Embed Size (px)
Citation preview
Introductory Marketing Concepts
What is marketing?
What conditions must exist for an exchange to occur?
Voluntary participation by all partiesTwo or more parties involvedEach party must have something of value to exchangeParties must communicate with each other
Who is the customer?
UserDeciderBuyerInfluencer
Where can marketing be applied?
All exchange situations - private, public, business-to-business
Evolution of marketing
Production-orientationSales-orientationMarketing-orientation
What is the marketing concept?
Coordinated customer-orientation to achieve organizational performance objectives.
What are organizational performance objectives?
What is relationship marketing?
Personal, long-term bonds with customers more like a partner than a participant in an exchange.
What is the societal marketing concept?
Social responsibilityRecyclingSustainability
What is ethical behavior?
Golden ruleKant - greatest good for the greatest number of peopleRelativismBanner Headline
What is quality?
Dimensions -- Performance Time saving Perceived quality Durability
What is value?
What is utility?
The something in the product that satisfies needs is utility. Marketing helps create utility.
Time utilityPlace utilityPossession utility
What is positioning?
Product's image in relationship to direct competitors
What is a differential advantage?
Feature of the organization or brand perceived by customers to be desirable and different from those of the competition.
What is a target market?
Group of people or organizations at which a firm directs a marketing program
What is the marketing mix?
ProductPlacePricePromotion
What is a SBU?
Major market or product
What is the BCG matrix?
Industry Stars QuestionGrowth MarksRate
Cash DogsCows
Market share
What is the product/market growth matrix?
Present Market ProductMarkets Penetration Development
New Market DiversificationDevelopment
Present New
Products
What is planning?
What is strategic planning?
Managers match an organization's resources with its market opportunities over the long-run
What is a strategic window?
Limited amount of time that a firm's resources coincide with a particular market opportunity.
What are key planning concepts/operations?
Where are we? Situation analysisWhere do we want to go? Mission/objectivesHow doe we get there? Strategies/tactics
How do we know whether we got to where we want to go? Assessment or evaluation
KISS - keep it simple stupid
What is the difference between a strategy and a tactic?
Strategy is a broad plan of actionTactics - the way a strategy is implemented
What is the process of strategic marketing planning?
Situation analysisSet marketing objectivesDetermine position & differential advantageSelect target markets & measure market demandDesign a marketing mix
Marketing Opportunity Analysis
1. Benchmark performance standards to assess effectiveness of marketing plans
2. Customer satisfaction research3. Marketing Cost Analysis – cost efficiency of the marketing plan
(accounting traces results of account/market costs and MIS generages usable information for marketing decision-makers)
4. Sales Analysis5. Marketing Audit – systematic, critical and impartial review of the
marketing efforta. Horizontal – marketing mixb. Vertical – functional audit
What is an Integrated Marketing Plan?
1. Clear statement of organizational mission – organization’s commitment to a type of business and place in the market
2. Long-term competitive advantages – Can be at the company, product or marketing level but must be defendable over time
3. Defined target markets4. Compatible long-, moderate-, and short-term subplans5. Coordination among SBUs6. Coordination of the marketing mix7. Stability over time
Organizing the Marketing Effort
FunctionalGeographicProductProduct/Market matrix
Criticisms of Marketing
ExploitationInefficiencyStimulating unwholesome demandPlanned obsolesce
Consumerism
New calls for consumer protection in the U.S. Recent examples include lead paint used on toys imported from China, beef recall, subprime mortgage lending
The Marketing Environment
Environmental Scanning
Gather information on external environmentAnalyze the external environmentForecast impact on whatever trends exist
External Environment
Demographics - Baby Boomers (One turns 50 every 7 seconds), Generation X, Echo BoomersEconomic conditions - interest rates, inflationSocial & Cultural forces - green marketing, gender roles, Health and fitness, Investment clubs for women.Political Legal forces - Antitrust, Product Liability, Trademarks, Patents, ContractsTechnology - Chrysler plastic car, Blue ray versus HD players
Market - needs to be satisfied, money to spend willingness to spend SuppliersIntermediaries
Internal Environment
MarketingFinanceHuman ResourcesInformation TechnologyAccountingOperations
Global Marketing
Organization of global marketing effort
ExportingContract manufacturingLicensingDirect investment - joint venture
Social and cultural forces
Social customsEducation - literacy rateLanguage differences
Economies
Market driven versus command economyLevel of economic developmentInfrastructure
Political
Trade barriers - tariffs, import quota, local content lawTrade agreements - GATT 120 countries 40% decrease in tariffs
NAFTAEuropean UnionWTO
Understanding Consumer Market Behavior
What are the different markets?
