Marketing 450 - Test 3

Front 1

Cost leadership

Back 1

a firm utilizes its core cost advantages to gain an advantage due to flexibility in pricing strategies as well as its ability to translate cost savings to the bottom line

Front 2

Market Share

Back 2

percentage of a market a firm has

Front 3

Penetration Pricing

Back 3

firms objective is to gain as much market share as possible

Front 4

Pricing Objectives 1

Back 4

Objective: Market share maximization

Strategy: penetration pricing

Front 5

Pricing Objectives 2

Back 5

Objective: Market entry at highest initial price

Strategy: price skimming

Front 6

Pricing Objectives 3

Back 6

Objective: Profit Maximization

Strategy: Target ROI

Front 7

Pricing Objectives 4

Back 7

Objective: Benchmark the competition

Strategy: Competitor-based pricing

Front 8

Pricing objectives 5

Back 8

Objective: Communicate position through pricing

Strategy: value pricing

Front 9

Price Skimming

Back 9

enters market at a high price, to create a strong price-quality relationship

Front 10

Price elasticity of demand

Back 10

measure of customers price sensitivity

Front 11

Target return on investment

Back 11

bottom line profit is established then pricing is based off getting that

Front 12

Competitor based pricing

Back 12

average your own price with competitors

Front 13

Price war

Back 13

when a company purposefully undercuts competitors to gain market share

Front 14

Stability Pricing

Back 14

basically middle ground pricing - not low enough to piss off others, but not high enough to turn off customers

Front 15

Value Pricing

Back 15

takes into account price and how it compares with perceived value by customers

Front 16

Product line pricing

Back 16

a pricing approach across a complete line of related products

Front 17

Price Points

Back 17

different points designed to showcase the different value/benefits in different product lines

Front 18

Complimentary Pricing (captive pricing)

Back 18

Getting a customer to buy something that requires continue purchases

Front 19

Price Bundling

Back 19

offering a package deal at reduced price

Front 20

Reference Pricing

Back 20

shows and compares other prices of other companies or products

Front 21

Prestige Pricing

Back 21

higher prices perceived as better product

Front 22

Odd Pricing

Back 22

$1.99 or $1.98

non whole dollar increments

Front 23

Even Pricing

Back 23

$2.00, $3.00

whole dollar increments

Front 24

Psychological Pricing

Back 24

creating a perception of the product purely through the price

Front 25

One-Price Strategy

Back 25

price marked on the good is what it usually sells for

Front 26

Variable pricing

Back 26

allowed to or encouraged to haggle prices

Front 27

High/Low Pricing

Back 27

offers frequent discounts and sales

Front 28

Auction Pricing

Back 28

ebay, people bid on product and it goes to highest bidder

Front 29

Reverse Auctions

Back 29

when sellers bid prices to buyer and customer takes lowest

Front 30

cost-plus pricing

Back 30

getting to a price by adding standard mark up to prices associated with the product

Front 31

Markup on cost

Back 31

the addition to the price of a product after costs have been considered

Front 32

Markup on sales price

Back 32

using the sales price as a basis for calculating the markup percentage

Front 33

Average cost pricing

Back 33

identifying all costs associated with product to come up with what the average cost of one unit will be

Front 34

Target return Pricing

Back 34

start with a goal and make a price you determine will get you there,

5% of investment

Front 35

Discounts

Back 35

deductions in price

Front 36

Allowances

Back 36

a remittance of monies to customer after purchase of product

Front 37

cash discounts

Back 37

a discount to elicit quicker payment

Front 38

trade discounts

Back 38

like trading in a used car to take off a new one

Front 39

quantity discounts

Back 39

buying in bulk

Front 40

seasonal discounts

Back 40

like snow jackets off at the end of the season

Front 41

Promotional allowances

Back 41

sales started by manufacturer and carried out by retailers

Front 42

FOB pricing

Back 42

free on board - determination of title transfer and shipping payment based on shipping location

Front 43

Uniform Delivered Pricing

Back 43

when the shipping charge is the same no matter where its shipped too

Front 44

Zone Pricing

Back 44

when shippers set up geographic pricing zones based off distance

Front 45

Just noticeable Difference

Back 45

the amount of price increase before a customer notices or cares

Front 46

Price Fixing

Back 46

when companies collude to set prices at a mutually beneficial high level

Front 47

Price discrimination

Back 47

offering different prices to different customers

Front 48

Deceptive Pricing

Back 48

knowingly stating prices in a manner that gives a false impression to customers

Front 49

Bait and switch

Back 49

when a seller advertises a low price but has no intent to actually make the lower priced item available for sale

Front 50

Fair Trade Laws

Back 50

allows manufactures to set artificially high prices by limiting ability of retailers to sell low.

