Pacific rim includes the countries around the shores of the Pacific ocean including Japan and the western seaboard of the United States and Canada.

Packaging Functional roles: 1) Protect a products before consumer use, 2) can act to facilitate a product's use by the consumer, 3) must satisfy legal requirements, 4) can act to inform the consumer, 5) play an important communication role for the product, acts on an symbolic level, associating the product with specific brand values and attributes. May be used to send strong messages to customers. Development: 1) Design and redesign, 2) Shape and size, 3) Color and graphics, 4) Names.

Parallel processor High-performance computer which uses numerous microprocessors to process a number of pieces of information at the same time.

Pareto (80/20) distribution is a frequency distribution with a small proportion (say 20 per cent) of the items accounting for a large proportion (say 80 per cent) of the value/resources.

Participation involves employees and make them committed to their task.

Conditions of successful participation: 1) Genuine, 2) Continual, 3) Clear purpose, 4) Manager's wish.

Partnership see Trading organization.

Partnership marketing involves close collaboration and mutually advantageous relationships with linked distributors in the supply chain.

Partnership souring is the use of a supplier with whom the organization has a long-term relationship including new product development and efficiency improvements.

Party manifesto is a program of intended policies if successfully elected.

Payback method is a method of investment appraisal.

Penalty clause Clause in a contract providing for a specific sum to be payable in the event of a subsequent breach.

Penetration pricing A value-pricing technique in which you set prices aggressively low in order to gain as much market share as possible; the opposite of skim pricing. (Courtland L. Bovee, John V. Thill)

People The marketing mix element for services, to highlight the fact that the quality of many services depends on the quality of people delivering it (e.g. a pay can be ruined by bad acting).

Perceived risk The extent of uncertainty and potential losses that a buyer perceives about a purchase decision. (Courtland L. Bovee, John V. Thill)

Perception
Definition #1 Perception is the process by which people select, organize and interpret sensory stimuli into a meaningful and coherent picture. The way consumers view an object (for example their mental picture of a brand or the traits they attribute to a brand).
Definition #2 Perception is the process by which data is selected, sorted, organized and interpreted in order to form a meaningful and coherent 'picture' of the world.

Perceptual map A diagram that illustrates how customers perceive a variety of competing products according to their key attributes. (Courtland L. Bovee, John V. Thill)

Perfect information Information which removes all doubt and uncertainty from a decision and gives decision-makers complete confidence that they have selected the most profitable course of action.

Perfect market is a perfectly competitive market is one in which there is a large number of firms, each with a very small share of the market, producing a homogeneous product, with firms and consumers possessing perfect information, and with free entry to and exit from the industry.

Perfectly elastic demand The case when changes in demand have no effect on price; the opposite of perfectly inelastic demand. (Courtland L. Bovee, John V. Thill)

Perfectly inelastic demand The most extreme case of inelastic demand, in which changes in price have no effect on demand; this applies to products that people can't or won't live without. (Courtland L. Bovee, John V. Thill)

Pioneer advertising Advertising that tries to build primary, rather than selective, demand. (Courtland L. Bovee, John V. Thill)

Person specification
Definition #1 Person specification identifies the type of person the organization should be trying to recruit (character, aptitudes, educational or other qualifications, career aspirations etc.)
Definition #2 Person specification is a statement of the type of person to be recruited for a job.

Person specification - Roger's 7 point plan: 1) Physical attributes (neat appearance, ability to speak clearly, health), 2) Attainments (educational qualifications etc.), 3) General intelligence, 4) Special aptitudes (neat work, speed and accuracy, written communication skills etc.), 5) Interests (practical, social, intellectual and physical), 6) Disposition (or manner, e.g. friendly, helpful), 7) Background circumstances.

Person specification - J. Munri Fraser's 5 point pattern of personality: 1) impact on others, 2) acquired knowledge or qualifications, 3) innate ability, 4) motivation, and 5) adjustment and emotional balance.

Also see Recruitment, Job specification.

