Any paid form of non - personal presentation and promotion of Ideas, goods, or services by an identified sponsor.

Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships.

consists of one or more independent producers, wholesalers, and retailers. Each is a separate business seeking to maximize its own profits, even at the expense of profits for the system as a whole.

Costs that do not vary with production or sales level.

developed to allow two organizations to benefit from each other’s strengths.

a chain of businesses or intermediaries through which a good or service passes until it reaches the final buyer or the end consumer. It can include wholesalers, retailers, distributors, and even the Internet.

also known as face-to-face selling in which one person who is the salesman tries to convince the customer in buying a product. It is a promotional method by which the salesperson uses his or her skills and abilities in an attempt to make a sale.

Involves dealing with legislators and government officials to promote or defeat legislation and regulation.

Purchasers who have an investment in products that they are currently using are less likely to change for price reasons.

Management must decide who within the organization should set prices. In small companies, this will be top management; in large companies, pricing is typically handled by a corporate department or by a regional or unit manager under guidelines established by corporate management.

means disseminating the information about the product, product line, brand and company to the prospective buyers with the intent to generate sales and develop a brand loyalty.

Consumers are more price – sensitive when the price of the product accounts for a large share of the total cost of the end benefit.

Developing and communications about an offer.

company directs its marketing activities toward final consumers to induce them to buy the product.

is to place newsworthy information into the news media to attract attention to a person, product, or service.

When companies believe that a company with the largest market share will eventually enjoy low costs and high long – run profit, they set low opening rates and strive to be the market – share leader.

resource definition that specifies rules and properties to apply when promoting objects.

essentially the process of running a business within a business. Sales professionals focus on building trusting relationships with business clients within a geographic territory, selling their companys products and services, and growing the sales revenue to achieve territory business objectives.

consists of independent firms at different levels of production and distribution, not through common ownership or Contractual ties, but through the size and power of the parties.

Demand and price are inversely related; the higher the price, the lower the demand. most demand curves slope downward in either a straight or a curved line. The prestige goods demand curve sometimes slopes upward.

short-term incentive to initiate a trial or purchase.includes several communications activities that attempt to provide added value or incentives to consumers, wholesalers, retailers, or other organizational customers to stimulate immediate sales.

outlet for unsold inventory, it is not a substitute for effective marketing and a well – devised pricing strategy.

Competitors, distributors, suppliers, and other buyers associate price with quality when evaluating hospitality products they have not experienced directly.

Conflict between different levels of the same channel.

Shaping and fitting the offer to the buyers’ needs.

Price is set to break even on the costs of making and marketing a product, or to make a desired profit.

Price must be coordinated with product design, distribution, and promotion decision to form a consistent and effective marketing program.

Finding and communicating with prospective buyers.

Issues to consider are reason, market share excess capacity, meeting changing cost conditions, leading an Industry – wide program change, temporary versus Permanent.

The restaurant industry has historically employed a rule of thumb that the highest price entree should be no more than 2.5 times as expensive as the lowest prices entree

Sales and reservation employees are trained to offer continuously a higher – priced product that will better meet the customer’s needs, rather than setting for the lowest price.

Reasons for a company for these are excess capacity, inability to increase business through promotional efforts, product improvement, follow – the – leader pricing, and desire to dominate the market.

Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handing or heading off unfavorable rumors, stories, and events.

link in the supply chain that links the producer or other intermediaries to the end consumer. They are also known as middlemen or distribution intermediaries.

A single firm sets up two or more marketing channels to reach one or more customer segments.

Short – term incentives to encourage the purchase or sale of a product or service.

Hotels have special rates to attract customers who are likely to purchase a large quantity of hotel rooms, either for a single period or throughout the year.

is a marketing tactic involving paying for space to promote a product, service, or cause

aspects such as prestige, reference prices, round figures, and ignoring end figures are used in pricing.

Assuming financial risks, such as the inability to sell inventory at full margin.

setting a high price when the market is price – insensitive. It is Common in industries with high research and development costs, such as pharmaceutical companies and computer firms.

means buyers are less sensitive to price changes (often due to uniqueness, necessity, or lack of substitutes).

relationships between independent parties that agree to cooperate but still retain separate identities.

Although channel members depend on each other, they often act alone in their own short - run best interests. They frequently disagree on the roles each should play on who should do what for which rewards.

simply the act of transferring information from one place, person or group to another

This activity covers internal and external communications and promotes understanding of the organization.

It is the consumer who decides whether a product’s price is right. The price must be buyer oriented. The price decision requires a creative awareness of the target market and recognition of the buyers’ differences.

Lack of the awareness of the existence of alternative reduces price sensitivity.

consists of producers, wholesalers, and retailers acting as a unified system

Segmentation of the market and pricing differences based on price elasticity characteristics of the segments. In difference in price is not based on differences in cost. It maximizes the amount that each customer pays.

Consumers tend to equate price with quality, especially when they lack any prior experience with the product.

Costs that vary directly with the level of production.

It is used when the economy slumps or a recession is going on. A manufacturing firm can reduce production to match demand and a hotel can cut rates to create the best cash flow.

Competitors are mostly likely to react when the number of firms Involved is small, when the product is uniform, and when buyers are well informed.

Agreeing on price and other terms of the offer so that ownership or possession can be transferred.

consists of independent firms at different levels of production and distribution who join through contracts to obtain economies or Sales impact.

means buyers are more sensitive to price changes (often due to the availability of substitutes or luxury status).

Hotels or restaurants seeking to positions themselves as luxurious and elegant enter the market with a high price that supports this position.

Conflict between firms at the same level.

Hotels like the Ritz – Carlton chain charge a high price for their high – cost products to capture the luxury market.

Companies set a low initial price to penetrate the market quickly and deeply, attracting many buyers and winning a large market share

Companies based their prices on the product’s perceived value. Perceived - value pricing uses the buyers’ perceptions of value, not the seller’s cost, as the key to pricing.

Companies may choose the price that will produce the maximum current profit, cash flow, or return on investment, seeking financial outcomes rather than long – run performance.

based priced is based on the establishment of price largely against those of competitors, with less attention paid to costs or demand.

Sellers using products and offer the bundle at a reduced price. Most used by cruise lines.

The company’s other products are sold to the guest.

When someone else pays the bill, the customer is less price – sensitive.

management function that establishes and maintains two-way, mutual relationships and communications between an organization and its publics and atakeholders (i.e. those who have a stake, such as employees, shareholders, etc.) that often determine their success or failure.

The company directs its marketing activities at channel members to induce them to order, carry, and promote the product.

Reasons for a company to this are cost inflation or excess demand.

Gathering and distributing marketing research and intelligence information about the marketing environment.

price reduction to buyers who purchase services out of season when the demand is lower. Seasonal discounts allow the hotel to keep demand steady during the year.

combines successive stages of production and distribution under single ownership.

The more someone spends on a product, the more sensitive he or she is to the product’s price.

Acquiring and using funds to cover the cost of channel work.

Two or more companies at one level join to follow new marketing opportunities. Companies can combine their capital, production capabilities, or marketing resources to accomplish more than one company working alone.

a standard markup is added to the cost of the product