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"Market-skimming pricing (price skimming)"
"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."
"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."
"Product line pricing"
"Setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors' prices."
"Optional-product pricing"
"The pricing of optional or accessory products along with a main product."
"captive-product pricing”
"Setting a price for products that must be used along with a main product, such as blades for a razor and games for a video-game console."
"By-product pricing"
"Setting a price for by-products to help offset the costs of disposing of them and help make the main product's price more competitive."
"Product bundle pricing"
"Combining several products and offering the bundle at a reduced price."
"Discount"
"A straight reduction in price on purchases during a stated period of time or of larger quantities."
"Allowance"
"Promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way."
"Segmented pricing"
"Selling a product or service at two or more prices, where the difference in prices is not based on differences in costs."
"Psychological pricing"
"Pricing 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."
"Promotional pricing"
"Temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sale"
"Geographical pricing"
"Setting prices for customers located in different parts of the country or world."
"FOB-origin pricing"
"Pricing in which goods are placed free on board a carrier; the customer pays the freight from the factory to the destination."
"Uniform-delivered pricing"
"Pricing in which the company charges the same price plus freight to all customers, regardless of their location."
zone pricing
"Pricing in which the company sets up two or more zones. All customers within a zone pay the same total price; the more distant the zone, the higher the price."
basing-point pricing
"Pricing in which the seller designates some city as a basing point and charges all customers the freight cost from that city to the customer."
freight absorption pricing
"Pricing in which the seller absorbs all or part of the freight charges in order to get the desired business."
dynamic pricing
"Adjusting prices continually to meet changing conditions and situations in the marketplace."
personalized pricing
"Adjusting prices in real time to fit individual customer needs, situations, locations, and buying behaviors."
"Value delivery network"
"A network composed of the company, suppliers, distributors, and, ultimately, customers who partner with each other to improve the performance of the entire system in delivering customer value."
"Marketing channel (distribution channel)"
"A set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user."
"Channel level"
"A layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer."
"Direct marketing channel"
"A marketing channel that has no intermediary levels."
"Indirect marketing channel"
"A marketing channel containing one or more intermediary levels."
"Channel conflict"
"Disagreements among marketing channel members on goals, roles, and rewards—who should do what and for what rewards.
"Conventional distribution channel"
"A channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits, perhaps even at the expense of profits for the system as a whole."
"Vertical marketing system (VMS)"
"A channel structure in which producers, wholesalers, and retailers act as a unified system. One channel member owns the others, has contracts with them, or has so much power that they all cooperate."
"Corporate VMS"
"A vertical marketing system that combines successive stages of production and distribution under single ownership—channel leadership is established through common ownership."
"Contractual VMS"
"A vertical marketing system in which independent firms at different levels of production and distribution join together through contracts.
"Franchise organization"
"A contractual vertical marketing system in which a channel member, called a franchisor, links several stages in the production-distribution process."
"Administered VMS"
"A vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties.
"Horizontal marketing system"
"A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity."
"Multichannel distribution system"
"A distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments."
"Disintermediation"
"The cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries."
"Marketing channel design"
"Designing effective marketing channels by analyzing customer needs, setting channel objectives, identifying major channel alternatives, and evaluating those alternatives."
"Intensive distribution"
"Stocking the product in as many outlets as possible."
"Exclusive distribution"
"Giving a limited number of dealers the exclusive right to distribute the company's products in their territories."
"Selective distribution"
"The use of more than one but fewer than all of the intermediaries that are willing to carry the company's products.
"Marketing channel management"
"Selecting, managing, and motivating individual channel members and evaluating their performance over time."
"Marketing logistics (physical distribution)"
"Planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit.
"Supply chain management"
"Managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers.
"Distribution center"
"A large, highly automated warehouse designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible."
"Multimodal transportation"
"Combining two or more modes of transportation."
"Integrated logistics management"
"The logistics concept that emphasizes teamwork—both inside the company and among all the marketing channel organizations—to maximize the performance of the entire distribution system."
"Third-party logistics (3PL) provider"
"An independent logistics provider that performs any or all of the functions required to get a client's product to market."
"Retailing"
"All the activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use.
"Retailer"
"A business whose sales come primarily from retailing.
"Shopper marketing"
"Focusing the entire marketing process on turning shoppers into buyers as they move along toward the point of sale, whether during in-store, online, or mobile shopping."
"Omni-channel retailing"
"Creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping."
"Specialty store"
""A retail store that carries a narrow product line with a deep assortment within that line."
