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| deceptive pricing (bait & switch) |
a firm offers a very low price then persuades customer to pay more once at the store (illegal under FTC rules) |
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nms528 Wed, 19 Nov 2008 01:21:45 GMT |
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| predatory pricing |
charging a very low price with the intent to driving competitors out and creating a monopoly |
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nms528 Wed, 19 Nov 2008 01:21:45 GMT |
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| price discrimination |
the practice of charging different prices to different buyers for goods of like grade and quality (illegal under the Clayton Act, as amended by the Robinson-Patman Act) |
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nms528 Wed, 19 Nov 2008 01:21:45 GMT |
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| price fixing |
a conspiracy among firms to set prices for a product (illegal under Sherman Act) |
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nms528 Wed, 19 Nov 2008 01:21:45 GMT |
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| geographic pricing adjustments |
price changes based on cost of transportation |
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nms528 Wed, 19 Nov 2008 01:16:59 GMT |
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| allowances |
price reduction for an activity
-trade-in
-promotional |
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nms528 Wed, 19 Nov 2008 01:16:59 GMT |
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| discounts |
price reduction for an award
-quantity
-seasonal
-trade (functional)
-cash |
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nms528 Wed, 19 Nov 2008 01:16:59 GMT |
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| break-even equation |
fixed cost/ (unit price - unit variable cost) |
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nms528 Wed, 19 Nov 2008 01:16:59 GMT |
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| break-even analysis |
examines the relationship between total revenue and total cost to determine profitability at different levels of output |
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nms528 Wed, 19 Nov 2008 01:11:52 GMT |
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| variable cost |
additional charges that vary with quantity produced and sold |
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nms528 Wed, 19 Nov 2008 01:11:52 GMT |
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| fixed cost |
stable expenses that don't change with quantity produced and sold |
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nms528 Wed, 19 Nov 2008 01:11:52 GMT |
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| total cost |
total expenses incurred by a firm in producing and marketing a product (sum of fixed costs and variable costs) |
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nms528 Wed, 19 Nov 2008 01:11:52 GMT |
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| When price changes affect volume, is the price elastic or inelastic? |
elastic |
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nms528 Wed, 19 Nov 2008 01:04:53 GMT |
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| 3 factors to consider when estimating demand |
-total potential market
-total amount each consumer will purchase
-market share of company |
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nms528 Wed, 19 Nov 2008 01:04:53 GMT |
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| 5 factors that cause a shift on the demand curve |
-price of product
-consumer tastes
-price & availability of similar products
-consumer income
-advertising/promotions |
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nms528 Wed, 19 Nov 2008 01:04:53 GMT |
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| 6 pricing objectives |
-profit
-sales
-market share
-volume
-survival
-social responsibility |
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nms528 Wed, 19 Nov 2008 01:04:53 GMT |
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| loss-leader pricing |
selling below customary price in order to attract attention in hopes customers will buy other products (NOT used only to increase sales) |
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nms528 Wed, 19 Nov 2008 00:57:57 GMT |
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| above, at, or below market pricing |
using competitors prices to set their own price depending on their target market needs and wants |
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nms528 Wed, 19 Nov 2008 00:57:57 GMT |
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| customary pricing |
standardized channel of distribution is used |
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nms528 Wed, 19 Nov 2008 00:57:57 GMT |
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| competition-oriented approaches to pricing (3) |
-customary pricing
-above, at, or below market pricing
-loss-leader pricing |
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nms528 Wed, 19 Nov 2008 00:57:57 GMT |
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| profit-oriented approaches to pricing (3) |
-target profit pricing
-target return-on-sales pricing
-target return-on-investment pricing |
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nms528 Wed, 19 Nov 2008 00:57:57 GMT |
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| cost-plus pricing |
involves summing the total unit cost of providing a product or service & adding a specific amount to the cost to arrive at a price (most commonly used to set business prices) |
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nms528 Wed, 19 Nov 2008 00:51:33 GMT |
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| -standard mark-up pricing |
adding a fixed percentage to the cost of all items in a specific product class (ex = grocery stores) |
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nms528 Wed, 19 Nov 2008 00:51:33 GMT |
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| cost-oriented approaches to pricing (2) |
-standard mark-up
-cost plus |
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nms528 Wed, 19 Nov 2008 00:51:33 GMT |
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| yield management pricing |
charging different prices to maximize revenue for a set amount to capacity at any given time |
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nms528 Wed, 19 Nov 2008 00:51:33 GMT |
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| bundle pricing |
