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| reflects the mental links that consumers make between a brand and its key product attributes, such as a logo, slogan, or famous personality |
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| occurs when the brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold |
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| the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service |
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| the use of the same brand name for new products being introduced to the same or new markets |
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| a contractual agreement between firms, whereby one firm allows another to use its brand name, logo, symbols, and/or characters in exchange for a negotiated fee |
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| occurs when a consumer buys the same brand’s product or service repeatedly over time rather than buy from multiple suppliers within the same category |
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| a strategy in which marketers change a brand’s focus to target new markets or realign the brand’s core emphasis with changing market preferences |
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| the practice of marketing two or more brands together, on the same package or promotion |
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| the relationship between a product or service’s benefits and its cost |
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| the complete set of all products offered by a firm |
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| groups of associated items, such as items that consumers use together or think of as part of a group of similar products |
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Sales: Low
Profits: negative or low
Typical consumers: innovators
Competitors: one or few |
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Sales: rising
profits: rapidly rising
typical consumers: early adopters
competitors: few but increasing |
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sales: peak
profits: peak to declining
typical consumers: late majority
competitors: high number of competitors and products |
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sales: declining
profits: declining
typical consumers: laggards
competitors: low number of competitors and products |
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| the overall sacrifice a consumer is willing to make to acquire a specific product or service |
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| the easiest element in the marketing mix to manipulate |
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| prices set too low may signal... |
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| prices set too high might signal... |
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| price is the only marketing mix element that... |
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| profit-oriented, sales-oriented, competitor-oriented, and customer-oriented are all examples of... |
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| firms implement this when they have a particular profit goal as their overriding concern; they use price to stimulate a certain level of sales at a certain profit per unit |
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| this strategy relies mainly on economic theory; uses a mathematical model to capture all the factors required to explain and predict sales and profits |
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| used by firms less concerned about the absolute level or profits and more interested in the rate at which profits are generated relative to their investments; employ pricing strategies to produce a specific return on their investments, expressed as a % of sales |
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| specifically focuses on target profit pricing, maximizing profits, and target return pricing |
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| this method/objective: may focus on increasing sales, does not always imply setting low prices, and may be more concerned with overall market share |
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| under this method, firms strategize according to the premise that they should measure themselves primarily according to their competition |
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| firms set prices that are similar to those of their competitors |
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| firms change prices only to meet those of the competition |
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| this approach focuses on customer expectations by matching prices to customer expectations |
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| small changes in price will generate a large change in the quantity demanded |
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| customers are less sensitive to price changes, and therefore quantity demanded in not greatly influenced by price |
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| the % change in unit sales that results from a % change in price |
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| price elasticity of demand |
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| % change in quantity demanded/ % change in price |
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| factor influencing price elasticity of demand that refers to the change in the quantity of a product demanded by consumers due to a change in their income |
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| factor influencing price elasticity of demand which refers to the consumers' ability to substitute other products for the focal brand |
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| primarily labor and material costs that vary with production volume |
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| costs that remain essentially at the same level, regardless of changes in the volume of production |
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| technique enabling managers to examine the relationships among cost, price, revenue, and profit over different levels of production and sales |
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| the point at which the number of units sold generates just enough revenue to equal total costs |
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| one firm provides the product/service in a particular industry, and results in less price competition |
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| oligopolistic competition |
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| only a few firms dominate |
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| many firms competing for customers in a given market but their products are differentiated resulting in less price competition |
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| large number of sellers of standardized products/commodities that consumers perceive as substitutable, resulting in more price competition |
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| manufacturers, wholesalers, retailers are all... |
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| employs irregular distribution methods; legally circumvents authorized channels of distribution to sell goods at prices lower than those intended by the manufacturer |
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| an economic factor influencing price; the pattern of buying both premium and low-priced merchandise or patronizing both expensive, status-oriented retailers and price-oriented retailers |
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| economic factors that influence price |
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| local economic conditions, increase in disposable income, increasing status consciousness, and increasing globalization are all... |
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| the point at which the fixed cost, total cost and total revenue curves intersect |
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| the percentage change in the quantity of Product A demanded compared with the percentage change in price in Product B. |
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| cost-based pricing method |
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| determines the final price to charge by starting with the cost; all costs calculated on a per unit basis and costs don't vary for different levels of production |
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| competitor-based pricing method |
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| set prices to reflect the way they want consumers to interpret their own prices relative to the competitors' offerings |
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| value-based pricing methods |
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| method where setting prices that focus on the overall value of the product offering as perceived by the consumer |
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| a value-based method where consumers may be willing to pay more for a particular product because, over its lifetime, it will eventually cost less to own than a cheaper alternative |
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| strategy where companies stress the continuity of their retail prices at a level somewhere between the regular, nonsale price and the deep-discount sales price their competitors may offer |
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| strategy utilized by everyday low pricing where consumers mentally truncate the actual price, making the perceived price appear lower than it really is |
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| pricing strategy which relies on the promotion of sales, during which prices are temporarily reduced to encourage purchases |
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| the price against which buyers compare the actual selling price of the product and that facilitates their evaluation process; used by sellers who use a high/low pricing strategy |
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| establishing a price floor and a price ceiling for an entire line of similar products and then setting a few other price points in between to represent distinct differences in quality; allows for easy comparison |
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| market penetration pricing |
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| setting the initial price low for the introduction of the new product; meant to build sales, market share, and profits fast |
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| strategy used by innovators and early adopters who are willing to pay the premium price to have the new innovation first |
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| a long term approach to setting prices broadly across all the firm's products |
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| offers short term methods to focus on select components of the five C's |
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| a pricing tactic; the reductions retailers take on the initial selling price of the product or service; gets rid of slow moving or obsolete merchandise |
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| a pricing tactic which encourages the consumer to buy larger quantities each time; the larger the quantity, the less the cost per ounce |
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| a pricing tactic; price deductions offered on products to stimulate demand during off-peak seasons |
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| a pricing tactic; offer a discount on the price of specific items when they're purchased |
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| a pricing tactic; provides a discount for consumers off the final selling price; the refund in issued by the manufacturer not the retailer |
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| a pricing tactic; selling more than one product for a single, lower price than if you bought the products separately |
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| a pricing 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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| reduces the invoice cost if the buyer pays the invoice prior to the end of the discount period; expressed 3/10,n/30 |
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| form of vendor allowance; 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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| form of vendor allowance; 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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| provides a reduced price according to the amount purchased |
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| cumulative quantity discount |
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| uses the amount purchased over a specified time period and usually involves several transactions; encourages resellers to maintain their current supplier b/c the cost to switch must include the loss of the discount |
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| noncumulative quantity discount |
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| a quantity discount based only on the amount purchased in a single order; provides the buyer with an incentive to purchase more merchandise immediately |
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| uniform delivered pricing |
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| pricing tactic specific to shipping where the shipper charges one rate, no matter where the buyer is located, making things simple for both the buyer and seller |
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| pricing tactic specific to shipping where the shipper sets different prices depending on a geographical division of the delivery areas |
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