Marketing: Week 8 (Chapter 18 and 19)
Consumers are interested in obtaining a _____ which really means "perceived reasonable value" at the time of the transaction.
"reasonable price"
____ refers to the greater the number of different uses for a product, the more elastic demand tends to be.
A product's other uses
This includes examining trends and best practices in the industry.
Define strategies
_____ include viral videos, retweets, comments on blogs, and other forms of customer feedback resulting from a social media presence.
Earned media
_____ is a situation in which consumer demand is sensitive to price changes.
Elastic demand
_____ is a function of the perceived value to the buyer relative to the price.
Elasticity
_____ refers to consumers' responsiveness or sensitivity to changes in price.
Elasticity of demand
_____ is a price tactic that requires the buyer to absorb the freight costs from the shipping point ("free on board")
FOB origin pricing
_____ has proved to be fertile ground for new marketing ideas and campaigns.
_____ originated as a community for college students that opened to the general public as its popularity grew.
_____ tactics include various sorts of discounts, geographic pricing, and other pricing strategies.
Fine-tuning pricing
_____ are approaches that do not change the general price level. They do, however, result in changes within a general price level.
Fine-tuning techniques
_____ is used by people with lengthy experience, training, and often certification by a licensing board—for example, lawyers, physicians, and family counselors.
Professional services pricing
_____ means setting prices so that total revenue is as large as possible relative to total costs.
Profit maximization
_____ saves the seller carrying charges and billing expenses and allows the seller to avoid bad debt.
Prompt payment
YouTube, Flickr, Pinterest, Instagram, and Snapchat are particularly useful to brands' social marketing strategies because they _____.
add a vibrant interactive channel on which to disseminate content
In contrast to leader pricing (which is a genuine attempt to give the consumer a reduced price) _____ is deceptive.
bait pricing
The Federal Trade Commission considers _____ a deceptive act and has banned its use in interstate commerce.
bait pricing
_____ is a price tactic that tries to get consumers into a store through false or misleading price advertising and then uses high-pressure selling to persuade consumers to buy more expensive merchandise
bait pricing
After managers understand both the legal and the marketing consequences of price strategies, they should set a _____.
base price
_____ is a price tactic that charges freight from a given (basing) point, regardless of the city from which the goods are shipped
basing-point pricing
A _____ is a publicly accessible web page that functions as an interactive journal, whereby readers can post comments on the author's entries.
blog
Price lining reduces confusion for _____.
both the salesperson and the consumer
Doritos, Old Spice, and Nike can be said to have deeper layers of social media since these are _____.
brands that people talk about
_____ is a method of determining what sales volume must be reached before total revenue equals total costs
break-even analysis
The typical _____ assumes a given fixed cost and a constant average variable cost (total cost divided by quantity of output).
break-even model
the _____ shopping bots searches (trawls) a wide range of product categories such as Google Shopping, Nextag, and PriceGrabber. These sites operate using a Yellow Pages type of model in that they list every retailer they can find.
broad-based
Discounts can be an excellent tool to _____, but care must be taken not to compromise profit goals.
build customer loyalty
LinkedIn features many of the same services as Facebook (profiles, status updates, private messages, company pages, and groups) but is oriented around _____.
business and professional connections
_____ auctions are likely to be the dominant form in the future.
business-to-business
To use markup based on cost or selling price effectively, the marketing manager must _____.
calculate an adequate gross margin—the amount added to cost to determine price
The low price in penetration pricing is designed to _____, resulting in lower production costs.
capture a large share of a substantial market
_____ is a price reduction offered to a consumer, an industrial user, or a marketing intermediary in return for prompt payment of a bill
cash discount
After establishing a listening platform, the organization should _____.
develop a list of objectives for its social media team to accomplish
Markup pricing does not _____.
directly analyze the costs of production
Because the costs are often minimal and the learning curve is relatively low, some organizations are tempted to _____.
dive head-first into social media
_____ is the ability to change prices very quickly, often in real time.
dynamic pricing
In an interactive space, media are _____ through word of mouth or online buzz about something the brand is doing.
earned
When consumers pass along brand information in the form of retweets, blog comments, or ratings and recommendations, this is an example of _____.
