retail industry. |
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Term
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Definition
| Products and services purchased through mobile devices. |
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Term
| Advantages of In-Store Shopping |
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Definition
| Browsing, Touching and feeling products, Personal Service, Cash and credit payment, entertainment and social experience, Immediate gratification and Risk reduction |
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Term
| Advantages on Online Shopping |
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Definition
| Deeper and broader selection, Personalization through customer service and items, Gain insights into consumer shopping behavior, increase customer satisfaction and loyalty, Expand market presence. |
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Term
| Effective Multichannel Retailing |
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Definition
| Involves integrating CRM of customer data warehouse that houses a complete history of customer's interaction with the retailer. Brand Image. Pricing differently based on the channel it is in, Barnes and Noble offers lower prices online to compete with Amazon. Supply Chain, unique skills are needed to manage different channels. |
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Term
| Integrated Marketing Communications |
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Definition
| Represents the promotion P of the four P's. Encompasses a variety of communication disciplines- advertising, personal selling, sales promotion, public relations, direct marketing, and online marketing including social media |
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Term
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Definition
| Message originates from, must be clearly identified |
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Term
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Definition
| Marketing agency that develops marketing communications. The intermediary |
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Term
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Definition
| Converting the sender's idea into a message which could be verbal, visual or both. |
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Term
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Definition
| The medium-print, broadcast, the internet- that carries the message. |
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Term
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Definition
| Person who reads, hears, or sees the processes the information contained in the message and/or advertisement. |
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Term
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Definition
| The process by which the receiver interprets the sender's message |
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Term
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Definition
| Any interference that stems from competing messages, a lack of clarity in the message, or a flaw in the medium, and it poses a problem for all communication channels. |
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Term
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Definition
| Allows the receiver to communicate with the sender and thereby informs the sender whether the message was received and decoded properly. |
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Term
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Definition
| Awareness leads to Interest, which leads to Desire, which leads to Action. The think feel do model. |
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Term
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Definition
| Potential customer's ability to recognize or recall that the brand name is particular type of retailer or product/service. |
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Term
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Definition
| When Consumers indicate they know the brand when the name is presented to them. |
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Term
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Definition
| When consumers mention a specific brand name first when they are asked about a product or service. |
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Term
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Definition
| A delayed response to a marketing communication campaign. |
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Term
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Definition
| The placement of announcements and persuasive messages in time or space purchased in any of the mass media by business firms, nonprofit orgs, government agencies, and individuals who seek to inform and/or persuade members of a particular target market or audience about their products, services, orgs, or ideas. |
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Term
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Definition
| The organizational function that manages the firm's communications to achieve a variety of objectives, including building and maintaining a positive image, handling or heading off unfavorable stories or events, and maintaining positive relationships with the media. |
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Term
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Definition
| Special incentives or excitement-building programs that encourage the purchase of a product or service. |
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Term
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Definition
| Two-way flow of communication between a buyer and a seller that is designed to influence the buyer's purchase decision. |
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Term
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Definition
| Marketing that communicates directly with target customers to generate a response or transaction. |
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Term
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Definition
| Marketing through wireless handheld devices, such as cellular telephones. |
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Term
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Definition
| Contains periodic posts on a common Web page |
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Term
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Definition
| Media content distributed through social interactions. |
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Term
| Objective-and-Task Method |
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Definition
| Determines the budget required to undertake specific tasks to accomplish communication objectives. Determines which media best reaches the target market |
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Term
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Definition
| Use prior sales and communication activities to determine the present communication budget. Also can use the available budget and competitive parity. |
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Term
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Definition
| How often the audience is exposed to a communication within a specified period of time |
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Term
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Definition
| Describes the percentage of the target population exposed to a specific market communication at least once. |
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Term
| Gross Rating Points (GRP) |
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Definition
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Term
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Definition
| Uses stuff like Google Adwords which brings up sponsored links when people make a search. |
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Term
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Definition
| The number of times the ad appears in front of the user |
