Marketing Chapter 15-18

Markups
a dollar amount added to the cost of products to get the selling price.
Standard Markup
how to specify a document markup language or tag set.
Gross margins
the difference between revenue and cost before accounting for certain other costs. Generally, it is calculated as the selling price of an item, less the cost of goods sold
Stock turn rate
the number of times the average inventory is sold during a year.
Turnover
The number of shares traded for a period as a percentage of the total shares in a portfolio or of an exchange.
Fixed Cost
the sum of those costs that are fixed in total‑‑no matter how much is produced.
Average costs
Adding a reasonable markup to the average cost of a product.
Break Even Calculations
an approach to determine whether the firm will be able to break even‑‑that is, cover all its costs‑‑with a particular price.
the sales quantity where the firm’s total cost will just equal its total revenue.
Variable cost
a cost that varies with the level of output.
Bait pricing
setting some very low prices to attract customers but trying to sell more expensive models or brands once the customer is in the store.
Value in line pricing
setting prices that will capture some of what customers will save by substituting the firm’s product for the one currently being used.
Price Lining
setting a few price levels for a product line and then marking all items at these prices.
Odd-even Pricing
setting prices that end in certain numbers.
Leader pricing
setting some very low prices–real bargains–to get customers into retail stores.
Evaluation of marketing
o Needs to be evaluated in an objective way to make sure they’re not wasting money
Customer satisfaction
The extent to which a firm fulfills a consumers needs, desires and expectations.
Product life cycle
The stages a new product idea goes through from beginning to end
Micro and Macro marketing
What is good for some producers and consumers may not be good for society as a whole
SWOT categories
Identifies and lists the firms strengths and weaknesses and its opportunities and threats
Monopolistic competition
a market situation that devlops when a market has 1. different products and 2. sellers who feels they do have some competition in this market
Innovative Marketing Plan
is the implementation of a new marketing method involving significant changes in product design or packaging, product placement, product promotion or pricing.
Future marketing trends
An auction market in which participants buy and sell commodity/future contracts for delivery on a specified future date. Trading is carried on through open yelling and hand signals in a trading pit.
Pricing philosophies
is the value that is put to a product or service and is the result of a complex set of calculations, research and understanding and risk taking ability.
-Sales Orientation
Sales‑oriented objective: an objective to get some level of unit sales, dollar sales, or share of market‑‑without referring to profit.
-Profit Orientation
an objective to get as much profit as possible.
-Status quo Orientation
“don’t-rock-the-pricing-boat” objectives,
Profit maximization
is the short run or long run process by which a firm determines the price and output level that returns the greatest profit.
Market share
the portion of a market controlled by a particular company or product.
Allowance types
reductions in price given to final consumers, customers, or channel members for doing something or accepting less of something.
Fixed Prices
competitors illegally getting together to raise, lower, or stabilize prices.
Administered Prices
Consciously set prices aimed at reaching the firm’s objectives.
One price Police
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.
Price Skimming
trying to sell the top of the market–the top of the demand curve–at a high price before aiming at more price-sensitive customers.
Price Penetration
A marketing strategy used by firms to attract customers to a new product or service.
Temporary Price Cuts
a marketing tool intended to drive sales for the short-term to increase traffic and new customers.
List Price
the price of an article as shown in a list issued by the manufacturer or by the general body of manufacturers of the particular class of goods.
Cumulative quantity discounts:
reductions in price for larger purchases over a given period, such as a year.
Noncumulative quantity discounts:
reductions in price when a customer purchases a larger quantity on an individual order.
Product advertising:
advertising that tries to sell a specific product.
Institutional advertising:
advertising that tries to promote an organization’s image, reputation, or ideas–rather than a specific product.
Pioneering advertising:
advertising that tries to develop primary demand for a product category rather than demand for a specific brand.
Reminder advertising:
advertising to keep the product’s name before the public.
Comparative advertising:
advertising that makes specific brand comparisons using actual product names.
Indirect type advertising:
competitive advertising that points out product advantages‑‑to affect future buying decisions.
Competitive advertising:
advertising that tries to develop selective demand for a specific brand rather than a product category.
Direct type advertising:
competitive advertising that aims for immediate buying action.
Advertising expenditures
The amount of money spent by a company for advertising its products or services.
Media expenditures
advertiser can now define the appropriate media, media mix, and frequency of insertions that will directly address objectives. further, differences in geographic allocation, with special attention to regional or local media strategies, are considered at this point
Adoptive Process
Consumers learn about new products for the first time and make the decision to buy them
Cooperative advertising
An arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer’s brand
Selective Demand
Demand for a specific brand
Media Types
Direct mail, internet, new social media, other (bill boards)
Primary Demand
Demand for a product category rather than for a specific brand
Advertising objectives
A specific communication task that a campaign should accomplish for a specified target audience during a specified period