Level 2
A business’s percentage of the total sales generated by all companies in the same market
Market Share
The amount earned as a result of the investment; usually expressed as a percentage
Return On Investment (ROI)
A term that refers to the fact that consumers have the power
Consumer-driven Market
All of the processes—planning, pricing, promoting, distributing, and selling
Marketing
Determined by how much customers are willing to pay for a product or service
Demand-based Pricing
A plan that identifies how business goals will be achieved
Marketing Strategy
Expected to be achieved within 2-3 years
Medium-term Goals
what is the market share equation
Amount of sales / total market size = market share
The name, symbol, or design used to identify your product
Brand
Determined by using the wholesale cost of an item as the basis for the price charged
Cost-based Pricing
A blending of the product, price, distribution, and promotion used to reach a target market
Marketing Mix
Expected to be achieved within the next year or so
Short-term Goals
Equation for markup
wholesale cost * percentage markup = markup price
Product characteristics that will satisfy customer needs
Features
Determined by considering what competitors charge for the same product or service
Competition-based Pricing
Purpose: To define the market, identify customers & competitors, outline a strategy for attracting & keeping customers, and recognize & anticipate change
Marketing Plan
Expected to be achieved within 5-10 years
Long-term Goals
Equation for markdown
Retail price * percentage of markdown = markdown price
The different products and services that a business sells
Product Mix
Offers customers a reduced price to encourage them to buy
Discount Pricing
Uses the needs of customers as the primary focus during the planning, production, distribution, and promotion of a product or service
Marketing Concept
How many sections are included within the marketing plan? Can you name one?
8- product/service, target market, competition, marketing budget, business location, pricing strategy, promotional strategy, & distribution strategy
What are the 2 types of opening pricing when entering a new market
Pricing skimming & Penetration pricing
Creating an image for a product in the customer’s mind
Positioning
Based on the belief that certain prices have an impact on how customers perceive a product
Psychological Pricing