Marketing Principles Exam 3

Front 1

Customer Value - Based Pricing

Back 1

Setting price based on buyers perceptions of value rather than on the sellers cost

Front 2

Cost - Based Pricing

Back 2

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

Front 3

Competition Based Pricing

Back 3

Setting prices based on competitors strategies, prices, costs and market offerings

Front 4

Internal Factors

Back 4

overall marketing strategy, objectives, and marketing mix

Front 5

External Factors

Back 5

The nature of the market and demand and environmental factors such as the economy, reseller needs, and government actions

Front 6

Market Skimming Pricing

Back 6

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 more profitable sales

Front 7

Market - Penetration Pricing

Back 7

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

Front 8

Product Line Pricing

Back 8

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 9

Optional Products

Back 9

optional or accessory products included with the main product

Front 10

By-Products

Back 10

waste or residual products produced when making the main product

Front 11

Captive Products

Back 11

products that are required for use of the main product

Front 12

Product Bundles

Back 12

Combinations of products at a reduced price

Front 13

Discount and Allowance Pricing

Back 13

the company establishes cash, quantity, functional, or seasonal discounts , or varying types of allowances

Front 14

Segmented Pricing

Back 14

company sells a product at two or more prices to accommodate different customers, product forms, locations, or times

Front 15

Psychological Pricing

Back 15

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

Front 16

Promotional Pricing

Back 16

a company offers discounts or temporarily sells a product below list price as a special event, sometimes even selling below cost as a loss leader

Front 17

Geographical Pricing

Back 17

The company decides how to price to distant customers, choosing from such alternatives as FOB origin pricing, uniform - delivered pricing, zone pricing, basing - point pricing and freight - absorption pricing

Front 18

International Pricing

Back 18

The company adjusts its price to meet different conditions and expectations in different world markets

Front 19

Value Delivery Network

Back 19

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 20

Marketing Channel

Back 20

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

Front 21

Functions of Marketing Channels to Complete Transactions

Back 21

1) Information

2) Promotion

3) Contact

4) Matching

5) Negotiation

Front 22

Functions of Marketing Channels to Fulfill Transactions

Back 22

1) Physical Distribution

2) Financing

3) Risk Taking

Front 23

Marketing Channel Design

Back 23

Designing effective marketing channels by analyzing consumer needs, setting channel objectives, identifying major change alternatives and evaluating them

Front 24

Major Channel Alternatives Open to a Company

Back 24

1) types of intermediaries

2) number of intermediaries

3) channel responsibilities

Front 25

Marketing Channel Management

Back 25

Selecting, managing and motivating individual channel members and evaluating their performance over time

Front 26

Marketing Logistics

Back 26

Planning, implementing and controlling the physical flow of materials, final good, and related information from points of origin to points of consumption to meet customer requirements at a profit

Front 27

Supply Chain Management

Back 27

Managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers

Front 28

Major Logistics Functions

Back 28

1) warehousing

2) inventory management

3) transportation

4) logistics information management

Front 29

Integrated Supply Chain Management Concept

Back 29

recognizes that improved logistics requires teamwork in the form of close working relationship across functional areas inside the company and across various organizations in the supply chain

Front 30

Retailing

Back 30

Includes all activities involved in selling goods or services directly to final consumers for their personal, non-business use

Front 31

Classification of Store Retailers

Back 31

1) Amount of service (self-service, limited service, or full service)

2) Product line sold (specialty stores, department stores, etc.)

3) Relative prices (discount stores and off price retailers)

Front 32

Wholesaling

Back 32

All the activities involved in selling goods or services to those who are buying for the purpose of resale or for business use

Front 33

Three groups of Wholesaling

Back 33

1) Merchant Wholesalers - take possession of the goods

2) Full - Service Wholesalers - wholesale merchants, industrial distributors

3) Limited - Service Wholesalers - cash and carry, truck, drop shippers, rack jobbers, mail - order, etc.

Front 34

Promotions Mix

Back 34

The specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships

Front 35

Advertising

Back 35

Any paid form of non personal presentation and promotion of ideas, goods, or services by an identified sponsor

Front 36

Sales Promotion

Back 36

Short-term incentives to encourage the purchase or sale of a product or service

Front 37

Personal Selling

Back 37

Personal presentation by the firm's sales force for the purpose of making sales and building customer relationships

Front 38

Public Relations

Back 38

Building good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events

Front 39

Direct Marketing

Back 39

Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships

Front 40

Integrated Marketing Communications (IMC)

Back 40

Carefully integrating and coordinating the company's many communications channels to deliver a clear, consistent, and compelling message about the organization and its products