Entrepreneurship I
Objective 5.0 Vocabulary
1.
2.
3.
Accounts Payable
Accounts Receivable
Advertisement
4.
5.
Allocates
Bait-and-Switch
6.
Break-Even Analysis
7.
Break-Even Point
8.
Broadcast Media
9.
Bundle Pricing
10. Ceiling Price
11. Competition-Based-Pricing
12. Cost-Based-Pricing
13. Coupons
14. Decline
15. Delphi Technique
16. Demand
17. Demand-Based-Pricing
18. Direct Media
19. Directory Advertising
20. Discount
21. Discount Pricing
22. Discounts
23. Elasticity of Demand
The amount a business owes to creditors.
The amount customers owe a business.
A paid form of communication sent out by a business about a product
or service.
Distribute (resources or duties) for a particular purpose.
A descriptive and illegal method of selling in which a customer,
attracted to a store y an advertised sale, is told either that the
advertised item is unavailable or is inferior to a higher-priced item
that is available.
The level of sales at which revenues equal total costs - (Fixed Costs)
/ (unit selling price – variable costs) = Number of units needed to
break-even.
The amount of sales or revenues that it must generate in order to equal
its expenses. In other words, it is the point at which the company
neither makes a profit nor suffers a loss.
Advertising by radio and television. Also called Time Media.
A pricing technique in which several complementary products are
sold at a single price, which is lower than the price would be if each
item was purchased separately.
The maximum price a seller is allowed to charge for a product or
service.
You need to find out what your competitors charge, then decide
what you should charge for your product.
Where you consider your business costs and your profit objectives.
A code or detachable part of a ticket, card, or advertisement that
entitles the holder to a certain benefit, such as a cash refund or a gift.
Sales and profits continue to fall. (Product Life Cycle)
This method, also called the expert survey, is a variation of the jury
of executive opinion.
An individual’s need or desire for a product or service at a given
price.
Requires you to find out what customers are willing to pay for your
product, then set the price accordingly.
Advertising by printed mail (sales letters, flyers, or catalogs) and
email.
Informs people about how to contact a particular business, often with
a telephone number, street address or Web address
To sell or offer for sale at a reduced price.
A pricing technique that offers customers reductions from the
regular price; some reductions are basic percentage-off discounts
and others are specialized discounts.
A pricing technique that offers customers reductions from the
regular price; some reductions are basic percentage off discounts
and others are specialized discounts (price * discount percentage =
discount dollars; price – discount dollars = discounted price).
The degree to which demand for a good or service varies with its
price.
Entrepreneurship I
24. Fixed Costs
25. Flexible Pricing
26. Floor Limit
27. Growth
28. Inflation Rate
29. Introductory
30. Inventory Turnover
31. List Price
32. Markdown
33. Market Potential
34. Market Share
35. Marketing Budget
36. Marketing Metrics
37. Marketing Objectives
38. Markup
39. Maturity
40. Monopolistic Competition
41. Monopoly
42. Multiple-Unit-Pricing
43. Net Profit
44. Newspaper Advertising
45. Odd/Even Pricing
46. Oligopoly
Costs that must be paid regardless of how much of a good or service
is produced. (Ex: Lease, Insurance, salaries)
Method of selling where the prices are open to negotiations between
buyers and sellers, and allow for bargaining within a certain range.
The maximum amount a salesperson may allow a customer to
change without getting special authorization.
Sales climb rapidly, units costs are decreasing, the product begins to
show a profit, and competitors come into the market. (Product Life
Cycle)
The percentage increase in the price of goods and services, usually
annually.
When the product is brought into the market. In this stage, there's
heavy marketing activity, product promotion and the product is put
into limited outlets in a few channels for distribution. Sales take off
slowly in this stage. The need is to create awareness, not profits.
(Product Life Cycle)
A ratio showing how many times a company's inventory is sold and
replaced over a period.
The manufacturer's suggested retail price, determined by supply and
demand, for consumer goods such as automobiles or electronics.
The amount of money taken off an original price (price * markdown
percentage = $ markdown; price – markdown = sales price).
The estimated maximum total sales revenue of all suppliers of a
product in a market during a certain period.
A percentage of total sales volume in a market captured by a brand,
product, or company.
An estimated projection of costs required to promote a business'
products or services.
Numeric data that allow marketers to evaluate their performance
against organizational goals.
Goals set by a business when promoting its products or services to
potential consumers that should be achieved within a given time
frame.
The amount added to the cost of an item to cover expenses and
ensure a profit (cost + markup = price; price – markup = cost; price
– cost = markup).
Sales begin to slow and profits peak, but profits fall of as competition
increases. (Product Life Cycle)
There are many buyers and sellers, but there is a range of prices rather
than one market price.
