A Base Price May Be Lowered by a Discount

question 110

Essay

A base price may be lowered by a discount.Discounts take a variety of forms and have several different objectives.Name and define three types of discounts (do not include allowances or rebates).State the main objective of each type of discount you identify.

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Definitions:

Selective Distribution

A distribution strategy where a company chooses a limited number of retail outlets in specific locations to sell its products, aiming to target specific markets or demographics effectively.

Exclusive Distribution

A distribution strategy where a supplier grants only one dealer or retailer the rights to sell its product within a specific geographical area.

Buzz Marketing

A marketing strategy that focuses on maximizing the word-of-mouth potential of a product or service, often through viral marketing tactics.