Entrepreneurship-Ch11 Quiz
2 types of telemarketing:
1. Inbound: customer calls company 2. Outbound: company calls customer
margin
amount of profit that you will make (usually % of total price)
consumer psychology has __________
an impact on pricing
Lay-out
2 basic: 1. grid (isles from front to back/Walmart) 2. freeform (not isles/Clothing store
international strategies
large companies only account for 2% of exporters
guerilla marketing
low cost/free advertising
advantage of e-tailer
low overhead cost
word-of-mouth (WOM)
people telling other people
periodic discounting
periodically discount products, regular basis
direct mail
post cards, catalogs, letters, fliers, broachers
law of supply and demand
price IS greatly affected
odd even pricing (psychological pricing)
price ends with a 9, 7, or 5
price lining
set 3 price points: good, better, and best
partition pricing
setting a price for a base item then charging extra for each added component
prestige pricing
Setting a price above that of the competition to prove that your product is a status symbol
Hometown is 1st choice location for small business
T
Supply and demand affect each other (T or F)
T
word of mouth is not easily controlled by you (t or f)
T
inelasticity
a product for which there are few substitutes and a change in price makes very little difference in amount bought.
build, buy, or lease
build: most expensive up-front cost
wholesaler
business that buys and sales to other businesses
retailer
business that sales to consumer
price gouging
charging an outrageously high price for something
off peak pricing
charging lower prices at certain times to encourage customers to come during slack periods
bundling
combine 2+ products into one and sold it for cheaper than if they were separate
telemarketing
contact by phone trying to sell a product or service,
skimming
highest price the market will bare
E-Tailer
electronic retailer (store only exists online)
dropped prices are ____________
hard to raise again
location
is highly dependent on what your business is, niche, and other things
competition
is important
Price is the easiest _________ __________ to change.
marketing variable
manufacturers-where you make the product depends on what the product is
most of the time manufacturing production happens away from the home
up-front cost
pay right then and there
Optimum price
the highest price that will produce your desired level of sales in your particular market
elasticity
the market's demand for a product is sensitive to changes in its price
atmospherics
trying to appeal to customer
random discounting
unexpected
multichannel marketing
using several different ways to reach your customers
What your market will bare
what will your market accept