Exam 4 Flashcards

Flashcards for exam review.

Markup Pricing

A method of determining the price of a product by adding a fixed percentage to the cost of the product.

Markup Formula

Selling Price = Markup in dollars + Cost.

Determining markup percentage

Calculating what percentage of the selling price is markup.

Substitutes and Complements

occurs when price goes up for one product and the sales of a second product go up

Integrated Marketing Communications

The coordination of all promotional activities to produce a unified, customer-focused message.

Advertising

impacts attitudes, best at the beginning of the process

Sales Promotions

impacts behavior, best at the end of the process

Goals and Tasks of Promotion

Informing, Reminding, Persuading.

Promotional Mix Elements

Advertising, Personal Selling, Public Relations, Sales Promotion, Direct Marketing.

Market Share

Ratio of sales dollars to industry sales dollars

Flexible/variable pricing

occurs when an organization utilizes variable pricing to sell products at different prices

Market Skimming

Charging a high price to recover costs and achieve high profit quickly

Premium Pricing

High quality, High price

Overcharging

Low Quality, High Price

Market Penetration

Setting a relatively low price to secure market acceptance

Good-value

Good quality, low price

Economic

Low quality, low price

Everyday low prices

Consistently low prices.

Reference pricing

Displaying a moderately priced product next to an expensive one.

Price bundling

Offering several products for sale as one combined product.

Product line pricing

Setting prices for several products within a product line.

Time-based pricing

Setting different price levels for different times, days, or places.

Loss leader pricing

Attract customers to stores.

Break-Even Point Formula

Fixed Costs / (Selling Price - Variable Costs).