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152 Cards in this Set
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- Back
Retailing
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All the activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use
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independent retailers
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Retailers owned by a single person or partnership and not operated as part of a larger retail instituition
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chain stores
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Stores owned and operated as a group by a single org.
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franchise
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The right to operate a business or to sell a product
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gross margin
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The amount of money the retailer makes as a percentage of sales after the cost of goods sold is subtracted
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department store
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A store housing several departments under one roof.
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buyer
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A department head who selects the merchandise for his or her department and may also be responsible for promotion and personnel.
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specialty store
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A retail store specializing in a given type of merchandise.
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supermarket
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A large, departmentalized, self-service retailer that specializes in food and some nonfood items
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scrambled merchandising
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The tendency to offer a wide variety of nontraditional goods and services under one roof.
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drugstore
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A retail store that stocks pharmacy-related products and services as its main draw.
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convenience store
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A miniature supermarket, carrying only a limited line of high-turnover convenience goods.
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discount store
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A retailer that competes on the basis of low prices, high turnover, and high volume.
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full-line discount store
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A retailer that offers consumers very limited service and carries a broad assortment of well-known, nationally branded "hard goods"
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mass merchandising
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A retailing strategy using moderate to low prices on large quantities of merchandise and lower service to stimulate high turnover of products.
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supercenter
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A retail store that combines groceries and general merchandise goods with a wide range of services.
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specialty discount store
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A retail store that offers a nearly complete selection of single-line merchandise and uses self-service, discount prices, high volume, and high turnover.
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category killers
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Specialty discount stores that heavily dominate their narrow merchandise segment.
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warehouse membership club
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A limited-service merchant wholesaler that sells a limited selection of brand-name appliances, household items, and groceries on a cash-and-carry basis to members, usually small businesses and groups.
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off-price retailer
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A retailer that sells at prices 25 percent or more below traditional department store prices because it pays cash for its stock and usually doesn't ask for return privileges.
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factory outlet
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An off-price retailer that is owned and operated by a manufacturer.
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nonstore retailing
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Shopping without visiting a store
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automatic vending
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The use of machines to offer goods for sale.
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direct retailing
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The selling of products by representatives who work door-to-door, office-to-office, or at home parties.
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direct marketing (direct-response marketing)
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Techniques used to get consumers to make a purchase from their home, office, or other nonretail setting
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telemarketing
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The use of the telephone to sell directly to consumers.
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online retailing
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A type of shopping available to consumers with personal computers and access to the Internet.
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franchiser
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The originator of a trade name, product, methods of operation, and so on, that grants operating rights to another party to sell its product.
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franchisee
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An individual or business that is granted the right to sell another party's product.
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retailing mix
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A combination of the six Ps-product, price, presentation, place, promotion, and personnel-to sell goods and services to the ultimate consumer.
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product offering
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The mix of products offered to the consumer by the retailer; also called the product assortment or merchandise mix.
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destination stores
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Stores that consumers purposely plan to visit.
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atmosphere
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The overall impression conveyed by a store's physical layout, decor, and surroundings.
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promotion
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Communication by marketers that informs, persuades, and reminds potential buyers or a product in order to influence an opinion or elicit a response.
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promotional stategy
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A plan for the optimal use of the elements of promotion: advertising, public relations, personal selling, and sales promotion
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competitive advantage
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One or more unique aspects of an org that cause target consumer to patronize that firm rather than competitors
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promotional mix
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The combo of promotional tools used to reach the target market and fulfill the organization's overall goals.
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advertising
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Impersonal, one-way mass communication about a product or org that is paid for by a marketer.
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public relations
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The marketing function that evaluates public attitudes, identifies areas within the org the public may be interested in, and executes a program of action to earn public understanding and acceptance.
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publicity
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Public info about a company, good, or service appearing in the mass media as a news item
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sales promotion
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Marketing activities that stimulate consumer buying and dealer effectiveness.
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personal selling
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A purchase situation in which two people communicate in an attempt to influence each other.
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communication
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The process by which we exchange or share meanings through a common set of symbols.
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interpersonal comm
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Direct, face-to-face communication between two or more people.
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mass communication
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The comm of a concept or message to large audiences
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sender
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The originator of the message in the communication process.
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encoding
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The conversion of a sender's ideas and thoughts into a message, usually in the form of words or signs.
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channel
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A medium of communication-such as a voice, radio, etc-for transmitting a message.
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noise
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Anything that interferes with the transmission of information.
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receiver
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The person who decodes the message
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decoding
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Interpretation of the language and symbols sent by the source through a channel.
