LESSON 5 Flashcards
Refers to any goods or services that is produced to meet the consumers’ wants, tastes and preferences.
PRODUCT
Represents the location where the buyer and seller exchange goods or services. It is also called as the distribution channel. It can include any physical store as well as virtual stores or online shops on the Internet.
PLACE
Is the value of money in exchange for a product or service. Is the amount or value that a customer gives up enjoying the benefits of having or using a product or service.
PRICE
The price charged for products and services is set artificially low in order to gain market share. Once this is achieved, the price is increased.
Penetration Pricing
A company charges a higher price then slowly lowers the price to make the product available to a wider market because it has a considerable competitive advantage.
Skimming Pricing
A pricing method in which a seller uses prices of competing products as a benchmark instead of considering own costs or the customer demand.
Competition Pricing
The practice of reviewing and setting prices for multiple products that a company offers in coordination with one another. Aim to maximize the sales of different products by creating more complementary, rather than competitive, products.
Product Line Pricing
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
Setting the price of a product higher than similar products. The goal is to create the perception that the products must have a higher value than competing products because the prices are higher.
Premium Pricing
Is 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
The company earns more through cross selling products along with a basic core product. The main product does not have many features (and is priced low) which can be enhanced.
Optional Pricing
Involves adding a markup to the cost of goods and services to arrive at a selling price. Under this approach, you add together the direct material cost, direct labor cost, and overhead costs for a product, and add to it a markup percentage in order to derive the price of the product.
Cost Plus Pricing
A pricing method in which a fixed sum or a percentage of the total cost is added (as income or profit) to the cost of the product to arrive at its selling price.
Cost Based Pricing
A price-setting strategy where prices are set primarily on consumers’ perceived value of the product or service.
Value Based Pricing
Refers to the complete set of activities, which communicate the product, brand or service to the user. The idea is to create an awareness, attract and induce the consumers to buy the product, in preference over others. The following are the most common medium in promoting a product and this is called promotional mix.
PROMOTION
The article that features your company is not paid for. The reporter, whether broadcast or print, writes about or films your company as a result of information he or she received and researched.
PUBLIC RELATIONS OR PR
Occurs when an individual salesperson sells a product, service or solution to a client.
PERSONAL SELLING
Is any initiative undertaken by an organization to promote an increase in sales, usage or trial of a product or service.
SALES PROMOTIONS
Is a promotional method that involves presenting information about your company, product, or service to your target customer without the use of an advertising middleman. It is a targeted form of marketing that presents information of potential interest to a consumer that has been determined to be a likely buyer.
DIRECT MARKETING
Your team, the staff that makes it happen for you, your audience, and your advertisers are the people in marketing. This consist of each person who is involved in the product or service whether directly or indirectly.
PEOPLE
Refers to the outside appearance of a product and how it is presented to the customers.
PACKAGING
Refers to a process used by marketers to create an image in the minds of a target market.
POSITIONING
