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
