Lesson 4 review Flashcards
Long term
3-5 years
short term
up to a year
product positioning
how customers see our product
product mix
refers to all products a customer makes or sells
Intensive
a marketing strategy that involves making a company’s products available to customers in many places as possible
Selective distribution
-Limits the number of sales outlets
-focuses on selling certain types of products
-Selective and few outlets are chosen through which product is made available to customers
Inelastic
Demand remains the same
Milk, gas etc
Elastic
Demand can change
-gourmet food
-luxury items
Customer perception
-low price may make customers believe its cheap quality
-price to high may turn away customers
Purchase agreement
Written agreement, issued to the purchaser of an article
Clayton act and Robison act
It is illegal for businesses to sell the same product to different customers at a different price.
cost-based pricing
dictates that you consider your business cost and profit objectives
Prestige tends to
employ higher-than-average pricing
Price skimming
involves charging high price to recover cost as quickly as possible
Penetration pricing
-offers new product at low price to attract customers.