earned media
Quantity demanded depends on _____.
elasticity
The first step in setting the right price is to _____.
establish pricing goals
After establishing pricing goals, managers should ______ which requires marketing research.
estimate total revenue at a variety of prices
In attempting to maximize profits, managers can try to ______.
expand revenue by increasing customer satisfaction, or they can attempt to reduce costs by operating more efficiently
Markups are often based on _____.
experience
The _____ proposes that per-unit costs will go down as a firm's production experience increases.
experience curve
_____ allows sellers to collect detailed data about customers' buying habits, preferences, and even spending limits so that sellers can tailor their products and prices.
extranet
______ is a private electronic network that links a company with its suppliers and customers
extranet
Though it can be costly for other merchants to ship through Amazon, many do so to take advantage of _____.
its shipping discounts
Despite the apparent slowdown, research also shows that more social networking "rookies" are classified as _____.
joiners
_____ is the practice of marking up prices by 100 percent, or doubling the cost
keystoning
The obvious disadvantages of flexible pricing are the _____ .
lack of consistent profit margins, the potential ill will of high-paying purchasers, the tendency for salespeople to automatically lower the price to make a sale, and the possibility of a price war among sellers
_____ is a price tactic in which a product is sold near or even below cost in the hope that shoppers will buy other items once they are in the store
leader pricing (loss-leader pricing)
If, in consumers' minds, a price is set too high, the perceived value will be _____.
less than the cost, and sale opportunities will be lost
Leader pricing is not _____.
limited to products
The first action a marketing team should take when initiating a social media campaign is simple—it should just _____.
listen
Developing an effective _____ is necessary to both understanding and engaging an online audience.
listening system
The interaction between producer and consumer becomes less about entertaining and more about ______.
listening, influencing, and engaging
_____ are websites that combine the fun of social networking with the utility of location-based GPS technology
location-based social networking sites
price promotion alone does not always create a _____.
low price image
Penetration pricing does mean _____.
lower profit per unit
Sales-oriented pricing objectives are based on _____.
market share as reported in dollar or unit sales
Rather than strive for market share, sometimes companies try to _____.
maximize sales
A firm with the objective of _____ ignores profits, competition, and the marketing environment as long as sales are rising.
maximizing sales
The goal of ______ is to share parenting tips and experiences and become part of a community.
mommy blogs
noncorporate blogs are perceived to be _____.
more authentic than corporate blogs
Researchers have found that price promotions of higher priced, higher quality brands tend to attract _____ than do similar promotions of lower priced and lower quality brands.
more business
_____ shopping bots search for prices for only one type of product such as consumer electronics (CNET), event tickets (SeatGeek), or travel-related services (Kayak).
niche-oriented
_____ are independent blogs that are not associated with the marketing efforts of any particular company or brand
noncorporate blogs
_____ is a price tactic that uses odd-numbered prices to connote bargains and even-numbered prices to imply quality
odd-even pricing (psychological pricing)
The purpose of _____ is to develop deeper relationships with customers.
owned media
In an interactive space, _____ include display advertising, paid search words, and other types of direct online advertising.
paid media
the culture of _____ that social media foster may well prove to be a fifth "P" for marketing.
participation
Drug manufacturers have begun advertising "no copay" coupons for certain high-price drugs, leaving the insurance companies to _____.
pay the balance
_____ is a pricing policy whereby a firm charges a relatively low price for a product when it is first rolled out as a way to reach the mass market
penetration pricing
Freight fees charged when none were actually incurred, called _____, have been declared illegal.
phantom freight
A _____ is a digital audio or video file that is distributed serially for other people to listen to or watch.
podcast
total revenue is a function of _____.
price and quantity demanded
_____ is marketing two or more products in a single package for a special price
price bundling
When a seller establishes a series of prices for a type of merchandise, it creates a _____.
price line
_____ is the practice of offering a product line with several items at specific price points
price lining
Companies often use _____ for new products when the product is perceived by the target market as having unique advantages.
price skimming
Firms can also effectively use _____ when a product is well protected legally, when it represents a technological breakthrough, or when it has in some other way blocked the entry of competitors.
price skimming
The term _____ is derived from the phrase "skimming the cream off the top."
