Term
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Definition
| total volume of actual and potential users of product |
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Term
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Definition
| volume of buyers [ours or competitors] in our category or segment |
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Definition
| buyers with access to our products |
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Term
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Definition
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Term
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Definition
| our sales (or a competitor's sales) as % of total market/industry |
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Term
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Definition
| same as variable cost- = direct manufacturing expenses, varies directly with volume |
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Term
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Definition
| profit above variable cost |
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Definition
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Definition
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Term
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Definition
| few, concentrated sellers |
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Term
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Definition
| many sellers, different prices |
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Term
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Definition
| vary directly with the number of units produced and sold. Cost of having product available. |
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Term
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Definition
| costs whose total remains unchanged over given time or relevant range. |
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Term
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Definition
| incurred at the discretion of management to increase sales volume [most marketing expenses] |
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Term
| Customer value-based pricing |
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Definition
| setting price based on buyers' perceptions of value rather than on the seller's cost |
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Term
| Good-value pricing (type of value-based pricing) |
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Definition
| Offering the right combination of quality and good service at a fair price |
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Term
| Value-added pricing (type of VB) |
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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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Term
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Definition
| setting prices based on the costs for producing, distributing and selling the product plus a fair rate for effort and risk |
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Term
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Definition
| adding a standard markup to the cost of the product |
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Term
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Definition
| setting price to break even on the costs of making and marketing a product, or setting price to make a target return |
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Term
| Competition-based pricing |
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Definition
| setting prices based on competitors strategies, prices, costs and market offerings |
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Term
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Definition
| pricing that starts with an ideal selling price and then targets costs that will ensure that the price is met |
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Term
| Market-skimming/ Price skimming |
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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. |
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Term
| Market-Penetration Pricing |
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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
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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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Term
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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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Term
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Definition
| Pricing bundles of product sold together |
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Term
| Discount and Allowance pricing |
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Definition
| Reducing prices to reward |
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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 continuously 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
| companies discussing prices to set a standard |
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Term
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Definition
| selling below cost with the intention of punishing a competitor or running them out of business |
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Term
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Definition
| when the seller requires dealers to charge a certain retail price |
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Term
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Definition
| seller states price or price savings that mislead consumers |
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