Pricing, distributing, and providing products -- terms

business essentials -- part 11 -- terms

pricing -- process of determining what a company will receive in exchange for its products
pricing objectives -- goals the producers hope to attain in pricing products for sale
market share -- as a percentage, total of market sales for specific company or product
markup -- amount added to an items cost to sell it at a profit
variable cost -- cost that changes with the quantity of a product produced or sold
fixed cost -- cost unaffected by the quantity of a product produced or sold
breakeven analysis -- for particular selling price, assessment of the sellers cost vs. revenues at various sales volumes
breakeven point -- sales volume at which the sellers total revenue from sales equals total costs (variable and fixed) with neither profit or loss
price skimming -- selling an initially high price to cover new product costs and generate a profit
penetration pricing -- selling an initially low-price to establish a new product in the market
price lining -- setting a limited number of prices for certain categories of products
psychological pricing -- pricing tactic that takes advantage of the fact that consumers do not always respond rationally to stated prices
odd-even pricing -- psychological pricing tactic based on the premise that customers prefer prices not stated in even dollar amounts
distribution mix -- the combination of distribution channels by which a firm gets its products to end-users
intermediary -- individual or firm that helps to distribute a product
wholesaler -- intermediary who sells products to other businesses for resale to final consumers
retailer -- intermediary who sells products directly to consumers
distribution channel -- network of interdependent companies to which a product passes from producer to end-user
direct channel -- distribution channel in which a product travels from producer to consumer without intermediaries
sales agent/broker -- independent intermediary who usually represents many manufacturers and sells to wholesalers or retailers
industrial (business) distribution -- network of channel members involved in the flow of manufactured goods to industrial customers
merchant wholesaler -- independent wholesaler who takes legal possession of goods produced by a variety of manufacturers and then resells them to other businesses
e-intermediary -- Internet distribution channel member that assists in moving products through to customers or that collects information about various sellers to be presented in convenient format for Internet customers
department store -- large product line retailer characterized by organization into specialized departments
supermarket -- large product line retailer offering a variety of food and food related items in specialized departments
specialty store -- small retail store carrying one product line or category of related products
bargain retailer -- retailer carrying a wide range of products at bargain prices
discount house -- bargain retailer that generates large sales volume by offering goods at substantial price reductions
catalog showroom -- bargain retailer in which customers place orders for catalog items to be picked up on premises where houses
factory outlet -- bargain retailer added by the manufacturer whose products bid to sells
warehouse club (or wholesale club) -- bargain retailer offering large discounts on brand-name merchandise to customers who have paid annual membership fees
convenience store -- retail store offering easy accessibility, extended hours, and fast service
direct response retailing -- nonstore retailing by direct interaction with customers to inform them of products and to receive sales orders
mail order (or catalog marketing) -- form of nonstore retailing in which customers place orders for catalog merchandise received to the mail
telemarketing -- nonstore retailing in which the telephone is used to sell directly to consumers
electronic retailing -- nonstore retailing in which information about the sellers products and services is connected to consumers computers, allowing consumers to receive the information and purchased the products in the home
e-catalog -- nonstore retailing in which the Internet is used to display products
electronic storefront -- commercial web site in which customers gather information about products, buying opportunities, placing orders, and paying for purchases
cybermall -- collection of virtual storefronts (business web sites) representing a variety of products and product lines on the Internet
interactive marketing -- nonstore retailing that uses a Web site to provide real-time sales and customer service
video marketing -- nonstore retailing to consumers via standard and cable television
physical distribution -- activities needed to move the product efficiently from manufacturer to consumer
warehousing -- physical distribution operation concerned with the storage of goods
private warehouse -- warehouse owned by and providing storage for single company
public warehouse -- independently owned and operated warehouse stores goods for many firms
order fulfillment -- all activities involved in completing a sales transaction, beginning with making the sale and ending with on-time delivery to the customer
promotion -- aspect of the marketing mix concerned with the most effective techniques for selling a product
positioning -- process of establishing identifiable product image in the minds of consumers
promotional mix -- combination of tools used to promote products
advertising -- promotional tool consisting of paid, not personal communications used by an identified sponsored to inform an audience about a product
advertising media -- variety of communication devices for carrying a seller's message to potential customers
direct-mail -- advertising medium in which messages are mailed directly to consumers homes or places of business
media mix -- combination of advertising media chosen to carry message about a product
personal selling -- promotional tool in which a salesperson communicates one-on-one with potential customers
order processing -- personal selling task in which salespeople receive orders and see to their handling and delivery
creative selling -- personal selling task in which salespeople tried to persuade buyers to purchase products by providing information about their benefits
missionary selling -- personal selling tasks and which salespeople promote their firms and products rather than try to close sales
sales promotion -- short-term promotional activity designed to stimulate consumer buying or cooperation from distributors and sales agents
coupon -- sales promotion technique and what a certificate is issued entitling the buyer to reduced price
point-of-purchase (POP) display -- sales promotion technique in which product displays are located in certain areas to stimulate purchase
premium -- sales promotion technique and which offers are free or reduced price items are used to stimulate purchases
trade show -- sales promotion technique in which various members of an industry gather to display, demonstrate, and sell products
publicity -- promotional tool in which information about a company or product is transmitted by general mass media
public relations -- company influenced publicity directed at building goodwill with the public or dealing with unfavorable events