Marketing Chapter 17

Front 1

Pricing Objectives-Profit Oriented

Back 1

Trying to generate profit as main goal.
-Target return-set price to get a specific return.
-Max profits-highest possible.

Front 2

Pricing Objectives-Sales Oriented

Back 2

-Unit or dollar sales growth-set prices to increase your sales in dollar or units.
-Growth in market share.

Front 3

Pricing Objectives-Status quo oriented

Back 3

-Meeting competition-regardless of cost structure.
-Non-price competition-set prices to set yourself apart.

Front 4

Pricing Objectives-Social Goals

Back 4

Non-Profit pricing.

Front 5

Discounts-types

Back 5

Quantity (cumulative-dont have to buy all at the same time, and non cumulative)
Seasonal
Cash
Trade-to wholesalers for being the middle man.
Temporary Sales-not really a discount

Front 6

Allowances-definition

Back 6

Reduction in price for doing something.

Front 7

Allowances-Push money

Back 7

Manufacturer gives money to retail sales people per unit sale.

Front 8

Allowances-Trade in

Back 8

Some thing old is traded in for an allowance on something new.

Front 9

Allowances-Stocking-slotting

Back 9

Manufacturer pays for shelf space in retail store

Front 10

Introductory pricing policies

Back 10

Price skimming-Set at fairly high price at introduction (temp or permanent) either drop as time goes on or keep high.
Penetration Pricing-set at a low level, permanent.
Introductory price dealing-relatively low price then raise price, temporary.

Front 11

Geographic Pricing Policies

Back 11

Free on Board: FOB shipping, FOB destination, FOB shipping freight prepaid.
Zone Pricing-Market is divided into zones and shipping price is dependent on zone.
Uniform Delivered pricing.
Freight absorption pricing-FOB destination.
Basing Point pricing-based in locations even if not shipped from there.

Front 12

Robinson-Patman Act

Back 12

Price discrimination-illegal if diminishes competition.
Can justify on cost differences; to meet competition; and products that are not of like grade and quality
Allowances and discounts available to all.

Front 13

Other legal issues-Dumping

Back 13

Foreign company selling a product at a low price in a foreign market.

Front 14

Other legal issues-Phony list prices

Back 14

Wheeler Lea Amendment
as a retailer you must attempt to sell merchandise at list price.

Front 15

Other legal issues-Price Fixing

Back 15

Competitors get together and set prices.

Front 16

Other legal issues-Resale price maintenance

Back 16

Manufacture sets the retail price. mostly legal unless it hurts competition.

Front 17

Other legal issues-Predatory pricing

Back 17

Company pricing at low level to drive out competition from the market.

Front 18

Other legal issues-Unfair Trade Practice Acts

Back 18

Set by states.
May set a min price for industries.

Front 19

Other legal issues-Bait and switch

Back 19

Retailer prices some product really low to get people in the store but doesnt have large inventory. When customer wants to buy product they upsell them into a more expensive product.