Upgrade to remove ads
Only $2.99/month

MKTG Ch 11 Assignment 5 - Pricing Issues in Channel Management

Terms in this set (12)

RETAIL DISCOUNT by retailer based on COMPETITIVE conditions;
OR possible RESENTMENT for the LOSS of stability endangered by the price cut;
OR MAY EXPECT the price cut to increase their sale volume and PROFITABILITY.
is NOT a guideline for developing effective channel PRICING STRATEGIES
Loss leaders
is the case of products NEEDED to FILL out assortments or used for special promotions
Promotional products
the product line items whose main purpose is to BUILD TRAFFIC in the retailers' stores ,
or to serve as "DOOR OPENERS" for wholesalers' field sales forces
Exercising CONTROL in Channel PRICING
or Markdown money
or Rival Brands
NOT one of the major areas of consideration on a manufacturer's PRICING DECISION
Free Riding
BEHAVIOR of distributors and dealers who offer low prices but LITTLE, if any, SERVICES to customers
Pricing decisions
causes more CONCERN to TOP- LEVEL marketing executives than any other strategic marketing decision area
Channel manager
FINDS OUT about channel member views and APPRAISES their effects on channel member PERFORMANCE
Promotional Products
Usually the LOWEST priced in the line and yield relatively LOW margins for both the manufacturer and channel members.
Profit
Each channel participant wants a price that provides a GROSS MARGIN SUFFICIENT to cover its expenses
Special pricing
OFFERED to channel members by manufacturers to STIMULATE SALES of manufacturer's PRODUCT during a certain period
Forward buying
RETAILERS and WHOLESALERS engage in this by taking advantage of manufacturer's PROMOTIONS
Gray market
refers to the sale, usually at low prices, of brand named products by UNAUTHORIZED distributors or dealers
YOU MIGHT ALSO LIKE...