MARKETING FINAL

Average Cost

The total cost divided by quantity produced.

\#Bait-and-Switch

An illegal pricing practice whereby an advertised price is used as bait to lure consumers with the intention of switching their purchase to a higher priced item.

\#Break-Even Analysis

The point where average revenue is equal to average total costs.

\#Corporate Social Responsibility (CSR)

Proactive and voluntary behavior of organizations beyond economic, ethical, and legal responsibilities.

\#Cost-Plus Pricing

An estimation of costs and expenses associated with the product while still permitting the owner to earn a reasonable return.

\#Dynamic Pricing

A price set on time, availability, and other factors, in response to an individual consumer's demand.

\#Every Day Low Price (EDLP)

A price strategy providing one low price on a consistent basis, without the need to run sales and promotions.

\#Fixed Costs

Costs that are independent of the quantity of goods produced, such as rent and utilities.

\#Game Theory

The study of interaction, conflict, and cooperation among players in the market and how this interaction ultimately affects each player's actions.

\#Loss-Leader Pricing

An item sold at less-than-market prices, often below cost, in order to lure consumers into a store to purchase other products.

\#Marginal Revenue (MR)

Represents the change in total revenue divided by change in quantity.

\#Maslow's Hierarchy of Needs

Stems from psychology and sociology, it has applications in the study of human behavior in marketing; marketers sometimes use emotional appeals to entice consumers to buy a certain product, service, or brand.

\#Monopoly

Exists when a business has exclusive control of the market; courts look at whether or not a business acts in such a manner as to substantially try to reduce competition.

\#Odd-Even Pricing

Price strategy where the price is just below the next round number.

\#Oligopoly

Exists when relatively few firms dominate the market.

\#Pay-What-You-Want (PWYW) Price

Gives consumers the ability to choose from among many options and features to arrive at their desired price point.

\#Penetration Pricing

Strategically setting a lower-than-market price in order to promote the brand.

\#Porter's Five Forces

A theoretical tool for analyzing the competition of an organization.

\#Predatory Pricing

Setting such a low price to undercut the competition in order to drive them out of the market with the intent to increase prices.

\#Prestige Pricing

Employing higher-than-market prices because of some attribute.

\#Price Bundling

Pricing strategy of two or more products sold in a single package.

\#Price Discrimination

Charging different prices to different buyers without a legitimate basis, such as geographical location or volume.

\#Price Elasticity of Demand

A measure of price sensitivity providing a relationship between adjustments in price and the quantity demanded of a good or service.

\#Price Fixing

Collusion among two or more businesses that conspire to regulate prices.

\#Price Skimming

Strategically set higher-than-market price in order to take advantage of profits in the beginning of the product life cycle.

\#Profit

Net income derived from sales of a product or service.

\#Quantity Discounts

Where a manufacturer, wholesaler, or retailer charges lower prices per unit for higher volumes purchased.

\#Return on Investment (ROI)

Measures the profit or loss generated by the investment relative to the costs associated with that product.

\#Round Promotions

Price strategy in which the dollar amount is an exact round number.

\#Segment Return on Assets

An ROI tool that measures the profitability of a specific segment.

\#Theory of Substitution

A theory that the maximum value of an item is restricted by the cost of equivalent substitutes in the market.

\#Total Cost (TC)

The total economic cost of production, computed by adding variable costs (VC) and fixed costs (FC).

\#Total Revenue

The price of each good or service sold multiplied by the quantity of the good or service sold.

\#Trade Allowances

A percentage discount off list price to members within the distribution channel in B2B sales.

\#Variable Costs

Costs that vary according to the quantity of goods produced, such as labor and raw materials.

\#Average Cost

The total cost divided by quantity produced.

\#Bait-and-Switch

An illegal pricing practice whereby an advertised price is used as bait to lure consumers with the intention of switching their purchase to a higher priced item.

\#Break-Even Analysis

The point where average revenue is equal to average total costs.

\#Corporate Social Responsibility (CSR)

Proactive and voluntary behavior of organizations beyond economic, ethical, and legal responsibilities.

\#Cost-Plus Pricing

An estimation of costs and expenses associated with the product while still permitting the owner to earn a reasonable return.

\#Dynamic Pricing

A price set on time, availability, and other factors, in response to an individual consumer's demand.

\#Every Day Low Price (EDLP)

A price strategy providing one low price on a consistent basis, without the need to run sales and promotions.

\#Fixed Costs

Costs that are independent of the quantity of goods produced, such as rent and utilities.

\#Game Theory

The study of interaction, conflict, and cooperation among players in the market and how this interaction ultimately affects each player's actions.

\#Loss-Leader Pricing

An item sold at less-than-market prices, often below cost, in order to lure consumers into a store to purchase other products.

\#Marginal Revenue (MR)

Represents the change in total revenue divided by change in quantity.

\#Maslow's Hierarchy of Needs

Stems from psychology and sociology, it has applications in the study of human behavior in marketing; marketers sometimes use emotional appeals to entice consumers to buy a certain product, service, or brand.

\#Monopoly

Exists when a business has exclusive control of the market; courts look at whether or not a business acts in such a manner as to substantially try to reduce competition.

\#Odd-Even Pricing

Price strategy where the price is just below the next round number.

\#Oligopoly

Exists when relatively few firms dominate the market.

