Term
| Customer Value-Based Pricing |
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Definition
| Uses buyers perceptions of value as the key to pricing. |
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Term
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Definition
| Involves setting price to just cover the costs of making and marketing a product. |
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Term
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Definition
| Setting price to make a target return. |
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Term
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Definition
| Starts with an ideal selling price and then pinpoints costs that will ensure that the price is met. |
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Term
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Definition
| When the market consists of many buyers and sellers who trade over a range of prices rather than a single market price. |
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Term
| Market Penetration Pricing |
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Definition
| When companies set a low initial price to attract a large number of buyers quickly and win a large market share. |
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Term
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Definition
| The practice of setting high price for a new product to skin maximum revenues layer by layer form segments willing to pay the high price creating more profitable sales. |
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Term
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Definition
| The pricing of accessory products along with a main product |
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Term
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Definition
| When you set a price of another product to make the main product's price more competitive and attractive. |
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Term
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Definition
| The seller selects a given city as a central point and charges all customers the freight cost from that city to the customer location, regardless of the city from which the goods are actually shipped from. |
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Term
| Discount and Allowance Pricing |
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Definition
| Involves reducing prices to reward customer responses or reducing prices to promote the product. |
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Term
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Definition
| The practice of a manufacturer dictating the price a retailer can charge for a product. |
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Term
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Definition
| The practice of raising prices in order to exploit consumers. |
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Term
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Definition
| Mary Anne sells candy from several small shops in her city. It costs her $2 per box to produce, distribute, and sell the product in her stores. She sells the boxes for $4, figuring that a dollar of the markup is to make up for any losses she may have. Which of the following methods of pricing does Mary Anne use? |
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Term
| Cost Based Pricing (Mark up) |
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Definition
| Involves setting standard prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for its effort and risk. |
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Term
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Definition
| Shiny Hair Salon is known for its high quality hair products, its awesome stylists, and its high prices. The salon has several perks: free hot towels and eyebrow plucking with every customer's style, complementary shampoo and conditioner at every appointment, and full screen televisions to watch while you wait. The salon's prices reflect these amenities. Which method of pricing is used at Shiny Hair Salon? |
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Term
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Definition
| Refers to attaching value-added features and services to differentiate a customer's offers while charging higher prices. |
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Term
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Definition
| Computer hardware and Accessory sells computer hardware and software. In order to maximize on profit, the company sells the computer terminal for a relatively low price in comparison to its nearest competitors, but sells the necessary accessories such as monitors, printers, printer ink, mice, and computer software at a much higher price. Which of the following pricing strategies is used by Computer Hardware and Accessory? |
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Term
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Definition
| The practice of setting prices for products that must be sold along with the main product. |
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Term
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Definition
| Sydney's Salad Bar sells gourmet salads and decorative veggie platters. The company goes through a lot of veggies, and creates a lot of waste peelings, cores, etc. In order to keep prices low for customers, the company sells its veggie waste to local farming companies for use as compost or animal feed. Which of the following pricing strategies is Sydney's Salad Bar using? |
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Term
| Create and market a lower price fighter brand. |
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Definition
| Cafe Coffee is a gourmet coffee company trying to break into the discount market. The copany know that its target market will not pay large amounts for their coffee, regardless of how high the quality is. What should they do? |
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Term
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Definition
| A lower price product or brand used to improve market share in a market that is highly price sensitive. |
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Term
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Definition
| The process of adding the right combination of quality and good service at the right price. |
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Term
| Competition Based Pricing |
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Definition
| The practice of setting prices based on other companies strategies, prices, costs, and market offerings. |
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Term
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Definition
| The measure of the sensitivity of demand to changes in price. |
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Term
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Definition
| The practice of setting the price steps between various products in the same line based on cost differences between the products, customer evaluations of different features, and competitors prices. |
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Term
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Definition
| The practice of selling a product or service at 2 or more prices, where the difference in prices is not based on differences in costs. |
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Term
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Definition
| The practice of temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales. |
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Term
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Definition
| The practice of adjusting prices continually to meet the characteristics and needs of individual customers and situations. |
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Term
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Definition
| When the price says something about the product. |
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Term
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Definition
| A reduction from the list price for buyer actions such as trade-ins or promotional / sales support. |
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Term
| Demand and price are inversely related - the higher the price, the lower the demand. |
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Definition
