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41 Cards in this Set
- Front
- Back
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What is a wholesaler?
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distributing the sale of goods or merchandise to retailers, to industrial, commercial, institutional, or other professional users
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What are merchants?
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operate in the chain between producer and retail merchant
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What is a full service merchant?
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handle larger sales volumes; perform a broad range of services for their customers
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What is a limited service merchant?
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offer fewer services to their customers and suppliers.
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What is a broker?
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mediates between a buyer and a seller
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What are manufacturer reps?
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independent sales people who work on commission.
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What is a retailer?
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consists of the sale of goods or merchandise from a fixed location. (ex: department store)
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What is a store retailer?
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Predominant method consumers use to obtain products.
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What is direct marketing?
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retailers that are principally selling via direct methods may have a primary location that receives orders but doesn't host shopping visits. Orders are received via mail or phone.
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What is internet retailing?
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Drastically growing. People go on the internet and purchase their items instead of physically going to the store .
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Allocation
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setting something away for a particular reason
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Assortment
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act of assorting; distribution; classification
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Price
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is the exchange value of some good or service
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Total Price Concept
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the total price of a good or service consists of:
money spent, time spent, effort allocated, trade-offs required |
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Price Differentiation
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the charging of different prices for the same product to different markets
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Price Competition
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intense competition in which competitors cut retail prices to get more business.
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Customer Value in Use
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how critical the product is to consumer's ability and desire to buy and satisfy needs and wants
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Customer Value in Exchange
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product's objective worth based on consumers ability and desire to buy, and producer's willingness to sell in an open marketplace
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What is acceptable price?
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expectation in the minds of consumers regarding price levels for a product category
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What is market price?
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the economic price for which a good or service is offered in the marketplace
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What is list price?
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refers to the manufacturer's suggested retail pricing
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What is reference price?
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the price that buyers use to compare the offered price of a product or service.
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What is target price?
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The price at which seller projects that a buyer will buy a product
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What is going rate?
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the current standard or usual price, rate, or salary for something
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Pricing strategies
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specifies how prices will be generally initiated and managed/changed over the life of the product
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Skimming
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Intent: capture "cream"- less price sensitive buyers
Focus: High profit margin; sacrifice volume; invite competitors Result: short-term profits for reinvestment |
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Penetration
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Intent: sell whole market at one price
Focus: high volume sacrifice; profit margin; keep competition out Result: achieve economies scale |
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Competitive/Administered
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Intent: create/maintain competitive advantages; break/build habitual behavior
Focus: maintain competitive stature; customer retention/takeaway Result: protect market share |
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Skimming and penetration are affiliated in what life cycle stage?
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Introduction
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Competitive/Administered are affiliated with what life cycle stage?
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Mature/Decline
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The four basic price decisions
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objectives
orientation strategy tactics |
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price objectives
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profit
volume competitive relationship |
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profit objective
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maximize as much money as you possibly can
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volume objective
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a way where they can sell as many units as they can.
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competitive objective
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trying to fight off competitors so that you can maintain your brand equity
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relationship objective
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not trying to hold on to ground or space, but the long term situation. we want to maximize lifetime customer revenue.
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value based price orientation
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customer--> value--> price--> cost & profit--> product/distribution/communication
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cost based price orientation
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product/distribution/communication--> cost & profit--> price--> value--> customers
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demand based price orientation
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external demand supply forces--> price--> cost & profit--> product/ distribution/communication--> customers
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Customer oriented pricing tactics
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reference prices
price awareness price/quality associations odd-even price perceptions limited offers target pricing |
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Competitor-oriented pricing tactics
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leader-following pricing
going-rate pricing discount or premium pricing cash trade quantity allowances competitive bids price wars |
