Pricing and Marketing Strategies

These flashcards cover essential vocabulary and concepts related to pricing, distribution, and marketing strategies from the lecture.

Pricing

The process where sellers and buyers agree upon the value of an offering, often expressed in monetary terms.

Revenue Goals

Setting prices to generate sufficient income for a business.

Fixed Cost

Cost that is independent of the quantity of goods produced, such as rent and utilities.

Variable Cost

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

Average Cost

The total cost divided by the number of goods produced; helps determine pricing.

Break-even Analysis

The point where average revenue equals average total costs, indicating no profit or loss.

Price Skimming

Setting a high price initially to maximize profits from early adopters.

Penetration Pricing

Setting a lower-than-market price to gain market share quickly.

Every Day Low Price (EDLP)

A pricing strategy that promotes consistent low prices to consumers.

Distribution Channel

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

Personal Selling

A form of promotion where a salesperson engages with a prospective customer to complete a transaction.

Integrated Marketing Communications (IMC)

A collective effort of all marketing mechanisms within an organization to reinforce and support each other.

Digital Marketing

Promotion of products through online channels, utilizing strategies like SEO and social media marketing.

Marketing Analytics

The tracking and evaluating of marketing data to inform business strategies and decisions.

Globalization

The process by which businesses develop international influence or operate on an international scale.

Puffery

Advertising that uses exaggerated claims that are not meant to be taken literally.

Astroturfing

The practice of creating a false impression of grassroots support for a product or service.