marketing

• PRICE


  money, good, or service exchanged for the ownership or use of a good or service.
• PRICING


  activities involved in the determination of the price at which products that will be offered for sale
• TYPES OF COST

  1. unit variable cost and 2. unit share of operating and other expenses, or fixed costs
• UNIT VARIABLE COST


  how much it would cost to manufacture one unit of the product. includes the cost of direct materials, direct labor and direct overhead.
• product’s unit variable cost


  sum of the three costs (direct materials, direct labor, and direct overhead)
• FIXED COST


  expenses incurred by the organization that are not related to the manufacture of the product.
• FIXED COST 


  include executive and staff salaries, office rental, advertising, and promotions, professional; fees and other similar expenses.
• BREAK-EVEN POINT


  lowest possible price the company can set for its shirts, under normal circumstances
• PRICING STRATEGY (MARK-UP PRICING)


  fixed mark-up every time the product is sold. biggest weakness of this is the inclusion of unit sales in determining the product’s mark-up price.
• PRICING STRATEGIES (TARGET RETURN PRICING)


  allows a product manufacturer to recover a certain portion of his/her investment every year.
• PRICING STRATEGIES (ODD PRICING)


  products with odd price endings as lower in price than they actually are
• ODD PRICING OR PSYCHOLOGICAL PRICING


  products with odd price endings as lower in price than they actually are
• PRICING STRATEGIES (LOSS LEADER PRICING)


  comparison items low to make their products appear more affordable than others. practice of housewife
• PRICING STRATEGIES (PRICE LINING)


  reducing the number of price points on merchandise to as little as possible, in extreme cases to only one price point.
• PRICING STRATEGIES (PRESTIGE PRICING)


  high value perception or positive brand reputation of a product or service. It charges a price much higher than its unit cost.
• PRICING STRATEGIES (MARGINAL PRICING)


  price in a sealed bidding or other highly competitive situations. “sunk”
• PRICING STRATEGIES (PREDATORY PRICING)


  illegal in most countries. price a new or persistent competitor out of the market
• PRICING STRATEGIES (GOING RATE PRICING)


  same level as or very close to its competitors’ prices.
• PRICING STRATEGIES (PROMOTIONAL PRICING)


  induce trial or to encourage repeat purchase. temporary reduction in the selling price of a product
• NEW PRODUCT PRICING STRATEGIES

  1. PRICE SKIMMING 2. PENETRATION PRICING
• NEW PRODUCT PRICING (PRICE SKIMMING)


  products are still non-existent in the market. way above its unit cost.
• NEW PRODUCT PRICING (PENETRATION PRICING)


  capture a large part of the market at an early stage by making the product affordable to the greatest number of people. product is priced only marginally above its unit cost.
• Maximum revenue 


  -PENETRATION -MARGINAL -GOING RATE -PROMOTIONAL PRICING
• Maximum market share 


  -PENETRATION -MARGINAL -GOING RATE -PROMOTIONAL PRICING
• Maximum profit 


  -PRICE SKIMMING -PRESTIGE PRICING
• SURVIVAL


  MARGINAL PRICING
• DISTRIBUTION CHANNEL (MANUFACTURER)


  produce product from raw material. appoint external distributors or establish their own sales force to sell directly to wholesalers and retailers
• DISTRIBUTION CHANNEL (DISTRIBUTOR)


  perform the distribution function for manufacturers in making their products available. may sell to wholesalers or retailers or may even go directly to consumers
• DISTRIBUTION CHANNEL (WHOLESALING)


  lessen the interaction between manufacturers/principals and retailers. organizations that sell to those who buy for resale or business use
• DISTRIBUTION CHANNEL (RACK JOBBERS)


  serve grocery and dug retailers, mostly in nonfood items.
• DISTRIBUTION CHANNEL (RETAILING)


  sale of products or services directly to final consumers
• OTHER FORM (FRANCHISING)


  accelerated method expand distribution coverage
• OTHER FORMS (DIRECT SELLING)


  distribution network. Network marketing also “Peoples Franchise” because a seller secures the right to sell a company’s products. You only need to pay a starter kit.
• OTHER FORMS (THE INTERNET)


  companies limited to sell products through stores or through direct sales.
• OTHER FORMS (HOME DELIVERY)


  influenced by more women working, lack of household maids, traffic and parking problems, as well as the consumer psyche of rewarding themselves for a hard day’s work.
• OTHER FORMS (HOME DELIVERY)


  appointing a centralized call center operator who is tasked to take or suggest orders as well as send these orders to the branch nearest the costumer
• DISTRIBUTION STRATEGIES

  1. INTENSIVE DISTRIBUTION 2. SELECTIVE DISTRIBUTION 3. EXCLUSIVE DISTRIBUTION
• DISTRIBUTION STRATEGIES (INTENSIVE)


  sell its products through every available outlet in a market where a consumer might reasonably try to find them.
• DISTRIBUTION STRATEGIES (SELECTIVE)


  give the product special attention. decreases the number of outlets who will carry the product. SD is used for purposes like avoiding making sales to middlemen
• DISTRIBUTION STRATEGIES (EXCLUSIVE)


  producer grants exclusive selling rights to a middleman in a certain area.