Term
| The Only marketing mix variable that brings in revenue |
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Definition
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Profit (LR and SR)
Sales
Market Share
Volume
Survival
Social Responsibility |
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Demand for Product
Stage in PLC
Product Line
Cost Floor
Cost of Marketing and Changing
Legal and Ethical
Competition (market structure) |
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Definition
| Fixed Cost/(Price-Variable Cost) |
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Definition
1. Assumes Demand and variable cost do not change with volume
2. assumes costs can be broken down into fixed and variable |
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Term
| Approaches for setting a price level |
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Definition
1. Demand
2. Cost
3. Profit
4. Competition |
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Definition
1. Prestige pricing
2. Skimming vs. Penetration
3. Odd-Even Pricing |
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| Cost-Oriented Pricing approach |
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Definition
1. standard markup
2. Cost Plus pricing
3. Experience Curve pricing |
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Term
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Definition
1. Target Profit = TR-TC
2. Target ROS: target return = target profit/TR
3. Target ROI: target return/investment |
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| Competition oriented pricing approach |
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Definition
1. Customary pricing
2. Above/at/below market pricing
3. loss leader pricing |
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Definition
one price vs. flexibility
Product mix (line) pricing
discounts/promotions/allowances
Geographical pricing
legal aspects
fairness/ethical implications |
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Term
| Changing (reducing price) can be dangerous if |
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Definition
demand is inelastic
some firms must exit the market
consumers become price shoppers
inconsistent with firm's image..cheapens brand |
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Definition
Mail Order
Television: $100B
Telemarketing $500B |
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Term
| Why did many online channels fail? |
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Definition
| logistics still had to be carried out.. |
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Term
| Why don't all firms buy direct? |
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Definition
1. requires handling complementary products
2. earn higher return in main business
3. channel functions
1. transactional, facilitative, logistical
4.efficiency
5. alienate channel products = consumers? |
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Definition
Better product knowledge
concentrate on one product
more aggressive since future lies with firm
some customers prefer dealing directly |
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Definition
generally cheaper
more people, wider coverage
more aggressive due to commissions
more local/regional contacts
Some customers prefer dealing with broader lines. |
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Term
| Vertical Marketing Systems |
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Definition
Corporate
Contractual
Administered
Channel Partnership |
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Term
| Vertical Marketing Systems: contractual |
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Definition
Wholesaler sponsored voluntary
retailer sponsored co-op
franchisin |
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Definition
Intensive
Selective
Exclusive |
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Market Coverage
Best satisfy buying requirements
Most Profit |
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Term
| Vertical Channel Relationship Conflicts |
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Definition
Slotting allowance
Diverting
eg. Supplier-retailer disagreements (guiding star) |
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Term
| Horizontal Channel Relationship conflict |
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Definition
territory overlaps
dual distribution (eg outlets)
channel blurring |
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Term
| Channel Relationship Cooperation |
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Definition
Channel Captain
channel influence (4 factors) |
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Definition
Wages
Health Care
Gender Discrimination
Local Economies |
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Definition
consumers welfare vs. employee welfare
job numbers vs. job quality
firms obligation to shareholders vs. society's right to earn an honest living |
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Term
| Retail Industry Challenges |
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Definition
Health care costs
oil prices surge
weakening dollar
drought/unpredictable weather in grain areas
autos in china and india
diets in china and india |
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Term
| Strategies to compete in today's marketplace |
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Definition
Get more efficient
Enhance profitability
Customer Loyalty--build it
INNOVATION AND DIFFERENTIATION |
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Term
| Get more efficient to compete in today's market |
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Definition
supply chain
centralization and cost cutting
acquisition to gain scale |
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Term
| Enhance profitability to compete in today's market |
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Definition
larger private brand share
increase margins through mix, vendor squeeze |
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Term
| Stockholm's pricing strategy |
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Definition
| pricing for cars in which different tolls are charged for different times of the day to reduce pollution |
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Definition
| compete on distribution outlets, but don't want to get into a price war |
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Definition
| only differentiation is price, market sets the price |
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Term
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Definition
| always sloping downward; represents the change in total revenue as a result of one additional unit sold |
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Term
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Definition
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Term
| Marginal Revenue Equation |
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Definition
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Term
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Definition
| change in Q demanded/change in Price |
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Term
| Revenues with INCREASE with increase in price when demand is.. |
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Definition
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Term
| revenue with DECREASE with increase in price if demand is... |
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Definition