price skimming
_____ is a pricing policy whereby a firm charges a high introductory price, often coupled with heavy promotion.
price skimming
Companies that do serious planning when creating a price strategy usually select from three basic approaches:
price skimming, penetration pricing, and status quo pricing
The _____ sets a competitive price in a specific market segment based on a well-defined positioning strategy.
price strategy
_____ is a basic, long-term pricing framework that establishes the initial price for a product and the intended direction for price movements over the product life cycle.
price strategy
The proliferation of the Internet has resulted in a huge increase in _____.
price transparency
A penetration strategy tends to be effective in a _____.
price-sensitive market
To survive in today's highly competitive marketplace, companies need _____.
pricing objectives that are specific, attainable, and measurable
Shopping bots theoretically give _____.
pricing power to the consumer
Those who use _____ have an ethical responsibility not to overcharge a customer.
professional pricing
_____ are revenue minus expenses
profit
A _____ may require a bigger initial investment than the firm can commit to or wants to commit to.
profit maximization objective
Profit-oriented pricing objectives include _____.
profit maximization, satisfactory profits, and target return on investment
_____ is a payment to a dealer for promoting the manufacturer's products
promotional allowance (trade allowance)
Most retailers avoid any set markup because of such considerations as _____.
promotional value and seasonality
The intent of unfair trade practice acts is to _____.
protect small local firms from giants like Walmart, which operates very efficiently on razor-thin profit margins
The advantage of break-even analysis is that it _____.
provides a quick estimate of how much the firm must sell to break even and how much profit can be earned if a higher sales volume is obtained
______ is a price reduction offered to buyers buying in multiple units or above a specified dollar amount
quantity discount
Many companies have moved away from corporate blogs, replacing the in-depth writing and comment monitoring that come with blog maintenance with the _____.
quick, easy, and more social Facebook, Twitter, or Tumblr
Price lines may also enable a seller to _____.
reach several market segments
Because of this level of visibility and discussion, marketers must _____.
realize that having a great ad campaign is not enough—the product or service must be great, too
_____ is a cash refund given for the purchase of a product during a specific period
rebate
A successful skimming strategy enables management to _____.
recover its product development costs quickly
Insurance companies often raise copays on expensive drugs to get consumers to _____.
switch to low-cost alternatives
Sometimes companies minimize or ignore the importance of demand and decide to price their products largely or solely on _____.
the basis of costs
A company's freedom in pricing a new product and devising a price strategy depends on _____.
the market conditions and the other elements of the marketing mix
Both price and profits depend on ______.
the type of competitive environment a firm faces
Price skimming works best when _____.
there is strong demand for a good or service
a marketer using value-based pricing must also determine the _____.
value of competitive offerings to customers
_____ means setting the price at a level that seems to the customer to be a good price compared to the prices of other options
value-based pricing
A _____ is a cost that varies with changes in the level of output; an example of this is the cost of materials.
variable cost
a _____ allows a developer to embed a simple application such as a weather forecast, horoscope, or stock market ticker into a website, even if the developer did not write (or does not understand) the application's source code.
web widget
A unique consequence of social media is the _____.
widespread shift from one-to-many communication to many-to-many communication
From a marketing perspective, _____ allow customers to display company information (such as current promotions, coupons, or news) on their own websites or smartphone home screens.
widgets
_____ is the most popular auction site, with more than 100 million buyers and sellers.
www.ebay.com
_____ is the second largest Internet auction site; fees are less than eBay's.
www.ebid.com
_____ charges a small monthly fee rather than listing and final value fees.
www.onlineauction.com
_____ enable purchasers to borrow money to pay for new cars with no interest charge. This tactic creates a huge increase in sales, but is not without its costs.
zero percent financing
_____ is a modification of uniform delivered pricing that divides the United States (or the total market) into segments or zones and charges a flat freight rate to all customers in a given zone
zone pricing
Any _____ needs to be evaluated in terms of the competitive environment, risks in the industry, and economic conditions.
