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96 Cards in this Set
- Front
- Back
features
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physical characteristics of the tangible item or service
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advantages
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reasons for having those features
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benefit
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how the product or service satisfies a need
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product
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a bundle of benefits, a collection of solutions to needs and wants
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product life cyle
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PLC, product grows (in sales), mature, and at some point, die out. this is the cycle of development, introduction, growth, maturity, and decline in sales
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development stage
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that stage in the product's life when it is designed and readied for market
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leapfrogged
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when a competitor brings out a product that is at least one step better technologically
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introduction stage
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sales are relatively low and profits are unlikely, as sales revenue is invested in creating awareness. if distributors or other intermediaries are needed, getting their agreement to carry the product can be difficult because there is not yet a well-defined market for the product
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primary demand
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demand for that type of product, must be created
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growth stage
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when sales and profits grow at a fast rate. competition against an innovative product is most likely to enter the market in this stage, and vendors begin to differentiate their product in order to create secondary demand
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secondary demand
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demand for a particular vendor's offering
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maturity stage
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when sales level off. note that sales can level off for a product category, in which case that market is said to be mature. profits are relatively high and marketing expenses should begin to decline
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product portfolio management
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suggests managing all products simultaneously as you would a financial portfolio, balancing risk and return among all product investments
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stars
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market growth is high in a market where we control a large amount of total market
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cash cows
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have high market share and strength in a steady market and are those products that should contribute the most to the company's profit
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question marks
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those products in high-growth markets that currently have low market share and may not be too strong
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dogs
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products with low share in a poor market
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market attractiveness
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a composite measure of the potential for sales and profits in a particular market segment, and business strength as its dimensions
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business strength
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the strength of our offering relative to other companies' products
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investment risk
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the risk that we decide to go ahead with the product, it fails, and we lose some or all of our investment
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opportunity risk
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the risk that we decide to kill a product and thereby lose all of the revenue we would have gained if it had been a success
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Quality Function Deployment
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QFD, link customer needs to product attributes
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Earlier supplier involvement
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ESI, the concept of involving suppliers early in the product design process
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beta testing
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or field testing , testing the product by letting customers use it in real-world conditions
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rolling launch
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launch the product in certain areas, rolling to new areas as support personnel are trained and ready
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first-mover advantage
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being first is no guarantee of success. companies can also gain just by looking like they were first or by introducing a product soon after the original product was introduced by a competitor, but introducing it with a bigger and more effective launch
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demand intermediaries
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organizations that facilitate the transfer of title between the producer and user of a product
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merchant wholesaler
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or industrial distributors, are intermediaries who take title to the merchandise. include a number of subtypes which differ in the functions they perform.
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agents
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and brokers represent the other class of intermediaries; they do not buy or own the goods they sell
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specialty wholesalers
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firms carrying a very narrow line and supporting that with technical expertise and consultative selling
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cash-and-carry distributors
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firms that provide no buyer financing or delivery
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drop shipper
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or desk jobber buys products from a supplier buy never takes physical possession
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truck jobber
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carries all its inventory on a truck and services customers on a frequent basis or route
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manufacturers' agent
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sell the lines of noncompeting principals for a commission
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principal
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the manufacturer or other person or firm that contracts for the service of the agent in its own behalf
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brokers
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bring buyers and sellers together, typically in environments where buyers and sellers lack the information needed to connect with one another
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gap analysis
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a set of tools for comparing performance outcomes or expectations on specific criteria
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conflict
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felt or enacted tension between parties-in this situation, channel members
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exit
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mean leaving a relationship
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voice
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involves some means of articulating dissatisfaction
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loyalty
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steadfast perseverance in the face of conflict's felt tension or abuse
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aggression
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includes open or covert actions intended to injure the conflict party
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neglect
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means to leave the conflict untreated, perhaps allowing the relationship to atrophy or face in significance
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power
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a property of a relationship deriving from one member's dependence on another for valued resources-resources that are not readily available elsewhere
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reward power
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the ability to provide payoffs to a party for specified behaviors or outcomes
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coercive power
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the ability of one channel member to mediate punishments to get another to do what it otherwise would not do
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information power
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resides in a channel member's reliance on facts and figures, models, and insights from its partner