Front 51

minimum markup laws

Back 51

forces retailers to add a minimum amount of markup to products

Front 52

Loss leader products

Back 52

products sold at a loss to attract people into store

Front 53

promotion

Back 53

various forms of communication to inform, persuade, or remind

Front 54

promotion mix: exhibit 17.1 pg 465

Back 54

advertising, sales promotion, public relations, personal selling, direct marketing

Front 55

promotional campaign

Back 55

campaigns aimed at increasing awareness for a particular product or line

Front 56

integrated marketing communications

Back 56

a strategic approach to targeting customers in ways that clear, concise, and consistent

Front 57

push strategy

Back 57

stimulating demand within the channel of distribution

Front 58

pull strategy

Back 58

stimulating demand for an offering directly from the end user

Front 59

internal marketing

Back 59

treating employees as customers and satisfying thier needs

Front 60

sender

Back 60

the source of a message

Front 61

corporate identity

Back 61

customers perception of a corporation that influences their attitudes and responses toward products or services offered by it

Front 62

encoding process

Back 62

the process in communication in which the sender translates an idea to a understandable message ready to be understoo

Front 63

message transmission

Back 63

putting message into a "vessel" so that it can make its way to the receiver

Front 64

channel or medium

Back 64

the conduit by which a encoded message travels - text

Front 65

decoding process

Back 65

understanding the message

Front 66

selective perception

Back 66

different meanings assigned to the same message by different receivers

Front 67

reciever

Back 67

the receiver of a message

Front 68

feedback loop

Back 68

two way communication in which a receiver can communicate reactions back to the sender

Front 69

AIDA model

Back 69

hierarchy of effects in marketing,

1. attention

2. interest

3. desire

4. action

Front 70

goals for promotion:

Back 70

1. Inform

2. persuade

3. remind

Front 71

promotional appeal

Back 71

the connection an offering establishes with customers. includes rational appeals , emotional appeals, and moral appeals

Front 72

rational appeal

Back 72

centers on the benefits the product can offer

benefits

Front 73

emotional appeal

Back 73

plays on human nature to appeal to customers

feelings

Front 74

moral appeal

Back 74

strikes a chord with a customers sense of right and wrong

Front 75

objective-and-task method

Back 75

method of promotional budgeting that..

takes an investment approach in that goals are set and then promotional dollars are set aside to reach them

Front 76

percent-of-sales method

Back 76

method of promotional budgeting that..

allocates funding for promotional activities to certain products as a function of their forecasted sales revenues

Front 77

comparative-parity method

Back 77

method of promotional budgeting that..

looking at how much competitors are spending on promotion to see how much they should

Front 78

all-you-can-afford method

Back 78

method of promotional budgeting that..

using whatever is left over for promotion after everything that needs to get paid has

Front 79

advertising wear out

Back 79

when customers become bored with a advertising campaign

Front 80

advertising response function

Back 80

a point where returns begin to diminish

Front 81

institutional marketing

Back 81

marketing aspects beyond simply the product, and focusing on aspects of the company too

Front 82

product advertising

Back 82

designed to increase sales of a specific product

Front 83

pioneering advertising

Back 83

adveritising typically during a growth or introductory period for a product

Front 84

competitive advertising

Back 84

attempts to shift emotional appeal, persuasion, and providing information

Front 85

comparative advertising

Back 85

when two or more brands are directly compared

Front 86

reach

Back 86

amount of people reached in a certain time period

Front 87

frequency

Back 87

average number of times a customer is exposed to message

Front 88

advertising execution

Back 88

the way an advertisement communicates message and information

Front 89

clutter

Back 89

competing messages

Front 90

trade show

Back 90

sponsored event designed to showcase information and offerings

Front 91

cooperative advertising and promotion

Back 91

when a manufacture provides special incentive money to channel members for certain promotional performance

Front 92

allowance

Back 92

a remittance of monies to the consumer after the purchase of the product

Front 93

publicity

Back 93

a unpaid form of communication, usually through news outlets

Front 94

buzz

Back 94

word of mouth communications generated about a brand

Front 95

event sponsorships

Back 95

having your brand or company associated with events

Front 96

crisis management

Back 96

a planned, coordinated approach for disseminating information during times of emergency

Front 97

pg 508- 514

Back 97

read

Front 98

outsourcing the sales force

Back 98

using independent agents to sell a product

Front 99

transaction cost analysis

Back 99

a tool used to measure using different sales agents

Front 100

workload method

Back 100

helps determine the correct size for a companys sales force based on the idea that everybody should have an equal amount of work

Front 101

extrinsic reward

Back 101

rewards given to others besides the the salesperson, like managers and customers

Front 102

intrinsic reward

Back 102

rewards given to salesperson

Front 103

objective measures

Back 103

statistics the sales manager gathers form the firms internal data

Front 104

subjective measures

Back 104

personal evaluations by somebody close to the process

Front 105

banner ads

Back 105

small boxes containing graphics and text have a hyperlink embedded

Front 106

search related ads

Back 106

greatest growth over last couple years, companies pay

Front 107

interstitials

Back 107

interesting ads that move across the page

Front 108

output measures

Back 108

show the results of the efforts expended by the salesperson

Front 109

input measures

Back 109

focus on the efforts of the salesperson during the sales process

Front 110

direct marketing

Back 110

interactive marketing system, using one or more advertising media. internet is direct marketing