Chapter 13

Question 1

Define market sharing

Answer 1

Pricing to gain greatest possible market percentage

Question 1

Define profit-maximizing

Answer 1

Pricing to maximize profit, possibly sacrificing unit sales in order to do so

Question 2

Define cost-oriented pricing

Answer 2

Price-setting tool considering cost of product and then adding markup

Question 3

What is the markup% equation

Answer 3

Markup/saleprice x 100

Question 4

What is the break even point

Answer 4

of units to be sold in order to cover both fixed and variable costs

Question 5

Define pricing strategcy

Answer 5

Pricing plan based on marketing mix

Question 6

What are the 3 ways of pricing existing products

Answer 6

Above, below, near market price

Question 7

What is price skimming vs penetration

Answer 7

S: start at high prive to cover new product costs and generate profit
P: start at low price to establish new product into market

Question 8

What are the 3 pricing tactics

Answer 8

Price lining
Psychological pricing
Discounting

Question 9

Define promotion

Answer 9

Techniques used to communicate info about product

Question 10

What are the goals of promoting

Answer 10

Increasing product awareness/knowledge
Increasing product pref
Helping position products and add value
Helping control/stabilize sales volume

Question 11

What are the 2 types of promotion strats

Answer 11

Push (firm promoting aggressively)
Pull (promote directly to consumers, demand product from intermediaries)

Question 12

What are the 9 factors making up a media mix

Answer 12

TV
Radio
Newspapers
Outdoors
Magazines
Direct mail
Internet
Mobile
Word of mouth

Question 13

Define personal selling

Answer 13

Most expensive form of promotion per contact
Involves personal interaction
Telemarking popular choice bc low cost

Question 14

Define sales promotions

Answer 14

Short-term activities designed to stimulate buying/cooperation from distributors ex:
Coupons
POS displays
Purchase incentives
Contests
Trade shows

Question 15

Define publicity

Answer 15

Info made available to consumers via media outlets, free but company has no control over it

Question 16

Define PR

Answer 16

Company-influenced info aimed at building good will or dealing with bad event

Question 17

Define an intermediary

Answer 17

Entity other than producer distributing product

Question 18

Define wholesaler

Answer 18

Intermediary selling products to other businesses for resale

Question 19

Define retailer

Answer 19

Intermediary selling products directly to customers

Question 20

Define a sales agent

Answer 20

Independent intermediary dealing in related product lines of some producers focused on long-term relationships

Question 21

Define a broker

Answer 21

Independent intermediary matching numerous sellers and buyers as needed

Question 22

What are the 4 types of distribution strategies

Answer 22

Intensive
Selective
Exclusive
Channel conflict

Question 23

Define intensive distribution strat

Answer 23

Use as many channels and members as possible

Question 24

Define selective distribution strat

Answer 24

Using limited numbers of outlets

Question 25

Define exclusive distribution strat

Answer 25

Using only one intermediary in a market are

Question 26

Define channel conflict distribution strat

Answer 26

Distribution channel members disagreeing over roles and rewards each has

Question 27

What are the types of retail outlets

Answer 27

Product line retailers Bargain retailers Convenience stores Direct response (non store)

Question 28

Types of product line retailers

Answer 28

Deparmtent store Supermarkets Specialty store Category killers

Question 29

Define bargain retailers

Answer 29

Discount housing Factory outlets Wholesale clubs

Question 30

Define direct response retailers

Answer 30

Mail order Telemarketing Direct selling TV

Question 31

Define E-intermediaries

Answer 31

Internet based channel members performing functions such as: 1. collecting info about sellers and presenting to consumers 2. helping deliver internet products to buyers

Question 32

Define physical distribution

Answer 32

Activities needed to move product efficiently from manufacturer to consumer

Question 33

Define warehousing operations

Answer 33

Storing goods through distribution process

Question 34

What are the 5 types of transportation modes

Answer 34

Trucks Plane Railroads Water carriers Pipelines

Question 35

How does distribution work as a marketing strat

Answer 35

Helps to gain comp adv and leverage distribution adv companies like Walmart Zara Dell