| In a classic demand curve, what is the relationship between price and demand? |
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Term
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Definition
| Garamond's Gourmet wanted to serve quality food to his customers but at prices that were considered "reasonable" by the general public. He first surveyed his target market in his area to determine what price was "reasonable" for a gourmet meal. Then, he structured his menu to provide the best quality food for the price he was quoted. What pricing strategy is being used? |
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Term
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Definition
| The Hacky sack market is PGH is competitive. There are at least 20 different sellers of hacky sacks in town, each catering to its own market, with several different levels of pricing involved. You can find a cheap hacky sack at the local dollar store, or a high priced designer hack sack at the department store. Which market are they in? |
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Term
| Uniform-delivered pricing |
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Definition
| The practice of charging the same price plus freight to all customers, regardless of location. |
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Term
| Uniform - delivered pricing |
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Definition
| Seashells by the Seashore does not discriminate when it comes to the location of its customers. The company charges one flat price for shipping, regardless of whether the customers lives in Timbuktu or Tibet. Which geographical pricing strategy is used? |
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Term
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Definition
| Tympani Toilet Tissue rewards customers who buy in bulk. Any customer who buys 20 rolls or more receives a built-in 30% reduction in price. A customer buying more than 50 rolls gets a 50% reduction. Which pricing strategy is being used? |
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Term
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Definition
| The practice of selling below cost with the intention of punishing a competitor or gaining higher long run profits by putting competitors out of business. |
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Term
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Definition
| Tooth Brite Tooth Care, Inc. sells several products related to dental care: toothbrushes, toothpaste, dental floss, whitener, and mouthwash. Which of the following product mix pricing strategies would be the most helpful to the company? |
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Term
| Introducing a fighter brand (market share not sales!) |
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Definition
| What is unlikely to be used to increase product sales in a particular market? |
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Term
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Definition
| Involves building direct connections with carefully targeted individuals and consumers to both obtain an immediate response and cultivate lasting customer relationships. |
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Term
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Definition
| Defined as any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. |
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Term
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Definition
| The strategy in which the sales force and trade promotion are used to force the product through channels. The producer promotes the product to channel members who in turn promote it to final consumers. |
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Term
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Definition
| A promotion strategy in which a company spends a lot of money on consumer advertising and promotion to induce the final consumers to buy the product, creating a demand vacuum that brings the product though the channel. |
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Term
Meaningful
Believable
Distinctive |
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Definition
| Advertising appeals should be: (3) |
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Term
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Definition
| Used primarily to introduce a new product or product category. |
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Term
| Corporate Identity Materials |
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Definition
| Help create an image that the public immediately recognizes. |
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Term
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Definition
| A PR function that is concerned with building or maintaining national or local community relationships. |
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Term
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Definition
| The practice of building good relationships with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling / heading off unfavorable rumors, stories, and events. |
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Term
| Promotion Mix (Mktg Communications Mix) |
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Definition
| The specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships. It consists of advertising, sales promotion, personal selling, PR, and direct marketing. |
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Term
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Definition
| The practice of using short term incentives to encourage the purchase or sale of a product or service. |
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Term
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Definition
| The practice of using personal presentation by the firm's sales force for the purpose of making sales and building customer relationships. |
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Term
| Integrated Marketing Communication |
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Definition
| What is NOT part of the promotion mix? |
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Term
| Integrated Marketing Communications (IMC) |
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Definition
| The practice of carefully integrating and coordinating the company's many communications channels to deliver a clear, consistent, and compelling message about the organization and its products. |
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Term
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Definition
| Name one basis of integrated marketing communications. |
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Term
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Definition
| Touch point where the customer may encounter the company and its brands. |
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Term
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Definition
| The plan by which the company accomplishes its advertising objectives. It consists of 2 major elements: creating advertising messages and selecting advertising media. |
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Term
1. Defining specific objectives
2. Determining the tasks that must be completed to achieve these objectives
3. Estimating the costs of performing these tasks |
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Definition
| How is the promotional budget determined under the objective-and-task method? |
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Term
| Proposed Promotion Budget |
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Definition
| The sum of proposed costs needed for promotions is . . . |
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Term
| Competitive Parity Method |
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Definition
| The practice of setting the promotion budget to match competitors outlays. |
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Term
| Percentage of Sales Method |
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Definition
| The practice of setting the budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price. |
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Term
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Definition
| A term that has come to represent the merging of advertising and entertainment in an effort to break through the clutter and create new avenues for reaching customers with more engaging messages. |
