M6

Question 1

exchange or transaction

Answer 1

Price

Question 2

given up to obtain benefits

Answer 2

Buyer’s View

Question 3

reflects the revenue generated for each product sold.

Answer 3

Seller’s View

Question 4

FIVE C’S OF PRICING

Answer 4

• Company Objectives
• Customers
• Cost
• Competition
• Channel Members

Question 5

methods and objectives may ultimately be oriented.

Answer 5

Company Objectives

Question 6

firms usually implement target profit pricing

Answer 6

Profit Orientation

Question 7

firms using a sales orientation to set prices believes that increasing sales.

Answer 7

Sales Orientation

Question 8

firms take a competitor, they strategize according to the premise.

Answer 8

Competitor Orientation

Question 9

invokes the concept of value. Focusing on customer satisfaction and setting prices.

Answer 9

Customer Orientation

Question 10

developed their company objectives, understand consumer reactions to different prices.

Answer 10

Customers

Question 11

shows how many units of products or services consumers will demand.

Answer 11

Demand Curves and Pricing

Question 12

refers to % change in quantity demanded to % change in price.

Answer 12

Price Elasticity of Demand

Question 13

FACTORS INFLUENCING PRICE ELASTICITY OF DEMAND:

Answer 13

Income Effect
Substitution Effect
Cross-Price Elasticity

Question 14

people’s income increases, their spending behavior changes.

Answer 14

Income Effect

Question 15

consumer’s ability to substitute other products for the present or focal brand.

Answer 15

Substitution Effect

Question 16

this happens in the case of complementary products.

Answer 16

Cross-Price Elasticity

Question 17

to make effective pricing decisions, firms must understand their cost structures.

Answer 17

Cost

Question 18

labor and material that vary with production volume.

Answer 18

Variable Costs

Question 19

cost that remain essentially at same level.

Answer 19

Fixed Costs

Question 20

simply the sum of fixed and variable costs.

Answer 20

Total Costs

Question 21

competition has profound impact on pricing strategies.

Answer 21

Competition

Question 22

THREE LEVELS OF COMPETITIONS:

Answer 22

Oligopolistic
Monopolistic
Pure

Question 23

manufacturers, wholesalers, and retailers can have different views when it comes to pricing strategies.

Answer 23

Channel Members

Question 24

Types of Pricing Strategies

Answer 24

Cost-Based
Competitor Based
Value Based

Question 25

determine the final price to be charged starting with the cost.

Answer 25

Cost-Based Methods

Question 26

prices are set to reflect the way they want.

Answer 26

Competitor Based

Question 27

focus on overall value of product offering

Answer 27

Value-Based

Question 28

PRICING METHODS

Answer 28

- Premium Pricing - Penetration Pricing - Economy Pricing - Price Skimming - Psychological Pricing - Pricing Variations - Optional Product Pricing - Captive Product Pricing - Product Bundle Pricing - Geographical Pricing - Value Pricing

Question 29

uses a high price, but gives a good or services

Answer 29

Premium Pricing

Question 30

offers low price to gain market - share

Answer 30

Penetration Pricing

Question 31

placed at 'no frills' low price

Answer 31

Economy Pricing

Question 32

when prices are high- usually during introduction "parity"

Answer 32

Price Skimming

Question 33

to get a customer to respond on an emotional, rather than rational basis.

Answer 33

Psychological Pricing

Question 34

'off-peak' pricing, early booking discounts etc.

Answer 34

Pricing Variations

Question 35

e.g optional extras- BMW famously under-equipped

Answer 35

Optional Product Pricing

Question 36

products that complement others. e.g Gillete Razors (low price) Blades (high price)

Answer 36

Captive Product Pricing

Question 37

sellers combine several products at the same price e.g software, books, CD's

Answer 37

Product Bundle Pricing

Question 38

different prices for customers in different parts of the world.

Answer 38

Geographical Pricing

Question 39

using during difficult economic conditions

Answer 39

Value Pricing

Question 40

A set of interdependent organizations (intermediaries) involved in the process of making a product or service available for use or consumption by the consumer or business user.

Answer 40

Distribution Channel

Question 41

TYPE OF CHANNEL MEMBERS

Answer 41

1. Resellers 2. Retailers 3. Wholesalers 4. Industrial Distributors

Question 42

generally purchase or take ownership of products from the marketing company with the intention of selling to others.

Answer 42

Resellers

Question 43

Organizations that sell products directly to final consumers.

Answer 43

Retailers

Question 44

Organizations that purchase products from suppliers

Answer 44

Wholesalers

Question 45

Firms that work mainly in the business-to-business market selling products obtained from industrial suppliers.

Answer 45

Industrial Distributors

Question 46

Organizations that mainly work to bring suppliers and buyers together in exchange for a fee.

Answer 46

Agents and Brokers

Question 47

Offer services aiding in the movement of products such as assistance with transportation, storage, and order processing.

Answer 47

Distribution Service Firms

Question 48

FACTORS AFFECTING DISTRIUBUTION CHANNEL

Answer 48

- Product Issues - Promotion Issues - Pricing Issues - Target Market Issues

Question 49

LEVEL OF DISTRIBUTION COVERAGE

Answer 49

- Mass Coverage - Selective Coverage - Exclusive Coverage

Question 50

DISTRIBUTION SYSTEMS: DIRECT

Answer 50

- Direct Marketing System - Direct Retail System - Personal Selling System - Assisted Marketing System

Question 51

DISTRIBUTION SYSTEMS: INDIRECT

Answer 51

- Single-Party Selling System - Multiple- Party Selling System

Question 52

is a form of corporate communication that uses various methods to reach a targeted audience

Answer 52

Promotion

Question 53

TYPES OF PROMOTION OBJECTIVES:

Answer 53

- Build Awareness - Create Interest - Provide Information - Stimulate Demand - Reinforce the brand

Question 54

INTEGRATED MARKETING COMMUNICATION:

Answer 54

- Advertising - Personal Selling - Public Relations - Direct Marketing - Sales Promotion

Question 55

Any Paid Form of Nonpersonal Presentation and Promotion of Ideas, Goods, or Services by an Identified Sponsor.

Answer 55

Advertising

Question 56

describes promotional methods using special short-term techniques to persuade members of a target market to respond or undertake certain activity.

Answer 56

Sales Promotion

Question 57

involves the cultivation of favorable relations for organizations and products

Answer 57

Public Relations

Question 58

is a promotional method in which one party (e.g., salesperson)

Answer 58

Personal Selling

Question 59

is a sometimes controversial sales method by which advertisers approach potential customers directly with products or services.

Answer 59

Direct Marketing