Vocab words Flashcards
(12 cards)
Pivot Table
allows you to filter through data and show it in multiple ways
EDLP:
Everyday low price (also abbreviated as EDLP) is a pricing strategy promising consumers a low price without the need to wait for sale price events or comparison shopping. EDLP is believed to generate shopper loyalty
Promotional pricing:
The act of offering a lower price temporarily in order to enhance the effectiveness of product sales efforts to cost sensitive consumers. For example, many businesses will offer promotional pricing as a sales incentive when initially launching a particular product line to potential consumers.
profit margin:
an accounting measure designed to gauge the financial health of a business or industry. In general, it is defined as the ratio of profits earned to total sales receipts (or costs) over some defined period.
Price Skimming:
This is an excellent strategy for launching new products/services. The new product/service pricing is set at a high profit margin initially since the customer is not familiar with the price that should be paid for this new product/service. The strategy is to recoup R&D and other marketing launch costs prior to the entry of competitor alternatives into the marketplace. Eventually, the new product/service will be priced according to its real value as determined by the marketplace.
Penetration Pricing:
In order to gain market share quickly, the price charged for a product/service is set at a deliberately low price.
Versioning Pricing:
This is now a classic up-sell approach to pricing used widely on the Internet for selling information products. Versioning is an often used pricing strategy for information, services or software. It is most appropriate selling the same base product/service in multiple editions or “versions”. An introductory or basic edition is promoted at low or no cost. Then the customer is then encouraged to purchase an upgraded version with more services or value at higher prices.
Captive Product Pricing:
Often referred to as razor/razor blade pricing, the technique is to give away an item and bundle it with another item in the system. In this strategy, you need two items that are required to work together in order to provide a customer benefit. In the razor/razor blade example, a razor is offered at for a low or free price to entice the customer to purchase the razor. Once purchased, the razor blades that will only fit that razor, are then sold at a high profit margin.
Advertising is
a one-way communication whose purpose is to inform potential customers about products and services and how to obtain them.
Promotion involves
disseminating information about a product, product line, brand, or company. It is one of the four key aspects of the marketing mix. Advertising may be one form of promotion
Assortment planning is
a process whereby products are selected and planned to maximize sales and profit for a specified period of time. The assortment plan considers the financial objectives and seasonality of merchandise to ensure proper receipt flow. Outputs of assortment planning include initial purchase quantities and the receipt flow across time that will inform the allocation process.
Product Line Review process is
to ensure that your customers have the most competitive and compelling assortments available at retail.
