Business - Chapter 14

  1. Pricing
    Deciding what the company will receive in exchange for its products.
  2. Pricing Objectives
    Goals that sellers hope to attain in pricing products for sale
  3. Market share
    A company's percentage of the total market saler for a specific product.
  4. Markup Percentage
    Markup/sales price
  5. Break-even analysis - ?
    An assessment of how many units must be sold at a given price before the company begins to make a profit

    fixed costs/price-variable cost
  6. Break even point
    The # of units that must be sold at a given price before the company covers all of its expenses (fixed and variable)
  7. Price Skimming
    The decision to price a new product as high as possible to earn the maximum profit on each unit sold
  8. Penetration Pricing
    The decision to price a product very low to sell the most units possible and to build customer loyalty.
  9. Price Lining
    The practice of offering all items in certain categories at a limited number of predetermined price points. Sears may sell mattresses at 199 good 299 better 399 best - better is the most sold.
  10. Psychological Pricing
    The practice of seeting prices to take advantage of the illogical reactions of consumers to certain types of products.
  11. Odd-even pricing
    A form of psychological pricing in which prices are not stated in even dollar amounts.
  12. Discount
    Any price reduction offered by the seller to persuade customers to purchase a product.
  13. Distribution Mix
    The combination of distribution channels a firm selects to get the products to the end-users.
  14. Intermediaries
    Any individual or firms other than the producer that participate in a product's distribution.
  15. Wholesalers
    Intermediaries who sell products to other businesses, which in turn resell them to the end-users.
  16. Retailer
    Intermediaries who sell produts to the end-users.
  17. Distribution channels
    The path a products follows from the producer to the end-users.
  18. Direct Distribution
    Producer - End-users
  19. Retail Distribution
    Producer - retailer - end-users
  20. Wholesale Distribution
    Producer - wholesaler - retailer - end-users
  21. distribution by Agents or Brokers
    Producer - Agent/Broker - end-users.
  22. Direct Channel
    A distribution channel in which the product travels from the producer tp the consumer without passing through any intermediaries.
  23. Sales Agent
    An independent business person who represents a business
  24. Broker
    Independent intermediary who matches numerous sellers and buyers as needed, often without knowing in advance who they will be.
  25. Intensive Distribution.
    A distribution strategy in which a product is distributed in nearly every possible outlet, using many channel members.
  26. Exclusive Distribution
    product's distribution is limited to onlu one whole-saler or retailer in a given geographic area
  27. Selective distribution
    A distribution strategy that falls between intensive and exclusive distribution.
  28. Channel Conflicts
    Conflicts arising between the members of a distribution channel.
  29. Channel Captain
    The channel member that is the most powerful in determining the roles and rewards of organizations involved in a given channel of distribution.
  30. Vertical Marketing System
    A system in which there is a high degree of coordination among all the units in the distribution channel so that as product moves effectively from manufacturer to consumer.
  31. Department Stores
    Large retail stores that offer a wide variety of high-quality items divided into specialized departments.
  32. Supermarket
    Large retail store that offer a variety of food and food related items divided into specialized departments.
  33. Specialized stores
    Small retail stores that carry one line of related products.
  34. Bargain Retailers
    Retail outlets that emphasize low prices as a means of attracting consumers.
  35. Discount houses
    Bargain retail stores that offer major items such as TV and large appliances at discount prices.
  36. Catalogue Showroom
    A bargain retail store in which customers place orders for items described in a catalogue.
  37. Factory Outlets
    Bargain retail store that are owner by the manufacturers whose products they sell.
  38. Wholesale clubs
    Huge, membership only, combined retail-wholesale operations that sell brand-name merchandise.
  39. Convenience Store
    Retail stores that offer high accessibility, extended hours and fast services. It tends to be more expensive than the other stores.
  40. Direct-response retailing
    A type of retailing in which firms make direct contact with customers both to inform them about products and to receive sale orders.
  41. Direct selling
    Form of non-store retailing typified by door to door sales.
  42. Mail Order
    A form of non-store retailing in which customers place orders for merchandise shown in catalogues and received their order via mail.
  43. Telemarketing
    Use of the phone to sell directly to consumers.
  44. E-intermediaries
    Internet-based distribution channel members that collect information about sellers and present it in convenient form to consumers and/or help deliver internet products to consumers.
  45. Syndicated Selling
    Occurs when a website offers other web-sites a commission for referring customers.
  46. Shopping agent
    A type of intermediary that helps internet consumers by gathering and sorting information they need to make purchases.
  47. Eletronic Retailing
    Nonsore retailing in which information about the seller's product and services is connected to consumer's computer, allowing customers to received information and purchase the products in the home.
  48. E-catalogue
    Nonstore retailing that uses internet to display products and services for both retail shoppers and business customers.
  49. Eletronic Storefront
    A seller's website in which consumers collect information about products and buying opportunities, place sales orders, and pay for their purchases.
  50. Cybermalls
    Collection of virtual storefronts representing diverse products.
  51. Interactive Marketing
    Selling products and service by allowing customers to interact with multimedia websites using voice, graphics, animation, film clips and access to live human advice.
  52. Video Marketing
    Selling to customers by showing products on TV that consumers can buy by telephone or mail.
  53. Physical Distribution
    Those activities needed to move a product from the manufacturer to the end-users.
  54. Warehouse
    • Storage: facility used to store goods for long time periods.
    • Distribution Centre: facility used to store goods for short period of time pending distribution to retailers.

    A warehouse owned and used by just one company
  55. Public Warehouse
    An independently owned and operated warehouses that stores the goods of many firms.
  56. Intermodal Transportation
    The combined use of different means of transportation.
  57. Order Fulfillment
    All activities involved in completing a sales transation - from buying the product to delivering it.
Card Set
Business - Chapter 14
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