Ch. 11

Loss Leader

A product or service that is sold at a non-operating loss (i.e. the price only accounts for the actual cost of the product) to simply get customers in the store.

Virtually Free Promotions

Promotions that have very limited financial cost but have time-commitment requirements from individuals in the firm.

Contract Sales Force

Independent salespeople with a wide variety of experiences and contacts, provided by a company on a contract basis.

Bootstrap Marketing

Marketing efforts that require little capital.

Cost-plus Pricing

Pricing in which the entrepreneur initially determines her cost structure and then determines what profit margin is desired and adds that to the cost.

Pure Promotion

Promotions that are strictly financial arrangements in which you pay for some outputs, such as radio advertisements.

Mixed-model Promotions

Promotions that cost something but also have an element of community support.

Independent Representatives

Representatives for a variety of products for a number of companies in a given domain who try to sell those products.

Pricing Floor

The break-even point, or the lowest amount that can be charged for a product or service while still making a minimal profit.

Promotion

The means by which a business advances its product or service.

Sales Management

The methods employed to, and the individuals who build and maintain relationships with customers.

Marketing Plan

The plan developed by the entrepreneurial business to specify who the customers are and how they will be attracted to the company.