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Definition
| the amount of money that is charged for something of value |
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Definition
| sets a specific level of profit as an objective often stated as a percentage of sales or of capital investment |
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| profit maximization objective |
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Definition
| seeks to get as much profit as possible might be stated as a desire to earn a rapid return on investment |
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Definition
| seeks some level of unit sales, dollar sales, or share of market--without referring to profit. |
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| dont rock the pricing boat objectives. most common when the total market is not growing. |
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Definition
| aggresive action on one or more of the P's other than price |
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Definition
| consciously set prices. firms setting their own prices |
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Definition
| means offering the same price to all customers who purchase products under essentially the same conditions and in the same quantities |
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Definition
| means offering the same product and quantities to different customers at different prices. |
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Definition
| tries to sell the top (skim the cream) of a market the top of the demand curve at a high price before aiming at more price sensitive customers. |
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| penetration pricing policy |
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Definition
| tries to sell the whole market at one low price this approach may be wise when the elite market-those willing to pay a high price--is small |
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| introductory price dealing |
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Definition
| temporary price cuts to speed new products into a market and get customers to try them |
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Definition
| are the prices final customers or users are normally asked to pay for products |
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| are reductions from list price given by a seller to buyers who either give up some marketing function or provide the function themselves. can be userful in marketing strategy planning |
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Definition
| discounts offered to encourage customers to buy in larger amounts. this lets a seller get more of a buyer's business |
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| noncumulative quantity discounts |
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Definition
| apply only to individual orders. such discounts encourage larger orders but do not tie a buyer to the seller after that one purchase |
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Definition
| are discounts offered to encourage buyers to buy earlier than present demand requires |
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Term
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Definition
| means that payment for the face value of the invoice is due immediately. these terms are sometimes changed to net 10 or net 30, which means payment is due within `0 or 30 days of the date of the invoice |
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Term
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Definition
| are reductions in price to encourage buyers to pay their bills quickly. the term for this usually modifies the net terms |
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Definition
| means the buyer can take a 2 percent discount off the face value of the invoice if the invoice is paid within 30 days |
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Term
| trade (functional) discount |
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Definition
| is a list price reduction given to channel members for the job they are going to do |
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Definition
| a temporary discount from the list price. encourage immediate buying |
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Definition
| setting a low list price rather than relying on frequent sales, discounts, or allowances. supermarkets use this approach |
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Definition
| like discounts, are given to final consumers, customers, or channel members for doing something or accepting less of something |
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Definition
| price reductions given to firms in the channel to encourage them to advertise or otherwise promote the supplier's products locally |
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Term
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Definition
| SOMETIMES called slotting allowances are given to an intermediary to get shelf space for a product |
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| push money or prize money allowances |
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Definition
| sometimes called PMs or spiffs are given to retailers by manufacturers or wholesalers to pass on to the retailer's sales clerks fir aggresively selling certain items |
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Definition
| a price reduction given for used products when similar new products are bought |
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Definition
| refunds paid to consumers after a purchase. sometimes very large |
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Definition
| commonly used transportation term which means free on board some vehicle at some place. means pricing names the place often the location of the seller's factory or warehouse |
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Definition
| means making an average freight charge to all buyers within specific geographic areas |
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| uniform delivered package |
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Definition
| means making an average freight charge to all buyers |
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| freight absorption pricing |
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Definition
| which means absorbing freigh cost so that a firm's delivered price meets that of the nearest competitor |
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Term
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Definition
| means setting a fair price level for a marketing mix that really gives the target market superior customer value. |
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Term
| unfair trade practice acts |
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Definition
| puts a lower limit on prices, especially at the wholesale and retail levels. they have been passed in more than half the states in the US |
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Definition
| is pricing a product sold in a foreign market below the cost of producing it or at a price lower than in its domestic market |
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| prices customers are shown to suggest that the price has been discounted from the list |
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| bans unfair or deceptive acts in commerce. |
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| competitors getting together to raise, lower, or stablize prices--is common and relatively easy ILLEGAL in the US |
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| makes illegal any price discrimiation if it injures competition |
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Definition
| selling the same products to different buyers at different prices |
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Definition
| a dollar amount added to the cost of products to get the selling price |
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Definition
| means percentage of selling price that is added to the cost to get the selling price |
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Definition
| the sequence of markups firms use at different levels in a channel--determines the price structure in the whole channel. figured on the selling price at each level of the channel |
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Definition
| the number of times the average inventory is sold in a year |
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Definition
| means adding a reasonable markup to the average cost of a product. usually found by studying past records |
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Definition
| THE SUM OF THOSE COSTS that are fixed in total--no matter how much is produced |
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Term
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Definition
| the sum of those changing expenses that are closely related to output--expenses for parts, wages, packaging materials, outgoing freight and sales commissions |
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Definition
| the sum of total fixed and total variable costs |
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Definition
| obtained by dividing total cost by the related quantity |
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| average fixed cost per unit |
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Definition
| is obtained by dividing total fixed cost by the related quantity |
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Term
| average variable cost per unit |
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Definition
| obtained by dividing total variable cost by the related quantity |
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Term
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Definition
| evaluates whether the firm will be able to break even that is to cover all its costs with a particular price |
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Definition
| the quantity where the firm's total cost will equal its total revenue |
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| fixed cost contribution per unit |
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Definition
| the assumed selling price per unit minus the variable cost per unit |
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Definition
| =Total fixed costs/fixed cost contribution per unit |
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Definition
| focuses on the changes in total revenue and total cost from selling one more unit to find the most profitable price and quantity |
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| when customers have substitute ways of meeting a need they are likely to be more price sensitive |
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Definition
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| the impact of substitutes on price sensitivity is greatest when it is easy for customers to compare prices |
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Definition
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| customers tend to be more price sensitive the greater the total expenditure |
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Definition
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| customers are less price sensitive the greater the significance of the end benefit of the purchase |