Consumer marketGovernment marketBusiness-to-business market
What is the buying process?
Need recognitionIdentification of alternativesEvaluation of alternativesDecisionPostpurchase behavior - cognitive dissonance
Involvement
Level of involvement affects consumer decision-making. The more the consumer is involved in the process, the longer the purchase process. Involvement is the amount of time and effort the consumer puts into the purchase process. Factors that influence the amount of involvement include experience, interest, perceived risk, social visibility, situation.
Low involvement is a characteristic of impulse buying
High involvement is a characteristic of a shopping or specialty purchase.
Influences of buying behavior
Social InfluencesCulture - set of symbols and artifacts created by society and handed down from generation to generation as determinants of behavior. Baseball hats
Subculture - Hispanic market
Social class - consumers belong or aspire to belong to.
Upper class 2% - executives, Fortune 400Upper middle class 12% - professionalLower middle class 32% - small business owners, teachersUpper lower class 38% - blue collarLower lower class 16% - unskilled
Reference Groups - group that develops its own standards of behavior (clothes, shampoo). Aspiration reference group are influenced by opinion leaders.
Families and households - structure determines marketing strategy
Initiator, influencer, decider, user, buyer (Buying roles)
Family Life Cycle
Bachelor (male or female)Newly marriedFull nest I (children < 10)Full nest II (children 10-13)Full nest III (children 14-22)Empty nestSole Survivor I (remaining spouse is active)Sole Survivor II (remaining spouse is inactive)
Psychological models
Motivation - motive is a need sufficiently stimulated to move to action (satisfaction)
Maslow's hierarchy of needsSelf actualization – self fulfillmentEsteemBelonging and love - socialSafetyPhysiological
Perception - receiving, organizing and assigning meaning to information gathered by the five senses.
Selective attention - selective distortion - selective retention
Learning
Stimulus - response model
Airline power off at airport yet people were queued up
Personality - confidence, dominance, friendliness
Psychoanalytic model – id (basic desires), ego (rationality), superego (moral standards)
Perceived risk – decision-making is a function of a perception of the amount and type of risk that is associated with a purchase
Types of risk: financial, social, physical, performance, time
Self concept - Self image (see yourself)Ideal self concept (way you would like to be seen)Social self concept (way you are viewed by others)
Attitudes -predisposition to respond to an object in the same way. Beliefs (evaluation of beliefs) = attitudes
Aact = ∑ bi ei
Attitudes are learnedAttitudes have an objectAttitudes have direction and intensity
Situational influences that influence purchase behavior
Time - whenPhysical and social surroundings - whereTerms of purchase - HowTemporary state - moods
Buying motives for purchasing
Rational EmotionalEconomy of purchase Pride of appearanceDurability FearEase of Repair SafetyAvailability Desire to createEconomy of use Desire for security
Analyzing purchase behavior
6 Os of consumer buying behavior
Origins of purchase Who buys?Objectives of purchase Why do they buy?Occasions of purchase When do they buy?Outlets of purchase Where do they buy?Operations of purchase How do they buy? (What is the process used
to make a purchase)Objects of purchase What do they buy?
Do consumers buy features or benefits?
Features BenefitsPerformance Time savedReputation PrestigeColors Increased salesSize Greater convenienceService Economy of useWorkmanship Long life
Understanding Business Markets
Types of Markets
Agriculture market $190 billion Reseller market 500k wholesalers, 2.7 mil retailersGovernment market 86k Fed, State and Local unitsServices marketNonprofit marketInternational market 40% of earnings from outside the U.S.
What is derived demand?
Derived from the end user (consumer)Inelastic demand
What is an SIC - Standard Industrial Classification System
What are the various buying situations?
Rebuy, modified rebuy, new task
What is the buying process?
Need recognitionIdentification of alternativesEvaluation of alternativesPurchase decisionPostpurchase behavior
What is the buying center?
Individuals or groups of people involved in the decision making process regarding what to purchase.
