Marketing Chapter Sixteen

  1. Price?
    The amount of money that is charged for something of value.
  2. Target Return Objective?
    Sets a specific level of profit as an objective.
  3. Profit Maximization Objective?
    Seeks to gain as much profit as possible.
  4. Sales-oriented Objective?
    Seeks some level of unit sales, dollar sales, or share of market- without referring to profit.
  5. Status-quo Objectives?
    Don't "rock-the-boat" pricing objective where market is not growing.
  6. Non-price Competition?
    Agressive action on one or more of the marketing P's but not price.
  7. Administered Prices?
    Consciously set prices to meet objectives.
  8. One-Price Policy?
    Offering the same price to customers who purchase products under essentially the same conditions and under the same quantities.
  9. Flexible Price Policy?
    Offering the same product and quantities to different customers at different prices.
  10. Skimming Price Policy?
    Tries to sell the top of a market or the top demand and top high price curve of demand.
  11. Penetration Pricing Policy?
    Trie sto sell the whole market at one low price.
  12. Introductory Price Dealing?
    Temporary price cuts to speed new customers to trying a new product.
  13. Basic List Prices?
    Prices that final customers or final users are normally asked to pay for products.
  14. Discounts?
    Reductions from list price given by a seller who either give up some marketing function or or provide the function themselves.
  15. Quantity Discounts?
    Disounts offered to customers to buy in larger amounts.
  16. Cumulative Quantity Discounts?
    Apply to purchase over a given year. The larger the time period and the more bought means a bigger discount.
  17. Noncumulative Quantity Discount?
    One purchase orders ut the quantities requested must be of a large amount.
  18. Seasonal Discounts?
    Incentives for buyers to buy earlier than regularly seen demand.
  19. Net?
    Means that payment for the face value of teh invoice is due immediately.
  20. Cash Discounts?
    Reduction of price as an incentive for buyers to pay their bills sooner.
  21. 2/10, Net 30?
    2 percent disocunt if paid in 10 days and regular amount is due in 30 days.
  22. Trade (Functional) Discount?
    A list price production to channel for the job they are going to do.
  23. Sale Price?
    A temporary discount from the list price.
  24. Everyday Low Pricing?
    Setting a low list price rather than relying on frequent sales, discounts, or allowances. Many supermarkets use this approach.
  25. Allowances?
    Disocunts given to buyers for doing something.
  26. Advertising Allowances?
    Price reduction given to firms to encourage them to advertise supplier's products locally.
  27. Stocking Allowances?
    Given to middlemen fo shelf space of a market.
  28. Push money (price money) allowances?
    Price reductions given to retailers so that salespersons will aggressively sell their product.
  29. Trade-In Allowance?
    Price reduction for use products when similar new prouducts are brought.
  30. Rebates?
    Refunds paid to a consumer after a purchase.
  31. F.O.B?
    Seller pays the price of loading the product on some vehicle, while buyer pays for freigt.
  32. Zone Pricing?
    means making an average freight charge available to all buyers within specific geographical zones.
  33. Uniformed Delivered Pricing?
    Making an average freight charge applicable to all buyers.
  34. Freight Absorption Pricing?
    Absorbing freight cost so that costs to consumers match competitors.
  35. Value Pricing?
    Setting a fair price level for a marketing mix that really gives the target market superior customer value.
  36. Unfair Trade Practices Act?
    Put a lower limit on prices, especially wholesale and retail.
  37. Dumping?
    Pricing a product sold in a foreign market below the cost of producing it or at a price lower than its domestic market.
  38. Phony List Prices?
    Prices costumers are shown to costumers to suggest that the price has been discounted from the list.
  39. Wheeler Lea Amendment?
    Bans unfair or deceptive actions in commerce.
  40. Price Fixing?
    Competitors getting together to collectively raise, lower, or stabilize prices.
  41. Robinson-Patman Act?
    Makes price discrimination illegal.
Card Set
Marketing Chapter Sixteen
Marketing Chapter Sixteen