Personal competence (for managers): 1. Planning: 1.1 To plan to the achievement of results, 1.2 To pursuit of excellence, for themselves, for the organization, the staff and suppliers. 1.3 To monitor outcomes against the plan and to respond appropriately. 2. Managing others: 2.1 To be sensitive to the needs of the staff and superior (good interpersonal skills), 2.2 To be able to present themselves positively and professionally, 3. Managing oneself: 3.1 To demonstrate self-confidence, self-motivation, enthusiasm and personal drive, to control personal emotions and manage stress, 3.2 To learn and to develop, 4. Intellectual capabilities (competencies): 4.1 To be able to use their intellect effectively (to collect relevant information, to identify and apply concepts, to use their initiative), 4.2 To understand the culture of the organization and to help it to adapt to change.

Personal development: 1) Additional occupation training, 2) Professional qualification, 3) On-the-job experience, 4) Clarification/discussion with superiors.

Personal development plans (PDPs) are essentially action plans for people's career development which put the onus on them - the individual employees - to seek and organize training.

Personal effectiveness
Developing a strategy for personal improvement: 1. Review the current situation: 1.1 Personal strengths and weaknesses, 1.2 Investigation of organizational skills and systems, communication ability and procedures. 2. Objectives: 2.1 Conjunction with superiors, 2.2 SMART, 2.3 Identifying best way forward. 3. Strategies (two possibilities): 3.1 Improving existing skills, and/or 3.2 Developing new skills; 4. Possible methods: 4.1 Training, 4.2 Additional training, learning to formal qualifications, 4.3 Delegation and more assistance from superiors, 4.4 Discussions with superiors (clearness one's own obligations and objectives)

Also see Manager's characteristics, Management skills assessing, Learning, On-the-job training, Learning contract, Time management, Delegation, Meetings.

Personal influence The effect of statements made by one person on another's attitude or probability of purchase. (Philip Kotler)

Personal selling
Definition #1. Personal selling is the oral presentation in a conversation with one or more prospec-tive purchasers for the purpose of making sales. (Philip Kotler)
Definition #2. Personal selling is the process of achieving mutually profitable economic exchanges between buyer and seller, based on inter-personal contact between buyer and seller, and on the seller's persuasive communication of his product or service qualities and benefits to the buyer.

Personal selling mix: 1) Sales presentations, 2) Sales meetings, 3) Incentive programs, 4) Samples and 5) Fairs and trade shows.

The primary purposes of personal selling: 1) To find prospects, 2) To convince prospect to buy, 3) To keep existing customers satisfied.

The stages of personal selling process: 1) Prospecting and evaluating (potential customers and acceptable prospects), 2) Preparation (prospect's specific product needs, current brands being used, available brands and personal characteristics), 3) Approach (contacting the prospect), 4) Presentation (holding prospect's attention, stimulate interest, develop desire for the product), 5) Objections (overcoming ones), 6) Closing (asking the prospect to buy), 7) Follow up (post-sale services).

Functions of personal selling: 1) Pre-negotiatory (finding potential buyers, discovering latent needs, producing feed back resulting in creating of satisfactory products); 2) Negotiatory, (persuasively presenting product and negotiating mutually agreeable prices and terms of sale, efficient sales administration, providing technical back-up service); 3) Post-negotiatory (providing after sales service, forecasting future sales, maintaining relationships)

The role of the salesperson involves more than merely selling: it includes communicating with customers in the wider sense and market research.

Basic methods of compensating sales persons: 1) Straight salary - advantages: (i) maximum security, (ii) large degree of control, (iii) easy to administer, (iv) predictable selling expenses; disadvantages: (i) lack of incentive, (ii) the necessity of close supervision, (iii) declining of selling expenses level; 2) Straight commission - advantages: (i) maximum amount of incentive, the ability to encourage salespeople to sell certain items by increasing the commission rate on these items, disadvantages: (i) lack of control over the sales force, (ii) the possibility of inadequate service to smaller accounts, (iii) decreased predictability of selling expenses; 3) Combination - advantages: (i) certain level of financial security, (ii) some degree of incentive, (iii) fluctuation selling expenses with sales revenue; disadvantages: (i) unpredictable sales expenses, (ii) difficulties in administration.

