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23 Cards in this Set
- Front
- Back
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BEP Formula
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total Fixed Costs/[Price/unit-VC/unit]
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Initial Markup % Formula
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Retail $-Cost/Retail $
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Price Formula
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Cost/1-markup%
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Push Strategy
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A way of pushing the product towards the customer when making a sale. The sales agent approaches the customer
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Pull Strategy
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The customer approaches the sales agent and finds what they want. Car gets produced after its made a sale.
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Public Relations
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A way of communicating a product that focuses on the image of the company/product. For example if OTC were to donate $100 million to Childrens Hospital.
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Skimming
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A pricing strategy that starts low with the intention of ending high hoping to communicate a bargain originally. It hopes to create a lot of hype.
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Sales Promotion
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A form of communicating the product. It's goal is to create a short term increase in sales. This could include rebates, free samples etc.
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advertising
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a form of communciation meant to persuade an audience to take a form of action.
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BEP
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break-even point (BEP) is the point at which cost or expenses and revenue are equal: there is no net loss or gain, and one has "broken even".
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Approach
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getting an appointment with the customer
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Price selling
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Reduces price to get the selling cycle complete.
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selling process
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prospecting and qualifying, preapproach, approach, sales presentation, handling objections, close, follow-up
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Penatration
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the pricing technique of setting a relatively low initial entry price, often lower than the eventual market price, to attract new customers.
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Promotional Mix
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Advertising - Presentation and promotion of ideas, goods, or services by an identified sponsor. Examples: Print ads, radio, television, billboard, direct mail, brochures and catalogs, signs, in-store displays, posters, motion pictures, Web pages, banner ads, and emails. (Not Always Paid For)
Personal selling - A process of helping and persuading one or more prospects to purchase a good or service or to act on any idea through the use of an oral presentation. Examples: Sales presentations, sales meetings, sales training and incentive programs for intermediary salespeople, samples, and telemarketing. Can be face-to-face or via telephone. Sales promotion - Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples: Coupons, sweepstakes, contests, product samples, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and exhibitions. Public relations - Paid intimate stimulation of supply for a product, service, or business unit by planting significant news about it or a favorable presentation of it in the media. Examples: Newspaper and magazine articles/reports, TVs and radio presentations, charitable contributions, speeches, issue advertising, and seminars. Corporate image - The Image of an organization is a crucial point in marketing. If the reputation of a company is bad, consumers are less willing to buy a product from this company as they would have been, if the company had a good image. Direct Marketing is often listed as a the fifth part of the marketing mix Exhibitions - are try-outs. You make your product, and let potential buyers try the product, this way, you know directly what people see in your product. The downside, your competitor can see exactly what you are doing. |
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Odd pricing
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means it's a steal
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AIDA
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Attitudes, Interests, Desires, Action
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IMC
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?
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Prodcut Pricing
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We promote one so we can promote the other of the same kind of prudct. Example, get axe body spray with a stick deoderant.
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Elasticity
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elasticity is the ratio of the percent change in one variable to the percent change in another variable. It is a tool for measuring the responsiveness of a function to changes in parameters in a unitless way.
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cost-plus pricing
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a pricing method used by companies. It is used primarily because it is easy to calculate and requires little information. There are several varieties, but the common thread in all of them is that one first calculates the cost of the product, then includes an additional amount to represent profit. It is a way for companies to calculate how much profit they will make. Cost-plus pricing is often used on government contracts, and has been criticized as promoting wasteful expenditures.
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Type of discounts
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cash, quantity, comulative, noncmmulative, and trade
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Scheduling
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Helps us keep cost down so we can schedule our ads in a timely manner. Look up different techniques.
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