Term
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Definition
| The amount of money charged for a product or service |
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Term
| Factors to consider when setting prices-2 things |
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Definition
| Customer Perceptions of Value-Company and Product Costs |
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Term
| Customer Perceptions of Values-Value Based Pricing-def |
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Definition
-Setting price based on buyers perceptions of value rather than on the sellers cost.
-Good Value Pricing- Offering just the right combination of quality and good service at a fair price.- EX "Value Menus" -2 types-everyday low pricing, High-low pricing-higher prices every day but running frequent promotions.
-Value adding pricing-Attaching valuee-added featuer and services to defferentiate a marketing offer and support higher prices, rather than cutting prices to match competitors. Business to Business mkt situations, to build companys pricing power. |
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Term
| The new marketing communications landscape |
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Definition
1. marketers are shifting away from mass marketing, focused marketing programs designed to build closer relationships with customers in more narrowly defined micromarkets
2. Vast improvements in information technoloy are speeding the movement toward segmented marketing |
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Term
| NEW PRODUCT PRICING STRATAGIES-2 |
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Definition
-Market-Skimming Pricing- 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.
-Market Penetration Pricing- Setting a low price for a new product in order to attract a large number of buyers and a large market share. |
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Term
| PRODUCT MIX PRICING STRATAGIES-4 |
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Definition
-Product LIne Pricing- When management must decide on the price steps to set between variouse products in a line.
-Optonal-Product Pricing- Procing of optional of accessory products along witha a main product.
-Captive-Product Pricing- Settinga price for products tha tmust be used along with a main product, such as blades foar a razor and film for a camera.
-By-Product Pricing- Setting a price for by-products in order to make the main products price more competitive.
-Product Bundle Pricing- Combining several products and offering the bundle at a reduced price. |
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Term
| PRICE ADJUSTMENT STRATEGIES-7 |
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Definition
1) Discount and Allowance Pricing-
discounts-cash discount-to people who pay promptly 2/10. quantity discount-people who buy in volumes. functional discount- offerd by seller to members who perform certain functions. seasonal discount- price reduction for those who buy out of season. Allowance- trade in allowances-turning in old buying new, Promotional allwoances-payment or price reduction rewarded for participation in advertising sale support programs.
2)Segmented Pricing-Selling aproduct or service at two or more prices, where the difference in price is not based on differences in cost.
3)Psychological pricing- Pricing approach that considers the psych of prices and not simply the economics. -Referece prices-Prices that buysers carry in thier minds and refer to when they look at a given product.
4) Promotional Pricing- Temporarily pricing products below the list price, and sometimes even below cost, to increase short run sales.
5)Geographical Pricing- Setting Price based on the buyers geographic location.
6)Dynamic Pricing- Adjustining prices continually to meet he characteristiscs and needs of individual customers and situations.
7)International Pricing-when companies have to decide what price to charge in the different countries. |
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Term
| PRICE CHANGES- Initiating price changes-4 |
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Definition
1) Initiating Price cuts-excess capacity, falling market share, firm must cut prices to boost sales.
2)Initiating Price Increase- can greatly increase profits.
3)Buyers Reactions to Price Changes- Customers may view price cuts in different ways.
4)Competitor Reactions to Price Changes- firm must worry about reations of its competitors. |
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Term
| PRICE CHANGES-responding to Price Changes- |
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Definition
-1st could reduce its price to match competitors price. -2nd it could raise percieved value of its offer.
-might improve quality and incease price
-company migh t launch a low-price fighting brand-ie. adding a lower-price item to the line. |
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Term
| PUBLIC POLICY AND PRICING-Pricing WITHIN channel levels- |
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Definition
-federal regulations say that seller must set prices without talking to competitors.
-sellers are prohibited form using predatory pricing which is selling below cost with the intention of punishing a compettior or gaing higher long-run profits by eliminating competition. this protects small sellers.
-very hard to determine if a seller is using predatory pricing. wal-mart has been accused many times. |
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Term
| PRICING ACROSS CHANNEL LEVELS |
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Definition
-Price discrimination-ensures that sellers offer the same price terms to customers.
-Retail price maintenance- laws that prohibit manufactureers form requiring dealers to charge a specific price.
-Deceptive pricing- occurs when a seller states prices or price savings that mislead consumerser. |
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Term
| CH 10 SUPPLY CHAIN and the VALUE DELIVERY NETWORK-def |
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Definition
| made up of a company, suppliers, distributors, and ultimately customers who "partner" with each other who improve the performance of the system. |
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Term
| iMPORTANCE OF MARKETING CHANNELS-def |
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Definition
A set of interdependent organizations that help make a product or service avaliable for use or consumption by the consumer or business user.
-effects pricing- depends on if a company works with national discount chains.
-companies often pay to little attention to channel distribution.
-Distribution channel decisions often involve long-term comitments to other firms. |
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Term
| How Do Channels add value- |
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Definition
-Channel members add value by bridging major time, place, and possession gaps that separate goods and services from those who would use them.
-Producers use intermediaries usaully offer the firm more than it can achieve on its own.
