Marketing 11-19 (copy)

Paid media

messages generated by a brand and communicated through a message channel the brand pays to acess

Owned media

refers to promotional messages generated by a brand communicated through a message channel the brand controls

Earned media

promotional messages not directly generated by the company or brand, but rather by third parties such as journalists or customers

User-generated content

any type of communication created by customers for other customers

Search Engine Optimization (SEO)

the process of designing a website so that it ranks high in a search engine's unpaid results

Pass along

occurs when one customer passes information on to one or more other customers

Branded services

valued services a brand provides that are not directly connected to a core product offering

White paper

authoritative report or guide that addresses important issues in an industry and offers solutions

Case studies

success stories about how a company helped another customer

Landing page

A customized web page that logically follows from clicking on an organic search result, online advertisement, or other link

Blog

a regularly updated website or web page, typically one run by an individual or small group, that is written in an informal or conversational style.

Infographic

a visual image such as a chart or diagram used to represent information or data

Branded apps

sponsored software applications that benefit customers by providing entertainment, solving a problem, and/or saving time

brand community

a group of customers joined around a particular brand or common set of shared interests

Referral program

offers a current customer an incentive for recommending a new customer to a business

Social media

websites or software applications that allow users to create and share ideas, information, photos and videos, and interact in a social network

Youtube

a video-sharing website in which users can upload, view, and comment on videos

Facebook

online social networking website that allows registered users to create profiles, upload photos and video

Instagram

a free online photo and video sharing service geared to mobile phones

Pinterest

a website that allows registered users to share ideas and images they find online with fellow users

Linkedin

a networking website for businesspeople who create personal or company profiles

Snapchat

a mobile app and service for sharing photos, videos, and texts with other people

Twitter

a social networking and blogging service that allows users to send and read tweets (updates)

Marketing automation software

Software that tracks individual customer's behavior and triggers actions in response to specific customer actions.

Price

amount of money that is charged for something of value

Target return objective

sets a specific level of profit as an objective

Profit maximization object

seeks to get as much profit as possible

Benefit corporation

a legal corporate structure that allows for goals that may include positive impacts on society, employees, the community, and the environment

B corporation certification

a private certification that it meets a high standard for social and environmental performance

Sales oriented objectives

seeks some level of unit sales, dollar sales, or share of market without referring to profit

Status quo-objectives

"don't-rock-the-pricing-boat" objectives

Nonprice competition

aggressive action on one or more of the Ps other than price

Administered prices

consciously set prices

One-price policy

offering the same price to all customers who purchase products under essentially the same conditions and in the same quantities

Flexible price policy

offering the same product and quantities to different customers at different prices

Dynamic pricing

pricing products at a particular customer's perceived ability to pay

Skimming price policy

tries to sell the top (skim the cream) of a market--the top of the demand curve--at a high price before aiming at more price-sensitive customers

Penetration pricing policy

tries to sell the whole market at one low price

Introductory price dealing

temporary price cuts to speed new products into a market and get customers to try them

Basic list prices

the prices final customers or users are normally asked to pay for products

Discounts

reductions from list price given by a seller to buyers who either give up some marketing function or provide the function themselves

Quantity discounts

discounts offered to encourage customers to buy in larger amounts

Cumulative quantity discounts

apply to purchases over a given period- such as a year- and the discount usually increases as the amount purchased increases

noncumulative quantity discount

apply only to individual orders

Seasonal discounts

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

Net

payment for the face value of the invoice is due immediately

Cash discounts

reductions in price to encourage buyers to pay their bills quickly

2/10 Net 30

allows a 2 percent discount off the face value of the invoice if the invoice is paid within 10 days. Full value is due within 30 days otherwise

Trade discount

a list price reduction given to channel members for the job they are going to do

Allowances

like discounts, are given to final consumers, business customers, or channel members for doing something or accepting less of something.

Advertising allowances

price reductions given to firms in the channel to encourage them to advertise or otherwise promote the supplier's products locally

Stocking allowances

sometimes called slotting allowances, are given to an intermediary to get shelf space for a product

push money (or prize money) allowances

Sometimes called PMs or spiffs- are given to retailers by manufacturers or wholesalers to pass on to the retailers salesclerks for aggressively selling certain items

Trade in allowance

a price reduction given for used products when similar new products are bought

Sale price

a temporary discount from the list price

Everyday low pricing

setting a low list price rather than relying on frequent sales, discounts, or allowances

Rebate

refunds paid to consumers after a purchase

Mobile payments

payments made at the point of purchase using a mobile device

Lease

gives a customer the right to use something for a specified period of time in exchange for regular payments

Value pricing

setting a fair price level for a marketing mix that really gives the target market superior customer value

Unfair trade practice acts

put a lower limit on prices, especially at the wholesale and retail levels

Dumping

pricing a product sold in a foreign market below the cost of producing it or at a price lower than in its domestic market

Phony list prices

prices customers are shown to suggest that the price has been discounted from list

Wheeler-Lea Act

bans unfair or deceptive acts in commerce

Price fixing

competitors illegally getting together to raise, lower, or stabilize prices

Robinson-Patman Act

makes illegal any price discrimination

price discrimination

selling the same good at different prices to different buyers

Markup

a dollar amount added to the cost of products to get the selling price

Markup (percent)

the percentage of selling price that is added to the cost to get the selling price

Markup chain

the sequence of markups firms use at different levels in a channel - determines the price structure in the whole channel

Stock turn rate

high or low often depends on the industry and product involved

Average-cost pricing

adding a reasonable markup to the average cost of a product

Total fixed cost

the sum of those costs that are fixed in total - no matter how much is produced

total variable cost

the sum of those changing expenses that are closely related to output

Total cost

the sum of fixed and variable costs

Average cost (per unit)

obtained by dividing total cost by the related quantity

Average fixed cost (Per unit)

obtained by dividing total fixed cost by the related quantity

Average variable cost (per unit)

obtained by dividing total variable cost by the related quantity

break-even analysis

evaluates whether the firm will be able to break even

Break even point

the quantity where the firm's total cost will just equal its total revenue

Fixed cost contribution per unit

the assumed selling price per unit minus the variable cost per unit

marginal analysis

focuses on the changes in total revenue and total cost from selling one more unit to find the most profitable price and quantity

price sensitivity

refers to the degree to which customers' purchase decisions are affected by the price

Value in use pricing

means setting prices that will capture some of what customers will save by substituting the firm's product for the one currently being used

Reference price

the price they expect to pay for many of the products they purchase

Leader pricing

setting some very low prices - real bargains - to get customers into retail stores

Freemium

refers to providing a product for no charge

Bait pricing

setting some low prices to attract customers but trying to sell more expensive models

Pyschological pricing

setting prices that have special appeal to target customers

Odd-even pricing

setting prices that end in certain numbers

Subscription pricing

customers pay on a periodic basis for access to a product

Price lining

setting a few price levels for a product line and then marking all items at these prices

Demand-backward pricing

setting an acceptable final consumer price and working backward to what a producer can charge

Prestige pricing

setting a rather high price to suggest high quality or high status

Full-line pricing

setting prices for a whole line of products

Complementary product pricing

setting prices on several products as a group

Product-bundle pricing

setting one price for a set of products

Green washing

making false or exaggerated claims on how environmentally friendly their product is

Advertising Agencies

specialists in planning and handling mass-selling details for advertisers

Advertising Allowances

price reductions to firms further along in the channel