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Term
| Price elasticity increases when.. |
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Definition
large number of substitutes
product is not a necessity
expensive |
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Definition
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Definition
| takes costs of a service/product and adds a fee |
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Term
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Definition
| start off with skimming system, move on to penetration pricing. assumes that as you move along, you get more experienced and know how to set prices more efficiently |
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Term
| Biggest days for holiday spending |
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Definition
Christmas
Valentine's day
Easter
Mother's day
Father's Day
Halloween |
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Term
| Why are price wars dangerous? |
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Definition
If demand is inelastic, TR decreases
some firms must exit the market
consumers become price shoppers
changing consumer conditions (consumer price index)
inconsistent with product image |
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Term
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Definition
information
convenience
variety
services |
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Term
| Classifying retailer outlets |
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Definition
Ownership
service level
merchandise line
Non-Store |
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Term
| classifying retailer outlets: ownership |
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Definition
| independent, corporate chain, contractual systems |
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Term
| classifying retailer outlets: ownership |
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Definition
| independent retailer, corporate chain, contractual system |
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Term
| classifying retailer outlets: service level |
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Definition
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Definition
peripheral, unique items
contributes to local charities
emphasis on wellness
organics
employee "sign designer"
"breakfast at Wegmans"
scholarships to young employees
top 100 co. to work for
chef in every store
wood fired brick ovens
branding a loaf of bread
changing to EDLP |
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Term
| 6 steps in setting prices |
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Definition
1. identify pricing objectives and constraints
2. estimate demand and revenue
3. determine cost, volume and profit relationships
4. select an approximate price level
5.set list or quoted price
6. make changes |
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Definition
| selling a line of products and pricing them at different pricing points (e.g. pants for 29, 49, and 69) |
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Definition
| manufacturer adjusting the features of a product to achieve the target price (eg Heinz and Canon) |
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Definition
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Definition
| charging different prices to maximize revenues, eg airplane tickets |
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Definition
1. discounts
2. allowances
3. geography |
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Definition
| reductions in unit cost for larger orders |
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Definition
| discount if you buy early |
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Definition
| discount if you pay in cash |
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Definition
| discount if when a used product is part of the payment (trading in a car) |
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Term
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Definition
| allowance for doing advertising/promotions |
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Term
| Deceptive pricing practices |
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Definition
Bait and Switch
bargains conditional on other purchases
comparable value comparisons
comparisons with suggested prices
former price comparisons |
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Term
| Consumer Goods Pricing act prohibits.. |
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Definition
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Definition
| horizontal price fixing, predatory pricing |
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Definition
predatory pricing
deceptive pricing
geographical pricing |
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Term
| Robinson-Patman act prohibits.. |
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Definition
geographical pricing
price discrimination |
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Term
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Definition
| charging different prices to different consumers |
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Term
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Definition
general merchandise
specialty merchandise |
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Term
| Limited service wholesalers |
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Definition
Rack Jobbers: furnish shelves, perform channel functions, sell on consignment
cash and carry: limited, take only cash, sell to those who contact them
drop shippers/desk jobbers: own merch but dont handle it; sell it and ship direct from producer
truck jobbers: small warehouses, fast moving items sold for cash |
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Term
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Definition
Economic influence
Expertise
Identification with particular channel member
right of one member to dictate the behavior of another |
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Term
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Definition
Consumer: direct and indirect
Business: direct and indirect
electronic marketing
direct marketing
dual distribution
multichannel marketing
strategic channel alliance |
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Term
| factors affecting channel choice and management |
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Definition
environmental
consumer
product
company |
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Term
| Legal considerations in marketing channels |
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Definition
dual distribution (sherman and clayton)
vertical integration
exclusive dealing
tying arrangements
refusal to deal
resale retrictions |
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Term
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Definition
Time
Form
Place
Possession
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Term
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Definition
| automatic vending, direct mail and catalog, television home shopping, online retailing, telemarketing, and direct selling |
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Term
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Definition
| central business district (downtown), regional shopping centers (5-10 mi. radius), community shopping center, strip location, power center |
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