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expert power
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the ability to gain a target firm's compliance based on that target's regard for the source as knowledgeable
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referent power
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the potential to influence another based on the other's desire to identify with or be like the source firm
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traditional legitimate power
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the source is able to direct the behavior of the target because cultural norms support the source
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legal legitimate power
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explicit authority over certain behaviors granted to the source in a sales agreement or contract
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administered channels
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recognize their participation in a large system, but they interact without a formal chain of command or a set of rules
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contractual channels
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tightly coordinated by formal procedures and pledges of ongoing exchange
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corporate channels
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what we tend to see are high degrees of vertical integration in the sales and distribution functions
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customer relationship management
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CRM, provides us the strategic framework for understanding how to create customer dialogue
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integrated marketing communication
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IMC, strategic, two-way communication targeted to specific customers and their needs, all coordinated through a variety of media
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hierarchy-of-effects model
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used by many companies when planning communication campaigns because it describes the mental stages through which the target must progress prior to reasoned action
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awareness
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created when potential buyers become acquainted with the product or brand
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interest
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the next step after awareness and reflects the buyer's desire to learn more about what is being discussed
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desire
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the recognition by the buyer that when the needs occur, that is the brand or product to buy
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action
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the desired behavior that we want from the audience
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strategic goals
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what you want the overall strategy to accomplish
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tactical goals
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desired outcomes for specific communications
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prospect
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someone for whom we know needs, budget, and time frame for purchase
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position
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place in the mind of the buyer. position goals reflect the ratings we want our offerings to have in the customer's multiattribute evaluation of the options
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action goals
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set for those communications that are intended to cause the receiver to do something, we want buyers to take action
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search engine marketing
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SEM, the marketer may bid on key search items and thereby have its firm name appear when a potential customer searches using that term
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sugging
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selling under the guise of doing research, not appropriate
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trade shows
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temporary exhibitions of product and services
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inbound telemarketing
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electronic communication initiated by the customer
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outbound telemarketing
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initiated by the marketer
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personal selling
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interpersonal communication in which one person attempts to secure a purchase from another person
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direct influence
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skirt the hierarchy of effects and go right after the action
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breakdown budgeting
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methods that begin with the manager setting a total communications budget, then allocating (breaking down) the budget to the various forms of communication
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objective-and-task method
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budget buildup method, requires the decision maker to set the budget after determining the communication strategy. the method has three steps: defining objective, determining strategy, and estimating cost
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evoked set
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products of which the buyer is aware
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creative plan
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determining what the content of the message will be (encoding)
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media plan
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choosing the channel of communication
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trade publications
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magazines written for a particular trade, profession, or industry
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controlled circulation
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distribution only to qualified readers
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reach
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the total number of buyers that see an ad
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frequency
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the number of times a potential buyer is exposed to an ad
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cost per thousand
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CPM, readers is a critical variable in selecting trade publications and can be calculated by dividing the cost of an ad's space by the number of readers (in thousands)
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public relations
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the management function that focuses on the relationships and communications with individuals and groups in order to create mutual goodwill
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publicity
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the generation of news about a person, product, or organization that appears in broadcast or electronic media
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press agentry
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the planning and staging of an event in order to generate publicity
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press kit
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media kits, support staged events, and contain information about the event and key information for publication in news stories
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net buying influence
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the percentage of show audience that has influence in the buying process fro the specific product exhibited
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total buying plan
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the percentage of the audience planning to buy exhibited products with the next 12 month
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direct marketing
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an interactive form of marketing using one or more advertising media to effect a measurable response and/or transaction at any location, with this activity stored on database
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prospector
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combines telemarketing with field efforts
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transactional channels
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members trade at arms length
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variable costs
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cost of goods sold, expenses not directly related to production
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fixed costs
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do not fluctuate with output. program costs in attempt to generate sales, package design but not package production
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relevant costs
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expected to occur in the future as a result of some marketing effort
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sunk costs
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past expenditures for a given activity, generally irrelevant to future decisions
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