M9 - M13 Key Terms

By: Izabella Kane

Brick and Mortar Retailer

A traditional retailer that operates from a physical storefront, as opposed to online.

Bulk Breaking

The process of dividing large quantities of goods into smaller, more manageable units for sale.

Freight Forwarder

A company that arranges the transportation of goods on behalf of shippers, managing logistics and shipping documentation.

Multichannel Retailer

A retailer that sells products through multiple channels, such as physical stores, online, and mobile platforms.

Non Store Retailer

A retailer that sells products without a physical storefront, often through online platforms, catalogs, or direct sales.

Physical Distribution

The logistics process involved in transporting goods from the manufacturer to the final consumer.

Supply Chain

The entire system of production, processing, and distribution of goods, from raw materials to the end consumer.

Discount Pricing

A pricing strategy where products are sold at a reduced price to attract customers and increase sales volume.

Manufacturer's Suggested Retail Price (MSRP)

The price that a manufacturer recommends retailers charge for a product, serving as a guideline for pricing.

Pricing Policy

The strategy a business uses to determine the prices of its products or services.

Pricing Tactic

Specific actions taken to implement a pricing strategy, such as discounts, promotions, or psychological pricing.

Product Mix Pricing

The strategy of setting prices for a range of products offered by a company, considering their relationships and market demand.

Psychological Pricing

A pricing strategy that considers the psychological impact of prices on consumers, such as setting a price at $9.99 instead of $10.

Break-Even Point

The point at which total revenue equals total costs, resulting in neither profit nor loss.

Keystone Pricing

A retail pricing strategy where the retailer doubles the wholesale cost of a product to determine its selling price.

Markup

The amount added to the cost price of goods to cover overhead and profit, usually expressed as a percentage.

Percentage Markup

The markup amount expressed as a percentage of the cost price.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price.

Profit Margin

The difference between the selling price of a product and its cost, expressed as a percentage of the selling price.

Return On Investment (ROI)

A measure of the profitability of an investment, calculated as the net profit divided by the initial investment cost.

Selling Price

The price at which a product is sold to consumers.

Volume Pricing

A pricing strategy where the price per unit decreases as the quantity purchased increases.

Variable Expense

Costs that vary directly with the level of production or sales, such as materials and labor.

Fixed Expense

Costs that do not change with the level of production or sales, such as rent and salaries.

Brand Extension

The strategy of using an established brand name to introduce new products in different categories.

Brand Identity

The visible elements of a brand, such as its name, logo, and design, that distinguish it from competitors.

Brand Name

The name given to a product or service that identifies it and differentiates it from others.

Brand Promise

The commitment a brand makes to its customers about the value and experience they can expect.

Brand Strategy

A long-term plan for the development of a successful brand to achieve specific goals.

Logo

A graphic mark or emblem used to represent a brand or company.

Slogan

A short and memorable phrase used to convey the essence of a brand or product.

Harvest Strategy

A strategy aimed at maximizing short-term profits from a product while minimizing investment in it.

Product Depth

The number of variations of a product within a product line.

Product Length

The total number of products in a company's product mix.

Product Life Cycle

The stages a product goes through from introduction to decline in the market.

Product Line

A group of related products marketed under a single brand by the same company.

Product Management

The process of overseeing a product's lifecycle, from development to marketing and sales.

Product Mix

The total range of products offered by a company.

Product Width

The number of different product lines a company offers.

Purchasing

The process of acquiring goods or services to meet business needs.