Return on investment (ROI)
_____ is a percentage that puts a firm's profits into perspective by showing profits relative to investment.
Return on investment (ROI)
_____ is the net profit after taxes divided by total assets
Return on investment (ROI)
_____ measures management's overall effectiveness in generating profits with the available assets.
Return on investment (ROI)
_____ is the price charged to customers multiplied by the number of units sold.
Revenue
_____ is what pays for every activity of the company: production, finance, sales, distribution, and so on.
Revenue
_____ are websites that allow consumers to post, read, rate, and comment on opinions regarding all kinds of products and services.
Review sites
The _____ makes it illegal for a seller to offer two buyers different supplementary services and for buyers to use their purchasing power to force sellers into granting discriminatory prices or services.
Robinson-Patman Act of 1936
The _____ prohibits any firm from selling to two or more different buyers, within a reasonably short time, commodities (not services) of like grade and quality at different prices where the result would be to substantially lessen competition.
Robinson-Patman Act of 1936
_____ provides three defenses for a seller charged with price discrimination (in each case the burden is on the seller to prove the defense): Cost, Market conditions, and Competition.
Robinson-Patman Act of 1936
160-character text messages sent to and from cell phones. it is typically integrated with other tools.
SMS (short message service)
_____ can also be effectively used on a temporary basis to sell off excess inventory.
Sales maximization
_____ are a reasonable level of profits.
Satisfactory profits
Based on the result of Step 4 (Identify the target audience), _____ that will be most relevant. These choices are based on the knowledge of where the target audience participates on social media.
Select the tools and platforms
Set objectives that can be specifically accomplished through social media, with special attention to how to measure the results. Numerous metrics are available.
Set social media objectives
Software designed specifically for mobile and tablet devices.
Smartphone applications (apps)
_____ sites often include ratings and recommendations and social shopping
Social commerce
_____ allow consumers to connect with each other, share opinions, and collaborate on new ideas according to their interests.
Social media
_____ are designed for people to socialize with each other. They have changed how and where conversations take place, even globalizing human interaction through rapidly evolving technology.
Social media
_____ can also be defined relative to traditional advertising like television and magazines.
Social media
_____ have changed the way that people interact in their everyday lives.
Social media
_____ is any tool or service that uses the Internet to facilitate conversations
Social media
_____ can involve sentiment analysis and text mining specific key words on social networking website, blogs, discussion forums, and other social media.
Social media monitoring
_____ is the process of identifying and assessing what is being said about a company, individual, product, or brand.
Social media monitoring
_____ allow individuals to connect—or network—with friends, peers, and business associates.
Social networking sites
_____ allow users to decide which content is promoted on a given website by voting that content up or down.
Social news sites
Those who read blogs, listen to podcasts, watch videos, and generally consume media
Spectators
_____ has the major advantage of requiring little planning.
Status quo pricing
_____ ignores demand and costs.
Status quo pricing
_____ often leads to suboptimal pricing which occurs because the strategy ignores customers' perceived value of both the firm's goods or services and those offered by its competitors.
Status quo pricing
_____ seeks to maintain existing prices or to meet the competition's prices.
Status quo pricing
_____ are one of the most rapidly adopted consumer technologies in history and are poised to fundamentally disrupt the way people engage with the digital world both on-the-go and perhaps most notably, in the home.
Tablets
Some musicians see _____ as a way to gain publicity or to help aspiring artists.
Talenthouse
_____ can be accomplished by using less ubiquitous platforms.
Targeting
_____ use bundling as a way to protect their market share and fight off competition by locking customers into a group of services.
Telecom companies
What is the most exciting thing to happen to marketing and promotion in recent years?
The increasing use of online technology to promote brands, particularly using social media.
_____ allows users to upload and stream their videos to an enthusiastic and active community.
YouTube
_____ is the highest-trafficked video-based website and the second highest-trafficked site overall.
YouTube
Consumers often have the option of repairing durable products (like cars and washing machines) rather than replacing them, thus prolonging their useful life. In other words, people are sensitive to the price increase, and demand is more elastic.
Product durability
This should line up with the target market defined in the marketing plan, but in the social media plan, pay special attention to how that audience participates and behaves online.
Identify the target audience
Similar to SMS but allows the attachment of images, videos, ringtones, and other multimedia to text messages.
