Marketing Chapters 7-10 Practice Flashcards

Vocabulary terms and definitions covering pricing strategies, distribution channels, marketing communications, and planning metrics based on Chapters 7 through 10.

Fixed Pricing

A strategy where customers in the targeted segment pay the price set by the marketer.

Dynamic Pricing

A strategy where prices vary from customer to customer or situation to situation.

Negotiated Pricing (B2B)

A pricing method where the buyer and seller negotiate the price.

Auction Pricing (B2B)

A pricing method where buyers submit bids.

Price elasticity

The level of demand for a product at different price points.

Elastic

When a small price change significantly increases or decreases demand.

Inelastic

When a price change does not significantly change the number of units demanded.

Cost-based pricing

An approach that starts with the product and its cost, then sets a price to cover the cost and desired profit.

Value-based pricing

A strategy based on researching customers’ perceptions of value and the price they are willing to pay, often using target costing.

Fixed costs

Overhead expenses such as rent and payroll, which do not vary with volume.

Variable costs

Expenses such as raw materials, which do vary with volume.

Maturity (Product Life Cycle Pricing)

Pricing used to defend market share, retain customers, pursue profitability, and expand into additional channels.

Decline (Product Life Cycle Pricing)

Pricing used to stimulate demand and “clear out” old products, or to “milk” existing products for profitability.

Inbound

The inputs needed for creating the goods and services.

Outbound

Making the product or service available.

Zero-level (Channel Level)

The direct linking of the seller to the buyer.

Intensive Distribution

Distribution in many outlets for maximum market coverage.

Selective Distribution

Distribution in a number of selected outlets.

Exclusive Distribution

Distribution in few outlets for exclusivity within each market.

Buzz marketing

When a company provides communicators with samples or coupons to generate more intense word-of-mouth (WOM).

Pre-testing

Conducted to find out if the target audience understands the message and retains information.

Post-implementation

Conducted to determine if the marketing communications program has achieved its objectives and which elements were effective.

Rational Appeals

Using facts and logic to stimulate a response.

Emotional Appeals

Evoking feelings to stimulate a response.

Consumer promotions

Marketing activities targeting end consumers.

Trade promotions

Marketing activities targeting channel members and salespeople.

Metrics

Tools used to track results over time.

Internal Factors for Forecasts

Elements to consider including Goals, Capabilities, and Constraints.

External Factors for Forecasts

Elements to consider including Demand, Threats, and Opportunities.