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feedback
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The receiver's response to a message.
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AIDA concept
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A model outlining the process of achieving goals: stand for attention, interest, desire, and action
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push strategy
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uses aggressive personal selling and trade advertising to convince a wholesaler or a retailer to carry and sell particular merchandise.
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pull strategy
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stimulates consumer demand to obtain product distribution
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integrated marketing communications (IMC)
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The careful coordination of all promotional messages for a product or a service to assure the consistency of messages at every contact point where a company meets the consumer.
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advertising response function
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A phenomenon in which spending for advertising and sales promotion increases sales or market share up to a certain level but then produces diminishing returns.
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institutional advertising
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designed to enhance a company's image rather than promote a particular product.
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product advertising
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A form of advertising that touts the benefits of a specific good or service.
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advocacy advertising
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when an org expresses its views on controversial issues or responds to media attacks
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pioneering advertising
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designed to stimulate primary demand for a new product or product category
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competitive advertising
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A form of advertising designed to influence demand for a specific brand.
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comparative advertising
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compares two or more specifically named or shown competing brands on one or more specific attributes.
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advertising campaign
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A series of related advertisments focusing on a common theme, slogan, and set of advertising appeals.
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advertising objective
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A specific comm task that a campaign should accomplish for a specified target audience during a specified period.
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advertising appeal
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A reason for a person to buy a product.
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unique selling proposition
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A desirable, exclusive, and believable advertising appeal selected as the theme for a campaign.
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medium
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The channel used to convey a message to a target market.
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media planning
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The series of decisions advertisers make regarding the selection and use of media, allowing the marketer to optimally and cost-effectively communicate the message to the target audience.
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cooperative advertising
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An arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer's brand
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infomercial
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A 30-minute or longer advertisement that looks more like a TV talk show than a sale pitch
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media mix
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The combo of media to be used for a promotional campaign.
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cost per contact
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The cost of reaching one member of the target market.
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reach
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The number of target consumers exposed to a commercial at least once during a specific period, usually four weeks.
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frequency
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Number of times someone sees a message
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audience selectivity
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The ability of an advertising medium to reach a precisely define market.
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media schedule
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Designation of the media, the specific publications or programs, and the insertion dates of advertising.
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continuous media schedule
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advertising is run steadly thruout the adv period; used for products in the latter stages of the PLC
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flighted media schedule
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ads are run heavily every other month or every two weeks, to achieve a greater impact with an increased frequency and reach at those times.
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pulsing media schedule
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uses continuous scheduling thruout the year coupled with a flighted schedule during the best sales periods.
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seasonal media schedule
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Does it by season
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crisis management
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A coordinated effort to handle all the effects of unfavorable publicity or of another unexpected unfavorable event.
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consumer sales promotion
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Sales promotion activities targeting the ultimate customer
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trade sales promotion
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Sales promotion activities targeting a channel member, such as a wholesaler or retailer.
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coupon
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A certificate that entitles consumers to an immediate price reduction when they buy the product.
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rebate
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A cash refund given for the purchase of a product during a specific period
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premium
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An extra item offered to the consumer, usually in exchange for some proof of purchase of the promoted product
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loyalty marketing program
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A promotional program designed to build long-term, mutually beneficial relationships between a company and its key customers.
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sampling
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promotional program that gives free samples
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point-of-purchase display
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A promotional display set up at the retailer's location to build traffic, advertise the product, or induce impulse buying.
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trade allowance
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A price reduction offered by manufacturers to intermediaries, such as wholesalers and retailers.
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push money
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Money offered to channel intermediaries to encourage them to "push" products-that is, to encourage other members of the channel to sell the products.
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relationship selling (consultative)
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involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships
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sales process (sales cycle)
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The set of steps a salesperson goes through in a particular org to sell a particular product or service.
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lead generation
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ID of those firms and people most likely to buy the seller's offerings
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referral
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A recommendation to a salesperson from a customer or business associate.
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networking
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A process of finding out about potential clients from friends, contacts, etc.
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cold calling
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A form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects' needs or financial status.
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lead qualification
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Determination of a sales prospect's 1. recognized need 2. buying power, and 3. receptivity and accessibility
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preapproach
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A process that describes the "homework" that must be done by a salesperson before he or she contacts a prospect.
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needs assessment
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A determination of the customer's specific needs and wants and the range of options the customer has for satisfying them.
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sales proposal
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A formal written document or professional presentation that outlines how the salesperson's product or service will meet or exceed the prospect's needs.