marketing of two or more products in a single package price |
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nms528 Wed, 19 Nov 2008 00:51:33 GMT |
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| target pricing |
manufacturers estimate price based on what they think a consumer would be willing to pay |
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nms528 Wed, 19 Nov 2008 00:51:33 GMT |
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| odd-even pricing |
sets prices a few dollars or cents under an even number ($4.99 vs. $5) |
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nms528 Wed, 19 Nov 2008 00:51:33 GMT |
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| prestige pricing |
sets a high price so that quality or status-conscious consumers will be attracted to product |
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nms528 Wed, 19 Nov 2008 00:51:33 GMT |
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| 7 demand-oriented pricing strategies |
-skimming
-penetration
-prestige
-odd-even
-target
-bundle
-yield management |
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nms528 Wed, 19 Nov 2008 00:41:20 GMT |
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| value pricing |
the practice of increasing product and service benefits while maintaining or decreasing price |
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nms528 Wed, 19 Nov 2008 00:41:20 GMT |
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| price equation |
price = list price - incentives & allowances + extra fees OR
price = total revenue - total cost |
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nms528 Wed, 19 Nov 2008 00:41:20 GMT |
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| price |
money or other considerations exchanged for the ownership or use of a good or service |
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nms528 Wed, 19 Nov 2008 00:41:20 GMT |
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| When there are few well-known cues about a product or service, what factor is used to determine quality? |
price |
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nms528 Wed, 19 Nov 2008 00:31:03 GMT |
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| capacity management |
integrating the service component of the marketing mix with efforts to influence consumer demand |
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nms528 Wed, 19 Nov 2008 00:31:03 GMT |
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| 3 benefits of packaging |
-communication
-functional
-perceptual |
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nms528 Wed, 19 Nov 2008 00:31:03 GMT |
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| mixed branding |
firm markets products under its own name and that of a reseller because segments are different from one another |
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nms528 Wed, 19 Nov 2008 00:31:03 GMT |
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| private-label branding |
product sold under retailer/wholeseller, giving manufacturer another outlet to sell products |
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nms528 Wed, 19 Nov 2008 00:31:03 GMT |
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| co-branding |
pairing two brand names of two different manufacturers with one product (ex = Post Oreo O's Cereal) |
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nms528 Wed, 19 Nov 2008 00:24:57 GMT |
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| multi-branding |
manufacturer's branding strategy that gives each product a distinct name (useful for products that are intended for a different marketing segment) |
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nms528 Wed, 19 Nov 2008 00:24:57 GMT |
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| benefits of multi-product branding (2) |
-encourages line extension
-encourages brand extension |
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nms528 Wed, 19 Nov 2008 00:24:57 GMT |
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| multi-product branding |
manufacturer's branding strategy that uses one name for all products (other names include: family or corporate branding) |
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nms528 Wed, 19 Nov 2008 00:24:57 GMT |
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| 4 segments of brand equity pyramid |
-brand importance
-brand performance & imagery
-consumer judgements & feelings
-consumer-brand connection |
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nms528 Wed, 19 Nov 2008 00:24:57 GMT |
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| 5 criteria for a good brand name |
-describes product benefits
-memorable, distinctive and positive
-fit the product and company image
-no legal restrictions
-simple, appeal to emotions |
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nms528 Wed, 19 Nov 2008 00:24:57 GMT |
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| brand equity |
added value a given brand name gives to a product beyond the functional benefits provided |
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nms528 Wed, 19 Nov 2008 00:24:57 GMT |
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| brand personality |
set of human characteristics associated with a brand name |
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nms528 Wed, 19 Nov 2008 00:24:57 GMT |
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| branding |
organization's use of a name, phrase, design, symbol or combination of these to identify and distinguish its products |
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nms528 Wed, 19 Nov 2008 00:11:48 GMT |
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| 4 factors that trigger a repositioning act |
-reacting to a competitor's position
-reaching a new market
-catching a rising trend
-changing the value offered (trading up/down or downsizing) |
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nms528 Wed, 19 Nov 2008 00:11:48 GMT |
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| What are three ways to modify the market? |
-find new users
-increase use
-create new use situations |
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nms528 Wed, 19 Nov 2008 00:11:48 GMT |
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| 3 ways to manage product life cycle |
-modify product
-modify market
-reposition product |
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nms528 Wed, 19 Nov 2008 00:11:48 GMT |
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| What are five methods used to overcome barriers? |
