Mark 3000 Test 3

Front 1

that which is given up in an exchange to acquire a good or service

Back 1

price

Front 2

to the seller... price is _______

Back 2

revenue

Front 3

to the consumer... price is _______

Back 3

the cost of something

Front 4

price allocates resources in a ___________________

Back 4

free market economy

Front 5

setting the right price
(5 steps... EECFS)

Back 5

1. establish price goals
2. estimate demand, cost, and profits
3. choose a price strategy
4. fine-tune base price
5. set price $x.yy

Front 6

step 1 - establish price goals
profit oriented

Back 6

- profit maximization
- return on investment

Front 7

step 1 - establish price goals
sales oriented

Back 7

- market share
- sales maximization

Front 8

step 1 - establish price goals
status quo

Back 8

- maintain existing prices
- meet competitors' prices

Front 9

step 2 - estimate demand, costs, and profit

analyze...

Back 9

- demand determinants of price
- cost determinants of price
- market/product determinants of price

Front 10

the demand determinant of price

Back 10

supply and demand

Front 11

the quantity of a product that will be sold in the market at various prices for a specified period

Back 11

demand

Front 12

the quantity of a product that will be offered to the market by a supplier at various prices for a specific period

Back 12

supply

Front 13

how demand and supply establish price

Back 13

price equilibrium and elasticity of demand

Front 14

the price at which demand and supply are equal

Back 14

price equilibrium

Front 15

consumers' responsiveness or sensitivity to changes in price

Back 15

elasticity of demand

Front 16

elasticity = _______________

Back 16

percentage change in quantity demanded of good A
________________________

percentage change in price of good A

Front 17

if E is greater than 1, demand is ___________

Back 17

elastic

Front 18

if E is less than 1, demand is ___________

Back 18

inelastic

Front 19

if E is equal to 1, demand is _________

Back 19

unitary

Front 20

if price decreases, demand ________ and revenue _________

Back 20

increases
increases

elastic demand

Front 21

if price increases, demand ________ and revenue ________

Back 21

decreases
decreases

elastic demand

Front 22

if price __________, demand stays the same and revenue __________

Back 22

decreases
decreases

inelastic demand

Front 23

if price ________, demand stays the same and revenue _________

Back 23

increases
decreases

inelastic demand

Front 24

factors that affect elasticity of demand

Back 24

- availibility of substitutes
- price relative to purchasing power (consumer income)
- consumer taste

Front 25

price "limit" for most consumers; price at which the majority of consumers drop out of the market

Back 25

psychological price point

Front 26

a technique for adjusting prices frequently based upon short term changes in demand and price elasticity

Back 26

yield management systems

Front 27

strategies to make demand more inelastic

Back 27

- cultivate selected demand
- create unique offerings
- change the package design
- heighten buyer dependence

Front 28

types of cost

Back 28

variable cost and fixed cost

Front 29

varies with changes in level of output

Back 29

variable cost

Front 30

does not change as level of output changes

Back 30

fixed cost

Front 31

amount added above the break even cost

Back 31

profit

Front 32

for a retailer, amount added above the purchasing cost to cover expenses and profit

Back 32

mark - ups

Front 33

the practice of marking up prices by 100% or doubling the cost

Back 33

keystoning

Front 34

market/product determinants of price

Back 34

- stages of product life cycle
- competition
- distribution strategy
- promotion strategy
- perceived quality

Front 35

stocking well-known branded items at high prices in order to sell store brands at discounted prices

Back 35

selling against the brand

distribution strategy

Front 36

charging a high price to help promote a high quality image

Back 36

prestige pricing

perceived quality

Front 37

a basic long term pricing framework used to set the initial price and make adjustments over time

Back 37

price strategy

choose a pricing strategy

Front 38

a firm chargers a high introductory price, often coupled with heavy promotion

Back 38

price skimming

choose a pricing strategy

Front 39

a firm charges a relatively low price for a product initially as a way to reach the mass market

Back 39

penetration pricing

Front 40

charging a price identical to or very close to the competition's price

Back 40

status quo pricing

Front 41

tactics for fine tuning the base price

Back 41

- discounts
- geographic pricing
- consumer/retail level tactics

Front 42

all goods offered at the same price

Back 42

single price tactic

consumer/retail pricing tactics

Front 43

combining two or more products in a single package

Back 43

price bundling

consumer/retail pricing tactics

Front 44

sell product at near or below cost

Back 44

leader pricing (loss leader)

consumer/retail pricing tactics

Front 45

several line items at specific price points

Back 45

price lining

consumer/retail pricing tactics

Front 46

odd number prices imply bargain
even number prices imply quality

Back 46

odd even pricing

consumer/retail pricing tactics

Front 47

lure customers through false or misleading price advertising

Back 47

bait and switch pricing

Front 48

laws that prohibit wholesalers and retailers from selling below cost

Back 48

unfair trade practices

Front 49

an agreement between two or more firms on the price they will charge for a product

Back 49

price fixing

Front 50

the practice of charging very low prices for a product with the intent of driving competitors out of business or out of a market

