Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Marketing 11&12
vocab chapters 11 & 12
| Term | Definition |
|---|---|
| price | the assignment of value, or the amount the consumer must exchange to receive the offering |
| prestige products | products that have a high price and that appeal to status-conscious consumers |
| price elasticity of demand | the percentage change in unit sales that results from a percentage change in price |
| elastic demand | demand in which changes in price have large effects on the amount demanded |
| inelastic demand | demand in which price have little or no effect on the amount demanded |
| cross-elasticity of demand | when changes in the price of one product affect the demand for another item |
| variable costs | the costs of production (raw and processed materials, parts, and labor) that are tied to and vary depending on the number of units produced |
| fixed costs | costs of production that do not change with the number of units produced |
| average fixed cost | the fixed cost per unit produced |
| total costs | the total of the fixed costs and the variable costs for a set number of units produced |
| break-even analysis | a method determining the number of units that a firm must produce and sell at a given price to cover all its costs |
| break-even point | the point at which the total revenue and total costs are equal and beyond which the company makes a profit; below that point, the firm will suffer a loss |
| contribution per unit | the difference between the price the firm charges for a product and the variable costs |
| marginal analysis | a method that uses cost and demand to identify the price that will maximize profits |
| marginal cost | the increase in total cost that results from producing one additional unit of a product |
| marginal revenue | the increase in total income or revenue that results from selling one additional unit of a product |
| markup | an amount added to the cost of a product to create the price at which a channel member will sell the product |
| gross margin | the markup amount added to the cost of a product to cover the fixed of the retailer or wholesaler and leave an amount for a profit |
| retailer margin | the margin added to the cost of a product by a retailer |
| wholesaler margin | the amount added to the cost of a product by a wholesaler |
| list price or manufacturer's suggested retail price (MSRP) | the price the end customer is expected to pay as determined by the manufacturer; also referred to as the suggested retail price. the appropriate price for the end customer to pay as determined by the manufacturer |
| sachets | single use packages of products such as shampoo often sold in developing countries |
| cost-plus pricing | a method of setting prices in which the seller totals all the costs for the product and then adds an amount to arrive at the selling price |
| demand-based pricing | a price setting method based on estimates of demand at different prices |
| target costing | 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; the product is manufactured only if the firm can control costs to meet the required price |
| yield management pricing | a practice of charging different prices to different customers in order to manage capacity while maximizing revenues |
| price leadership | a pricing strategy in which one firm first sets its price and other firms in the industry follow with the same or very similar prices |
| value pricing or everyday low pricing (EDLP) | a pricing strategy in which a firm sets prices that provide ultimate value to customers |
| skimming prices | a very high, premium price that a firm charges for its new, highly desirable product |
| penetration pricing | a pricing strategy in which a firm introduces a new product at a very low price to encourage more customers to purchase it |
| trial pricing | pricing a new product low for a limited period of time in order to lower the risk for a customer |
| price bundling | selling two or more goods or services as a single package for one price |
| captive pricing | a pricing tactic for two items that must be used together; one item is priced very low, and the firm makes its profit on another. high-margin item essential to the operation of the first item |
| F.O.B. origin pricing | a pricing tactic in which the cost of transporting the product from the factory to the customer's location is the responsibility of the customer |
| F.O.B delivered pricing | a pricing tactic in which the cost of loading and transporting the product to the customer is included in the selling price and is paid by the manufacturer |
| basing-point pricing | a pricing tactic in which customers pay shipping charges from set basing-point locations, whether the goods are actually shipped from these points or not |
| uniform delivered pricing | a pricing tactic in which a firm adds a standard shipping charge to the price for all customers regardless of location |
| freight absorption pricing | a pricing tactic in which the seller absorbs the total cost of transportation |
| trade discounts | discounts off list price of products to members of the channel of distribution who perform various marketing functions |
| quantity discounts | a pricing tactic of charging reduced prices for purchases of larger quantities of a product |
| cash discounts | a discount offered to a customer to entice them to pay their bill quickly |
| seasonal discounts | price reductions offered only during certain times of the year |
| dynamic pricing | a pricing strategy in which the price can easily be adjusted to meet changes in the marketplace |
| on-line auctions | e-commerce that allows shoppers to purchase products through online bidding |
