Marketing Chap 10, 11, 12

Front 1

price

Back 1

the amount of money charged for a product or service, or the sum of the values that customers exchange for the benefits of having or using the product or service

Front 2

value based pricing

Back 2

setting price based on buyers' perceptions of value rather than on the seller's cost

Front 3

good value pricing

Back 3

offering just the right combination of quality and good service at a fair price

Front 4

value added pricing

Back 4

attaching value added features and services to differentiate a company's offers and charging higher prices

Front 5

cost based pricing

Back 5

setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk

Front 6

fixed costs (overhead)

Back 6

costs that do not vary with production for sales level

Front 7

variable costs

Back 7

costs that vary directly with the level of production

Front 8

total costs

Back 8

the sum of the fixed and variable costs for any given level of production

Front 9

experience curve (learning curve)

Back 9

the drop
in the average per-unit production cost
that comes with accumulated production experience

Front 10

cost-plus pricing

Back 10

adding a standard markup to the cost of the product

Front 11

break-even pricing (target profit pricing)

Back 11

setting price to break even on the costs of making and marketing a product, or setting price to make a target profit

costs of marking/marketing
price setting/profit targeting

Front 12

target costing

Back 12

pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met

Front 13

demand curve

Back 13

a curve that shows the number of units the market will buy in a given time period, at different prices that might be charged

Front 14

price elasticity

Back 14

a measure of the sensitivity of demand to changes in price

Front 15

market skimming pricing

Back 15

setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but for profitable sales

Front 16

market-penetration pricing

Back 16

setting a low price for a new product in order to attract a large number of buyers and a large market share

Front 17

product line pricing

Back 17

setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors' prices

Front 18

optional-product pricing

Back 18

the pricing of optional or accessory products along with a main product

Front 19

captive-product pricing

Back 19

setting a price for products that must be used along with a main product, such as blades for a razor and film for a camera

Front 20

by-product pricing

Back 20

setting a price for by-products in order to make the main product's prices more competitive

Front 21

product bundle pricing

Back 21

combining several products and offering the bundle at a reduced price

Front 22

discount

Back 22

a straight reduction in price on purchases during a stated period of time

Front 23

allowance

Back 23

promotional money
paid by manufacturers to retailers
in return for an agreement to feature the manufacturer's products in some way

Front 24

segmented pricing

Back 24

selling a product or service at two or more prices, where the difference in price is not based on differences in costs

Front 25

psychological pricing

Back 25

a pricing approach that considers the psychology of prices and not simply the economics; the price is used to say something about the product

Front 26

reference prices

Back 26

prices that buyers carry in their minds and refer to when they look at a given product

Front 27

promotional pricing

Back 27

temporarily pricing products below list price, and sometimes even below cost, to increase short-run sales

Front 28

geographical pricing

Back 28

setting prices for customers located in different parts of the country or world

Front 29

FOB-origin pricing

Back 29

a geographical pricing strategy in which goods are placed free on board a carrier, the customer pays the freight from the factory to the destination

Front 30

uniform-delivered pricing

Back 30

a geographical pricing strategy in which the company charges the same price plus freight to all customers, regardless of the location

Front 31

zone pricing

Back 31

a geographical pricing strategy in which the company sets up two or more zones. All customers within a zone pay the same total price; the more distant the zone, the higher the price

Front 32

basing-point pricing

Back 32

a geographical pricing strategy in which the seller designates some city as a basing point and charges all customers the freight cost from the city to the customer

Front 33

freight-absorption pricing

Back 33

a geographical pricing strategy in which the seller absorbs all or part of the freight charges in order to get the desired bsuiness

Front 34

dynamic pricing

Back 34

adjusting prices continually to meet the characteristics and needs of individual customers and situations

Front 35

value delivery network

Back 35

the network made up of the company, suppliers, distributors, and ultimately customers who "partner" with each other to improve the performance of the entire system in delivering customer value

Front 36

marketing channel (or distribution channel)

Back 36

a set of interdepemdemt organizations that help make a product or service available for use or consumption by the consumer or business user

Front 37

channel level

Back 37

a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer

Front 38

direct marketing channel

Back 38

a marketing channel that has no intermediary

Front 39

indirect marketing channel

Back 39

channel containing one or more intermediary levels

Front 40

channel conflict

Back 40

disagreement among marketing channel members on goals and roles - who should do what and for what rewards

Front 41

conventional distribution channel

Back 41

a channel consisting of one or more independent producers, wholesalers, and retailers, each a seperate business seeking to maximize its own profits, even at the expense of profits for the system as a whole

Front 42

vertical marketing system (VMS)

Back 42

a distribution channel structure in which producers, wholesalers, and retailers act as a unified system. one channel member owns the others, has contacts with them, or has so much power that they all cooperate

Front 43

corporate VMS

Back 43

a vertical marketing system that combines successive stages of production and distribution under single ownership - channel leadership is established through common ownership

Front 44

contractual VMS

Back 44

a vertical marketing system in which independent firms at different levels of production and distribution join together through contracts to obtain more economies or sales impact than they could achieve alone

Front 45

franchise organization

Back 45

a contractual vertical marketing system in which a channel member, called a franchiser, links several stages in the production- distribution process

Front 46

administered VMS

Back 46

a vertical marketing system that coordinates successive stages of production and distribution, not through common ownership or contractual ties, but through the size and power of one of the parties

Front 47

horizontal marketing system

Back 47

a channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity

Front 48

multichannel distribution system

Back 48

a distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments

Front 49

disintermediation

Back 49

the cutting out of marketing channel intermediaries by product or service producers, or the displacement of traditional resellers by radical new types of intermediaries

Front 50

dan ariely

Back 50

-The fallacy of supply and demand
-consumers purchased items based on value, quality or availability- often on all three

Front 51

imprinting

Back 51

a consumers first experience with a given price

Front 52

anchor

Back 52

the reference point a consumer uses to compare current and future offerings

Front 53

MRSP (anchor)

Back 53

market share retail price

Front 54

arbitrary coherence

Back 54

although intitial prices are arbitrary, one those prices are established in our minds they will shape not only present prices but also future prices

Front 55

Customer perceptions of value

Back 55

Value based pricing uses the buyers perceptions of value not the sellers cost, as the key to pricing. Price is considered before the mareting program is set
Value based pricing is customer driven
Cost based pricing is product drivin

Front 56

everyday low pricing edlp

Back 56

charging constant everyday low prices with few sales or discounts. wal mart, costco, family dollar

Front 57

high low pricing

Back 57

charging higher prices on an everyday basis, coupled with frequent sales and other price promotions to increase store traffic, creates a low price image or attract customers who will buy other goods at full prices

Front 58

brand

Back 58

is the name ter sign or design or combination that identifies the maker or seller of a product of service

Front 59

brand equity

Back 59

is the differential effect that the brand name has on customer response to the product and its marketing

Front 60

brand sponsorship

Back 60

Manufacturer’s brand (national)-sony + kellog
Private brand- -sell to resellers who give product a private brand
Licensed brand
Co brand

Front 61

3 circles

Back 61

education income experience

Front 62

package strategy and promotion

Back 62

on package samples
bonus packs
price off packages
on package coupon repurchase
in store displays
point of purchase displays