MMS (multimedia messaging service)
Businesses impose consumer penalties for two reasons: they will allegedly _____
1) suffer an irrevocable revenue loss and/or 2) incur significant additional transaction costs should customers be unable or unwilling to complete their purchase obligations
Sellers can offset rising costs in three ways:
1) they can begin stocking lower-quality merchandise at each price point. 2) sellers can change the prices, although frequent price line changes confuse buyers. 3) sellers can accept lower profit margins and hold quality and prices constant. This third alternative has short-run benefits, but its long-run handicaps may drive sellers out of business.
What are several factors that affect elasticity of demand?
1) Availability of substitutes 2) Price relative to purchasing power 3) Product durability 4) A product's other uses
Regardless of the measure, there are five steps to help gauge the effectiveness of a social media effort:
1) Identify your key performance indicators (KPIs). 2) Align your social media goals with your business objectives. 3) Set up Google Analytics to track conversions. 4) Assign values to your KPIs (such as lifetime value or average sales). 5) Benchmark against your competitors.
Here are some practical ideas that marketing managers should consider when setting social media objectives:
1) Listen and learn 2) Build relationships and awareness 3) Promote products and services 4) Manage your reputation 5) Improve customer service
There are six stages involved in creating an effective social media plan:
1) Listen to customers 2) Set social media objectives 3) Define strategies 4) Identify the target audience 5) Select the tools and platforms 6. Implement and monitor the strategy
What are eight types of social commerce?
1) Peer-to-peer sales platforms (like eBay and Etsy) 2) Social networking websites driven by sales (like Pinterest and Twitter) 3) Group buying platforms (like Groupon and Social Living) 4) Peer recommendation sites (like Yelp and JustBoughtIt) 5) User-curated shopping sites (like The Fancy and Lyst) 6) Participatory commerce platforms (like Kickstarter and Threadless) 7) Social shopping sites (like Motilo and GoTryItOn). 8) Shoppable videos (from retailers like Burberry and Diesel).
Some questions for market research on demand and elasticity are:
1) What price is so low that consumers would question the product's quality? 2) What is the highest price at which the product would still be perceived as a bargain? 3) What is the price at which the product is starting to be perceived as expensive? 4) What is the price at which the product becomes too expensive for the target market?
There are several reasons for the recent popularity of mobile marketing:
1) an effort to standardize mobile platforms has resulted in a low barrier to entry. 2) especially given mobile marketing's younger audiences, there are more consumers than ever acclimating to once-worrisome privacy and pricing policies. 3) because most people carry their smartphones with them at all times, mobile marketing is uniquely effective at garnering customer attention in real time. 4) mobile marketing is measurable: metrics and usage statistics make it an effective tool for gaining insight into consumer behavior. 5) in-store notification technology such as Apple's iBeacon can send promotional messages based on real-time interactions with customers. 6) mobile marketing's response rate is higher than that of traditional media types like print and broadcast advertisement.
Social media have several implications for marketers and the ways that they interact with their customers:
1) marketers must realize that they often do not control the content on social media sites. 2) the ability to share experiences quickly and with such large numbers of people amplifies the impact of word of mouth in ways that can affect a company's bottom line. 3) Many companies use mascots to drive their marketing messages on social media. 4) social media allow marketers to listen. 5) social media provide more sophisticated methods of measuring how marketers meet and interact with consumers than traditional advertising does. 6) social media must constantly innovate to keep up with consumer demands. 7) social media allow marketers to have much more direct and meaningful conversations with customers. 8) Social media offer a form of relationship building that will ultimately bring the customer and brand closer.
To leverage all three types of media, marketers must follow a few key guidelines:
1) they must maximize owned media by reaching out beyond their existing websites to create portfolios of digital touch points. This is especially true for brands with tight budgets, as the organization may not be able to afford much paid media. 2) marketers must recognize that public and media relations no longer translates into earned media. Instead, marketers must learn how to listen and respond to stakeholders. This will stimulate word of mouth. 3) marketers must understand that paid media must serve as a catalyst to drive customer engagement and expand into emerging channels.
Setting the right price on a product is a four-step process which include:
1. Establish pricing goals. 2. Estimate demand, costs, and profits. 3. Choose a price strategy to help determine a base price. 4. Fine-tune the base price with pricing tactics.
