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Marketing Final Key Terms
Terms in this set (46)
The product life-cycle stage in which a product's sales decline.
The product life-cycle stage in which product's sales start climbing quickly.
The product life cycle stage in which the new product is first distributed and made available for purchase
The product life-cycle stage in which sales growth slows or levels off.
Developing the product concept into a physical product in order to ensure that the product idea can be turned into a workable market offering.
Product Life Cycle
The course of a product's sales and profits over its lifetime. It involves five distinct stages: product development, introduction, growth, maturity, and decline.
Break Even Pricing (Target Profit)
Setting price to break even on the costs of making and marketing a product, or setting price to make a target return.
Cost Plus Pricing (markup pricing)
Adding a standard markup to the cost of the product.
Adjusting prices continually to meet the characteristics and needs of individual customers and situations.
Costs that do not vary with production or sales level.
Market Penetration Pricing
Setting a low price for a new product in order to attract a large number of buyers and a large market share
Market Skimming Pricing
Setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales.
The amount of money charged for a product or service, or the sum of the values that customers exchange for the benefits of having or using the product or service
A measure of the sensitivity of demand to changes in price
Product Line Pricing
Setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors' prices.
Pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met.
The sum of the fixed and variable costs for any given level of production.
Value Added Pricing
Attaching value added features and services to differentiate a company's offers and charging higher prices.
Value Based Pricing
Offering just the right combination of quality and good service at a fair price.ystem
Costs that vary directly with the level of production.
Direct Marketing Channel
A marketing channel that has no intermediary levels
Disagreement among marketing channel members on goals, roles, and rewards - who should do what and for what rewards.
Conventional Marketing System
A channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits, even at the expense of profits for the system as a whole.
Giving a limited number of dealers the exclusive right to distribute the company's products in their territories.
Horizontal Marketing System
A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity.
Indirect Marketing Channel
Channel containing one or more intermediary levels.
Stocking the product in as many outlets as possible.
A set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user.
Multichannel Distribution System
A distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments.
The use of more than one, but fewer than all, of the intermediaries who are willing to carry the company's products.
Supply Chain Management
Managing upstream and downstream value added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers.
Value Delivery Network
The network made up of the company, suppliers, distributors, and ultimately customers who "partner" with each other to improve the performance of the entire system in delivering customer value.
Vertical Marketing System
A distribution channel structure in which producers, wholesalers, and retailers act as a unified system. One channel member owns the others, has contracts with them, or has so much power that they all cooperate.
Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.
A specific communication task to be accomplished with a specific target audience during a specific period of time. The overall advertising goal is to help build customer relationships by communicating customer value.
Setting the promotion budget at the level management thinks the company can afford.
Competitive Parity Method
Setting the promotion budget to match competitors' outlays.
Connecting directly with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.
Integrated Marketing Communication
Carefully integrating and coordinating the company's many communications channels to deliver a clear, consistent, and compelling message about the organization and its products.
Objective and Task Method
Developing the promotion budget by (1) defining specific objectives, (2) determining the tasks that must be performed to achieve these objectives, and (3) estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget.
Percentage of Sales Method
Setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price.
Personal presentation by the firm's sales force for the purpose of making sales and building customer relationships.
Building good relations with the company's various public's by obtaining favorable publicity, building a good corporate image, and handling or heading off unfavorable rumors, stories, and events.
A promotion strategy that calls for spending a lot on advertising and consumer promotion to induce final consumers to by the product, creating a demand vacuum that "pulls" the product through the channel
A promotion strategy that calls for using the sales force and trade promotion to push the product through channels. The producer promotes the product to channel members who in turn promote it to final consumers.
Short-term incentives to encourage the purchase or sale of a product or service.
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Marketing Key Terms
DECA Marketing Career Cluster
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