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Term
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Definition
| Involves creating a character to represent the product. |
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Term
| Public Service Activities |
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Definition
| PR tools used to improve public goodwill. |
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Term
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Definition
| Life Long Batteries is a company that sells batteries and other power sources. The company is well establish and has relatively good sales. However, in order to promote sales over the short-term, the company has decided to discount its batteries, issue manufacturers coupons for its power strips, and host demonstrations of how to use its other, less well known, products. Which of the following is Long Life Batteries doing? |
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Term
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Definition
| Compact Disk Warehouse has been facing some negative publicity (rumors!). In order to combat the negative publicity, they shot commercials featuring its factories, showing happy workers. Held press conferences, etc. What are they engaging in? |
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Term
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Definition
| Clear Liquid Refreshment is a company that sells bottled water. The company knows that there is a demand for its product, because, as their advertisements say, "Everyone needs water." Therefore, the company wishes to base its advertising strategy on encouraging customers to buy its product. What is the best idea? |
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Term
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Definition
| Just for You Cosmetics has built its entire company around building solid customer relationships. At Just for You Cosmetics, the customer is able to get a personalize assessment of which cosmetics would suit the customer best. Best promotion strategy? |
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Term
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Definition
| Fundie Undies wants to capitalize on the "everyone wears underwear" philosophy, so it shows everyday people in its advertisements. What execution style is being used? |
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Term
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Definition
| Involves showing one of more "typical" people using the product. |
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Term
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Definition
| Set the Pace Pacemakers wants to draw attention to its brand of pacemakers as well as get financial support for its pacemaker research. So, the company has teamed up with the AHA and WHO in order to get financial support. What function of PR is being used? |
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Term
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Definition
| Involves working with donors or members of a nonprofit org to gain financial or volunteer support. |
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Term
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Definition
| A company wishes to build a stronger relationship with its customers in order to ultimately sell more products. The company has built connections with its customers through its use of catalogs, places interactive kiosks in its stores, and engages in mobile marketing. What are they doing? |
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Term
| Press Relations/ Press Agency |
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Definition
| The practice of creating and placing newsworthy info in the news media to attract attention to a person, product, or service. |
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Term
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Definition
| Leman's Lunches has been adopted by a local school as a healthy alternative. Understanding positive press could promote sales, they leaked this info to the local news media, which resulted in several favorable tv news broadcasts. What are they doing? |
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Term
| PR can have a stronger impact on public awareness at a much lower cost. |
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Definition
| What is an advantage of PR efforts over advertising? |
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Term
1. Determining reach, frequency, and impact
2. Choosing among major media types
3. Selecting specific media vehicles
4. Choosing media timing |
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Definition
| What are the major steps in advertising media selection? |
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Term
| Horrendous Return on Advertising Investment |
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Definition
| Book Club Books has spent millions of dollars promoting its new book club in several different media outlets. However, despite their outrageous outlay of money, few people have joined Book Club Books. What best describes the issue? |
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Term
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Definition
| Advertising created by customers when they talk about a product. |
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Term
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Definition
| Holistic Consumables is a grocery store that sells organic food. The company wishes to know how customers view its stores and its products, so it has hired a company to analyze how many times a customer mentions the sore online, posts videos of its advertisements, or "likes" an article about the sore or mention of the store. What are they measuring? |
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Term
Salespeople
Sales Reps
Agents
District Managers
Account Executives
Sales Consultants
Sales Engineers |
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Definition
| People engaged in personal selling go by names such as: |
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Term
| Product Sales Force Structure |
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Definition
| A sales force organization in which salespeople specialize in selling only a portion of the company's products or lines. |
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Term
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Definition
| A standard that states the amount a salesperson should sell and how sales should be divided among the company's products. |
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Term
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Definition
| An individual representing a company to customers by performing one or more of the following activities: prospecting, communicating, selling, servicing, info gathering, and relationship building. |
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Term
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Definition
| Personal presentations by the firm's sales force for the purpose of making and building customer relationships. |
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Term
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Definition
| Have jobs that involve creative selling and realtionship building with customers. |
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Term
| Customer (or market) sales force |
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Definition
| A sales force organization in which salespeople specialize in selling only to certain customers or industries. |
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Term
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Definition
| Salespeople who conduct business from their offices via telephone, the internet, or visits from prospective buyers. |
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Term
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Definition
| Salespeople who can travel to call on customers. |
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Term
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Definition
| Sales tools used to persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to customers. |
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Term
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Definition
| Sales tools used to generate business leads, stimulate purchases, reward customers, and motivate salespeople. |
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Term
