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Exam4_FC5 - The flashcards are formatted for printing...

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Execution Styles Message Execution
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The way an advertisement portrays its information; AIDA plan is a good means. Often dictate the media utilized (i.e. print works well for scientific styles, while demonstration and musical styles are more likely found in broadcast advertising).
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Profit-Orientation Price
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The overall sacrifice a consumer is willing to make to acquire a specific product or service. i.e. institute a companywide policy that all products must provide for at least an 18% profit margin to reach a particular profit goal for the firm
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Sales Orientation Sales Orientation
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Firms believe increasing sales will help the firm more than will increasing profits. i.e. set prices very low to generate new sales and take sales away from competitors, even if profits suffer
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Substitution Effect Income Effect
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As people’s income increases, their spending behavior changes; they tend to shift their demand from lower-priced products to higher-priced alternatives. The greater the availability of substitute products, the higher the price elasticity of demand for any given product will be.
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Skimming Nonprice Competition
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Always engage in it by adding value, unless you have a real strong advantage in engaging in price competition. Appeals to segments of consumers who are willing to pay the premium price to have the innovation first.
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Cash Discount Penetration
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Firms set the initial price low for the introduction of a new product to build sales, market share, and profits quickly An additional reduction that reduces the invoice cost if the buyer pays the invoice prior to the end of the discount period.
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Trade Discounts Quantity Discounts
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Providing a reduced price according to the amount purchased.
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