Marketing Exam 3

a la carte pricing

a strategy in which product features can be added and purchased individually so that a consumer can essentially choose the final price of the product

breakeven price

the amount a marketer needs to price a product in order to cover expenses at a certain quantity sold

breakeven quantity

the quantity a company needs to sell at a certain price in order to cover fixed costs

bundle pricing

packaging two or more goods or services together to sell them for a single packaged price

direct-cost pricing

a pricing strategy which calculates variable costs only

dumb industry

an industry in which companies tend to fight with price. a company’s main strategy for winning customers in this type of industry is to simply have the lowest price

dynamic pricing

a pricing strategy in which a variable rate is used for each customer, often based on the product or service’s demand

extremity aversion theory

a theory in price setting that states that people tend to avoid extreme options, including in price, and they often choose a middle option

external reference poin

this is a marketer-supplied price to give consumers the idea of what the product is worth

fixed costs

the costs associated with the operating and marketing expenses of a company

flat-rate pricing

a strategy in which a company charges one rate for unlimited use of service during a specified timeframe

full-cost pricing

a pricing strategy that takes into account both variable costs and fixed costs

internal reference point

a price or price range the customer believes to be fair or standard based on his or her knowledge or experience

loss leader

a pricing strategy where a company chooses to sell a popular item at an artificially low price, often below a company’s product cost, to attract people to the store

market penetration

when a company introduces a product at a low price to gain market share

markup

an added percentage or dollar amount added to the cost to determine its selling price

multiple-unit pricing

a pricing strategy in which a marketer offers a break for purchasing multiple units of a product

odd-even pricing (0.99 pricing)

when a marketer sets the price of a product a few cents or a few dollars under an even number

prestige pricing

setting a high price so that the product will be considered elite, and so that status-seeking customers will want to buy it

price

what is being charged or exchanged for a product or service

price elasticity

the change in demand in a market in response to a products change in price

price floor

in pricing this stands for the absolute minimum that a company can sell a product for and still break even

profit margin

the difference between the final setting price and product’s cost a well, but is shown as a ratio or percent of the selling price (not the product cost)

price skimming

a strategy in which a marketer introduces a product into the market at an initial high price and then incrementally lowers the price over time

reference pricing (anchor pricing)

using another price as a reference point to make a product’s price seem more appealing

smart industry

an industry in which companies tend to use more complex pricing structures and use more pricing options

value

what a product or service is worth to a consumer, or the maximum amount they would pay

value-based pricing

a method of setting prices based on the perceived value that the consumer receives from the product or service

AIDA (attention, interest, desire, and action) model

a well-known theory of how consumers decide on a product

ad campaign

a series of advertisement messages that share a common idea and theme and runs for a limited amount of time

advertising

external communication that is paid for by the seller and promotes a product to potential customers

advertising media

the various means such as billboards, magazines, newspapers, radio, television, and internet by which promotional messages are communicated to the bublic using words, speech, and pictures

CPM (cost per thousand impressions)

an industry standard and an easy way to compare the cost of two types of advertising

direct marketing

a promotional effort where the seller communicates with the potential customer using media such as direct mail, or telemarketing with the goal of receiving a direct response from the customer (as opposed to selling in a retail location)

effective frequency

represents the minimum number of times that a person needs to hear or see an ad for it to “make a difference’ or for the customer to take action and respond to the commercial

external communication

the marketer is sending a message to those outside of the company instead of to company employees

frequency

the average number of times the memebers of a defined market saw an advertisement

impression

one exposure of a person to an ad; it is na ad being emitted or displayed once

integrated marketing communications (IMC)

a cohesive combination of marketing communications activities, techniques, and media designed to deliver a coordinated message to a target market with a powerful or synergistic effect, while achieving a common objective or set of objectives

personal selling

frontline interaction between a company representative and a potential buyer designed to influence a purchase decision

persuasive communication

influencing a customer to make a purchase decision

promotional mix

the combination of tools that marketers use when creating or refining promotions

public relations

the practice of managing the spread of information between an individual or an organization and the public

reach

the number of people who are exposed to an ad, either by viewing a visual aid or hearing an audio ad

sales promotion

a short-term, external promotion designed to influence immediate purchase

success model

a model intended to help ideas and messages stand out and stick in people’s minds

waste coverage

the term for advertising that reaches people who are not part of the target market and are not potential customers

bounce

when someone visits a single page and then exits the site from that page without visiting other pages on the site

bounce rate

the rate of incidents of someone visiting a single page and then exiting the site from that page without visiting other pages on the site

call-to-action (CTA)

usually a button on the landing page that very clearly indicates what you hope the visitor will do as a result of visiting the page

clicks

whenever a PPC (pay per click) ad is clicked upon, a “click” occurs

click-through-rate (CTR)

represents the percentage of clicks to impressions, and is a key metric of pay per click advertising

cookie

tracking data that gets stored on an individual’s computer when he or she visits certain websites

conversion

occurs when your web visitors take the desired action on the landing page the ad takes them to, such as making a purchase, subscribing, registering for an event, etc.

cost-per-click (CPC)

the amount of money an advertiser pays when someone clicks on its ad

crawling

the process of search engines using crawlers: programs that visit every page of each site online to determine what content they hold

dwell time

how long a visitor spands on a site

generative engine optimization (GEO)

the practice of creating and structuring content so it is easily understood, cited, and featured in AI-powered search results

impressions

occurs each time an ad is displayed

indexing

the process of search engines creating an index of all content stored online

landing page

the page on a website that visitors are directed to when they click on a PPC ad

manufactured backlinks

links you obtain through internal link-building activities

natural backlinks

links from external sites that occur becasue someone who found web content on the linked-to-page useful

quality score

a google metric that considers keyword quality, adds, and landing page experience

search engine results page (SERP)

the page displayed after a user enters a query into a search engine like google

self-created backlinks

linkes that a marketer creates and embeds in places like forum posts, blog comments, online directory listings, or even online press releases

zero-click search

when a user finds the answer to their query directly on the SERP without needing to click a link to another website

feed (timeline)

where all of the posts show up from people that a user follows/connects with

friends (connections)

all platforms have some way that users connect, either by becoming friends or “following” another person

followers

the people who have connected with a person or company and view their content

posts

all platforms have some type of post that the user creates to share; these can be text posts, images, videos, and more

post lifespan

how long it takes before a post isn’t viewed anymore and essentially dies

profile

what a user creates as a sort of homepage. this houses information about the user and the content created by the user

social media

refers to websites and applications that are platforms where users can share content and information and interact with each other

social media marketing

using social media platforms strategically to market a person, product, company, organization, or idea

social media monitoring (social listening)

the process of listening out for social media conversation that are relevent to your brand

users

all the people who use the platform