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Term
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Definition
| The number of times a user clicks on an ad and divides it by the number of impressions. |
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Term
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Definition
| How useful an ad message is to the consumer doing the search. Google provides a measure of relevance through its AdWords system using a quality score. A high quality score means that a keyword will trigger ads in a higher position and t a lower cost per click. |
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Term
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Definition
| (Sales Revenue - Advertising Cost)/ Advertising Cost. |
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Term
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Definition
| A subsection of the firm's overall marketing plan that explicitly analyzes the marketing and advertising situation, identifies the objectives of the advertising campaign, clarifies a specific strategy for accomplishing those objectives, and indicates how the firm can determine whether the campaign was successful. |
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Term
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Definition
| The goal is to get consumers to pull the product into the supply chain by demanding it. |
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Term
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Definition
| Designed to increase demand by focusing on wholesalers, retailers, or salespeople. Attempt to motivate the seller to highlight the product, rather than the products of competitors, and thereby push the product to consumers. |
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Term
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Definition
| Used to create and build brand awareness, with the goal of moving the consumer through the buying cycle to a purchase. Usually for a new item. |
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Term
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Definition
| Used to motivate consumers to take action. Used when a product has gained a certain level of brand awareness. Growth and early maturity stages. |
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Term
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Definition
| Used to remind or prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of their life cycle. |
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Term
| Product-Focused Advertisements |
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Definition
| Inform, persuade, or remind consumers about a specific product or service |
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Term
| Institutional Advertisements |
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Definition
| Inform, Persuade, or remind consumers about issues related to places, politics or an industry. |
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Term
| Public Service Advertising |
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Definition
| Focuses on public welfare and generally is sponsored by nonprofit institutions, civic groups etc... |
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Term
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Definition
| Application of marketing principles to a social issue to bring about attitudinal and behavioral change among the general public. |
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Term
| Unique Selling Proposition(USP) |
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Definition
| The common theme or slogan in an advertising campaign. Communicates the unique attributes of the product and thereby becomes a snapshot of the entire campaign. |
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Term
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Definition
| Help consumers make purchase decisions by offering factual info that encourages consumers to evaluate the brand favorably on the basis of the key benefits it provides. |
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Term
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Definition
| Aims to satisfy consumers' emotional desires rather than their utilitarian needs. |
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Term
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Definition
| Process of evaluating and selecting the media mix |
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Term
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Definition
| Combination of the media used and the frequency of advertising in each medium |
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Term
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Definition
| Actual purchase of airtime or print pages |
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Term
|
Definition
| Channels include national newspapers, magazines, radio, and television and are ideal for reaching large numbers of anonymous audience members. |
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Term
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Definition
| More focused and generally used to reach a narrower segments, often with unique demographic characteristics or interests. |
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Term
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Definition
| Specifies the timing and duration of advertising |
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Term
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Definition
| Runs steadily throughout the year and therefore is suited to products and services that are consumed continually at relatively steady rates and that require a steady level or persuasive and/or reminder advertising. |
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Term
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Definition
| An advertisement schedule implemented in spurts, with periods of heavy advertising followed by periods of no advertising. |
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Term
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Definition
| Combines the continuous and flighting schedules by maintaining a base level of advertising but increasing advertising intensity during certain periods. |
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Term
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Definition
| Large type designed to draw attention and be read first |
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Term
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Definition
| Represents the main text portion of the ad |
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Term
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Definition
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Term
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Definition
| Refers to everything that appears on top of the background |
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Term
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Definition
| Identifies the sponsor of the ad |
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Term
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Definition
| Assessments performed before an ad campaign is implemented to ensure that the various elements are working in an integrated fashion and doing what they are intended to do. |
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Term
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Definition
| Monitoring key indicators, such as daily or weekly sales volume, while the advertisement is running to shed light on any problems. |
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Term
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Definition
| Evaluation of the campaign's impact after it has been implemented. |
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Term
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Definition
| The legal exaggeration of praise, stopping just short of deception, lavished on a product. |
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Term
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Definition