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Definition
| The sales force is the link between what? |
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Term
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Definition
| Sales step in which a salesperson tells the "value story" to the buyer, showing how the company's offer solves the customer's problems. |
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Term
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Definition
| Micah does not have to do a lot for his sales job. He stands behind a counter and rings up purchases. What is he? |
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Term
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Definition
| Katelyn works for a horror store, specializing in novelty items. Katelyn's job is to communicate with customers about products, actively encourage them to purchase, gather info and identify potential areas for future sales. What best describes Katelyn? |
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Term
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Definition
| A reduction in price given to a retailer in return for an agreement to feature a product. |
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Term
1. Designing sales force strategy and structure
2. Recruiting and selecting
3. Training
4. Compensating
5. Supervising
6. Evaluating salespeople and sales force performance |
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Definition
| An effective sales management process consists of: (6 steps) |
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Term
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Definition
| Can be used to locate good potential customers, generate sales leads, learn about customers in detail, and fine-tune market offerings and communications to the special preferences and behaviors of target market segments or individuals. |
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Term
1. Convenience
2. Access to products and info
3. Privacy, immediacy, interactive nature of the contact and the ease of the process. |
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Definition
| What are buyer benefits of direct marketing? |
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Term
| Direct Response TV Marketing |
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Definition
| What direct marketing method has been associated with questionable sales pitches? |
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Term
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Definition
| What is the most widely used method of marketing? |
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Term
| Marketers may use the info they have to manipulate customers. |
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Definition
| What is a critique of online marketing related to info gathering? |
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Term
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Definition
| When companies use direct marketing as their sole business strategy. |
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Term
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Definition
| A type of identity theft that use deceptive emails and websites to fool users into divulging their personal data. |
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Term
1. Geographic Data
2. Demographic Date (age, income, family, birthdays)
3. Psychographic Data (activities, interests, opinions)
4. Buying Behavior (preferences, recency, frequency, monetary value of past purchases) |
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Definition
| Things that may be found in a customer database: |
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Term
Flexibility
Low Cost
Efficiency
Power to build customer relationships |
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Definition
| Seller benefits under direct marketing: |
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Term
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Definition
| Major fundraising tool for nonprofit and political groups: |
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Term
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Definition
| 70% of online sales are driven by this type of marketing: |
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Term
| Consumer to business marketing |
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Definition
| When consumers can search out sellers on the Web, learn about their offers, initiate purchases, give feedback, and can even drive transactions with businesses. |
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Term
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Definition
| A type of company that is traditional and has buildings and psychical locations but decided to add online marketing to their operations. |
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Term
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Definition
| Corporate Solutions uses its online presence in a particular way. Instead of focusing on sales, the corporation uses it marketing to reach new business customers, make better deals with distributors, and negotiate better deals with suppliers. What strategy is being used? |
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Term
| COPPA Children's Online Privacy Protection Act |
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Definition
| Requires web site operators targeting children to post privacy policies on their sites. They also notify parents about any info they're gathering and obtain parental consent before collecting personal info from children under age 13. |
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Term
| Would help the company cater its marketing to a particular person or group of people. |
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Definition
| Mikhail's Menswear has been failing in its advertising efforts. Customers in its target market are not responding to the company's ads and sales are suffering. The company is considering creating a customer database. Why is this good? |
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Term
| Direct Marketing Channels |
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Definition
| Give buyers access to a wealth of comparative info about companies, products, and competitors. |
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Term
| Allow customers to get more info about the products |
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Definition
| Yolanda's Yo Yo Emporium has been having difficulties pleasing its customers. When the company surveyed its customers and other members of its target market, it found out that many potential buyers were put off by the confusion associated with making a purchase and the lack of info about the products that was available. The company is thinking of switching to direct marketing. Why is this good? |
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Term
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Definition
| A website that interacts with consumers to move them closer to a direct purchase or other marketing outcome. |
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Term
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Definition
| Which online marketing domain has been given the most attention by the popular press? |
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Term
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Definition
| Allows marketers to send highly targeted, tightly personalized relationship-building messages. |
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Term
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Definition
| Designed to build customer goodwill, collect customer feedback, and supplement other sales channels rather than sell the company's products directly. |
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Term
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Definition
| Reba's Fried Chicken does not want to sell its products online, but wants to create an online presence to allow customers to give feedback, suggestions and critiques on its products. It also wants to allow customers to find more info about its product without having to come into its stores. What should they create? |
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Term
| The ease of contact with customers. |
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Definition
| What is a common factor in all forms of direct marketing? |
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