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181 Cards in this Set
- Front
- Back
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average fixed cost
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The fixed cost per unit produced.
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average total cost
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The sum of the average fixed cost and the average variable cost.
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average variable cost
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The variable cost per unit produced.
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base-point pricing
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Geographic pricing combining factory price and freight charges from the base point nearest the buyer.
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breakeven point
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The point at which the costs of producing a product equal the revenue made from selling the product.
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demand curve
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A graph of the quantity of products expected to be sold at various prices if other factors remain constant.
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external reference price
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A comparison price provided by others.
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fixed costs
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Costs that do not vary with changes in the number of units produced or sold.
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freight absorption pricing
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Absorption of all or part of actual freight costs by the seller.
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geographic pricing
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Reductions for transportation and other costs related to the physical distance between buyer and seller.
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internal reference price
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A price developed in the buyer's mind through experience with the product.
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marginal cost (MC)
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The extra cost a firm incurs by producing one more unit of a product.
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marginal revenue (MR)
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The change in total revenue resulting from the sale of an additional unit of a product.
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noncumulative discounts
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One-time reductions in price based on specific factors.
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nonprice competition
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Emphasizing factors other than price to distinguish a product from competing brands.
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price
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Value exchanged for products in a marketing transaction.
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prestige sensitive
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Drawn to products that signify prominence and status.
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price competition
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Emphasizing price and matching or beating competitors' prices.
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price elasticity of demand
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A measure of the sensitivity of demand to changes in price.
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price discrimination
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Providing price differentials that injure competition by giving one or more buyers a competitive advantage.
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price conscious
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Striving to pay low prices.
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quantity discounts
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Deductions from list price for purchasing large quantities.
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seasonal discount
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A price reduction given to buyers for purchasing goods or services out of season.
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total cost
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The sum of average fixed and average variable costs times the quantity produced.
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trade discount
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Also known as functional discount; a reduction off the list price given by a producer to an intermediary for performing certain functions.
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transfer pricing
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Prices charged in sales between an organization's units.
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uniform geographic pricing
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Charging all customers the same price, regardless of geographic location.
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value conscious
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Concerned about price and quality of a product.
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variable costs
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Costs that vary directly with changes in the number of units produced or sold.
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zone pricing
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Pricing based on transportation costs within major geographic zones
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bait pricing
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Pricing an item in the product line low with the intention of selling a higher-priced item in the line.
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bundle pricing
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Packaging together two or more complementary products and selling them for a single price
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captive pricing
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Pricing the basic product in a product line low while pricing related items at a higher level.
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comparison discounting
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Setting a price at a specific level and comparing it with a higher price.
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competition-based pricing.
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Pricing influenced primarily by competitors' prices.
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cost-based pricing
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Adding a dollar amount or percentage to the cost of the product.
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cost-plus pricing
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Adding a specified dollar amount or percentage to the seller's cost.
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customary pricing
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Pricing on the basis of tradition.
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differential pricing
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Charging different prices to different buyers for the same quality and quantity of product.
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demand-based pricing
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Pricing based on the level of demand for the product.
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everyday low prices (EDLP)
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Setting a low price for products on a consistent basis.
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multiple-unit pricing
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Packaging together two or more identical products and selling them for a single price.
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markup pricing
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Adding to the cost of the product a predetermined percentage of that cost.
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negotiated pricing
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Establishing a final price through bargaining.
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odd-even pricing
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Ending the price with certain numbers to influence buyers' perceptions of the price or product.
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penetration pricing periodic discounting
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Temporary reduction of prices on a patterned or systemic basis.
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premium pricing
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Pricing the highest-quality or most versatile products higher than other models in the product line.
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prestige pricing
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Setting prices at an artificially high level to convey prestige or a quality image.
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price leaders
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Products priced below the usual markup, near cost, or below cost.
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price lining
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Setting a limited number of prices for selected groups or lines of merchandise.
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price skimming
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Charging the highest possible price that buyers who most desire the product will pay.
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pricing objectives
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Goals that describe what a firm wants to achieve through pricing.
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product-line pricing
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Establishing and adjusting prices of multiple products within a product line.
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professional pricing
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Fees set by people with great skill or experience in a particular field.
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psychological pricing
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Pricing that attempts to influence a customer's perception of price to make a product's price more attractive.
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reference pricing
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Pricing a product at a moderate level and positioning it next to a more expensive model or brand.
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random discounting
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Temporary reduction of prices on an unsystematic basis.
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secondary-market pricing
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Setting one price for the primary target market and a different price for another market.
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special-event pricing
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Advertised sales or price cutting linked to a holiday, season, or event
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channel power
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The ability of one channel member to influence another member's goal achievement.
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cycle time
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The time needed to complete a process.
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distribution
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The activities that make products available to customers when and where they want to purchase them.
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distribution centers
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Large, centralized warehouses that focus on moving rather than storing goods.
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dual distribution
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The use of two or more channels to distribute the same product to the same target market.
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penetration pricing
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Setting prices below those of competing brands to penetrate a market and gain a significant market share quickly.
