AICE Business Chapter 18 Vocab

marketing mix
the four key decisions that must be taken in the effective marketing of a product
customer relationship management (CRM)
using marketing activities to establish successful customer relationships so that existing customer loyalty can be maintained
brand
an identifying symbol, name, image or trademark that distinguishes a product from its competitors
intangible attributes of a product
subjective opinions of customers about a product that cannot be measured or compared easily
tangible attributes of a product
measurable features of a product that can be easily compared with other products
product
the end result of the production process sold on the market to satisfy a customer need
product positioning
the consumer perception of a product or service as compared to its competitors
product portfolio analysis
analyzing the range of existing products of a business to help allocate resources effectively between them
product life cycle
the pattern of sales recorded by a product from launch to withdrawal from the market and is one of the main forms of product portfolio analysis
consumer durable
manufactured product that can be reused and is expected to have a reasonably long life, such as a car or washing machine
extension strategies
these are marketing plans to extend the maturity stage of the product before a brand new one is needed
price elasticity of demand
measures the responsiveness of demand following a change in price
mark-up pricing
adding a fixed mark-up for profit to the unit price of a product
target pricing
setting a price that will give a required rate of return at a certain level of output/sales
full-cost pricing
setting a price by calculating a unit cost for the product (allocated fixed and variable costs) and then adding a fixed profit margin
contribution-cost pricing
setting prices based on the variable costs of making a product in order to make a contribution towards fixed costs and profit
competition-based pricing
a firm will base its price upon the price set by its competitors
dynamic pricing
offering goods at a price that changes according to the level of demand and the customer’s ability to pay
penetration pricing
setting a relatively low price often supported by strong promotion in order to achieve a high volume of sales
market skimming
setting a high price for a new product when a firm has a unique or highly differentiated product with low price elasticity of demand