-warrantees
-money-back guarantees
-extensive usage instructions
-demonstrations
-free samples |
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nms528 Wed, 19 Nov 2008 00:11:48 GMT |
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| 5 categories of product adopters |
-innovators (2.5% of population)
-early adopters (13.5%)
-early majority (34%)
-late majority (34%)
-laggards (16%) |
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nms528 Wed, 19 Nov 2008 00:11:48 GMT |
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| 4 barriers of product resistance |
-usage barriers
-value barriers
-risk barriers
-psychological barriers |
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nms528 Wed, 19 Nov 2008 00:11:48 GMT |
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| diffusion of innovation |
the manner a product spreads through the population |
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nms528 Wed, 19 Nov 2008 00:11:48 GMT |
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| In what stage of the product life cycle do most customers purchase a product? |
after a product has been on the market for some time (growth or maturity stage) |
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nms528 Wed, 19 Nov 2008 00:01:37 GMT |
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| fad product |
experiences rapid sales on introduction then equally rapid declines (novelties w/ short life cycles) |
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nms528 Wed, 19 Nov 2008 00:01:37 GMT |
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| fashion product |
a product that is introduced, declines, and returns at a later period |
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nms528 Wed, 19 Nov 2008 00:01:37 GMT |
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| low-learning product |
sales begin immediately (benefits and required knowledge are understood) |
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nms528 Wed, 19 Nov 2008 00:01:37 GMT |
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| high-learning product |
significant education of customer is required and there is an extended introductory period |
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nms528 Wed, 19 Nov 2008 00:01:37 GMT |
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| 5 types of life cycle curves |
-generalized
-high-learning product
-low-learning product
-fashion product
-fad product |
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nms528 Wed, 19 Nov 2008 00:01:37 GMT |
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| consumer products vs. business products |
consumer products tend to have shorter life cycles than business products |
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nms528 Wed, 19 Nov 2008 00:01:37 GMT |
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| 2 important aspects of product life cycles |
-length
-shape of curve |
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nms528 Wed, 19 Nov 2008 00:01:37 GMT |
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| harvesting |
when a company keeps the product but reduces marketing costs |
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nms528 Wed, 19 Nov 2008 00:01:37 GMT |
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| deletion |
product dropped from company's product line |
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nms528 Wed, 19 Nov 2008 00:01:36 GMT |
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| 3 characteristics of decline stage in the product life cycle (including marketing objective) |
-sales & profits drop
-tends to be fueled by environmental changes
-marketing objective = deletion or harvesting |
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nms528 Wed, 19 Nov 2008 00:01:36 GMT |
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| 5 characteristics of maturity stage in the product life cycle (including marketing objective) |
-slowing of total industry sales for product class
-fewer new customers
-focus on selective demand and niching
-profits drop, price competition
-marketing objective = maintain brand loyalty |
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nms528 Wed, 19 Nov 2008 00:01:36 GMT |
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| 5 characteristics of growth stage in product life cycle (including marketing objective) |
-rapid increases in sales
-competitors enter, causing shift to selective demand
-more aggressive pricing
-gain as much distribution as possible
-marketing objective = stress differentiation |
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nms528 Tue, 18 Nov 2008 20:14:43 GMT |
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| penetration pricing strategy |
entering the market with a lower price in order to discourage competitive entry (helps build unit volume) |
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nms528 Tue, 18 Nov 2008 20:14:43 GMT |
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| skimming pricing strategy |
initial high price that lowers after time |
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nms528 Tue, 18 Nov 2008 20:14:43 GMT |
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| selective demand |
demand for a specific brand |
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nms528 Tue, 18 Nov 2008 20:14:43 GMT |
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| primary demand |
desire for the product class rather than for a specific brand since there are few competitors with the same product |
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nms528 Tue, 18 Nov 2008 20:14:43 GMT |
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| 4 characteristics of introductory stage in product life cycle (including marketing objective) |
-sales grow slowly
-minimal profit (often result of large investments in product development)
-limited distribution
-marketing objective = gain awareness |
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nms528 Tue, 18 Nov 2008 20:14:43 GMT |
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| axis on the product life cycle graph |
time vs. sales |
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nms528 Tue, 18 Nov 2008 20:14:43 GMT |
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| product life cycle |
stages a new product goes through in the market place: introduction, growth maturity, and decline |
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nms528 Tue, 18 Nov 2008 20:14:43 GMT |
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