Mktg 360 Final

Front 1

Average Fixed cost

Back 1

Fixed costs of production averaged over the total number of units produced (used in COGS)

Front 2

Bait and Switch

Back 2

Illegal marketing practice in which an advertising price special is used to get customers into the store with the intention of making them switch to buying a higher priced product

Front 3

Basing-point pricing

Back 3

A pricing tactic in which customers pay shipping charges from set geographical locations, whether goods are actually shipped from there or not

Front 4

Break-even analysis

Back 4

A method for determining the number of units that a firm must produce and sell at a given prive to cover all its costs

Front 5

Break-even point

Back 5

The point at which the total revenue and total costs are equal

Front 6

Captive pricing

Back 6

A pricing tactic for two items that must be used together; one priced low, and profit is made on the other (the profitable item is essential to the operation of the first item)

Front 7

Contribution per unit

Back 7

price- variable cost, the contribution each sale makes to fixed costs and profits

Front 8

Cost-plus pricing

Back 8

A method of setting prices in which the seller totals all the costs for the product and then adds the amount to arrive at the selling price

Front 9

Cross elasticity of demand

Back 9

When changes in the price of one product affect the demand for another item

Front 10

Demand based pricing

Back 10

a price setting method based on estimates of demand at different prices

Front 11

Dynamic pricing

Back 11

A pricing strategy where price can easily be adjusted to meet changes in the market place

Front 12

Elastic demand

Back 12

changes in price have a large effect on the amount demanded

Front 13

FOB (location) pricing

Back 13

(mostly B2B) pricing tactic that includes loading and transporting to a given city in the price

Front 14

Fixed costs

Back 14

costs of production that do not change with the number of units produced

Front 15

Freight absorption pricing

Back 15

pricing tactic where the price of product is calculated to include shipping

Front 16

Inelastic demand

Back 16

moderate changes in prices have little effect on the amount demanded

Front 17

Internal reference price

Back 17

a set price of price range in consumers' minds that they refer to in evaluating a product's price

Front 18

List price

Back 18

the price the end customer is expected to pay as determined by the manufacturer (aka suggested retail price or MSRP)

Front 19

Loss leader pricing

Back 19

pricing policy of setting prices very low or even below cost on one product or product line to attract customers- they will make up the loss with the sale of other products

Front 20

Marginal analysis

Back 20

a method that uses cost and demand to identify the price that will maximize profits

Front 21

Marginal cost

Back 21

the increase in total cost that results from producing one additional unit of product

Front 22

Marginal revenue

Back 22

the increase in total income or revenue that results from producing one more unit of product

Front 23

Online auction

Back 23

E-commerce strategy that allows shoppers to purchase products through online bidding

Front 24

Penetration pricing

Back 24

a pricing strategy in which a firm introduces a new product at a very low price to encourage more customers to purchase it

Front 25

Predatory pricing

Back 25

illegal pricing strategy whiere company sets a very low price to drive competitors out of business

Front 26

Prestige products

Back 26

products that have a high price and that appeal to status conscious consumers

Front 27

Price

Back 27

The assignment of value or the amount the consumer must exchange to recieve the offering

Front 28

Price bundling

Back 28

selling two or more goods or services as a single package for one price

Front 29

Price elasticity of demand

Back 29

percentage change in unit sales that results from a percentage change in price

Front 30

Price fixing

Back 30

the collaboration of two or more firms in setting prices, usually to keep prices high

Front 31

Price leadership

Back 31

a pricing strategy where one firm sets its price and other firms in the industry follow with similar prices

Front 32

Price lining

Back 32

the practice of setting a limited number of different specific prices, called price points, for items in a product line

Front 33

Quantity discounts

Back 33

a pricing discount of charging reduced prices for larger quantity purchases

Front 34

Skimming price

Back 34

a very high, premium price that a firm charges for its new, highly desirable product. This gains sales from the top of the market

Front 35

target costing

Back 35

a process in which firms identify the quality and functionality needed to satisfy customers and what price they are willing to pay BEFORE the product is designed

Front 36

total costs

Back 36

the fixed costs and the variable costs for a set number of units produced

Front 37

Trade or functional discounts

Back 37

discounts off list price of products to members of the channel of distribution who perform various marketing functions

Front 38

Trial pricing

Back 38

pricing a new product low for a limited period of time in order to lower the risk for a customer to try it

Front 39

Unfair sales acts

Back 39

state laws that prohibit suppliers from selling products below cost to protect small businesses from larger competitiors

Front 40

uniform delivered pricing

Back 40

a pricing tactic in which a firm adds a standard shipping price to the price for all customers regardless of locaiton

Front 41

Value pricing, everyday low pricing (EDLP)

Back 41

a pricing strategy where a firm sets prices that provide untimate value to customers

Front 42

Variable costs

Back 42

The costs of production that are tied to and vary depending on the number of units produced

