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Flashcards in 4th Six Weeks Deck (35)
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1

This involves setting prices for your products that will guarantee you'll make money on each sale.

Profit-oriented pricing

2

The process of selecting strategic price points to best take advantage of a product or service based market relative to others.

Competitor-based pricing

3

The extent to which a product is recognized and bought by customers in a particular area.

Market Penetration

4

A product pricing strategy by which a firm charges the highest initial price that customers will pay and lowers it over time.

Skimming

5

This includes direct labor, direct materials, consumable production supplies, and factory overhead.

Product Cost

6

The total satisfaction received from consuming a good or service.

Utility

7

The rivalry between companies selling similar products and services.

Competition in a market

8

Laws that control the way that a business can operate.

Government and Legal Regulations

9

The goals that guide your business in setting the cost of a product or service to your existing or potential consumers.

Pricing Objectives

10

Higher-priced product promotion that normally centers more on product benefits or other aspects that increase the customer's experience.

Value

11

A financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.

Profit

12

The practice of keeping the price of a product or service artificially high in order to encourage favorable perceptions among buyers, based solely on the price.

Premium pricing

13

Products sold under generic brands where marketing and production costs have been kept to a minimum.

Economy pricing

14

The practice of setting prices slightly lower than rounded numbers, in the belief that customers do not round up these prices, and so will treat them as lower prices than they really are.

Psychological pricing

15

Deciding the amount required as payment for something.

Pricing

16

The act of placing several products or services together in a single package and selling for a lower price than would be charged if the items were sold separately.

Bundle pricing

17

A price-setting strategy where prices are set primarily on a consumers' perceived value of the product or service.

Value Based Pricing

18

A conspiracy between business competitors to set their prices to buy or sell goods or services at a certain price point.

Price Fixing

19

An illegal practice in which competing parties collude to choose the winner of a bidding process while others submit uncompetitive bids.

Bid Rigging

20

The action of selling the same product at different prices to different buyers, in order to maximize sales and profits.

Price Discrimination

21

Pricing above what can be sustained in a competitive market.

Supra Competitive Pricing

22

The practice of charging more for a product or service during periods when it is in high demand.

Surge Pricing

23

The practice of varying the price for a product or service to reflect changing market conditions, in particular the charging of a higher price at a time of greater demand.

Dynamic Pricing

24

The action (generally illegal) of advertising goods which are an apparent bargain, with the intention of substituting inferior or more expensive goods.

Bait and Switch

25

When a business never actually sells their items for more than their sale prices.

Fake Sale Pricing

26

Includes a sender, encoding of a message, selecting of a channel of communication, receipt of the message by the receiver and decoding of the message.

Process of Communication

27

Satisfying the need.

Customer Objective

28

To sell the products.

Business Objective

29

One of the 4 Ps of the marketing mix.

Promotion Mix

30

Any paid form of non-personal presentation and promotion of ideas, goods, and services by an identified sponsor.

Advertising