The forms of communication using in personal selling: 1) Language communication, 2) Kinetic communication (body language), 3) Proxemics communication (varying the physical space between the parties involved in communication), and 4) Tactile communication (involves touching, such as hand shaking).

Sources of prospects: 1) Company sales records, 2) Trade shows, 3) Referrals, 4) Newspaper announcements, 5) Public records, 6) Telephone directories, 7) Trade associations, 8) Direct mail lists.

The general characteristics of a good salesperson: 1) A good level of product knowledge, 2) Previous experience, 3) A pleasant personality, 4) The ability to persuade, 5) The ability to communicate with variety of individuals, 6) A high level of motivation, 7) A clean and tidy appearance, 8) Negotiation skills, 9) Presentation skills, 10) Initiative, 11) Ambition, 12) Confidence.

See also Selling process, Support and attributes of international salespersons.

Personality is the total pattern of characteristic ways of thinking, feeling and behaving that constitute an individual's distinctive method of relating to the environment; affected by childhood, schooling, genetic endowments etc.

Elements of personality (Eysenck): 1) Personality traits, 2) Trait clusters, 3) Types.

Types of human beings: 1. The 'E' dimension: 1.2 Extrovert traits (expressiveness, impulsiveness, risk-taking, sociability, practicality, irresponsibility, activity). 1.2 Introvert traits (inactivity, carefulness, responsibility, control, reflectiveness, unsociability, inhibition. 2. The 'N' dimension: 2.1 Neuroticism traits (anxiety, guilt, obsessiveness, hypochondria, unhappiness, lack of autonomy, low self-esteem and instability), 2.2 Stability traits (calm, freedom from guilt, casualness, sense of health, happiness, autonomy, self-esteem).

Persuasive advertising Advertising used to build selective demand for a brand by persuading consumers that it offers the best quality for their money. (Philip Kotler)

PEST factors Factors in an organization's environment (political-legal, economic, social-cultural, technological).
Also see Environment.

Phillips curve is a curve depicting a relationship between the level of unemployment and inflation in prices or wages.

Physical distribution (Logistics) The tasks involved in planning, implementing, and controlling the physical flow of materials and final goods from points of origin to points of use to meet the needs of customers at a profit. (Philip Kotler)

Physical distribution firms :
Warehouse, transportation, and other firms that help a company to stock and move goods from their points of origin to their destinations.

Logistics involves: 1. Order processing; 2. Transportation; 3. Stock management; 4. Warehousing; and 5. Customer services.

The choice of warehouse within an area will depend on : (i) the sites available; (ii) whether the customer will come to the supplier, or whether the supplier will deliver to the customer; (iii) local transport facilities (road, rail, etc); (iv) future development in the area; (v) whether a lease or a freehold is required; (vi) its geographical position within the market area.

Distribution costs are affected by the following factors : (a) Transport costs: higher in overseas markets owing to distance and, in poorer countries, low quality physical infrastructure. A greater variety of transport modes are used. (b) Warehousing: more sites might be needed in regional centers. (c) Stock levels will be higher, as distances are longer, from the manufacturer. (d) Order processing might include customs and VAT documentation. (e) Packaging: some adjustment might be needed. (f) Failure costs include lost sales through lack of available time. Customers in some markets (e.g. Germany) are very unforgiving if time and quality specifications are not met.

See also Distribution channel.

Physical evidence is marketing mix element for services denoting the environment in which service is delivered (e.g. seating comfort and lighting in restaurant).

Pilot is a trial undertaken on a modest scale in order to test the feasibility of something much bigger.

PIMS Profit impact of marketing strategies.

Placement Marketing of a product by its appearance or use in a movie or television show. (Responsive Database Services, Inc.)