Characteristics of purchase
InfrequentLarge order size than consumer marketUsually direct purchaseLonger negotiation period Demand service
Market Segmentation
Energy Drink Market
2007 consumption of carbonated soft drinks = 14.7 billion gallons8.7 billion gallons of bottled water313 million gallons of energy drinks, 3.5 billion cans or about $10 billion
There are about 250 energy drink brands. Some of these are:
Vegas Fuel targeting brighter moodsCoke’s Enviga targeting weight managementTab Energy targeting fuel for the fabulous 5 Hour Energy targeting more energy without the crashGo Girl targeting womenPro Player targeting poker loversKabbalah targeting spiritualistsRed BullRockstarMonster
What is market segmentation, market segment, target market?
How to segment a market?
Demographic Geographic - urban, rural, southeast, northeastPsychographic - personality, lifestyle, attitudeBenefits Sought - usage rate, usage occasionsBehavioral
Requirements - measurable, accessible, data available, size
What are the different segmentation strategies?
Undifferentiated - market aggregationConcentrated - single segmentMultisegment - multiple segment
Process of selecting a target market
1. Select a market2. Divide market into segments using one of the methods of segmentation3. Profile and analyze segments4. Select target market5. Design marketing mix
Evaluating viability of market segments
1. Can the segment be identified?2. Can the segment be measured?3. Is the segment large enough to support the marketing effort?4. Can the segment be reached with a marketing mix?
What is product positioning?
Perceptual mappingPositioning - Developing an image in relation to competitive products.
- Position relative to a competitor- Position relative to a product class or attribute- Position relative to a price & quality
Repositioning
What is market potential, sales potential, market share, sales forecast?
Marketing Research
What is research? [Asking ‘what if’ questions]
Discrete studies to assist in decisions
What is marketing intelligence?
Continuous flow of information
What is a customer database?
Why is such a database important?
Sources of data for databases - Scanners Commercial sources Business cards Product registration cards Contests
Marketing research process?
1. Define objectives2. Situation analysis - helps refine the research problem3. Informal investigation - using available information, "Is a formal study
needed?"4. Formal study
Types of Data
Secondary PrimaryCheaper More expensivePreviously collected Must be gathered for the projectMay not be in the exact form that is needed Focus groupQuestion accuracy Experiments - test marketsQuestion timeliness Surveys and observation
5. Gather data6. Analyze data7. Prepare report
Types of Studies
Type of study Exploratory Descriptive PredictiveSample Convenience Convenience, Random, systematic
random, systematic random, cluster,
stratified
random, cluster, stratified
Type of data Qualitative Qualitative or Quantitative
Quantitative
Data collection method
Observation, case studies, mall
intercept, consumer panel
Mail, telephone, personal interview, web survey, email
Experiment – for example test market
Data Collection Methods
Type of Survey Advantages Disadvantages RecommendationMail Frequently used
for social research
Low cost (almost 75% less than personal interviews)
Limits potential interviewer bias
May result in biased sample based on response rate
Time! Need to wait at least several weeks for responses
Low response rate
Limited to mostly closed-ended questions
Target population is highly literate or is in a group with specialized interests
Telephone Reach 96% of all homes
Computer software streamlines process
Interviewers can ask for clarification on responses
Very fast
Sales calls often pose as research calls
Typical calling window interrupts respondents
Call screening is common
No observation of interviewee
Limited mostly to closed-ended questions
General population surveys
Web Very low cost Very fast Able to ask
complex questions
Anonymity of
Do not reflect population as a whole (not everyone has Internet service)
Respondent
Use when desired target population consists of Internet users (business-to-
responses for sensitive topics
Able to ask more open-ended questions
Software simplifies compilation and analysis of data
completion rates low for long surveys
Random respondents may reply
business research, employee attitude surveys)
Email Similar to mail survey
Low cost Fast
Mailing list required
Spam filters prevent reception of survey
Limited to length of questionnaire and closed-ended questions
Use when desired target population is connected to the Internet
Personal Interview Frequently used to gauge attitudinal behavior
Excellent response rates
Longer interviews are tolerated
Very expensive Time consuming May produce
non-representative sample
Higher chance of interviewer bias
Very specific target population that has interest in a particular service or product
Product Concepts
What is a product?
A bundle of benefits that satisfies a human need or want.