When a company controls all of a market.
A pricing technique in which items are priced in multiples.
The actual profit after working expenses not included in the
calculation of gross profit have been paid.
A printed advertisement that is published in a newspaper.
A pricing technique to which odd-numbered prices are used to
suggest bargains.
There are relatively few sellers, and the industry leader usually
determines prices.
Entrepreneurship I
47. Operating Strategy
48. Operation Expenses
49. Out-of-home Advertising
50. Penetration Pricing
51. Personal Selling
52. Prestige Pricing
53. Price Discrimination
54. Price Fixing
55. Price Fixing
56. Price Gouging
57. Price Lining
58. Price Skimming
59. Pricing
60. Pricing Policies
61. Print Media
62. Product Life Cycle
63. Profitability
64. Promotional Plan
65. Promotional Pricing
66. Psychological Pricing
67. Publicity
68. Pure Competition
A plan of action implemented by a firm that describes how they will
employ their resources in the production of a product or service.
A category of expenditure that a business incurs as a result of
performing its normal business operations. (Ex: Production cost (raw
materials, utilities, man hours); Inventory (also, storage and
transportation of inventory); Salaries and Benefits; and Advertising
and Marketing
Advertising using billboards, transit posters, human directional
(people holding signs), and aerials (blimps).
A method used to build sales by charging a low initial price to keep
unit costs to customers as low as possible.
Where businesses use people (the "sales force") to sell the product
after meeting face-to-face with the customer.
A pricing technique in which higher-than-average prices are used to
suggest status and prestige to the customer.
Businesses are not allowed to charge different prices to similar
customers in similar situations if doing so would damage competition.
Agreeing on a price or price range for a product.
An illegal practice in which competing companies agree, formally or
informally, to restrict prices within a specified range.
Pricing above the market when no other retailer is available.
A pricing technique in which items in a certain category are priced
the same.
The practice of charging a high price on a new product or service in
order to recover costs and maximize profits as quickly as possible;
the price is then dropped when the product or service is no longer
unique.
A marketing function that involves the determination of an exchange
price at which the buyer and seller perceive optimum value for a good
or service.
Establishing a pricing policy frees you from making the same
pricing decisions over and over.
The industry associated with the printing and distribution of news
through newspapers and magazines.
The cycle through which every product goes through from
introduction to withdrawal or eventual demise.
Making as much money as possible or simply covering the cost.
Outlines the promotional tools or tactics you plan to use to accomplish
your marketing objectives.
A pricing technique in which lower prices are offered for a limited
period of time to stimulate sales.
A pricing technique, most often used by retail businesses, that are
based on the belief that customers' perceptions of a product are
strongly influenced by price, odd/even pricing, price lining,
promotional pricing, multiple-unit pricing, and bundle pricing.
Type of promotion that relies on public relations effect of a news story
carried usually free by mass media.
There are a great many buyers and sellers of nearly identical products,
and marketers have very little control over pricing.
Entrepreneurship I
69. Qualitative
70. Quantitative
71. Raw Materials
72. Resale Price Maintenance
73. Sales Forecast
74. Sales Promotion
75. Selling Price
76. Selling Price
77. Specialty Advertising
78. Specific
79. Supply
80. Technological Trends
81. Telemarketing
82. Trade Discount
83. Unit Pricing
84. Variable Costs
85. Web-based Media
Forecasting methods are based on expert opinion and personal
experience.
Methods of forecasting sales are based on the results of gathering and
analyzing all kinds of numerical market data.
The basic material from which a product is made.
Price fixing imposed by a manufacturer on wholesale or retail
resellers of its products to deter price-based competition.
The process of a company predicting what its future sales will be.
Stimulation of sales achieved through contests, demonstrations,
discounts, exhibitions or trade shows, games, giveaways, point-ofsale displays and merchandising, special offers, and similar activities.
The amount the seller charges for a product.
The actual or projected price per unit.
Relatively permanent promotional message printed on small, handy
items such as bags, calendars, cups, diaries, etc., given away as gifts
to serve as reminders.
Clearly defined or identified.
How much of a good or service a producer is willing to produce at
different prices.
Using the internet can provide customers with easy access to prices,
products information, and services and adapting to technological
changes can give a business a competitive edge.
The marketing of goods or services by means of telephone calls,
typically unsolicited, to potential customers.
A discount on the retail price of something allowed or agreed between
traders or to a retailer by a wholesaler.
The pricing of goods on the basis of cost per unit of measure, such
as a pound or an ounce, in addition to the price per item.
Costs that go up and down depending on the quantity of the good or
service produced. (Ex: Material, labor, and utilities.)
Using the Internet to advertise.