What are the two roles in the evaluation of product alternatives that price plays in?
As a measure of sacrifice and as an information cue
_____ is when many substitute products are available, the consumer can easily switch from one product to another, making demand more elastic.
Availability of substitutes
_____ is the general price level at which the company expects to sell the good or service.
Base price
_____ allow companies to develop long-term relationships with their customers.
Blogs
_____ allow marketers to create content in the form of posts, which ideally build trust and a sense of authenticity in customers.
Blogs
A signal is sent to Bluetooth- enabled devices, allowing marketers to send targeted messages to users based on their geographic locations.
Bluetooth marketing
_____ should never be a long-run objective because it may mean little or no profitability.
Cash maximization
_____ instruct clients on best practices and advise them how to leverage their personal brands in online spaces. They also monitor clients' Twitter feeds in real time, acting as editor, security guard, and advisor all at once.
Coaches
Those who use RSS feeds to collect information and vote for websites online
Collectors
_____ blogs are sponsored by a company or one of its brands and are maintained by one or more of the company's employees.
Corporate
_____ disseminate marketing-controlled information and are effective platforms for developing thought leadership, fostering better relationships with stakeholders, maximizing search engine optimization, attracting new customers, endearing the organization with anecdotes and stories about brands, and providing an active forum for testing new ideas.
Corporate blogs
A firm can charge different prices to different customers if the prices represent manufacturing or quantity discount savings.
Cost
Those who produce and share online content like blogs, websites, articles, and videos
Creators
Those who post comments, ratings, and reviews of products and services on blogs and forums
Critics
_____ describes how the input of many people can be leveraged to make decisions that used to be based on the input of only a few people.
Crowdsourcing
_____ offers a way for companies to engage heavy users of a brand and receive input, which in turn increases those users' brand advocacy and lessens the likelihood that a change will be disliked enough to drive away loyal customers.
Crowdsourcing
_____ is a deduction from list price that applies to the buyer's total purchases made during a specific period
Cumulative quantity discount
_____ are especially popular, particularly those posting restaurant reviews, diet and exercise tips, and recipes.
Food blogs
______ increase expectation and set a reference point against which people can evaluate their consumption experiences.
Higher prices
Social media campaigns can be fluid, so it is important to keep a close eye on what is successful and what is not. Then, based on the observations, make changes as needed. It also becomes important, therefore, to go back to the listening stage to interpret how consumers are perceiving the social media campaign.
Implement and monitor the strategy
Those who do none of these things
Inactives
_____ means that an increase or a decrease in price will not significantly affect demand for the product.
Inelastic demand
_____ is often used by brands to engage younger audience members.
Those who maintain a social networking profile and visit other sites
Joiners
_____ is the most effective social media platform for B-to-B marketing.
_____ is used primarily by professionals who wish to build their personal brands online and businesses that are recruiting employees and freelancers.
_____ serves as a virtual rolodex, providing recruiters and job seekers alike a network to connect and conduct business.
_____ are keys to successful social media marketing.
Listening to customers and industry trends and continually revising the social media plan to meet the needs of the changing social media market
Price variations are justified if designed to meet fluid product or _____.
Market conditions
_____ is a company's product sales as a percentage of total sales for that industry.
Market share
_____ uses the cost of buying the product from the producer, plus amounts for profit and for expenses not otherwise accounted for.
Markup pricing
_____ allow users to upload and distribute multimedia content like videos and photos.
Media sharing sites
_____ are blogs that entail shorter posts than traditional blogs.
Microblogs
Visual advertisements integrated into text messages, applications, and mobile website. They are often sold on a cost-per-click basis.
Mobile ads
Website designed specifically for viewing and navigation on mobile devices.
Mobile website (MOBI and WAP website)
_____ are women who review children's products and discuss family-related topics on their personal blogs.
Mommy bloggers
_____ uses small chips hidden in or behind products that, when touched by compatible devices, will transfer the information on the chip to the device.
Near field communication (NFC)
_____ is a deduction from list price that applies to a single order rather than to the total volume of orders placed during a certain period
Noncumulative quantity discount
_____ presents additional opportunities for marketers to engage with consumers.
Online gaming
_____ are important for marketers hoping to influence consumers in the early stages of the purchase cycle who don't yet have an established plan for what and how to purchase.
