Exam 4 - CH 16-20

Status Quo Objective (Chapter 16)

"Don't-rock-the-pricing-boat" objectives

Non-Price Competition (Chapter 16)

Aggressive action on one or more of the Ps other than Price

Price Lining (Chapter 17)

Setting a few price levels for a product line and then marking all items at these prices

Prestige Pricing (Chapter 17)

Setting a rather high price to suggest high quality or high status

Contribution-Margin Approach (Chapter 18)

A cost analysis approach in which all costs are not allocated in all situations

Sales Analysis (Chapter 18)

A detailed breakdown of a company's sales records

Markup (Chapter 17)

A dollar amount added to the cost of products to get the selling price

Cash Flow Statement (Chapter 19)

A financial report that forecasts how much cash will be available after paying expenses

Trade (Functional) Discount (Chapter 16)

A list price reduction given to channel members for the job they are going to do

Performance Index (Chapter 18)

A number that shows the relation of one value to another

Stock (Chapter 19)

A share in the ownership of a company

Target Return Objective (Chapter 16)

A specific level of profit as an objective

Marketing Audit (Chapter 18)

A systematic, critical, and unbiased review and appraisal of the basic objectives and policies of the marketing function and of the organization, methods, procedures, and people employed to implement the policies

Average-Cost Pricing (Chapter 17)

Adding a reasonable markup to the average cost of a product

Push Money (or Prize Money) Allowances (Chapter 16)

Allowances (sometimes called PMs or spiffs) given to retailers by manufacturers or wholesalers to pass on to the retailers' salesclerks for aggressively selling certain items

Stocking Allowances (Chapter 16)

Allowances given to wholesalers or retailers to get shelf space for a product --- sometimes called slotting allowances

Profit Maximization Objective (Chapter 16)

An objective to get as much profit as possible

Sales-Oriented Objective (Chapter 16)

An objective to get some level of unit sales, dollar sales or share of market --- without referring to profit

Performance Analysis (Chapter 18)

Analysis that looks for exception or variations from planned performance

American Customer Satisfaction Index (ACSI) (Chapter 20)

Based on regular interviews with thousands of customers of about 200 companies in 39 industries. Similar studies are available for member countries of the European Union

Debt Financing (Chapter 19)

Borrowing money based on a promise to repay the loan, usually within in a fixed time period and with a specific interest charge

Administered Prices (Chapter 16)

Consciously set prices aimed at reaching the firm's objectives

Seasonal Discounts (Chapter 16)

Discounts offered to encourage buyers to buy earlier than present demand requires

Marginal Analysis (Chapter 17)

Evaluating the change in total revenue and total cost from selling one more unit to find the most profitable price and quantity

Working Capital (Chapter 19)

Money to pay for short-term expenses such as employee salaries, advertising, marketing research, inventory storing costs, and what the firm owes suppliers

Iceberg Principle (Chapter 18)

Much good information is hidden in summary data

Rebates (Chapter 16)

Refunds to consumers after a purchase

Value in Use Pricing (Chapter 17)

Setting prices that will capture some of what customers will save by substituting the firm's product for the one currently being used

Leader Pricing (Chapter 17)

Setting some very low prices --- real bargains --- to get customers into retail stores

Mass Customization (Chapter 19)

Tailoring the principles of mass production to meet the unique needs of individual customers

Production Capacity (Chapter 19)

The ability to produce a certain quantity and quality of specific goods or service

Price (Chapter 16)

The amount of money that is charged for "something" of value

Natural Accounts (Chapter 19)

The categories to which various costs are charged in the normal financial accounting cycle

Marginal Revenue (Chapter 17)

The change in total revenue that results from the sale of one more unit of a product

Control (Chapter 18)

The feedback process that helps the marketing manager learn (1) how ongoing plans and implementation are working and (2) how to plan for the future

Virtual Corporation (Chapter 19)

The firm is primarily a coordinator --- with a good marketing concept-instead of a product

Rule for Maximizing Profit (Chapter 17)

The highest profit is earned at the price where marginal cost is just less than or equal to marginal revenue

Market-Directed Economy (Chapter 20)

The individual decisions of the many producers and consumers make the macro-level decision for the whole economy

Capital (Chapter 19)

The money invested in a firm

Stockturn Rate (Chapter 17)

The number of time the average inventory is sold during a year

Basic List Prices (Chapter 16)

The prices that final customers or users are normally asked to pay for products

Break-Even Point (BEP) (Chapter 17)

The sales quantity where the firms' total cost will just equal its total revenue

Markup Chain (Chapter 17)

The sequence of markup firms use at different levels in a channel --- determining the price structure in the whole channel

Total Variable Cost (Chapter 17)

The sum of those changing expenses that are closely related to output --- such as expenses for parts, wages, packaging materials, outgoing frieght, and sales commissions

Total Fixed Cost (Chapter 17)

The sum of those costs that are fixed in total --- no matter how much is produced

Skimming Price Policy (Chapter 16)

Trying to sell the top for the market --- the top of demand curve --- at a high price before aiming at more price-sensitive customers

Penetration Pricing Policy (Chapter 16)

Trying to sell the whole market at one low price

Enterprise Resource Planning (ERP) Systems (Chapter 19)

Which integrate internal and external information management across the entire organization