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MRKTvocabEXAM III

MRKTvocabEXAM III - MARKETING 341 Vocabulary EXAM III...

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MARKETING 341 Vocabulary EXAM III Chapter 9 Allowance - promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer’s products in some way Break even pricing (target profit pricing) - setting price to break even on the costs of making and marketing a product; or setting price to make a target profit By-product pricing - setting a price for by-products in order to make the main product’s price more competitive Captive product pricing - setting a price for products that must be used along with a main product Cost-based pricing - setting prices based on the cost for producing, distributing, and selling the product plus a fair rate of return for its effort and risk Cost-plus pricing - adding a standard markup to the cost of the product Demand curve - a curve that shows the number of units the market will buy in a given period, at different prices that might be charged Discount - a straight reduction in price on purchases under stated conditions or during a stated period of time Dynamic pricing - adjusting prices continually to meet the characteristics and needs of individual customers and situations Fixed costs - costs that do not vary with production or sales level Geographical pricing - setting price based on the buyer’s geographic location Good-value pricing - offering just the right combination of quality and good service at a fair price Market penetration pricing - setting a low price for a new product in order to attract a large number of buyers and a large market share Market skimming pricing - setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales Optional product pricing
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- the pricing of optional or accessory product along with a main product Price - the amount of money charged for a product or service, or the sum of all the values that customers give up in order to gain the benefits of having or using a product Price elasticity - a measure of the sensitivity of demand to changes in price Product bundle pricing - combining several products and offering the bundle at a reduced price Product line pricing - setting the price steps between products in a product line based on cost differences and customer perceptions of the value Promotional pricing - temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales Psychological pricing - a pricing approach that considers the psychology of prices and not simply the economics; the price is used to say something about the product Reference prices - prices that buyers carry in their minds and refer to when they look at a given product Segmented pricing - selling a product or service at two or more prices, where the difference in prices is not based on differences in costs Target costing - pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met Total costs
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