Front 43

Yield management pricing

Back 43

a practice of charging different prices to different customers in order to manage capacity while maximizing revenue

Front 44

breaking bulk

Back 44

dividing larger quantities of goods into smaller lots in order to meet the needs of the buyers

Front 45

channel intermediaries

Back 45

firms or individuals such as wholesalers, agents, brokers, or retailers who help move a product from the producer to the consumer or business user

Front 46

channel leader

Back 46

a firm at one level of distribution that takes a leadership role, establishing operating norms and processes based on its power relative to other channel members

Front 47

channel levels

Back 47

the number of distinct categories of intermediaries that populate a channel of distribution

Front 48

channel of distribution

Back 48

the series of firms or individuals that facilitates the movement of a product from the producer to the final customer

Front 49

conventional marketing system

Back 49

a multiple-level distribution channel in which channel members work independently of one another

Front 50

creating assortments

Back 50

providing a variety of products in one location to meet the needs of the buyers

Front 51

disintermediation

Back 51

the elimination of some layers of the channel of distribution in order to cut costs and improve efficiency of the channel

Front 52

enterprise resource planning (ERP systems)

Back 52

a software system that integrates information from across the entire company and facilitates sharing of the data throughout the firm

Front 53

exclusive distribution

Back 53

selling a product only through a single outlet in a particular region

Front 54

facilitating functions

Back 54

functions of channel intermediaries that make the purchase process easier for customers and manufacturers

Front 55

horizontal marketing system

Back 55

an arrangement within a channel of distribution in which two or more firms at the same level work together for a common purpose

Front 56

hybrid marketing system

Back 56

a marketing system that uses a number of different channels and communications methods to serve a target market

Front 57

insourcing

Back 57

a practice in which a company contracts with a specialist firm to handle all or part of its supply chain operations

Front 58

intensive distribution

Back 58

selling a product through all suitable wholesalers or retailers that are willing to stock and sell the product

Front 59

inventory control

Back 59

activities to ensure that goods are always available to meet customers' demands

Front 60

just in time (JIT)

Back 60

inventory management and purchasing processes that manufacturers and resellers use to reduce inventory to low levels and ensure that deliveries occur only when needed

Front 61

knowledge management

Back 61

a comprehensive approach to collecting, organizing, storging and retrieving a firm's information assets

Front 62

logistics

Back 62

the process of designing, managing, and improving the movement of products through the supply chain.

Front 63

materials handling

Back 63

the moving of products into, within and out of warehouses

Front 64

merchandise agents or brokers

Back 64

channel intermediaries that provide services in exchange for commissions (but never take title of the product)

Front 65

merchant wholesalers

Back 65

intermediaries that buy goods from the manufacturers (take title to them) and sell to retailers and other b2b customers

Front 66

on-line distribution piracy

Back 66

the theft and unauthorized repurposing of intellectual property via the internet

Front 67

order processing

Back 67

the series of activities that occurs between the time an order comes into the organization that the time a product goes out the door

Front 68

physical distribution

Back 68

the activities that move finished goods from manufacturers to final customers

Front 69

radio frequency identification (RFID)

Back 69

product tages with tiny chips containing information about the item's content, origin and destination

Front 70

selective distribution

Back 70

distribution using fewer outlets than intensive distribution but more that exclusive distribution

Front 71

slotting allowance

Back 71

a fee paid in exchange for agreeing to place a manufacturer's products on a retailer's valuable shelf space

Front 72

supply chain

Back 72

all the activities necessary to turn raw materials into a good or service and put it in the hands of consumer or business customer

Front 73

supply chain management (SCM)

Back 73

the management of flows among firms in the supply chain to max profitability, uses special software to link firms

Front 74

take title

Back 74

to accept legal ownership of a product and assume the accompanying rights and responsibilities of ownership

Front 75

transportation

Back 75

the mode by which prodcuts move among channel members

Front 76

value chain

Back 76

a series of activities involved in designing, producing, marketing, delivering and supporting any product. Each link has the potential to add/remove value from the product (larger than supply chain, includes internal links)

Front 77

vertical marketing system (VMS)

Back 77

a channel of distribution in which there is formal cooperation among members at the manufacturing, wholesaling, and retailing levels

Front 78

warehousing

Back 78

storing goods in anticipation of sale or transfer to another member of the channel of distribution

Front 79

wholesaling intermediaries

Back 79

firms that handle the flow of products from the manufacturer to the retailer or business user

Front 80

promotion

Back 80

the coordination of a marketer's communication efforts to influence attitudes or behaviors

Front 81

Integrated marketing communication (IMC)

Back 81

a strategic business process that marketers use to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communication programs over time to targeted audiences

Front 82

communication model

Back 82

the process whereby meaning is transferred from a source to a receiver

Front 83

encoding

Back 83

the process of translating an idea into a form of communication that will convey a meaning