| freenomics | a business model that encourages giving products away for free because of the increase in profits that can be achieved by getting more people to participate in a market |
| internal reference price | a set price or a price range in consumers' minds that they refer to in evaluating a product's price |
| price lining | the practice of setting a limited number of different specific prices, called price points, for items in a product line |
| bait-and-switch | an illegal marketing practice in which an advertised price special is used as bait to get customers into the store with the intention of switching them to a higher priced item |
| loss-leader pricing | the pricing policy of setting prices very low or even below cost to attract customers into a store |
| unfair sales acts | state laws that prohibit suppliers from selling products below cost to protect small businesses from larger competitors |
| price-fixing | the collaboration of two or more firms in setting prices, usually to keep prices high |
| predatory pricing | illegal pricing strategy in which a company sets a very low price for the purpose of driving competitors out of business |
| AOR (agency of record) relationship | a relationship where the client pays a monthly retainer fee to an agency for creative services |
| promotion | the coordination of a marketer's communication efforts to influence attitudes or behavior |
| integrated marketing communication (IMC) | a strategic business process that marketers use to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communication programs over time to targeted audiences |
| multichannel promotional strategy | a marketing communication strategy where they combine traditional advertising, sales promotion, and public relations activities with online buzz-building activities |
| word-of-mouth communication | when consumers provide information about products to other consumers |
| communication model | the process whereby meaning is transferred from a source to a receiver |
| encoding | the process of translating an idea into a form of communication that will convey meaning |
| source | an organization or individual that sends a message |
| message | the communication in physical form that goes from a sender to a receiver |
| medium | a communication vehicle through which a message is transmitted to a target audience |
| receiver | the organization or individual that intercepts and interprets the message |
| decoding | the process by which a receiver assigns meaning to the message |
| noise | anything that interferes with effective communication |
| feedback | receivers' reactions to the message |
| promotion mix | the major elements of marketer-controlled communication, including advertising, sales promotion, public relations, personal selling, and direct marketing |
| mass communication | relates to television, radio, magazines, and newspapers |
| advertising | non-personal communication from an identified sponsor using the mass media |
| groundswell | a social trend in which people use technology to get the things they need from each other, rather than from traditional institutions like corporations |
| buzz | word-of-mouth communication that customers view as authentic |
| viral marketing | marketing activities that aim to increase brand awareness or sales by consumers passing a message along to other consumers |
| brand ambassadors or brand evangelists | loyal customers of a brand recruited to communicate and be salespeople with other consumers for a brand they care a great deal about |
| social media | internet-based platforms that allow users to create their own content and share it with others who access these sites |
| social networks | sites used to connect people with other similar people |
| a free micro blogging service that lets users post short text messages with a maximum of 140 characters | |
| virtual worlds | online, highly engaging digital environments where avatars live and interact with other avatars in real time |
| avatars | graphic representations of users of virtual worlds |
| virtual goods | digital products bought and sold in virtual worlds that don't exist in the real world |
| product review sites | social media sites that enable people to post stories about their experiences with products and services |
| geospatial platforms | digital applications that integrate sophisticated GPS technology to enable users to alert friends of their exact whereabouts via their mobile phones |
| hierarchy of effects | a series of steps prospective customers move through, from initial awareness of a product to brand loyalty |
| top-down budgeting | allocation of the promotion budget based on management's determination of the total amount to be devoted to marketing communication |
| percentage-of-sales budgeting method | a method used for promotion budgeting that is based on a certain percentage of either last year's sales or on estimates of the present year's sales |
| competitive-parity budgeting method | a promotion budgeting method in which an organization matches whatever competitors are spending |
| bottom-up budgeting techniques | allocation of the promotion budget based on identifying promotion goals and allocating enough money to accomplish them |
| objective-task method | 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 promotion efforts it will take to meet these goals |
| push strategy | the company tries to move its products through the channel by convincing channel members to offer them |
| pull strategy | 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 |
| AIDA model | the communication goals of attention, interest, desire, and action |
Created by:
641485316
Popular Marketing sets