1. KEY TERMS UNIT 5 (PRICING) Marketing

2. BETWEEN THE MINIMUM A COMPANY CAN CHARGE TO COVER COSTS AND THE MAXIMUM CUSTOMER IS WILLING TO PAY. Price Range #1 SHOWNEXT MARK FOR REVIEW Review

3. SALES AND ADMINISTRATIVE COSTS OF DOING BUSINESS. Operating Expenses #2 SHOWNEXT MARK FOR REVIEW Review

4. AN AMOUNT THAT HAS TO BE PAID OR GIVEN UP IN ORDER TO GET SOMETHING. Cost #3 SHOWNEXT MARK FOR REVIEW Review

5. COMBINED COSTS OF RAW MATERIALS, MACHINERY, AND LABOR WHEN MAKING A PRODUCT. Production Costs #4 SHOWNEXT MARK FOR REVIEW Review

6. OPERATING EXPENSES + PRODUCTION COSTS + MARKUP AMOUNT. Selling Price #5 SHOWNEXT MARK FOR REVIEW Review

7. AN AMOUNT OR % ADDED TO TOTAL PRODUCTION COSTS FOR DESIRED PROFIT. Markup #6 SHOWNEXT MARK FOR REVIEW Review

8. THE DIFFERENCE BETWEEN THE SELLING PRICE AND ALL COSTS AND OPERATING EXPENSES ASSOCIATED WITH THE PRODUCT SOLD. Net Profit #7 SHOWNEXT MARK FOR REVIEW Review

9. THE QUANTITY OF A PRODUCT THAT MUST BE SOLD AT A SPECIFIC PRICE FOR TOTAL REVENUE TO FINALLY MATCH TOTAL COSTS. Breakeven Point #8 SHOWNEXT MARK FOR REVIEW Review

10. A REDUCTION FROM THE ORIGINAL SELLING PRICE. Markdown #9 SHOWNEXT MARK FOR REVIEW Review

11. PRODUCT PRICING STRATEGY OF TAKING PRODUCTION COSTS AND ADDING A REQUIRED AMOUNT OR % FOR PROFIT. Cost-Plus #10 SHOWNEXT MARK FOR REVIEW Review

12. PRODUCT SELLING AT OR BELOW COST TO MOTIVATE CUSTOMERS TO COME TO STORE (LEGAL). Loss Leader #11 SHOWNEXT MARK FOR REVIEW Review

13. STRATEGY OF AGGRESSIVELY PRICING LOW WITH THE PURPOSE OF DRIVING OUT COMPETITION (ILLEGAL). Predatory #12 SHOWNEXT MARK FOR REVIEW Review

14. POSITIONING A PRODUCT WITH A HIGH PRICE, COMPARED TO OTHERS, FOR A QUICKER “ROI”. Skimming #13 SHOWNEXT MARK FOR REVIEW Review

15. A MEASURE OF PROFITABILITY (%) INDICATING WHETHER OR NOT A COMPANY IS USING ITS RESOURCES EFFICIENTLY. Return on Investment (ROI) #14 SHOWNEXT MARK FOR REVIEW Review

16. SETTING AN ARTIFICIALLY LOW PRICE TO GAIN MARKET SHARE AND THEN CREEP IT BACK TO NORMAL. Penetration #15 SHOWNEXT MARK FOR REVIEW Review

17. PRICING SET HIGH FOR UNIQUE PRODUCTS WITH PERCEIVED VALUE; LUXURY ITEMS. Prestige (Premium) #16 SHOWNEXT MARK FOR REVIEW Review

18. TO COMBINE MORE THAN 1 PRODUCT IN THE SAME PACKAGE TO ADD VALUE OR MOVE SLOWER SELLERS. Bundle #17 SHOWNEXT MARK FOR REVIEW Review

19. REDUCTION IN THE REGULAR SELLING PRICE OF A PRODUCT FOR A SPECIFIC REASON (SEASONAL SALE). Discount #18 SHOWNEXT MARK FOR REVIEW Review

20. COMPLIMENTARY REDUCTION IN PRICE GIVEN TO THOSE WHO ARE IN THE TRADE (SAME TYPE OF BUSINESS). Trade Discount #19 SHOWNEXT MARK FOR REVIEW Review

21. AN AMOUNT OF MONEY GIVEN BACK TO CONSUMER FOR THE PERFORMANCE OF AN ACTION (REBATE OR TRADE-IN). Allowance #20 SHOWNEXT MARK FOR REVIEW Review

22. The End REVIEWEND