| When businesses and charities form a partnership to market an image, product, or service for their mutual benefit. |
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Term
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Definition
| When corporations support various activities, usually in the cultural or sports and entertainment sectors. |
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Term
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Definition
| Short-term price reduction that can take several forms. Can take several forms |
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Term
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Definition
| Offers an item for free or at a bargain price to reward some type of behavior, such a buying, sampling or testing. |
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Term
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Definition
| A brand-sponsored competition that requires some form of skill or effort |
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Term
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Definition
| Form of sales promotion that offers prizes based on a chance drawing of entrants' names. |
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Term
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Definition
| Offers potential customers the opportunity to try a product or service before they make a decision. |
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Term
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Definition
| Specifically designed to retain customers by offering premiums or other incentives to customers who make multiple purchases over time |
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Term
| Point-of-Purchase Displays |
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Definition
| Merchandise displayed at the point of purchase, such as at the checkout counter. |
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Term
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Definition
| Pay to have their product included in nontraditional situations such as in a scene in a movie or television program. |
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Term
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Definition
| When two or more firms join together to reach a specific target market. |
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Term
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Definition
| Sales philosophy and process that emphasizes a commitment to maintaining the relationship over the long term and investing opportunities that are mutually beneficial to all parties. |
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Term
|
Definition
| A list of potential customers |
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Term
|
Definition
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Term
|
Definition
| Offer an excellent forum for finding leads. Major events are attended by buyers who choose to be exposed to products and services offered. |
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Term
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Definition
| Method of prospecting in which salespeople telephone or go to see potential customers without appointments. |
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Term
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Definition
| Like a cold call but always over the phone. |
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Term
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Definition
| Occurs prior to meeting the customer for the first time and extends the qualification of leads procedure. |
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Term
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Definition
| The salesperson acts out a simulated buying situation while a colleague or manager acts as the buyer. |
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Term
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Definition
| Obtaining a commitment from the customer to make a purchase |
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Term
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Definition
| Salespeople who sell a manufacturer's products on an extended contract basis but are not employees of the manufacturer. |
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Term
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Definition
| Salesperson whose primary responsibilities are identifying potential customers and engaging those customers in discussions to attempt to make a sale. |
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Term
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Definition
| Salesperson whose primary responsibility is to process routine orders and reorders or rebuys for products. |
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Term
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Definition
| Enhance and help with the overall selling effort. |
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Term
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Definition
| Combine sales specialists whose primary duties are order getting, order taking, or sales support but who work together to service important accounts. |
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Term
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Definition
| A short-term incentive designed to elicit a specific response from the sales force |
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Term
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Definition
| Firms that buy products from manufacturers and resell them to retailers, and retailers sell products directly to consumers. |
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Term
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Definition
| Set of institutions that transfer the ownership of and move goods from point of production to the point of consumption |
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Term
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Definition
| The integration of two or more activities for the purpose of planning, implementing, and controlling the efficient flow of raw materials, in-process inventory, and finished goods from the point of origin to the point of consumption |
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Term
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Definition
| Facility for the receipt, storage, and redistribution of goods to company stores or customers, may be operated by retailers, manufacturers, or distribution specialists |
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Term
|
Definition
| Ready to be placed on the selling floor. |
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Term
|
Definition
| Refers to affixing price and identification levels to the merchandise |
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Term
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Definition
| Document or display on a screen in a forklift truck indicating how much of each item to get from specific storage areas |
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Term
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Definition
| The amount of time between the recognition that an order needs to be placed and the arrival of the needed merchandise at the seller's store, ready for sale. |
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Term
| Vertical Channel Conflict |
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Definition
| When supply chain members are not in agreement about their goals, roles, or rewards. |
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Term
| Horizontal Channel Conflict |
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Definition
| When there is disagreement or discord among members at the same level of marketing channel, such as two competing retailers or two competing manufacturers. |
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Term
|
Definition
| Each member (manufacturer, wholesaler, and retailer) attempt to satisfy their own objectives and maximize their own profits. |
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