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periodic discounting
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Temporary reduction of prices on a patterned or systematic basis.
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price skimming
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Charging the highest possible price that buyers who most desire the product will pay.
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pricing objectives
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Goals that describe what a firm wants to achieve through pricing.
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product-line pricing
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Establishing and adjusting prices of multiple products within a product line.
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professional pricing
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Fees set by people with great skill or experience in a particular field.
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random discounting
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Temporary reduction of prices on an unsystematic basis.
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secondary-market
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pricing Setting one price for the primary target market and a different price for another market.
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special-event pricing
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Advertised sales or price cutting linked to a holiday, season, or event.
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channel power
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The ability of one channel member to influence another member's goal achievement.
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cycle time
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The time needed to complete a process.
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distribution centers
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Large, centralized warehouses that focus on moving rather than storing goods.
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dual distribution
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The use of two or more channels to distribute the same product to the same target market
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distribution
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The activities that make products available to customers when and where they want to purchase them.
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electronic data interchange (EDI)
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A computerized means of integrating order processing with production, inventory, accounting, and transportation.
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exclusive distribution
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Using a single outlet in a fairly large geographic area to distribute a product.
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freight forwarders
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Organizations that consolidate shipments from several firms into efficient lot sizes.
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horizontal channel integration
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Combining organizations at the same level of operation under one management.
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industrial distributor
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An independent business that takes title to business products and carries inventories.
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intensive distribution
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Using all available outlets to distribute a product.
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intermodal transportation
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Two or more transportation modes used in combination.
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inventory management
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Developing and maintaining adequate assortments of products to meet customers' needs.
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just-in-time (JIT)
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An inventory management approach in which supplies arrive just when needed for production or resale.
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marketing channel
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A group of individuals and organizations directing products from producers to customers.
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marketing intermediary
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A middleman linking producers to other middlemen or ultimate consumers through contractual arrangements or through the purchase and resale of products.
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materials handling
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Physical handling of products.
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megacarriers
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Freight transportation firms that provide several modes of shipment.
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order processing
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The receipt and transmission of sales order information.
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outsourcing
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The contracting of physical distribution tasks to third parties who do not have managerial authority within the marketing channel.
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personal selling
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Paid personal communication that informs customers and persuades them to buy products.
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point-of-purchase (P-O-P) materials
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Signs, window displays, display racks, and similar means used to attract customers.
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sales promotion
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An activity and/or material meant to induce resellers or salespeople to sell a product or consumers to buy it.
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buying allowance
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A temporary price reduction to resellers for purchasing specified quantities of a product.
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cooperative advertising
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An arrangement in which a manufacturer agrees to pay a certain amount of a retailer's media costs for advertising the manufacturer's products.
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order getter
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The salesperson who sells to new customers and increases sales to current ones.
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order takers
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Salespersons who primarily seek repeat sales.
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straight commission compensation plan
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Paying salespeople according to the amount of their sales in a given time period.
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straight salary compensation plan
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Paying salespeople a specific amount per time period.
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rebates
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A sales promotion technique whereby a customer is sent a specific amount of money for purchasing a single product.
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advertising
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Paid nonpersonal communication about an organization and its products transmitted to a target audience through mass media.
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advertising campaign
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Designing a series of advertisements and placing them in various advertising media to reach a particular target audience.
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advertising platform
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Basic issues or selling points to be included in the advertising campaign.
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media plan
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Specifies media vehicles and schedule for running the advertisements.
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target audience
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The group of people at whom advertisements are aimed.
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recognition test
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A posttest in which individuals are shown the actual ad and asked if they recognize it.
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pretest
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Evaluation of ads performed before a campaign begins.
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posttest
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Evaluation of advertising effectiveness after the campaign.
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press conference
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A meeting used to announce major news events.
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public relations
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Communication efforts used to create and maintain favorable relations between an organization and its stakeholders.
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channel capacity
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The limit on the volume of information a communication channel can handle effectively.
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integrated marketing
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communications Coordination of promotional efforts for maximum informational and persuasive impact.
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noise
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Anything that reduces a communication's clarity and accuracy.
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primary demand
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Demand for a product category rather than for a specific brand.
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promotion mix
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A combination of promotional methods used to promote a specific product.
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pull policy
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Promoting a product directly to consumers to develop strong consumer demand that pulls products through the marketing channel.
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push policy
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Promoting a product only to the next institution down the marketing channel.
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selective demand
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Demand for a specific brand.
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receiver
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The individual, group, or organization that decodes a coded message
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source
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A person, group, or organization with a meaning it tries to share with an audience.
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promotion
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Communication to build and maintain relationships by informing and persuading one or more audiences.
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coding process
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Converting meaning into a series of signs or symbols.
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communication
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A sharing of meaning.
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decoding process
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Converting signs or symbols into concepts and ideas.
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feedback
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The receiver's response to a message.
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kinesic communication
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Communicating through the movement of head, eyes, arms, hands, legs, or torso.
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medium of transmission
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The means of carrying the coded message from the source to the receiver.
