Key words for marketing mix and strategy

Question 1

competitive pricing

Answer 1

pricing strategies based on prices charged by rivals

Question 2

cost plus pricing

Answer 2

adding percentage to costs of producing a product to get that price

Question 3

penetration pricing

Answer 3

setting low price when launching new product in order to get established in market

Question 4

predatory pricing

Answer 4

setting low price forcing rivals out of business

Question 5

pricing strategy

Answer 5

pricing policies or methods used by a business when deciding what to charge for its products

Question 6

product life cycle

Answer 6

shows different stages in the life of a product and that sales that can be expected at each stage

Question 7

psychological pricing

Answer 7

setting price slightly below a round figure

Question 8

skimming

Answer 8

setting high price initially and then lowering it later

Question 9

unit costs

Answer 9

same as average cost (total cost divided by output)

Question 10

agent or broker

Answer 10

an intermediary that brings together buyers and sellers

Question 11

breaking bulk

Answer 11

dividing large quantity of goods received from a supplier before selling them on in smaller quantities

Question 12

direct selling

Answer 12

producers selling their products directly to consumers

Question 13

distribution channel

Answer 13

route taken by a product from producer to consumer

Question 14

distribution

Answer 14

delivery of goods from producer to consumer

Question 15

E-commerce

Answer 15

the use of electronic systems to sell goods and services

Question 16

intermediaries

Answer 16

links between producer and consumer

Question 17

Retailer

Answer 17

business that buys goods from manufacturers and wholesalers, and sells them in small quantities to consumers

Question 18

wholesaler

Answer 18

a business that buys goods from manufacturers and sells them in smaller quantities to retailers

Question 19

Boston Matrix

Answer 19

2x2 matrix model analyses product portfolio according to growth rate of market and relative market share of products within market

Question 20

extension strategies

Answer 20

methods used to prolong life of a product

Question 21

marketing strategy

Answer 21

set of plans that aim to achieve specific marketing objective

Question 22

product lines

Answer 22

a group of products that are very similar

Question 23

product portfolio

Answer 23

the collection of products a business is currently marketing