Some Help to complete transactions-
-INformation
-Promotion
-Contact-
-Mathcing-
-Negotioation
Others help to fulfill the completed transaction
-Physical Distribution-Trans and storing goods
-Financing- aquiring funds to cover costs
-Risk Taking- Assuming risks of channel work |
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Term
| Number of Chanbel Levels- Channel level def, Direct Marketing Channel def, Indirect Marketing Channel def |
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Definition
Channel Level- A layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer
-DM channel-A marketing channle that has no intermediary levels
-INDM channel- Channle containing one or more intermediary levels. |
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Term
Channel Behavior- Firms partner for thier common good.
-Channel conflict def. |
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Definition
-Channel Conflict- Dissagreement among marketing channel members on goals and roles- who should do what for who.
-some conflict in channels take the form of healthy competition. |
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Term
Vertical MKTing Systems- def-3subtypes
Conventional distribtion channel-def |
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Definition
Vert MKT system- Consists of producers, wholesalers and retailers acting as a unified sysem. one member owns the others, has contracts with them or has so much power that they must cooperate.
-Corporate VMS- integrates successive stages of production and distribution under single ownership.
-Contractual VMS-consists of independent fims at different levels of prod and dist who join together through contracts to attain more economies of scale together.
-Franchise organization- most common type of contractual relationship, links several stages in the prod-dist process.
-Administered VMS- leadership assumed not through common ownership or contractual ties but through the size and power of 1 or a few dominant channel members.
-Conv Dist channel- consists of one or more independent producers, wholesalers, and retailers. each is a separate business seeking to max its own profits. |
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Term
| Horizontal MKT systems-def |
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Definition
| HMKT system- where 2 or more companies at one level join together to follow a new mkting opportunity. |
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Term
| Multichannel Distribution system-def |
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Definition
| where a single firm sets up 2 or more mkt channels to reach 1 or more customer segments. |
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Term
CHanging Channel Organization-
Disintermediation-def |
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Definition
-technology and the explosive growth of direct and online mkting are having a big impact on the nature and design of mkt channels.
Dis def-occurs when product and service producers cut out intermediaries and go directly to final buyers, or when intermediaries are replaced. |
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Term
| Identifying major alternatives-tpes of interm, number of intermed, responsibilities of intermed. |
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Definition
-Types- firm should identify types of channel member available to carry out its channel members.
channel alternatives-
Company sales force- Expand companies direct sales force.
Manufacturers agency-hire manufactures agents
Industrial distributors-find dist in different regions
Number- 3 stratagies to find
-intensive distribution- stocking the product in as many outlets as possible
-exclusive distribution-giving certain dealers teh right to distribute the companies products.
-selective distribution-the use of more than 1 but fewer than all, of the intermediaries who are willing to carry the companies products.
-Responsibilities-should agree on price, policies, conditions of sale, territorial rights, and specific services that each party should perform. |
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Term
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Definition
MKt log-involves planning, implementing and controlling the physical flow of goods, services, and related info from points of orgin to points of consumption.
-Goals-providing max customer service at the least cost. this is impossible, goal is to provide a targeted level of customer service at the least cost.
Functions-
-Warehousing-storing tangible goods while they wait to be sold.
-Inventory Management-firms must balance inv, not carry to little, not carry to much.
-Transportation-affects teh producers delivery performance.
-Logistics Information Manag- companies manage their supply chains through information
-Integrated Logistics managment-providing better customer service and triiming dist costs, this requires teamwork.
-Cross-functional teamwork- Building Logistic Partnerships-Third Party Logistics- when provider perfoms any or all funcitons to get thier clients product market. |
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Term
| Supply Chain Management-def |
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Definition
| - managing upstream and downstream value-added flows of materials, final goods, andr related info among suppliers, the company, resellers, and final consumers. |
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Term
CH 11-Retailing-def, types
read 334-338 |
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Definition
def- all activities involved in selling products or services directly to final conmers for personal not business use.
-types- Specialty stores, Department stores, supermarkets, convienince stores, discount stores, Off-price retailers, superstores. |
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Term
| Retail MKT decisions- target MKT and posisioning decisions, product Assorrtment and service decisions, |
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Definition
Tgt and pos-focus upscale midscale ore downscale, want variety depth assortment convenience or low prices.
-Assort and service-
product assortment, services mix, store atmospheres. |
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Term
| Retail MKT dec, price decisions, promotion dec, place dec |
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Definition
-Must fit its target market and posisitioning, product and service assortment and competition.
Promotions decisions-retailers use all promostion tools-advertising, personal selling, sales promostionsl, PR, direct marketing.
Place Decisions- location location location, key to success. |
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Term
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Definition
def-all activities involved in selling goods and services to those buying for resale or business use.
-selling and promoting-help to reach customers at low cost.
-buying and assortment building-can buy assortments needed by thier customers
-Bulk breakining- save customers money buying in carload lots
-warehosuing- hold inventories to reduce costs
-transportation-provide quicker delivery to buyers becase they are closer than the producers
-fianancing-finacne by giving credit to customers |
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Term
| Wholesaling marketing decisions-4ps |
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Definition
Price-wholesalers usually mark up the cost of goods by a standard percentage.
Promotion-usually behind personal selling, most wholesalers are not promotion minded.
Plave-must choose locations carefully, locate low-rent, low tax areas and invest little money in thier buildings and equiptment. |
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Term
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Definition
| -fierce resistance to price increase, and winnowing out suppliers who are not adding calue based on cost and quality. Many are now going global. |
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