Place Element of the marketing mix detailing how the product/service is supplied to the customer (distribution).

Planned obsolescence A strategy of causing products to become obsolete before they actually need replacement. (Philip Kotler)

Planning
Definition #1. Planning is the establishment of objectives, and the formulation, evaluation and selection of the policies, strategies, tactics and action required the achieving them. Planning comprises long-term/strategic planning, and short-term operation planning. The latter is usually for a period of one year.
Definition #2. Planning is the regular, systematic, customer-centered and controlled series of activities a company will undertake to meet business objectives, secure long-term profitability and realize its product/market strategy effectively and competitively.
Definition #3. Planning (SOSTAC) is a process of answering three basic questions: 1) Where are we now? (Situation analysis), 2) Where do we want to go - broad direction? (Objectives), 3) How do we get there? (Strategies), 4. How do we get there - individual steps? (Tactics); 5. How do we ensure arrival? (Actions); 6. How do we know when we have arrived? - (Control).

Marketing planning process: 1) Business mission (Purpose, Strategy, Standards and behaviors, Company values), 2) Marketing audit (Microenvironment, The market, Competition; Operating results, Strategic issues analysis, Marketing mix effectiveness, Marketing structures, Marketing systems), 3) SWOT analysis, 4) Generation and evaluation of strategic options (For increasing sales: Market penetration, Market expansion, Product development, Market development; Entry into new markets; For Improving profitability: Reduce costs, Rationalize operations, Increase prices), 5) Marketing objectives (Strategic thrust), Strategic objectives: Build, Hold, Harvest, Divest), 6) Core strategy (Target markets; Competitive advantage: Being better, Being faster, Being closer ; Competitors targets), 7) Marketing mix decisions, 8) Organization and implementation, 9) Control.

The marketing plan should include: 1) sales target; 2) total marketing budget analyzed (including (a) salaries, (b) above the line expenditure [advertising], below the line expenditure [sales promotion, price reduction, allowances etc.]); 3) the marketing mix; 4) the allocation of expenditure to products.

Smith's SOSTT-4Ms mnemonic elaborates of planning: (a) External analysis: 1) Situation, 2) Objectives, 3) Strategy, 4) Tactics, 5) Targets; (b) Internal analysis: 6) Men, 7) Money, 8) Minutes, 9) Measurement.

Planning cycle : 1) Examination of the marketplace: (i) External (sales trends, levels of competition, product development, promotional activity, patterns of consumption), (ii) Internal (brand share, product advantages, promotional activity, patterns of consumption); 2) Development of objectives and strategies: (i) Objectives (sales, market share, consumer purchasing), (ii) Strategies (7 P's); 3) Evaluation stage: (i) panel research, (ii) tracking studies, (iii) sales measures.

Tactical planning Planning the utilization of resources to achieve specific objectives in the most effective and efficient way.

Strategic planning is the formulation, evaluation and selection of strategies for the purpose of preparing a long-term plan of action to attain objectives. Also known as corporate planning and long range planning.

Levels of planning (from high details to high scope):
1) Operations and transactions - now (What operations should be performed with existing facilities to meet the specified output requirements in the next operational period?),
2) Operational planning - 1-12 months (What is the best position/marketing etc. plan to meet objectives? What materials, facilities are needed for operations? What is the best method of organizing operations?); Marketing and selling decisions: Pricing, including discounting, Competitor tracking, Customer research, Consumer research, Distribution channels and logistical choices, Sales and marketing budgets and sub-budgets, e.g. promotion/advertising, Database management.
3) Tactical planning - 1-5 years (What products should be added or deleted? What capital investment or divestment is necessary to meet strategic plans? What is best pricing pattern? What new facilities, systems or methods are needed to meet strategic plans?); Marketing and selling decisions: Setting short term prices, Discounting, Promotional campaigns, Advertising, Distribution, Product service levels, Customer service levels, Packaging, Planning sales territories, Short-term agency agreements.
4) Strategic planning - 5 years + (What business should the organization be in? How should the organization be structured? How should resources be allocated?) Marketing and selling decisions: Product/market decisions, Product life cycles, Product development, Entry into new markets, Investment in new technology to provide better information, Database development.

