chapter 13 Flashcards
(28 cards)
pricing to maximize profit (bottom line)
profit-maximizing
pricing to gain the greatest possible market percentage
market-share
considers the of the product and adds a “markup” to arrive at a final cost
cost-oriented pricing
the pricing plan based on the marketing mix
pricing strategy
line of product: $199-399
price lining
odd-even pricing
psychological pricing
price reduction offered as an incentive to purchase- cash discount
discounting
techniques to communicate information about products
promotion
firm promotes aggressively to intermediaries
push strategy
firm promotes directly to consumers, who demand the product from intermediaries
pull strategy
advertising, personal selling, sales promotions, publicity, public relations
promotional mix
the most expensive form of promotion per contact
personal selling
short-term promotional activities designed to stimulate buying or cooperation from distributors
sales promotions
information made available to consumers via media outlets- free, but the company has no control over it
publicity
company-influenced information aimed at building goodwill or dealing with an unfavourable event
public relations
an entity other than the producer who distributes the product
intermediary
an intermediary who sells products to other businesses for resale
wholesaler
an intermediary who sells products directly to consumers
retailer
the path a product follows to the end user
distribution channel
independent intermediary- deals in related product lines of a few producers
sales agent
independent intermediary- matches numerous sellers andbuyers a needed
broker
use as many channels and members as possible
intensive
use of a limited number of outlets
selective
use of only one intermediary in a market area
exclusive