Online reviews
_____ can be effective if an experience curve will cause costs per unit to drop significantly.
Penetration pricing
_____ means charging a relatively low price for a product when it is first rolled out as a way to reach the mass market.
Penetration pricing
_____ lets users collect ideas and products from all over the Web and "pin" favorite items to individually curated pin-boards.
_____ are like radio shows that are distributed through various means and not linked to a scheduled time slot.
Podcasts
_____ is the practice of charging a very low price for a product with the intent of driving competitors out of business or out of a market.
Predatory pricing
_____ is "that which is given up," which means what is sacrificed to get a good or service.
Price
_____ is often used as a promotional tool to increase consumer interest.
Price
_____ is that which is given up in an exchange to acquire a good or service.
Price
_____ might include lost dignity for individuals who lose their jobs and must rely on charity.
Price
______ is an agreement between two or more firms on the price they will charge for a product.
Price fixing
_____ is a valuable tactic for the marketing manager, because the firm may be able to carry a smaller total inventory than it could without price lines. The results may include fewer markdowns, simplified purchasing, and lower inventory carrying charges.
Price lining
_____ refers to if a price is so low that it is an inconsequential part of an individual's budget, demand will be inelastic.
Price relative to purchasing power
_____ is sometimes called a "market-plus" approach to pricing because it denotes a high price relative to the prices of competing products.
Price skimming
_____ are the key to revenues, which in turn are the key to profits for an organization.
Prices
_____ allow the firm to adjust for competition in certain markets, meet ever-changing government regulations, take advantage of unique demand situations, and meet promotional and positioning goals.
Pricing tactics
_____ can be used to build communities, aid in customer service, gain prospects, increase awareness, and, in the case of nonprofits, raise funds.
_____ is effective for disseminating breaking news, promoting longer blog posts and campaigns, sharing links, announcing events, and promoting sales.
_____ can lay a foundation for meaningful two-way conversation quickly and effectively.
Twitter users
_____ are laws that prohibit wholesalers and retailers from selling below cost
Unfair trade practice acts
_____ starts with the customer, considers the competition and associated costs, and then determines the appropriate price.
Value-based pricing
_____ are another of the most popular tools by which marketers reach consumers, and YouTube is by far the largest online video repository
Videos
Changing a price level from premium to super premium may require _____.
a change in the product itself, the target customers served, the promotional strategy, or the distribution channels
Failure to respond to criticism typically leads to _____.
a larger crisis
Manufacturers sometimes maintain skimming prices throughout _____.
a product's life cycle
As with any marketing campaign, it is always important to start with _____.
a strategy
Increased usage of _____ like smartphones and tablet computers has further contributed to the proliferation of social media usage.
alternative platforms
Profit maximization does not _____.
always signify unreasonably high prices
The _____ is the most important information when promoting a discount.
amount saved
As marketing moves into social media, marketers must remember that for most people, social media _____.
are meant to be a social experience, not a marketing experience
To earn a profit, managers must _____.
choose a price that is not too high or too low—a price that equals the perceived value to target consumers
Social bookmarking sites objective of their users is to _____.
collect, save, and share interesting and valuable links
The new _____ created by a shift to social media marketing raises questions about categorization.
communication paradigm
To succeed with a low market share, companies often need to _____.
compete in industries with slow growth and few product changes
A reduction in price may be necessary to stay even with the _____. Specifically, if a competitor undercuts the price quoted by a seller to a buyer, the law authorizes the seller to lower the price charged to the buyer for the product in question.
competition
To the _____, price is the cost of something.
consumer
_____ is an extra fee paid by the consumer for violating the terms of the purchase agreement
consumer penalty
Realistic pricing goals require _____ to determine the effectiveness of the company's strategy.
continual monitoring
Another bright spot is a new category, _____ who post status updates on social networking sites and microblogging services such as Twitter.
conversationalists (people)
A _____ is a discount offered via paper, a card, a printable web page, or an electronic code.
coupon
Using consumers to develop and market products is called _____.
