3 Flashcards
(14 cards)
price discrimination:
occurs when a business sells the same product to different consumers at different prices
promotional pricing
special low prices to gain market share or sell off excess
stock - includes buy one get one free
price leadership
exists when one business sets a price for its products and other firms in the market set
the same or similar prices (they follow suit)
predatory pricing:
deliberately undercutting competitors’ prices in order to try to force them out of the market
promotion:
the use of advertising, sales promotion, personal selling, direct mail, trade fairs, sponsorship and public relations to inform consumers and persuade them to buy
above-the-line promotion
a form of promotion by paying for communication with consumers, e.g.
advertising
below-the-line promotion:
promotion that is not a directly paid-for means of communication but based
on short-term incentives to purchase, e.g. sales promotion techniques
sales promotion
Incentives such as special offers or special deals directed at consumers or retailers to achieve short-term sales increases and repeat purchases by consumers
promotion mix
The combination of promotional techniques that a firm uses to communicate the benefits
of its products to customers
internet (online)
marketing:
Refers to advertising and marketing activities that use the internet, email and mobile communications to
encourage direct sales via electronic commerce
viral marketing
the use of
social media sites or text
messages to increase brand awareness or sell products
guerrilla marketing
An unconventional way of performing marketing activities on a very low budget
channel of distribution
The chain of middle steps a product passes through from producer to final consumer
Agent:
a business with the authority to act on behalf of another firm, e.g. to market its products