"Department store"
"A retail store that carries a wide variety of product lines, each operated as a separate department managed by specialist buyers or merchandisers."
"Supermarket"
"A large, low-cost, low-margin, high-volume, self-service store that carries a wide variety of grocery and household products."
"Convenience store"
"A small store, located near a residential area, that is open long hours seven days a week and carries a limited line of high-turnover convenience goods.
"Superstore"
"A store much larger than a regular supermarket that offers a large assortment of routinely purchased food products, nonfood items, and services.
"Category killer"
"A giant specialty store that carries a very deep assortment of a particular line."
"Service retailer"
"A retailer whose product line is actually a service; examples include hotels, airlines, banks, colleges, and many others."
"Discount store"
"A retail operation that sells standard merchandise at lower prices by accepting lower margins and selling at higher volume.
"Off-price retailer"
"A retailer that buys at less-than-regular wholesale prices and sells at less than retail."
"Independent off-price retailer"
"An off-price retailer that is independently owned and operated or a division of a larger retail corporation."
"Factory outlet"
"An off-price retailing operation that is owned and operated by a manufacturer and normally carries the manufacturer's surplus, discontinued, or irregular goods."
"Warehouse club"
"An off-price retailer that sells a limited selection of brand name grocery items, appliances, clothing, and other goods at deep discounts to members who pay annual membership fees."
"Corporate chains"
"Two or more outlets that are commonly owned and controlled."
"Franchise"
"A contractual association between a manufacturer, wholesaler, or service organization (a franchisor) and independent businesspeople (franchisees) who buy the right to own and operate one or more units in the franchise system."
"Shopping center"
"A group of retail businesses built on a site that is planned, developed, owned, and managed as a unit."
"Wholesaling"
"All the activities involved in selling goods and services to those buying for resale or business use."
"Wholesaler"
"A firm engaged primarily in wholesaling activities."
"Merchant wholesaler"
"An independently owned wholesale business that takes title to the merchandise it handles.
"Broker"
"A wholesaler who does not take title to goods and whose function is to bring buyers and sellers together and assist in negotiation.
"Agent"
"A wholesaler who represents buyers or sellers on a relatively permanent basis, performs only a few functions, and does not take title to goods.
"Manufacturers' and retailers' branches and offices"
"Wholesaling by sellers or buyers themselves rather than through independent wholesalers.
"Advertising"
"Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor."
"Sales promotion"
"Short-term incentives to encourage the purchase or sale of a product or a service."
"Personal selling"
"Personal presentation by the firm's sales force for the purpose of engaging customers, making sales, and building customer relationships.
"Public relations (PR)"
"Building good relations with the company's various publics by obtaining favorable publicity, building a good corporate image, and creating favorable events, stories, and other marketing content.
"Direct and digital marketing
"Engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships.
"Promotion mix (marketing communications mix)"
"The specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships."
"Content marketing"
"Creating, inspiring, and sharing brand messages and conversations with and among consumers across a fluid mix of paid, owned, earned, and shared channels."
"Integrated marketing communications (IMC)"
"Carefully integrating and coordinating the company's many communications channels to deliver a clear, consistent, and compelling message about the organization and its products.
"Five As"
"The five customer journey stages on the path from awareness of a brand to advocating it to others: awareness, appeal, ask, act, and advocacy."
"Personal communication channels"
"Channels through which two or more people communicate directly with each other, including face-to-face, on the phone, via mail or email, or even through an internet "chat.""
"Word-of-mouth influence"
"The impact of the personal words and recommendations of trusted friends, family, associates, and other consumers on buying behavior.
"Buzz marketing"
"Cultivating opinion leaders and getting them to spread information about a product or a service to others in their communities."
"Nonpersonal communication channels"
"Media that carry messages without personal contact or feedback, including major media, atmospheres, and events."
"Affordable method"
"Setting the promotion budget at the level management thinks the company can afford."
"Percentage-of-sales method"
"Setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price.
"Competitive-parity method"
"Setting the promotion budget to match competitors' outlays.
"Objective-and-task method"
"Developing the promotion budget by (1) defining specific promotion objectives, (2) determining the tasks needed to achieve these objectives, and (3) estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget."
"Push strategy"
"A promotion strategy that calls for using the sales force and trade promotion to push the product through channels. The producer promotes the product to channel members who in turn promote it to final consumers.
"Pull strategy"
"A promotion strategy that calls for spending a lot on consumer advertising, promotion, and other content to induce final consumers to engage with and buy the product, creating a demand vacuum that "pulls" the product through the channel."