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PBMF Ch 11 Product, Price & Place

Key Concepts:

Terms in this set (55)

intangible
something that cannot be touched
inseparable
cannot be separated from the person who performs a service
variable
almost always unique
perishable
cannot be stored for later use
features
facts about a good or service
quality
an indicator of a product's excellence
packaging
protects products until customers are ready to use them
warranty
written document that states the quality of a product with a promise to correct certain problems that might occur
guarantee
a promise that a product has a certain quality or will perform in a specific way
product mix
all the goods and services that a business sells
product line
group of closely related products within the product mix
product width
the number of product lines a company offers
product item
the specific model, color, or size of products in a line
product depth
the number of product items within a product line
product planning
the process of deciding which products will appeal to the target market
convenience goods
goods bought often and with little effort
shopping goods
usually purchased after comparing price, quality, and style in more than one store
specialty goods
unique items that consumers are willing to spend considerable time, effort, and money to buy
raw materials
natural or man-made materials that become part of a manufactured product
process materials
used in product manufacturing
major equipment
large machines and other equipment used for production purposes
business services
tasks necessary to keep a business running
price
amount of money requested or exchanged for a product
value proposition
an explanation of the value of a certain product over others that are similar
value
relative worth of something to a person
list price
established price printed in a catalog, on a price tag, or on a price list
selling price
actual price a customer pays for a product after any discounts or coupons are deducted
manufacturer's suggested retail price (MSRP)
price recommended by the manufacturer
pricing objectives
goals defined in the business and marketing plans for the overall pricing policies of the company
break-even point
point at which revenue from sales equals the costs
markup
the amount added to the cost to determine the selling price
base price
product is the general price at which the company expects to sell the product
psychological pricing
pricing techniques that create an image of a product and entice customers to buy
bait and switch
practice of advertising one product with the intent of persuading customers to buy a more expensive item when they arrive in the store
price discrimination
a company sells the same product to different customers at different prices based on personal characteristics of the customers
deceptive pricing
the illegal pricing of products in a way that intentionally misleads customers
predatory pricing
practice of setting very low prices to remove competition
loss leader
pricing an item much lower than the current market price or the cost of acquiring the product
price gouging
raising of prices on certain kinds of goods to an excessively high level during an emergency
price ceilings
maximum prices set by the government for certain goods and services that it thinks are being priced too high
price floors
minimum prices set by the government for certain goods and services that it thinks are being priced too low
supply chain
businesses, people, and activities involved in turning raw materials into products and delivering them to end users
channel of distribution
path that goods take through the supply chain
direct channel
path directly from a manufacturer to end users without using intermediaries
indirect channel
uses intermediaries to get the product from the manufacturer to the end users
extractors
businesses or people that take natural resources from the land
nonstore retailer
sells directly to consumers in ways that do not involve a physical store location
e-tailers
retailers that sell products through websites
multi-channel retailers
sell products through both brick-and-mortar stores and online sites
trade industry
provides labor based on specialized knowledge and skills
bulk-breaking
process of separating a large quantity of goods into smaller quantities for resale
freight forwarder
company that organizes shipments
transportation
the physical movement of products through the channel of distribution
pipeline
line of connected pipes that are used for carrying liquids and gases over a long distance
digital transportation
used to download books and music onto digital devices
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