Classification of Products
Consumer Business
Convenience Raw materials
Shopping Fabricating materials and parts
Specialty (strong Assembled or undergo further processingBrand preference)
Unsought (new product InstallationsConsumer is unawareOr consumer is aware Accessory Equipmentbut doesn't want it right now. Operating supplies
Importance of Product Development
40% of sales and 60% of profits from new products
Types of New Products
ImitativeReally innovativeSignificantly different
Product Development Process
Generate New Product IdeasScreen IdeasBusiness AnalysisPrototype DevelopmentMarket TestsCommercialization -- Launch
Criteria for New Products
1. Adequate market demand
2. Financial standards met3. Fit into company marketing structure
Adoption process
Awareness Interest Evaluation Trial Adoption Confirmation
Innovators 3% VenturesomeEarly adopters 13% RespectedEarly majority 34% DeliberateLate majority 34% SkepticalLaggards 16% Tradition-bound
Factors Affecting Adoption
Relative advantageCompatibilityComplexity - difficulty in understandingTrialability - may be sampledObservability - demonstrated
Differences between products and services
IntangiblePerishableInseparableHeterogeneousWord of mouth criticalGreater customization
Service quality is defined by the customer, not the producer Marketing mix for service marketing
Future challenges in services marketing
Need for increased productivity - how if heterogeneous?
Nonprofit organizations
Ability and interest in giving time or moneyPricing = volunteer
Product mix depth, width (breadth), product line
Product Positioning
Developing an image in relation to competitive products.- Position relative to a competitor- Position relative to a product class or attribute- Position relative to a price & quality
Line Extensions
Trading up and trading down
Product Life Cycle
Characteristic Introduction Growth Maturity DeclineSales Slow to build Peak Level off Fall offProfits Loss or slight
profitPeak Fall Stable but low
marginCompetition Few or many
depending on type of new product
Intense Intense Few competitors remain as resources directed at new markets
Product One model Attributes added to basic model
Many models Best selling model remains
Promotion High expenditure to build awareness (advertising)
Moderate expenditure to attract early majority (advertising and sales promotion)
High expenditure to stabilize market share (sales promotion and advertising)
Low expenditure to maintain distribution (trade promotion)
Distribution Limited or intense depending on type of new product
Intense Intense Limited as channels drop low margin products
Price Skimming or penetration depending on type of product
Keep price in high part of price range to maintain
Competition forces price reductions
Stable price to generate acceptable margins
margins and improve profitability
Brand name, brand mark, trademark
Generic versus branding
Producer's brands -- middleman's brands
National brand - private label
Cobranding
1. Ingredient – Cereal contains Sunmaid Raisins2. Cooperative – Coach Leather and Lexus cars3. Complementary – Segrams 7 and 7 Up
Why brand?
Benefits of branding- product identification- brand equity- global brand- brand loyalty
What are the characteristics of a good brand name?
1. Identifiable2. Understandable3. Memorable4. Able to protect5. Supported by marketing mix6. Supports product positioning
How to deal with product counterfeiting?
Brand Equity
Value brand adds to the product -- e.g., Oreo cookies in ice cream
Packaging
Purposes - convenience, protection, acceptance from the trade, promotion
Labeling
Brand labelDescriptive labelGrade label
Nutritional labeling
Design and Color - Bring in samples of labels, packages, brand names.
What a Car Says About You
Minivan – nurturing and escapeSUV – adventureHummer, or large SUV – power and control; a warrior mentalityHybrid – character, doing the right thing, fear of judgmentCompact – deficient in rationality and characterConvertible – freedom and independenceSports car – youthful exuberance, rejuvenationFour-door sedan – practically and nurturingFull-size truck – power and controlFour-door truck – independence (women)Lexus – status and rejuvenationMercedes-Benz – status and powerBMW – status and controlCorvette – immortality
Source: The Right Brain People, a self-described consumer psychology consulting firm.
What Color Means
Silver – elegant, loves futuristic looks, coolWhite – fastidious Vibrant red – sexy, speedy, high-energy and dynamicDeep blue-red – some of the same qualities as red, but you’re far less obvious about itTaupe or light brown – timeless, basic and simple tasteBlack – empowered, not easily manipulated, loves elegance, appreciates classicsNeutral gray – sober, corporate, practical, pragmaticDark green – traditional, trustworthy, well balancedBright yellow-green – trendy, whimsical, livelyYellow-gold – intelligent, warm, loves comfort and will pay for itSunshine yellow- a sunny disposition, joyful and young at heartDeep brown – down to earth, no nonsenseOrange – fun loving, talkative, fickle and trendy
Deep purple – creative and individualistic
Source: The Color Answer Book, Leatrice Eiseman
Distribution Concepts
Structure of Distribution Decisions
Distribution Objectives
Channels Physical Distribution/Logistics Retailing Transportation Wholesaling Order processing Agents/brokers Warehousing Power Pallets Conflict Direct/indirect
What is a channel of distribution?
