Marketing Strategy-Marshall-Chapter 11-definitions only

loss leader products

This effectively shut down Target's ability to advertise ____ ______ _____, items (typically paper towels, toilet paper, toothpaste, and the like) sacrificed at prices below cost to attract shoppers to the store.

target return pricing

To better take into account the differential impact of fixed and variable costs, marketing managers can use ______ ______ ______.

penetration pricing

When a firm's objective is to gain as much market share as possible, a likely pricing strategy is ______ ______ sometimes referred to as pricing for maximum marketing share.

promotional allowances

When a retailer runs an ad for a P&G brand such as Crest toothpaste, it is nearly always in response to ________ _______ provided by the manufacturer.

price bundling

When customers are given the opportunity to purchase a package deal at a reduced price compared to what the individual components of the package would cost separately, the firm is using a _____ ______ strategy.

bait and switch

When this occurs and it can be demonstrated that a seller had no true intent to actually make the lower-priced item available for sale, the practice is called ____ ___ _____ and is illegal.

cost-plus pricing and markup on cost

____ ___ ______is really just a general heuristic that builds a price by adding a standardized markup on top of costs for an offering, hence the term ______ __ ___.

captive pricing (complementary pricing)

______ ______ Sometimes called ________ ______entails gaining a commitment from a customer to a basic product or system that requires continual purchase of peripherals to operate

seasonal discounts

to accommodate such lengthy sales processes, firms offer ______ ______, which rewards the purchaser for shifting part of the inventory storage function away from the manufacturer.

price skimming

a strategy of _____ ____ addresses the objective of entering a market at a relatively high price point.

Product line pricing (or price fixing)

affords the marketing manager an opportunity to develop a rational pricing strategy across a complete line of related items.

trade discounts

also sometimes called functional discounts, provide an incentive to a channel member for performing some function in the channel that benefits the seller.

Discounts

are direct, immediate reductions in price provided to purchasers?

quantity discounts

are taken off an invoice price based on different levels of product purchased.

Pricing Objectives

are the desired or expected result associated with a pricing strategy.

Fair Trade Laws

were popular in the past because they allowed manufacturers to establish artificially high prices by limiting the ability of wholesalers and retailers to offer reduced or discounted prices

even pricing

while ____ ______is a whole-dollar amount (1.99 versus $2.00, for example.

value pricing

Firms that have an objective of utilizing pricing to communicate positioning use a _____ _______ strategy.

Cost Leadership

From a marketing planning and strategy perspective, Porter has consistently advocated that firms that are able to compete based on some extraordinary efficiency in one or more internal processes bring to the market a competitive advantage based on ____ _______.

just noticeable difference (JND)

Ideally, price changes upward will reflect the ___ ______ _____ in a price, which is the amount of price increase that can be taken without affecting customer demand.

zone pricing

In a ____ ______ approach, shippers set up geographic pricing zones based on the distance from the shipping location.

markup on sales price

In most applications, when a marketing manager simply refers to "markup," he or she is referring to this calculation-_____ __ ____ _____.

uniform delivered pricing

Many direct-to-consumer marketers such as Amazon and Land's End practice _______ _____ -______, in which the same delivery fee is charged to customers regardless of geographic location within the 48 contiguous states.

psychological pricing

Now, the rationale for odd pricing is very different and it is often regarded as a key element of _______ ______, or creating a perception about price merely from the image the numbers provide the customer.

price elasticity of demand

Often, _____ ______ __ ______-the measure of customers' price sensitivity estimated by dividing relative changes in quantity sold by relative changes in price-becomes central to whether a product can even be viably introduced within the context of a firm's financial objectives.

Market share

is the percentage of total category sales accounted for by a firm.

price discrimination

occurs when a seller offers different prices to different customers without a substantive basis, such that competition is reduced.

FOB pricing

The initials ___ stand for free on board, meaning that title transfer and freight paid on the goods being shipped are based on the FOB location.

price war

A _____ ___ occurs when a company purposely makes pricing decisions to undercut one or more competitors and gain sales and net market share.

variable pricing

A one-price strategy makes planning and forecasting infinitely easier than the alternative approach, ______ _____, which is found in many other countries and cultures but is relatively rare in the United States.

stability pricing

A potentially more productive strategy related to competitor-based pricing is ______ _______in which a firm attempts to find a neutral set point for a price that is neither low enough to raise the ire of competition nor high enough to put the value proposition at risk with customers.

predatory pricing

A strategy to intentionally sell below cost to push a competitor out of a market, then raise prices to new highs, is called _______ ______.

one-price strategy

An ethnocentric aspect of the U.S. marketplace is nearly total reliance by marketers on a ___-____ ______ with end-user consumers. That is, except for temporary price reductions for promotional or clearance purposes, the price market on a good or what it typically sells for.

price points

As a customer is evaluating the choices available within a firm's product line, the ______ _____ established for the various items in the line need to make sense and reflect the differences in benefits offered as the customer moves up and down the product line.

auction pricing

As a strategy, ______ ______ has gained in prominence as internet commerce has come of age.

prestige pricing

As mentioned earlier, one rationale for establishing a price skimming objective is ______ ______-lending prestige to a product or brand by virtue of a price relatively higher than the competition.

everyday low pricing (EDLP)

The rise of Walmart as one of the world's largest corporations brought the concept of ______ ___ ________ to the forefront of global consumer consciousness.

allowances

remit monies to purchasers after the fact

competitor-based pricing

Based on such analysis, a firm may develop ______-____ _______ strategies. The approach might lead the marketing manager to decide to price at some market average price, or perhaps above or below it in the context of penetration or skimming objectives.

reverse auctions

Besides standard auction approaches (buyers bid for a seller's offering) online _____ ______ are now very common in which sellers bid prices to capture a buyer's business.

minimum markup laws

Closely associated with fair trade laws are ______ ______ ____, which require a certain percentage markup to be applied to products.

price-fixing

Companies that collude to set prices at a mutually beneficial high level are engaged in _____-______.

Odd pricing

simply means that the price is not expressed in whole dollars.

Target return on investment (ROI)

Pricing objectives very frequently are designed for profit maximization, which necessitates a ______ _____ __ _______ pricing strategy.

cash discounts

Sellers offer ____ ______ to elicit quicker payment of invoices.

reference pricing

Such a comparison is referred to as _______ ______, and, in the case of price bundling, the reference price is the total price of the components of the bundle if purchased separately versus the bundled price.

high/low pricing

The antithesis to EDLP is a ____/___ _____ strategy in which firms rely on periodic heavy promotional pricing, primarily communicated through advertising and sales promotion pricing, primarily communicated through advertising and sales promotion, to build traffic and sales volume.

average-cost pricing

The basic formula for ______-____ _____ is All costs + Total number of units = Average cost of a single unit