crowdsourcing
The disadvantage of penetration pricing is that penetration means gearing up for mass production to sell a large volume at a low price. If the volume fails to materialize, the company will _____.
face huge losses from building or converting a factory to produce the failed product
a _____ does not change as output is increased or decreased. Examples include rent and executives' salaries.
fixed cost
_____ is a price tactic in which different customers pay different prices for essentially the same merchandise bought in equal quantities
flexible pricing (variable pricing)
Some ways to measure ROI include _____.
followers or fans, purchases from social media referrals, retweets, and shares. In truth, there are countless measures
Once a company has started listening, it typically wants to develop a more _____ approach.
formalized
_____ is a price tactic in which the seller pays all or part of the actual freight charges and does not pass them on to the buyer
freight absorption pricing
_____ is a discount to wholesalers and retailers for performing channel functions
functional discount (trade discount)
If a company is strapped for funds or faces an uncertain future, it may try to _____.
generate a maximum amount of cash in the short run
Many mobile games use advertising to _____.
generate revenue for the game developers and publishers
Some pharmacy benefit managers, such as Express Scripts and CUS Health, have begun banning drugs from their programs because of _____.
high costs and coupon copays
price matching may result in _____ prices.
higher
Once objectives have been determined and measurement tools have been implemented, it is important to _____.
identify the consumer the marketer is trying to reach
A bad experience with a higher priced product or service tends to _____.
increase the level of disappointment
By maintaining a popular Facebook page, a brand _____.
increases its social media presence and also helps to optimize search engine results
Attempting to reach a mass audience with a static message will never be as successful as _____.
influencing people through conversation
In a _____, the buyer, rather than the seller, specifies the item or service that he or she is looking for. Sellers then compete to offer the lowest price to win the bid.
reverse auction
Social media have the potential to _____.
revolutionize the way organizations communicate with stake-holders
Reaching the desired market share often means _____.
sacrificing short-term profit because without careful management, long-term profit goals may not be met
_____ is a price reduction for buying merchandise out of season
seasonal discount
To the _____, price is revenue—the primary source of profits.
seller
A _____ is a program that searches the Web for the best price for a particular item that you wish to purchase.
shopping bot
Many entertainment companies and movie marketers have used YouTube as a _____.
showcase for new products, specials, and movie trailers
_____ is a price tactic that offers all goods and services at the same price (or perhaps two or three prices)
single-price tactic
In general, _____ sites are designed to help consumers make more informed decisions on purchases and services.
social commerce
_____ is a subset of e-commerce that involves the interaction and user contribution aspects of social online media to assist online buying and selling of products and services
social commerce
While marketers typically employ a social media strategy alongside traditional channels like print and broadcast, many budget pendulums are swinging toward _____.
social media
With _____, the audience is often in control of the message, the medium, the response, or all three.
social media
_____ have created a new method of market research: customers telling marketers what they want and need (and do not want and do not need).
social media
_____ include tools and platforms like social networks, blogs, microblogs, and media sharing sites, which can be accessed through a growing number of devices including smartphones, e-readers, televisions, tablets, video game consoles, and netbooks.
social media
Managers use other pricing tactics for various reasons:
to stimulate demand for specific products, to increase store patronage, to offer a wider variety of merchandise at a specific price point.
_____ offer a mass media method of interacting with consumers while social media offer more one-to-one ways to meet consumers.
traditional marketing media
_____ is a price tactic that charges two separate amounts to consume a single good or service
two-part pricing
The big advantage of penetration pricing is that it _____.
typically discourages or blocks competition from entering a market
Among the issues that are subject to government regulation include:
unfair trade practices, price fixing, price discrimination, and predatory pricing.
_____ is a price tactic in which the seller pays the actual freight charges and bills every purchaser an identical, flat freight charge
uniform delivered pricing
Unlike geographic pricing, other pricing tactics are _____.
unique and defy neat categorization
Competing with products such as Apple's FaceTime and Microsoft's Skype, Hangouts offers _____.
unique innovations such as live streaming and recording
Instead of simply putting a brand advertisement on television with no means for feedback, marketers can _____.
use social media to have conversations with consumers, forge deeper relationships, and build brand loyalty