\#Pay-What-You-Want (PWYW) Price

Gives consumers the ability to choose from among many options and features to arrive at their desired price point.

\#Penetration Pricing

Strategically setting a lower-than-market price in order to promote the brand.

\#Porter's Five Forces

A theoretical tool for analyzing the competition of an organization.

\#Predatory Pricing

Setting such a low price to undercut the competition in order to drive them out of the market with the intent to increase prices.

\#Prestige Pricing

Employing higher-than-market prices because of some attribute.

\#Price Bundling

Pricing strategy of two or more products sold in a single package.

\#Price Discrimination

Charging different prices to different buyers without a legitimate basis, such as geographical location or volume.

\#Price Elasticity of Demand

A measure of price sensitivity providing a relationship between adjustments in price and the quantity demanded of a good or service.

\#Price Fixing

Collusion among two or more businesses that conspire to regulate prices.

\#Price Skimming

Strategically set higher-than-market price in order to take advantage of profits in the beginning of the product life cycle.

\#Profit

Net income derived from sales of a product or service.

\#Quantity Discounts

Where a manufacturer, wholesaler, or retailer charges lower prices per unit for higher volumes purchased.

\#Return on Investment (ROI)

Measures the profit or loss generated by the investment relative to the costs associated with that product.

\#Round Promotions

Price strategy in which the dollar amount is an exact round number.

\#Segment Return on Assets

An ROI tool that measures the profitability of a specific segment.

\#Theory of Substitution

A theory that the maximum value of an item is restricted by the cost of equivalent substitutes in the market.

\#Total Cost (TC)

The total economic cost of production, computed by adding variable costs (VC) and fixed costs (FC).

\#Total Revenue

The price of each good or service sold multiplied by the quantity of the good or service sold.

\#Trade Allowances

A percentage discount off list price to members within the distribution channel in B2B sales.

\#Variable Costs

Costs that vary according to the quantity of goods produced, such as labor and raw materials.

\#Agents

Businesses that do not take ownership of products but instead represent the interests of sellers or buyers.

\#Backward Integration

A company at the end of the supply chain moving back in the supply chain to take on activities such as wholesaling or manufacturing.

\#Breadth of a Product Line

A broad selection of merchandise.

\#Brokers

Aggregate the sellers' offerings and represent them to larger buyers.

\#Cash-and-Carry Wholesalers

Companies that purchase products that are then offered in resale to retailers who visit the wholesaler's store, pay cash, and provide their own transportation to transport the products back to their retail outlet.

\#Channel Captain

An individual or organization that has a stake in the outcomes provided by the distribution channel, and ensures that all distribution partners are aware of the selling objectives and distribution policies and procedures for the product or service.

\#Channel Conflict

When one or more distribution partners feel they have been treated unfairly in pricing, allocation of product, promotional support, training of staff, or other things that lessen their competitive advantage versus other channel partners.

\#Channel Management

The continuing conversation among distribution partners, often led by a channel captain, as the partners seek to improve efficiency and avoid conflict while servicing consumers with goods and services.

\#Convenience Stores

Small footprint stores offering a broad variety of items.

\#Department Stores

Typically have 8 to 12 well-defined departments that sell similar merchandise.

\#Depth of a Product Line

The number of product options within a category of goods. A specialty store might have many options within a narrow selection of good, while a convenience store might offer few options across a broad selection of goods.

\#Direct Distribution Channel

A channel structure in which the manufacturer chooses to sell products directly to businesses or consumers without using intermediaries, other than shipping companies, to deliver the merchandise.

\#Discount Stores

Carry a broader selection of merchandise than department stores but with fewer choices within each line.

\#Disintermediation

Elimination of intermediaries in a distribution channel.

\#Distribution

The processes and organizations that move products and services from manufacturers and service providers to consumers.

\#Distribution Channels

One or more organizations, from manufacturer to retailer, that add value as they move finished products and services to consumers.

\#Dollar Stores

Retail products for $.99 or $1 or multiple purchases that equate to this amount.

\#Door-to-Door Sales

Sales organizations who solicit business by going directly to consumers' homes.

\#Drop Shippers

Wholesalers who own but do not take physical control of products. The role of drop shippers is to expedite the transportation of products from producer to consumer.

\#Effectiveness

Occurs when the basic demand of consumers is met with the right products and services.

\#Efficiency

Occurs when time and cost are eliminated from the entire supply chain.

\#Exclusive Distribution

Market coverage in which the manufacturer or service provider wants to limit market coverage, often to maintain control of the marketing for the brand.

\#Facilitating Function

Specialized functions within a supply chain, such as access to capital and credit and grading and categorizing of goods.

\#Form Utility

Requires that the retailers make some physical changes in the goods.

\#Forward Integration

When an organization at the beginning of the supply chain controls other stages further down the supply chain.

\#Full-Service Merchant Wholesalers

Offer transportation, warehousing, financing, and might also offer specialized services such as installation, maintenance, and repair.

\#Full-Service Retailer

Provide trained staff to assist customers in making selections and help with customized services.

\#General Merchandise Wholesaler

Focused on the needs of retailers who typically offer a broad selection from a number of manufacturers.

\#Horizontal Channel Conflict

Indicates conflict among members of the distribution channel at the same point in the distribution channel: two retailers or two wholesalers.

\#Indirect Distribution

The use of intermediaries to sell products to consumers or businesses.