Entrepreneurship 2013 Chapter 10: Product, Price, and Place

Transcription

1 Tools: Printer 8.5 x 11 paper Scissors Directions: 1. Print 2. Fold paper in half vertically 3. Cut along dashed lines Copyright Goodheart-Willcox Co., Inc. All rights reserved.

2 brand Name, term, or design that sets a product or business apart from its competitors. 01 of 31 E-Flash Cards branding Using a product's personality, image, and history to position it favorably in the minds of consumers. 02 of 31 E-Flash Cards break-even point Amount of revenue a business must generate to equal its expenses. 03 of 31 E-Flash Cards channel of distribution Path that goods take through the supply chain. 04 of 31 E-Flash Cards

3 competition-based pricing Pricing method based primarily on what the competitors charge. 05 of 31 E-Flash Cards cost-based pricing Cost of the product is used to set the product's selling price. 06 of 31 E-Flash Cards demand-based pricing Pricing method based on what customers are willing to pay. 07 of 31 E-Flash Cards direct channel When a product goes directly from the manufacturer, or producer, to the end user. 08 of 31 E-Flash Cards

4 indirect channel Path a product takes when intermediaries are involved in getting the product from the producer to the end user. 09 of 31 E-Flash Cards intermediaries People or business in between the manufacturers or producers and the end user. 10 of 31 E-Flash Cards keystone pricing Doubling the total cost of a product to determine its selling price. 11 of 31 E-Flash Cards list price Established price printed in a catalog or on a price tag. 12 of 31 E-Flash Cards

5 logo Graphic symbol closely associated with a brand. 13 of 31 E-Flash Cards manufacturer's suggested retail price (MSRP) List price recommended by a manufacturer. 14 of 31 E-Flash Cards market share Percentage of the total sales in a given market that one business conducts. 15 of 31 E-Flash Cards Desired amount of profit added. markup 16 of 31 E-Flash Cards

6 place Activities involved in getting a product or service to the end user. 17 of 31 E-Flash Cards product life cycle Consists of the stages a product goes through from the beginning to the end. 18 of 31 E-Flash Cards product line Group of closely related products within the product mix. 19 of 31 E-Flash Cards product mix All the goods and services that a business sells. 20 of 31 E-Flash Cards

7 product positioning Distinguishing your products from competing products. 21 of 31 E-Flash Cards profit margin Amount by which revenue from sales exceeds the costs of making the product and selling it. 22 of 31 E-Flash Cards prototype Working model for a new product for testing purposes. 23 of 31 E-Flash Cards psychological pricing Pricing technique used by retailers to influence buying decisions. 24 of 31 E-Flash Cards

8 return on investment (ROI) Common measure of profitability for a business. 25 of 31 E-Flash Cards return on sales (ROS) Measure of a company's profitability and is equal to the net income divided by total sales. 26 of 31 E-Flash Cards selling price Price a customer actually pays for the product after discounts and coupons. 27 of 31 E-Flash Cards supply chain management Coordinating the events happening throughout the supply chain. 28 of 31 E-Flash Cards

9 tagline Phrase or sentence that summarizes some essential part of the product. Also known as a slogan. 29 of 31 E-Flash Cards utility Attribute that makes a product capable of satisfying a need or want. 30 of 31 E-Flash Cards value Relative worth of something to a person. 31 of 31 E-Flash Cards