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34 Cards in this Set
- Front
- Back
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Price
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The amount of money that is charged for something of value
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Target Return Objective
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A specific level of profit as an objective
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Profit Maximization objective
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An objective to get as much profit as possible
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Sales oriented objective
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An objective to get some level of unit sales, dollar sales, or share of market- without referring to profit
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Status quo objectives
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Don't rock the pricing boat objectives
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Nonprice competition
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Aggressive action on one or more of the Ps other than price
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One- price policy
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Offering the same price to all customers who purchase products under essentially the same conditions and in the same quantities
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Flexible- price policy
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Offering the same product and quantities to different customers at different prices
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Skimming Price Policy
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Trying to sell the top of the 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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Trying to sell the whole market at one low price
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Introductory Price Dealing
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Temporary price cuts to speed new products into a market and get customers to try them.
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Basic List Prices
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The prices that final customers or users are normally asked to pay for products
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Discounts
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Reductions from list price given by a seller to buyers, who either give up some marketing function or provide the function themselves.
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Quantity Discounts
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Discounts offered to encourage customers to buy in larger amounts
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Cumulative Quantity Discounts
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Reductions in price for larger purchases over a given period, such as a year
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Noncumulative Quantity Discounts
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Reductions in price when a customer purchases a larger quantity on an individual order
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Seasonal Discounts
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Discounts offered to encourage buyers to buy earlier than present demand requires
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Net
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An invoice term meaning that payment for the face value of the invodice is due immediately
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Cash Discounts
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Reductions in the price to encourage buyers to pay their bills quickly
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2/10 net
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Allows a 2 % discount off the face value of the invoice if the invoice if the invoice is paid within 10 days
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Trade functional discount
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A list price reduction given to channel members for the job
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Sale Price
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Temporary discount from the list price
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Everyday Low Pricing
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Setting a low list price rather than relying on frequent sales, discounts, or allowances
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Allowances
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Reductions in price given to final consumers, customers or channel members for doing something or accepting less of something
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Advertising Allowances
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Price reductions to firms in the channel to encourage them to advertise or promote the firm's product's locally
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Stocking Allowances
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Allowances given to wholesalers or retailers to get shelf space for a product - slotting allowances
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Push Money Allowances ( prize money)
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Allowances (SPIFFS) given to retailers by manufacturers or wholesalers to pass on to the retailers' salesclerks for aggressively selling certain items
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Trade in allowance
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A price reduciton given for used products when similar new products are bought
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Rebates
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Refunds to consumers after a purchase
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F.O.B.
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A transportation term meaning free on board some vehicle at some point
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Freight- absorption pricing
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Absorbing freight cost so that a firm's delivered price meets the nearest competitor's
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Dumping
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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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Phony List prices
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Misleading prices that customers are shown to suggest that the price they are to pay has been discounted from list
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Price Fixing
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Competitors illegally getting together to raise
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