All organizations involved in the movement of products and services to the final customer.
Long-term relationship
Physical Flow
C
R
W
M Insurance, financing, marketing research
How important are middlemen?
Reduce transaction costsBreak bulk
Merchant wholesalers - take title to productsAgent wholesalers - don't take title to products, bring buyer and seller together.
Factors in choosing a channel of distribution
Perishabililty of productService level requiredNumber of customersGeographic concentrationOrder sizeDegree of channel control
What is a vertical marketing system?
ContractualCorporate Coordination of controlAdministered
Factors to consider in selecting intensity of distribution
Intensive distribution - convenience goodsSelective distribution - shopping goodsExclusive distribution - dealership or distributorship
How does channel conflict = doing business
Horizontal conflict = competitionMain source is scrambled merchandising
Vertical conflict = channel inefficienciesMfg using the Internet to sell direct to the consumer
How to solve vertical conflict
Channel captainCoercive powerEconomic powerReferent powerLegitimate powerExpert power
Legal considerations
Non price restraintsInterbrand vs. intrabrand competitionExclusive dealing rule of reasonTerritorial restraints rule of reasonTying arrangements - per se illegal (one product vs. two)Refusals to deal - rule of reason
Distribution of Services
Direct channel and possible franchising
What is retailing?
Where do you take your dog to get a new tail!
2.7 mil stores in the U.S.$2.2 trillionOperating costs are roughly 2.5 more than wholesaling
Types of RetailersBreadth and depth of product mix
Dept store Broad, deepDiscount Broad, shallowLimited-line Narrow, deep Specialty Very narrow, deep Off-price Narrow, deep Category killer Narrow, very deepSupermarket Broad, deepConvenience store Narrow, shallowWarehouse store very broad, very shallow
Scrambled merchandising
Nonstore retailing
$200-250 billion 10% of all retailingTelemarketing - $50 billionAutomatic vending - $25 billion (Coke’s idea to price vending relative to outside temperature)Direct marketing - $150 billion (direct mail, catalog, online)
What is wholesaling?
Resale, use in producing other goods or services, operating an organization$3.2 trillion in 1992
Category
Merchant wholesalers - full service, truck jobbers, drop shippers (don't handle the product)Agent wholesalers - mfg reps, brokers (represent sellers)Manufacturer's sales facility
Physical Distribution
$1 saved in supermarket sales for supermarkets = $100 in sales
Uses of PDImprove customer serviceReduce distribution costsCreate time and place utilitiesStabilize pricesControl shipping costs
Where to establish distribution centers? Factors?
Hub and wheelTypes of warehouses - private (no seasonality, special handling and storage requirements), public (variable cost)
Materials handling
ContainerizationStandard pallets
Inventory control
JIT Market response system - purchase by final consumer activates process to produce and replaceEOQ (carrying costs, order processing costs)
Order processing issues
DatabaseInsure correct delivery addressVF computers in Penny's and Walmart link their computers to order replacements
Transportation
RailWaterHighwayPipelineAir
Freight forwarders
Ship less than a carload combined into a full shipment
Promotion Concepts
What is the promotional mix?
Personal selling - direct presentation of the product to the customerAdvertising - impersonal communication, paidSales promotion - demand stimulating supplements advertising and personal sellingPublic relations - no specific sales message (newsletters, annual reports)Publicity - nonpaid, news stories about products
Integrated marketing communication is all of the elements of the promotional mix
What is the communication process?
Define message encode transmit receive decode response feedback
What is the purpose of promotion?
Informs, persuades and reminds
What factors influence selection of promotional mix?
Target market
1. Readiness to buy - Hierarchy of Effects Model (AIDA)
Awareness Knowledge Liking Preference Conviction Purchase
2. Type of customer
3. Concentration of the market
4. Geographic scope of market
Nature of product
1. Presale/postsale service, unit value (low=low risk)
Stage of Product Life Cycle
What is the difference between a push and pull strategy?
Methods of Budgeting promotion
% of salesavailable funds
competitive parityobjective/task
Regulation of Promotion
FTC - misleading advertisingRobinson-Patman - promotional allowancesLanham Act - 1988 Trademark Improvement Act
Types of salespeople?
