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181 Cards in this Set

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