Also see Central planning, Communications strategy and planning, International marketing planning, Resource planning, Simon Majaro's planning hierarchy, SOSTAC.

Planning horizon is the furthest time ahead for which plans can be quantified. It need not be the planning period.

Pleasing products Products that give high immediate satisfaction but may hurt consumers in the long run. (Philip Kotler)

Point-of-purchase Advertising that targets shoppers within the retail environment. Often aimed at impulse purchases. POP includes counter displays, window displays, store banners, aisle displays, etc. (Responsive Database Services, Inc)

Point-of-purchase promotions Displays and demonstrations that take place at the point of purchase or sale. (Philip Kotler)

Point of sale materials : 1) Outside signs, 2) Window displays, 3) Counter pieces, 4) Display racks, 5) Self-service cartons.

Policies General statements providing guidelines to managers.

Political advertising Advertising whose central focus is the marketing of ideas, attitudes, and concerns about public issues, including political concepts and political candidates. In political advertising, the product is either a person or philosophy rather than goods and services. (Responsive Database Services, Inc)

Political environment embraces the activities of the state in setting national objectives, legislating, policy making and implementation.

Also see Privatization, Deregulation, Enterprise culture, Social chapter, Party manifesto, First past the post, Electoral cycle.

Political risk is the risk that political action will affect the position and value of a company.
Exposure to political risk:
1. The actions of legitimate government authorities: 1.1 Total or partial expropriation, 1.2 Forced divestiture, 1.3 Confiscation, 1.4 Cancellation or unfair calling of performance bonds, 1.5 Nonapplicability of "national treatment", 1.6 Restriction in access to financial, labor, or material markets, 1.7 Controls on prices, outputs, or activities, 1.8 Currency and remittance restrictions, 1.9 Value-added and export performance requirements;
2. Events caused by factors outside the control of government: 2.1 War, 2.2 Revolution, 2.3 Terrorism, 2.4 Strikes, 2.5 Extortion, 2.6 Nationalistic buyers or suppliers, 2.7 Threats and disruption to operations by hostile groups, 2.8 Externally induced financial constraints, 2.9 Externally imposed limits on imports or exports.

Polycentrism Subsidiaries are established in overseas markets, with their own objectives, strategies, plans, promotional budgets etc.

Population is all those people who have the characteristics in which the researcher is interested.

Porter's competitive forces see Structural analysis.

Porter's generic strategies see Generic strategies.

Position refers to the place where the advertisement is shown.

Position audit Part of the planning process which examines the current state of the entity in respect of: (1) resources of tangible and intangible assets and finance; (2) products, brands and markets; (3) operating systems such as production and distribution; (4) internal organization; (5) current results; (6) returns to stockholders.

Positioning see Market positioning.

Postal research questionnaires are sent to respondents for self-completion using postal services or other appropriate means of distribution.

Questionnaire design process: 1) Clear purpose, 2) Careful selection of target group and/or sample, 3) Avoiding bias, 4) No difficult and long questions, 5) Unambiguous questions, 6) Not-providing too many choices, 7) Relatively short questionnaire, 8) Analyze non-responses, 9) Making sure responses are representative of the whole sample, 10) Use of some open questions, 11) Thinking about data processing and analyzing, 12) Balancing cost and benefits, 13) Always testing pilot questionnaire.

Also see Questionnaire and Interview.

Potential market is the set of consumers who prodess some level of interest in a particular product or service. (Philip Kotler)

Power is the ability (as opposed to the right) to do something, or stop something being done; power can be physical, based on access to resources, derived from formal position, derived from expertise, or personality, or the ability to disrupt (negative power).

PR See Public relations.