Inside order taker - retail salesOutside order taker - PillsburyMissionary salesperson - doesn’t close sale, builds goodwill, perform promotional activitiesCreative order getter - commission sales project oriented
What is systems selling?
Selling a total package of goods and services
What is relationship selling?
Build long-term relationship with customer
What is the selling process?
ProspectingPreapproachPresentation - AIDAPost sale services
What are the types of advertising?
Consumer, business-to-businessProduct, institutional (an organization’s position on an issue)Social (Drug free America campaign)Primary demand - introductory period (pioneer advertising)Selective demand - comparative advertising
What is cooperative advertising?
Vertical coop advertising, advertising allowance
Advertising Objectives
Build awareness Reminder to use Change attitudes about use of a product Change perceptions of importance of brand attributes
Characteristics of various mediaNewspaper - flexible and timely, perishable, clutterTV - motion, sound and visual effects, products demonstrated, relatively expensiveRadio - attention low, audio only, relatively inexpensive for frequencyOutdoor - rule of thumb is 6 words or less, make it brief, limited locationsDirect mail - most personal and selective of all media, low amount readMagazines - high quality printing and color are desired, pass along rateYellow pages - difficult to differentiate, timeliness is an issueInternet – click rates vary, relatively inexpensive
How to evaluate ads?
Direct tests - recognition, aided recall, unaided recallCPM = cost of an ad x 1,000/circulationReach (percentage of target audience that could be exposed to the ad)Frequency (average number of times a member of the target audience is exposed to the ad)Gross Rating Points = reach x frequency
What is the purpose of sales promotion?
Short-term sales results
Techniques Sampling Couponing Sponsorship and event marketing Trade shows Product placements
Possible objectives Inquiries (free gifts, mail-in coupon for information, catalog offers, exhibits) Trial (coupons, free samples, contests, premiums, demonstrations) Inventory building (return allowances, slotting allowances) Promotional support (reusable display cases, sales contests, merchandise
allowances) Repurchase (on-pack coupons, mail-in rebates) Traffic building (special sales, weekly sales, entertainment events, retailer
coupons) Increase rate of purchase (multipacks, special price on twos)
Evaluation methods Redemption rates Acquisition rates Displacement rates Conversion rates Stock-up rates
What is the purpose of PR?
Less than 1% of for profit organization’s promotion budgetLarge part of nonprofit organization’s promotion budgetViewed as a more creditable message compared to advertisingDifficult to control
How do you evaluate PR?
Difficult to evaluate
Pricing Concepts
What is price?
Price is the amount of money and/or other items with utility to acquire a product.
Importance of Price
Only variable that generates revenue. In the economy, price determines the allocation of goods and services.
What are pricing objectives?
Profit-oriented Sales-oriented
Target return Increase sales volumeMaximize profits Maintain or increase market share
Stabilize pricesMeet the competition
Factors that Influence Price
Estimate demandDetermine competition reactionLook at the marketing mix
Product positioningDistributionPromotion
Cost of the productDon't worry about average fixed cost curve, average variable cost, average total cost, marginal cost curve.
Computing Price
Cost method
(1 + markup %) cost = price
Retail method
Cost= price
(1 - markup %)
Breakeven Analysis
Total Fixed CostsBEP =
Contribution margin (sp-vc)
Pricing Through a Channel of Distribution
Retail price = $40Retail margin = 20%Wholesaler margin = 50%Manufacturer margin = 505What is the maximum cost for the manufacturer to produce?
Price Thresholds - price ranges
Pricing Strategies
Price competition versus non price competition - shift demand curve
Value pricing - ratio of benefits to its price and related costs
Market entry strategies
Market skimmingMarket penetration
Discounts
Quantity - cumulative, noncumulativeTradeCashSeasonalPromotional Allowance
Robinson-Patman Act
Geographic Pricing
Uniformed delivered pricing - postage stamp pricingFOB factory pricing - seller doesn't pay freight costsZone delivered pricing - uniformed delivered pricing for each zoneFreight-absorption pricing - absorb some or all freight costsOne price strategy - charge same price to all buyers
Flexible pricing strategy - different customers pay different prices. Greater bargaining situations.
Price lining - limited number of prices at which a business will sell related products
Odd pricing - psychological pricing
Leader pricing - leader items where price is cut
Everyday low pricing
High/low pricing - everyday low prices on some products and higher prices on other products
Resale price maintenance and suggested list price