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Definition
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| customers are sometimes less price sensitive if there are switching costs--costs that a customer faces when buying a product that is different from what has been purchased or used in the past |
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Definition
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Definition
| which means setting prices that will capture some of what customers will save by substituting the firm's product for the one currently being used. |
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Definition
| the price they expect to pay--for many of the products they purchase |
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Definition
| means setting some very low prices--real bargains--to get customers into retail stores |
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Definition
| setting some very low prices to attract customers but trying to sell more expensive models or brands once the customer is in the store |
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Definition
| means setting prices that have special appeal to target customers |
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Definition
| setting prices that end in certain numbers |
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Definition
| setting a few price levels for a product line and then marking all items at these prices. this approach assumes that customers have a certain reference price in mind that they expect to pay for a product |
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Definition
| setting an acceptable final consumer price and working backward to what a producer can charge |
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Definition
| setting a rather high price to suggest high quality or high status TIFFANY |
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Definition
| setting prices for a whole line of products. |
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| complementary product pricing |
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Definition
| setting prices on several products as a group. this may lead to one product being priced very low so that the profits from another product will increase |
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Term
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Definition
| setting one price for a set of products |
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Term
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Definition
| means offering a specific price for each possible job rather than setting a price that applies for all customers. |
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Definition
| a price set based on bargaining between the buyer and the seller |
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Definition
| making goods and services available in the right quantities and locations, when customers want them |
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Term
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Definition
| any series of firms or individuals who participate in the flow of products from producer to final user or consumer. |
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Term
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Definition
| direct communication between a seller and an individual customer using a promotion method other than face to face personal selling. |
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Term
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Definition
| means the difference between the quantity of products it is economical for a producer to make and the quantity final users or consumers normally want |
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Term
| discrepancy of assortment |
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Definition
| means the difference between the lines a typical producer makes and the assortment final consumers or users want |
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Term
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Definition
| adjust the quantities or assortments of products handled at each level in a channel of distribution |
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Definition
| involves collecting products from many small producers |
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Definition
| involves dividing larger quantities into smaller quantities as products get closer to the final market |
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Definition
| means separating products into grades and qualities desired by different target markets |
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Term
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Definition
| means putting together a variety of products to give a target market what it wants |
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Term
| traditional channel systems |
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Definition
| the various channel members make little or no effort to cooperate with each other |
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Term
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Definition
| a manager who helps direct the activities of a whole channel and tries to avoid or solve channel conflicts |
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Term
| vertical marketing systems |
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Definition
| channel systems in which the whole channel focuses on the same target market at the end of the channel |
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Term
| corporate channel systems |
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Definition
| corporate ownership all along the channel we might say the firm is going direct |
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Term
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Definition
| acquiring firms at different levels of channel activity. |
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Term
| administered channel systems |
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Definition
| the channel members informally agree to cooperate with each other |
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Term
| contractual channel systems |
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Definition
| the channel members agree by contract to cooperate with each other |
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Definition
| makes a product available widely enough to satisfy target customer's needs but not exceed them. |
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Term
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Definition
| selling a product through all responsible and sutiable wholesalers or retailers who will stock or sell the products |
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Definition
| selling through only those intermediaries who will give the product special attention |
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Term
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Definition
| selling through only one intermediary in a particular geographic area |
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Term
| multichannel distribution |
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Definition
| occurs when a producer uses several competing channels to reach the same target market--perhaps using several intermediaries in addition to selling directly |
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Definition
| channels used to retrieve products that customers no longer want |
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Definition
| selling some of what the firm produces to foreign markets |
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Term
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Definition
| means selling the right to use some process, trademark, patent, or toehr right for a fee or royalty |
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Definition
| means that the seller provides only management and marketing skills--others own the production and distribution facilities |
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Term
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Definition
| a domestic firm enters into a partnership with a foreign firm |
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Definition
| means that a parent firm has a division or owns a separate subsidiary firm in a foreign market |
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Definition
| the transporting, storing, and handling of goods in ways that match target customer's needs with a firm's marketing mix--both within individual firms and along a channel of distribution |
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Definition
| another common name for logistics |
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Definition
| how rapidly and dependably a firm can deliver what the customers want |
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Term
| physical distribution concept |
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Definition
| says that all transporting, storing, and product handling activities of a business and a whole channel system should be coordinated as one system that seeks to minimize the cost of distribution for a given customer service level |
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Term
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Definition
| involves evaluating each possible PD system and identifying all of the costs of each alternative |
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Term
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Definition
| the complete set of firms and facilities and logistics activities that are involved in procuring materials, transforming them into intermediate or finished products, and distributing them to customers. |
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Term
| electronic data interchange |
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Definition
| an approach that puts information in a standardized format easily shared between different computer systems |
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Definition
| is the marketing function of moving goods |
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Definition
| grouping individual items into an economical shipping quantity and sealing them in protective containers for transit to the final destination |
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Definition
| means loading truck trailers on railcars to provide both speed and flexibility |
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Definition
| the marketing function of holding goods so they're available when they're needed |
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Definition
| the amount of goods being stored |
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Definition
| storing facilities owned or leased by companies for their own use |
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Definition
| independent storing facilities |
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Term
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Definition
| a special kind of warehouse designed to speed the flow of foods and avoid unneccesary storing costs |
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