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Pricing & Selling for Marketing Flashcards

Pricing & Selling for Marketing Flashcards
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Market penetration strategy
A pricing strategy that involves setting a low initial price in order to attract sales and then gradually raising prices in small increments
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Personal selling
A part of the promotional mix that involves the use of interpersonal communication between two people to help drive sales
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Traditional selling
An old-school sales technique that contrasts with relationship selling; this technique emphasizes quick, aggressive, impersonal sales that are not customer-focused
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Product Benefits
An aspect of relationship selling that encourages salespeople to list specific product benefits that will add value for the customer
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Follow-up
An aspect of relationship selling that encourages salespeople to continue communicating and being available to customers after the sale is made
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Planning
An aspect of relationship selling that encourages salespeople to develop a sales plan and develop talking points to use during sales
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Consumer interest
An aspect of relationship selling in which the salesperson is concerned about the customer's needs and best interest does not focus on closing the sale at all costs
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Consulting
An aspect of relationship selling in which the salesperson is available to provide assistance to and answer questions from the customer
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Team approach
A concept in relationship selling that encourages members of a company to work as a team that combines each individual member's strengths rather than as lone wolves
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Problem solving
A relationship selling technique that allows salespeople to sell products by asking questions and identifying a solution to a customer's problem
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Consultative sales
Another term for relationship selling; refers to a sales method that focuses on building long-term customer relationships
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Relationship selling
A sales technique that focuses on long-term customer satisfaction through building, maintaining and enhancing relationships
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Price
One of the four Ps of the marketing mix; refers to what a consumer gives up in exchange for a good or service
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Flashcard Content Overview

A lot of work goes into determining prices and making sales. Concepts such as rebates, price equilibrium, relationship selling and market penetration are all important for setting the right price and making a final sale. Use these cards to learn some important vocabulary and reinforce your understanding of these important concepts for pricing and selling in marketing.

Front
Back
Price
One of the four Ps of the marketing mix; refers to what a consumer gives up in exchange for a good or service
Relationship selling
A sales technique that focuses on long-term customer satisfaction through building, maintaining and enhancing relationships
Consultative sales
Another term for relationship selling; refers to a sales method that focuses on building long-term customer relationships
Problem solving
A relationship selling technique that allows salespeople to sell products by asking questions and identifying a solution to a customer's problem
Team approach
A concept in relationship selling that encourages members of a company to work as a team that combines each individual member's strengths rather than as lone wolves
Consulting
An aspect of relationship selling in which the salesperson is available to provide assistance to and answer questions from the customer
Consumer interest
An aspect of relationship selling in which the salesperson is concerned about the customer's needs and best interest does not focus on closing the sale at all costs
Planning
An aspect of relationship selling that encourages salespeople to develop a sales plan and develop talking points to use during sales
Follow-up
An aspect of relationship selling that encourages salespeople to continue communicating and being available to customers after the sale is made
Product Benefits
An aspect of relationship selling that encourages salespeople to list specific product benefits that will add value for the customer
Traditional selling
An old-school sales technique that contrasts with relationship selling; this technique emphasizes quick, aggressive, impersonal sales that are not customer-focused
Personal selling
A part of the promotional mix that involves the use of interpersonal communication between two people to help drive sales
Market penetration strategy
A pricing strategy that involves setting a low initial price in order to attract sales and then gradually raising prices in small increments
Price skimming strategy
A pricing strategy that sets prices high in order to create an image of exclusivity and attract customers willing to pay more
Everyday low price (EDLP)
A pricing strategy that provides steady low prices and retains consumer interest by eliminating their desire to shop around
High/low pricing
A pricing strategy that uses special events such as sales to temporarily lower prices and attract sales
Status quo pricing
A pricing strategy in which prices are set at or very close to the prices set by competitors
Fixed cost
Costs that do not change based on output, such as rent payments or employee salaries
Variable cost
A cost that varies based on output, such as ingredients for baked goods or raw materials for manufactured products
Marginal cost (MC)
The change in total costs associated with a one-unit change in output; this involves an initial cost decrease, but eventually, diminishing returns come into play and drive up costs
Elastic demand
When customers are not consistent in how often they purchase but instead buy more or less of a product depending on its price
Inelastic demand
When consumers buy the same amount of a product consistently regardless of its price
Price equilibrium
The price at which supply and demand are equal
Promotional/trade allowance
A payment a manufacturer makes to a dealer in exchange for the dealer promoting the manufacturer's products, often in the form of free products
Cash discount
A price reduction offered in exchange for early bill payment
Rebate
A limited-time promotion in which a manufacturer will offer customers a refund on a portion of their purchase price; customers must apply for this money-back offer, but often forget to do so
Value-based pricing
A pricing strategy that helps customers feel secure that they are getting a good deal on their purchase; this can be a good strategy during a recession

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