Predatory pricing The practice of lowering prices to a point where they inflict financial damage on competitors; the extreme case of predatory pricing seeks to drive competitors out of business entirely, and it is illegal. (Courtland L. Bovee, John V. Thill)

Premium-luxury products Highest-priced product or service in the competitive marketplace. (Responsive Database Services, Inc)

Premiums Goods offered either free or at low cost as an incentive to buy a product. (Philip Kotler)

Present value is the cash equivalent now of a sum receivable or payable at a future date.

Presentation. 1) Planning. Why are you saying it? 2) Purpose. To whom are you saying it? 3) Audience. What are you going to saying? 4) Structure. How are you going to say? Style. Also: 5) Timing, 6) Expectation, 7) Speaker, 8) Resources, 9) Layout, 10) Audience interaction.

Presentation structure: 1. Introduction - Good morning, and thank you for inviting me to this presentation. As you know I have been asked to prepare a presentation on the subject of direct marketing. I will use overhead projector to illustrate key issues and would appreciate it if you could ask questions at the and of the presentation. Thank you." 2. Content. 3. Summary - Within the limited time available I trust that I have highlighted the key issues pertaining to the & Thank you very much for you time and attention. If you have any questions I will be happy to try to answer them.

Presentation plan: 1.Title, 2. Equipment needed, 3. Aim/objective, 4. Beginning of presentation: 4.1 Time of opening, 4.2 Approach, 5. Middle: 5.1 Key points, 5.2 Visual aids.

Linking words or phrases of presentation: 1. Conclusion: 1.1 This has led to ..., 1.2 Therefore ..., 1.3 So ..., 1.4 As result ...; 2. Contradiction: 2.1 However ..., 2.2 But ..., 2.3 On the other hand ...; 3. Confirmation: 3.1 Similarly ..., 3.2 Again; 4. Building on the previous point - Moreover.

Press conferences Gatherings of media representatives for an announcement. (Courtland L. Bovee, John V. Thill)

Press release A short document, also called a news release, that outlines some newsworthy event or activity and that companies send to reporters and editors with the hope of getting press coverage; press releases for television are often done on videotape. (Courtland L. Bovee, John V. Thill)

Pressure group Group of people who have got together to promote a particular cause (e.g. nuclear disarmament). Sometimes called a cause group. However also used to mean any interest group.

Pressure groups are composed of people with common interests or attitudes who seek to influence relevant decision makers to act on their concerns: 1) Welfare (Age Concern, RSPCA, Action on Smoking & Health), 2) Recreation (National Cyclists. Union, Ramblers Association), 3) Cultural (Citizen's Advice Bureau, Lord's Day Observance Society), 4) Environmental (Conservation Society, Noise Abatement Society, AA), 5) Political (Tenants association, Campaign against Racial Discrimination), 6) International (Oxfam, Anti-Apartheid movement, Save the Children Fund).

Characteristics of pressure groups: 1) Specific common interests or attitudes, 2) Own special purpose, 3) Influence the context of government decisions, 4) Are not political parties.

Actions of pressure groups: 1) Complain, 2) Inform and persuade, 4) Debate and challenge, 5) Canvas and opinion form, 6) March and demonstrate, 7) Demand and negotiate.

Formal channels of pressure: 1) Pressure through government, 2) Pressure through parliament, 4) Pressure through public campaign.

Prestige pricing A technique that attempts to use a high price to establish an image of quality or exclusivity. (Courtland L. Bovee, John V. Thill)

Price The amount of money charged for a product or service, or the sum of the values consumers exchange for the benefits of having or using the product or service. (Philip Kotler)
Element of the marketing mix.
Pricing factors: 1. Cost - 1.1 Variable cost, 1.2 Fixed cost, 1.3 Markup; 2. Competition - 2.1 Direct competitors, 2.2 Lower-price segments of the market, 2.3 Substitutes from other industries; 3. Customer - 3.1 Price expectations, 3.2 Fair/just price, 3.3 Past prices, 3.4 Quality perceptions.
See also Pricing policies.

