csuf marketing final

marketing metrics

indicators that are needed to measure business performance from a marketing perspective

key performance indicators

specific criteria used to measure the efficiency and effectiveness of the business's performance

price elasticity

a measure of the sensitivity of demand to changes in price

breakeven point

the level of sales at which total revenue equals total cost

customer lifetime value

how much profit a firm will make on a customer throughout the duration of a relationship

true

estimating clv is an important step in determining the feasibility of any marketing, promotion, and pricing strat

sacrifice effect of price

price is that which is sacrificed to get a good or service

reward effect of price

the reward a consumer gets from purchasing a good or prduct

economies of scale

factors that cause a producer's average cost per unit to fall as output rises

marginal cost

the cost of producing one more unit of a good

profit maximization

setting prices so profits are maximized

breakeven pricing

the price at which total costs are equal to total revenue and there is no profit

markup pricing

adding a predetermined percentage of the cost to the price of the product

status quo pricing

a pricing objective that maintains existing prices or meets the competition's prices

true

value based pricing is most aligned with marketing philosophy

sales oriented pricing

a category of pricing objectives that focus on increasing total amount of income from sales

targeted roi

defines a roi level that is acceptable to reach for

value based pricing

setting the price at a level that seems to the customer to be a good price compared to the prices of other options

market share maximization

occurs when a firm maximizes its percentage share of the market in which it sells its product

elasticity of demand

a measure of how consumers react to a change in price

true

factors effecting elasticity includes: availability of substitutes, price relative to purchasing power, ease of evaluating quality, and use of prestige pricing

pure monopoly

the only supplier of a unique product with no close substitutes

oligopoly

a market structure in which only a few sellers offer similar or identical products

monopolistic competition

a market structure in which many companies sell products that are similar but not identical

pure competition

the market structure that exists when there are many small businesses selling one standardized product

price skimming

a pricing policy whereby a firm charges a high introductory price, often coupled with heavy promotion

penetration pricing

setting a low initial price on a new product to appeal immediately to the mass market

quantity discounts

discounts offered to encourage customers to buy in larger amounts

cash discounts

a discount offered to a customer to entice them to pay their bill quickly

seasonal discounts

discounts offered to encourage buyers to buy earlier than present demand requires

promotional allowance

a payment to a dealer for promoting the manufacturer's products

rebate

a cash refund given for the purchase of a product during a specific period

geographic pricing

different prices for customers in different parts of the world

zone pricing

pricing based on transportation costs within major geographic zones

uniformed delivered pricing

the company charges the same price plus freight to all customers, regardless of location

loss leader pricing

the pricing policy of setting prices very low or even below cost to attract customers into a store

price bundling

marketing two or more products in a single package for a special price

price fixing

an agreement among firms to charge one price for the same good

price discrimination

the business practice of selling the same good at different prices to different customers

predatory pricing

selling a product below cost to drive competitors out of the market

integrated marketing communications

the intentional coordination of every communication from a firm to a target customer to convey a consistent and complete message

aida

attention, interest, desire, action

institutional advertising

a form of advertising designed to enhance a company's image rather than promote a particular product

product advertising

a form of advertising that touts the benefits of a specific good or service

comparative advertising

a form of advertising that compares two or more specifically named or shown competing brands on one or more specific attributes

pioneer advertising

advertising that tries to stimulate demand for a product category rather than a specific brand by informing potential buyers about the product

competitive advertising

a form of advertising designed to influence demand for a specific brand

dagmar

an acronym that stands for defining advertising goals for measured advertising results. an approach to setting advertising goals and objectives developed by Russell Colley