Front 84

source

Back 84

an organization or individual that sends a message

Front 85

message

Back 85

the communication in physical form that goes from sender to receiver

Front 86

medium

Back 86

a communication vehicle through which a message is transmitted to a target audience

Front 87

receiver

Back 87

the org or individual that intercepts and interprets the message

Front 88

decoding

Back 88

the process by which a receiver assigns meaning to the message

Front 89

noise

Back 89

anything that interferes with effective communication

Front 90

feedback

Back 90

receivers' reactions to the message

Front 91

promotion mix

Back 91

the major elements of marketer-controlled communication including advertising, sales promotion, PR, personal selling and direct marketing

Front 92

word of mouth (WOM)

Back 92

when consumers provide information about products to other consumers

Front 93

word of mouth marketing

Back 93

giving people a reason to talk (buzz) about your products and making it easier for that conversation to take place

Front 94

buzz marketing

Back 94

using consumers to promote your product for you to people they know

Front 95

viral marketing

Back 95

creating entertaining or informative messages that are designed to be passed along in an exponential fashion (electronically or by email)

Front 96

buzz

Back 96

word of mouth communication about a product or company that customers view as authentic not BS hype

Front 97

guerrilla marketing

Back 97

markering activity in which a firm "ambushes" consumers with promotional content in places they are not expecting to encounter it

Front 98

experiential marketing

Back 98

marketing activities that attempt to give cusomers an opportunity to actually interact with brands, thus enabling them to make more intelligent and informed purchasing decisions

Front 99

consumer generated media (CGM)

Back 99

the on-line comsumer-generated comments, opinions, and product related stories available to other consumers through digital technology

Front 100

database marketing

Back 100

the creation of an ongoing relationship with a set of customers who have an identifiable interest in a good or service and whose responses to promotional efforts become part of future communication attempts

Front 101

hierarchy of effects

Back 101

a series of steps prospective customers move through, from initial awareness of a product to brand loyalty

Front 102

top-down budgeting techniques

Back 102

allocation of the promotion budget based on management's determination of the total amount to be devoted to marketing communication

Front 103

percentage of sales method

Back 103

a method for promotion budgeting that is based on a certain percentage of last year's or the estimated present year's sales

Front 104

competitive-parity method

Back 104

a promotion budgeting method in which an organization matches whatever competitors are spending

Front 105

bottom-up budgeting techniques

Back 105

allocation of the promotion budget based on identifying promotion goals and allocating enough money to accomplish them

Front 106

objective-task method

Back 106

a promotion budgeting method in which an organization first defines the specific communication goals it hopes to achieve and then tries to calculate what kind of promotional efforts it will take to meet these goals

Front 107

push strategy

Back 107

the company tries to move its products through the channel by convincing channel members to offer them

Front 108

pull strategy

Back 108

the company tries to move its products through the channel by building desire for the products among consumers, thus convincing retailers to respond to this demand by stocking these items

Front 109

AIDA model

Back 109

the communication goals of attention, interest, desire, and action

Front 110

augmented service

Back 110

the core service plus additional services provided to enhance value

Front 111

capacity management

Back 111

the process by which organizations adjust their offerings in an attempt to match demand

Front 112

core service

Back 112

the basic benefit of having a service performed

Front 113

credence qualities

Back 113

product characteristics that are difficult to evaluate even after they have been experienced

Front 114

critical incident technique

Back 114

a method for measuring service quality in which marketers use customer complaints to identify (& record) critical incidents- specific face-to-face contacts between consumer and service providers that cause problems and lead to dissatisfaction

Front 115

disintermediation

Back 115

using self service tech to eliminate face-to-face interaction with salespeople with the goal of minimizing negative service, reduce variability in service, and reduce costs

Front 116

experience qualities

Back 116

product characteristics that customers can only judge during or after consumption (the taste of a latte)

Front 117

gap analysis

Back 117

a marketing research method that measures

Front 118

inseparability

Back 118

the characteristic of a service that means that it is impossible to separate the production of a service from the consumption of that service (ex: haircuts)

Front 119

perishability

Back 119

the characteristic of a service that makes it impossible to store for later sale or consumption

Front 120

search qualities

Back 120

product characteristics that the consumer can examine prior to purchase (price, ingredients, brand etc)

Front 121

service encounter

Back 121

the actual interaction between the customer and the service provider

Front 122

services

Back 122

intangible products that are exchanged directly from the producer to the customer

Front 123

servicescape

Back 123

the actual physical facility where the service is performed, delivered and consumed. (part of the product!)

Front 124

SERVQUAL

Back 124

a multiple-item survey scale used to measure service quality across the dimensions of tangibles, reliability, responsiveness, assurance, and empathy

Front 125

variability

Back 125

the characteristic of a service that means that even the same service performed by the same individual for the same customer can be different