Price adjustment strategies see Pricing policies.

Price discrimination is the practice of charging different prices for the same product to different groups of buyers when those prices are not reflective of cost differences.

Price elasticity is a measure of the extent of change in market demand for a product in response to a change in its price.

Price elasticity of demand is a measure of the responsiveness of demand to changes in price: the percentage change in the quantity of a good demanded, divided by the percentage change in its price.
Demand is less price sensitive when...
(i) ... the product is more unique - Unique value effect
(ii) ... customers are less aware of substitutes - Substitute awareness effect
(iii) ... customers cannot easily compare the quality of substitutes- Difficult comparison effect
(iv) ... the expenditure (price) is low compared to customers' income - Total expenditure effect
(v) ... the expenditure (price) is low compared to total cost of the project - End benefit effect
(vi) ... the product is assumed to have more quality, prestige, etc. - Price quality effect (vii) ... customers cannot store the product - Inventory effect

Price elasticity of supply is a measure of the responsiveness of the quantity supplied of a good to changes in its price: the percentage change in the quantity supplied divided by the percentage change in price.

Price fixing An illegal collaboration between two or more competitors who agree on the prices they II charge for products in the same category. (Courtland L. Bovee, John V. Thill)

Price leader Indicates to other firms in the market what a price will be.

Price mechanism is the way in which prices act as signals which co-ordinate the actions of economic agents in a free market economic system.

Price lining The establishment of a limited number of price levels that cover an entire product line. (Courtland L. Bovee, John V. Thill)

Pricing research is a form of Marketing research, which includes studies of price sensitivity and price perception.

The key stages in the pricing research: 1. Definition of the information required: 1.1 Costing information (raw materials, cost of production, distribution and warehousing, etc.); 1.2 Competitors' prices and discounts given to distributors; 1.3 The price the consumer would be willing to pay; 2. Identification of the sources of information and how that information is to be obtained: 2.1 Costing - accounts department; 2.2 Competitive prices and details of special offers are available from Retail audits or via our sales force; 2.3 Customers - marketing research (Hall test, Telephone research or Instore trials); 3. Collection of data: 4. Analysis of the data; 5. Conclusions and recommendations.

Price sensitivity An indication of the effect price has on buyers' intentions to purchase a given product or class of product; if buyers are considered price sensitive, changes in price will cause definite changes in their buying behavior. (Courtland L. Bovee, John V. Thill)

Price packs (cents-offdeals) Reduced prices that are marked by the producer directly on label or package. (Philip Kotler)

Price war is a systematic reduction in the price of a good or service by two or more competing firms, often occurring after the breakdown of an agreement.

Prices and incomes policy is a policy which aims to restrain both prices and incomes.

Pricing approaches: 1) Full cost plus pricing, 2) Marginal cost plus pricing/mark-up pricing, 3) Minimum pricing, 4) Limiting factor pricing, 5) Demand-based pricing.

Pricing policies (pricing strategies):

1. New product pricing strategies:
1.1 Market penetration pricing is a pricing policy of low prices when the product is first launched in order to obtain sufficient penetration into the market. Circumstances for market penetration pricing: 1) Discouraging new entrants into the market, 2) shorting the initial period of the product life cycle, 3) Significant economies of scale, 4) Highly elastic demand.

1.2 Market skimming is a pricing policy of charging high prices when a product is first launched and spending heavily on advertising and sales promotion to obtain sales. Progressively lower prices are charged as the product moves into the late stages of its life cycle. The profitable cream is therefore skimmed off in stages until sales can only be sustained at lower prices.
Circumstances for market penetration pricing: 1) New and different product; 2) Unknown demand characteristics; 3) High prices might generate high initial cash flows; 4) Different market segments; 5) Short product life cycle.

1.3 Average price strategy is a pricing strategy based on setting prices, which are average for the industry.

2. Product mix pricing strategies:
2.1 Product line pricing involves developing a product line in which each successive item in the line offers more features/higher quality for a higher price.