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sales presentation
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A formal meeting in which the salesperson presents a sales proposal to a prospective buyer.
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negotiation
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The process during which both the salesperson and the prospect offer special concessions in an attempt to arrive at a sales agreement.
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follow-up
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The final step of the selling process, in which the salesperson ensures that delivery schedules are met, that the g&s perform as promised, and that the buyers' employees are properly trained to use the products.
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price
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That which is given up in exchange
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revenue
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The price charged to customers times the number of units sold
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profit
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Revenue minus expenses
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ROI
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Net profit after taxes divided by total assests
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market share
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A company's product sales as a % of total sales for that industry
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status quo pricing
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A pricing objective that maintains existing prices or meets the competition's prices.
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demand
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The quantity of a product that will be sold in the market at various prices for a specified period.
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supply
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The quantity of a product that will be offered to the market by a supplier at various prices for a specified period.
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Yield management systems (YMS)
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A tech for adjusting prices that uses complex mathematical software to profitablility fill unused capacity by discounting early purchases, limiting early sales at these discounted prices, and overbooking capacity
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elasticity of demand
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Consumers' responsiveness to changes in price
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elastic demand
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A situation in which consumer demand is sensitive to changes in price.
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inelastic demand
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price changes wont affect demand
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variable cost
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A cost that varies with changes in the level of output.
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fixed cost
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A cost that does not change as output is increased or decreased
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markup pricing
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The cost of buying the product from the producer plus amounts for profit and for expenses not otherwise accounted for.
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break-even analysis
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A method of determining what sales volume must be reached before total revenue equals total cost
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extranet
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A private electronic network that links a company with it suppliers and customers.
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prestige pricing
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Charging a high price to help promote a high-quality image
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price strategy
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A basic, long-term pricing framework, which establishes the initial price for a product and the intended direction for price movements over the product life cycle.
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price skimming
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A pricing policy whereby a firm charges a high intro price, often couple with heavy promotion.
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penetration pricing
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a firm charges a relatively low price for a product intially as a way to reach the mass market.
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unfair trade practices acts
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Laws that prohibit wholesalers and retailers from selling below cost.
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price fixing
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An agreement between two or more firms on the price they will charge for a product.
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predatory pricing
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The practice of charging a very low price for a product with the intent of driving competitors out of business or out of a market.
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base price
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The general price level at which the company expects to sell the good or service.
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quantity discount
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A price reduction offered to buyers buying in multiple units or above a specified dollar amount.
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cumulative quantity discount
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A deduction form list price that applies to the buyer's total purchases made during a specific period
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noncumulative quantity discount
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A deduction from list price that applies to a single order rather than to the total volume of orders placed during a certain period.
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cash discount
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A price reduction offered to a consumer, an industrial user, or a marketing intermediary in return for prompt payment of a bill.
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functional discount (trade)
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A discount to wholesalers and retailers for performing channel functions.
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promotional allowance
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A payment to a dealer for promoting the manufacturer's products.
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rebate
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A cash refund
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value-based pricing
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Setting the price at a level that seems to the customer to be a good price compared to the prices of other options.
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FOB orgin pricing
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A price tactic that requires the buyer to absorb the freight costs form the shipping point ("free on board")
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uniform delivered packaging
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A price tactic in which the seller pays the actual freight charges and bills every purchaser an identicla, flat freight charge.
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zone pricing
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A mod of uniform delivered pricing that divide the US into segments or zones and charges a flat freight rate to all customers in a given zone
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freight absorption pricing
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A price tactic in which the seller pays all or part of the actual freight charges and does not pass them on to the buyer
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basing-point pricing
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A price tactic that charges freight from a given (basing) point, regardless of the city form which the goods are shipped.
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single-price tactic
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offers all goods and services at the same price
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flexible pricng (variable)
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different customers pay different prices for essentially the same merchandise bought in equal quantities.
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leader pricing (loss-leader)
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a product is sold near or even below cost in the hope the shoppers will buy other items once they are in the store.
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bait pricing
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tires to get consumers into a store through false or misleading price advertising and then uses high-pressure selling to persuade consumers to buy more expensive merchandise.
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odd-even pricing
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odd-numbered prices to connote bargains and even-numbered prices to imply quality.
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price bundling
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Marketing two or more products in a single package for a special price.
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unbundling
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Reducing the bundle of servcies that comes with the basic product.
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two-part pricing
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A price tactic that charges two separate amounts to consume a single good or service.
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consumer penalty
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An extra fee paid by the consumer for violating the terms of the purchase agreement
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