Back 50

predatory pricing

Front 51

charging two different business to business customers different prices for the same product

Back 51

price discrimination

Front 52

seller defenses (3)

Back 52

- cost
- market conditions
- competition

Front 53

trends influencing price

Back 53

- flood of new products
- increased availibility of bargain priced private and generic brands
- price cutting as a strategy to maintain or regain market share
- internet used for comparison shopping

Front 54

the impact of the internet

Back 54

- product selection
- second opinions from expert sites
- shopping bots
- internet auctions

Front 55

communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response

Back 55

promotion

Front 56

promotional mix includes: (4)

Back 56

- advertising
- public relations
- sales promotion
- personal selling

Front 57

the careful coordination of all promotional messages to assure the consistency of messages at every contact point where a company meets the consumer

Back 57

integrated marketing communications

Front 58

tasks of promotion

________, _________, and __________ the target audience

Back 58

inform, remind, and persuade

Front 59

- increase awareness
- explain how product works
- build company image
- usually in introductory and/or growth stage

Back 59

informative promotion

Front 60

- encourage brand switching
- change customers' perceptions of product attributes
- influence immediate buying decision
- usually in growth and mature stage

Back 60

persuasive promotion

Front 61

- remind customers that product may be needed
- remind customers where to buy product
- maintain customer loyalty
- normally in the mature stage

Back 61

reminder promotion

Front 62

AIDA concept

Back 62

Attention (cognitive; thinking)
Interest (affectiive; feeling)
Desire (conative; doing)
Action

Front 63

impersonal, one way mass communication that is paid for by a marketer

Back 63

advertising

Front 64

enhances a company's image rather than promotes a particular product

Back 64

institutional advertising

Front 65

types of institutional advertising

Back 65

corporate identity
advocacy advertising

Front 66

touts the benefits of a specific good or service

Back 66

product advertising

Front 67

types of product advertising

Back 67

- pioneering/informative
- competitive/persuasive
(focuses on features)
- comparative
- reminder

Front 68

series of related advertisements focused on common theme, with a common goal

Back 68

advertising campaign

Front 69

steps of making an advertising campaign (GBAME)

Back 69

1. develop goals and objectives
2. identify product benefits
3. develop and evaluate advertising appeals
4. execute the message
5. evaluate the campaign

Front 70

a desirable, exclusive, and believable advertising appeal selected as the theme for a campaign

Back 70

unique selling proposition

Front 71

advertising appeals

Back 71

profit, health, love or sex, fear, admiration, convenience, fun and pleasure, vanity and egotism, emotional

Front 72

major media advertising

Back 72

newspapers
magazines
radio
television
outdoor media
yellow pages
internet

Front 73

number of different consumers exposed to an advertisement at least once during a specific period

Back 73

reach

Front 74

number of times an individual is exposed during a specific time period

Back 74

frequency

Front 75

a medium's ability to reach a precisely defined market

Back 75

audience selectivity

Front 76

advertising is run steadily throughout the period

Back 76

continuous media schedule

Front 77

advertising is run heavily every other month or every two weeks

Back 77

flighted media schedule

Front 78

advertising combines continuous scheduling with flighting

Back 78

pulsing media schedule

Front 79

advertising run only when the product is likely to be used

Back 79

seasonal media schedule

Front 80

corporate activities designed to create awareness of and publicity for the firm

Back 80

public relations

Front 81

public relations tools

Back 81

- publicity
- educational seminars/web sites
- sponsorships
- product placement

Front 82

marketing communication activities, other than advertising, personal selling, and public relations, in which a short term incentive motivates a purchase

Back 82

sales promotion

Front 83

benefits of sales promotions

Back 83

- helps manufacturers gain new distribution
- obtain wholesaler and retailer support for consumer sales promotions
- build or reduce dealer inventories
- improve trade relations

Front 84

an arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer's brand

Back 84

cooperative advertising

Front 85

direct communication between a sales rep and one or more prospective buyers in an attempt to influence each other in a purchase situation

Back 85

personal selling

Front 86

personal selling is appropriate when:

Back 86

- product has a high value
- product is custom made
- there are few customers
- product is technically complex
- customers are concentrated

Front 87

steps in the selling process (GQPDHCF)

Back 87

- generate leads
- qualify leads
- probe customer needs
- develop solutions
- handle objections
- close the sale
- follow up

Front 88

a determination of the customer's specific needs and wants and the range of options a customer has for satisfying them

Back 88

needs assessment

Front 89

types of presentations

Back 89

- formula selling
- stimulus response
- successive commitment
- needs satisfaction
- combination

Front 90

a sales practice that involves building, maintaing, and enhancing interactions with customers in order to develop long term satisfaction through mutually beneficial partnerships

Back 90

relationship (consultative) selling

Front 91

manufacturer promotes to wholesaler, who promotes to retailer, who promotes to consumer, who buys from retailer

Back 91

push strategy

Front 92

manufacturer promotes to consumer, who demands product from retailer, who demands product from wholesaler, who demands product from manufacturer

Back 92

pull strategy