Marketing and Pricing Strategies: Definitions for Business Students

price-fixing

Conspiring to keep prices of citric acid at a certain level.

click-through rate

Determined by the number of click-throughs and the number of impressions.

price segmentation

The practice of charging different prices to different market segments for the same product.

generic branding

Essentially no branding at all.

augmented product

Includes express checkout and superb room service for a guest paying for a night's stay at a hotel.

brand managers

Responsible for the positioning of a brand and developing its brand equity.

tangible

Best describes products that would be classified as goods.

variable costs

Costs for producing textbooks that include the price of paper.

discontinuous innovation

Requires consumers to engage in a great amount of learning because no similar product has ever been on the market.

brand name

Should fit the competition, the customer's culture, the product's benefits, the target market, and legal requirements.

brand mark

The Apple logo is an example of this.

fixed costs

Do not vary with the number of units produced.

Marginal costs

The cost of producing one additional unit of a product.

Everyday costs

Regular expenses incurred in the daily operation of a business.

Liquidity costs

Costs associated with the ease of converting assets into cash.

Product category manager

A manager who coordinates the mix of product lines within a general product category and is responsible for the addition of new product lines.

Cost per impression advertising

An advertising model that typically gives less control over the number of impressions than cost per click advertising.

Prices

Monetary amounts charged for goods or services, including application fees, tuition, and fines.

Reference pricing

A pricing strategy where a product is priced in relation to the prices of similar products.

Value pricing

Setting a price based on the perceived value of the product to the customer.

Dynamic pricing

A pricing strategy where prices fluctuate based on market demand.

Loss leader pricing

A strategy where a product is sold at a loss to attract customers.

Price discrimination

The practice of charging different prices to different customers for the same product.

Odd-even pricing

A pricing strategy that uses odd numbers to suggest a bargain and even numbers to suggest quality.

Price lining

A pricing strategy where products are grouped at various price points.

Teaser advertisement

An ad designed to generate customer interest by providing limited information about a new product.

High involvement purchasing

Buying decisions that require significant thought and consideration.

Low involvement purchasing

Buying decisions that are made with little thought or effort.

Product life cycle

The stages a product goes through from introduction to decline.

Decline stage

The stage in the product life cycle where sales decrease and marketing support is reduced.