2.2 Optional product pricing involves selling optional or accessory products along with a main product.

2.3 Captive product pricing involves selling products that must be used along with a main product.

2.4 By-product pricing involves accepting any price for a low value by-product that covers more than the cost of storing and delivering it.

2.5 Product bundle pricing involves combining several products and offering the whole bundle at a reduced price.

3. Price adjustment strategies:
3.1 Discount pricing and allowances: 3.1.1 Cash discount is a price reduction for buyers who pay their bills promptly; 3.1.2 Quantity discount is a price reduction for buyers who buy large volumes; 3.1.3 Trade discount (Functional discount) is a price reduction given to an intermediary for performing certain functions such a storage; 3.1.4 Seasonal Discount is a price reduction for buyers who buy products or services out of season; 3.1.5 Allowances include trade in allowances and promotional allowances.

3.2 Discriminatory pricing: 3.2.1 Negotiation with individual customer, 3.2.2 On the basis of quantities purchased, 3.2.3 By time, 3.2.4 By location, 3.2.5 By product type.

3.3 Psychological pricing considers the psychology of prices and not simply the economies.

3.4 Promotional pricing involves temporary pricing products below list price, and sometimes below cost, to increase short-run sales: 3.4.1 Loss leader are used to attract customers to supermarkets and department sores in the hope that they will buy other goods at normal mark-up, 3.4.2 Special event pricing might be used in certain seasons. 3.4.3 Cash rebates are offered to consumers who buy the product from dealers within a specified time. 3.4.4 Discounts may be offered, 3.4.5 Geographical pricing strategies cover different freight charging strategies.

Necessary data to pricing decisions: 1) Cost data, 2) Demand data, 3) Competitor data (also see Sources of information about competitors).

Primary data In market research, this is data collected specifically for the study under consideration (e.g. by questionnaire).

Primary demand The level of total demand for all brands of a given product or service. For example, the total de-mand for motorcycles. (Philip Kotler)

Primary/connected stakeholders see Stakeholders.

Principal budget factor see Budget.

Print ad coupons Coupons that appear in print sources, such as magazines and newspapers. (Responsive Database Services, Inc)

Print advertising Discussions of print advertising in general, including both magazine and newspaper advertising. (Responsive Database Services, Inc)

Privatization Policy to transfer economic activities to private ownership and control, including the sale of shares (51% or more) in previous nationalized industries to private individuals and institutions, contracting out of publicly funded services to private companies, and the sale of public housing.

Private brand A brand that is designated, owned, and used by a wholesaler or retailer. (Courtland L. Bovee, John V. Thill)

Private sector is the part of the economy in which productive activity is carried out by privately owned/run enterprises and includes the household and personal sector as well as businesses.

Private of contract is the relation between two contracting parties which allows either to sue the other for breach.

Probability is best estimate of the outcome of each decision alternative.

Problem children see Boston classification.

Problem classification matrix
Specific projects such as launching new product, conquest of new markets, international join ventures, etc., require different level of analysis. The corresponding depth and degree of detail of the analysis should be determined according to the complexity of each problem, and the importance of the project for the company.

Importance of the project for the company	High	Medium	Low
Novelty/complexity of the problem
High	I	I	II
Medium	I	II	III
Low	II	III	IV

This matrix must be interpreted as follows:
Type I requirements: 1.1 Very precise and comprehensive analysis of the market and the competition; 1.2 Detailed consideration of further strategic options; 1.3 Gradual refining of functional stages with checking or justification of underlying critical assumptions.
Type II requirements: 2.1 Thorough analysis and problems; 2.2 General consideration of the most important strategic alternatives; 2.3 Gradual refining of critical functional strategies.
Type III requirements: 3.1 Assessment and description of the problem relating to the project; 3.2 Drafting out the main concept. Type IV requirements: 4.1 Straightforward assessment of project conditions; 4.2 Preparation of a concept based on the most important or critical aspects only.