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pioneer promotion
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Promotion that informs consumers about a new product.
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proxemic communication
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Communicating by varying the physical distance in face-to-face interactions.
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tactile communication
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Communicating through touching.
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agents
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Intermediaries that represent either buyers or sellers on a permanent basis.
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atmospherics
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The physical elements in a store's design that appeal to consumers' emotions and encourage buying.
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brokers
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Intermediaries that bring buyers and sellers together temporarily.
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catalog showrooms
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A form of warehouse showroom where consumers shop from a catalog and products are stored out of buyers' reach.
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cash-and-carry
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wholesalers Limited-service wholesalers whose customers pay cash and furnish transportation.
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catalog marketing
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A type of marketing in which an organization provides a catalog from which customers make selections and place orders by mail, telephone, or the Internet.
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category killer
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A very large specialty store concentrating on a major product category and competing on the basis of low prices and product availability.
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commission merchants
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Agents that receive goods on consignment and negotiate sales in large, central markets.
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community shopping centers
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Shopping centers with one or two department stores, some specialty stores, and convenience stores.
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department stores
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Large retail organizations characterized by wide product mixes and organized into separate departments to facilitate marketing efforts and internal management.
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direct marketing
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The use of telecommunications and nonpersonal media to introduce products to consumers, who then can purchase them via mail, telephone, or the Internet.
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direct response marketing
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A type of marketing that occurs when a retailer advertises a product and makes it available through mail or telephone orders.
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direct selling
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The marketing of products to ultimate consumers through face-to-face sales presentations at home or in the workplace.
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discount stores
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Self-service, general merchandise stores offering brand name and private brand products at low prices.
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drop shippers
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Limited-service wholesalers that take title to products and negotiate sales but never take actual possession of products.
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full-service
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wholesalers Merchant wholesalers that perform the widest range of wholesaling functions.
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general merchandise retailer
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A retail establishment that offers a variety of product lines that are stocked in depth.
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general merchandise
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wholesalers Full-service wholesalers with a wide product mix but limited depth within product lines.
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hypermarkets
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Stores that combine supermarket and discount shopping in one location.
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limited-line wholesalers
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Full-service wholesalers that carry only a few product lines but many products within those lines.
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limited-service
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wholesalers Merchant wholesalers that provide some services and specialize in a few functions.
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manufacturers' agents
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Independent intermediaries that represent more than one seller and offer complete product lines.
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merchant wholesalers
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Independently owned businesses that take title to goods, assume ownership risks, and buy and resell products to other wholesalers, business customers, or retailers.
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mail-order wholesalers
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Limited-service wholesalers that sell products through catalogs.
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neighborhood shopping centers
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Shopping centers usually consisting of several small convenience and specialty stores.
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off-price retailers
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Stores that buy manufacturers' seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts.
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online retailing
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Retailing that makes products available to buyers through computer connections.
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retailing
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Transactions in which ultimate consumers are the buyers.
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regional shopping center
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A type of shopping center with the largest department stores, the widest product mix, and the deepest product lines of all shopping centers.
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rack jobbers
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Full-service, specialty-line wholesalers that own and maintain display racks in stores.
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retailer
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An organization that purchases products for the purpose of reselling them to ultimate consumers.
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retail positioning
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Identifying an unserved or underserved market segment and serving it through a strategy that distinguishes the retailer from others in the minds of consumers in that segment.
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scrambled merchandising
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The addition of unrelated products and product lines to an existing product mix, particularly fast-moving items that can be sold in volume.
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sales offices
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Manufacturer-owned operations that provide services normally associated with agents.
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sales branches
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Manufacturer-owned intermediaries that sell products and provide support services to the manufacturer's sales force.
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selling agents
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Intermediaries that market a whole product line or a manufacturer's entire output.
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superstores
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Giant retail outlets that carry food and nonfood products found in supermarkets, as well as most routinely purchased consumer products.
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supermarkets
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Large, self-service stores that carry a complete line of food products, along with some nonfood products.
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telemarketing
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The performance of marketing-related activities by telephone.
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warehouse clubs
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Large-scale, members-only establishments that combine features of cash-and-carry wholesaling with discount retailing.
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truck wholesalers
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Limited-service wholesalers that transport products directly to customers for inspection and selection.
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traditional specialty retailers
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Stores that carry a narrow product mix with deep product lines.
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television home shopping
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A form of selling in which products are presented to television viewers, who can buy them by calling a toll-free number and paying with a credit card.
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warehouse showrooms
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Retail facilities in large, low-cost buildings with large on-premises inventories and minimal services.
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wholesaling
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Transactions in which products are bought for resale, for making other products, or for general business operations.
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wheel of retailing
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A hypothesis holding that new retailers usually enter the market as low-status, low-margin, low-price operators but eventually evolve into high-cost, high-price merchants.
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wholesaler
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An individual or organization that facilitates and expedites wholesale transactions.
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psychological pricing
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Pricing that attempts to influence a customer's perception of price to make a product's price more attractive.
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