Predatory Pricing

Pool-Out – A commercial written in a fashion similar to an earlier commercial in an advertising campaign.

Pooled Buying – The practice of independent merchants informally pooling their orders.

Pooling – A process of combining shipments that are consigned to the same destination. this service, often provided by a third party provider, improves physical distribution productivity in the handling of multi-unit shipments.

Portfolio – 1. (advertising definition) A collection of the best creative work done by an art director or copywriter, used in job interviews to demonstrate the individual’s talent, skill, and experience. 2. (product development definition) A set of things that are developed and/or marketed in relationship to each other. It most often is applied to that group of projects currently active in a research laboratory, but may apply to all new projects underway.

Portfolio Analysis – More diversified companies are more usefully considered as being composed of a portfolio of strategic business units (SBUs). Portfolio analysis is used to assess needs and to allocate resources in recognition of differences in the contributions of different SBUs to the achievement of corporate adjectives for growth and profitability. Portfolio analyses are often performed using models that classify SBUs and product-markets within a two dimensional matrix in which one dimension represents the attractiveness of the market and the other dimension the strength of competitive position. The position of the SBU within the matrix has direct implications for the generic investment strategy of the business – that is, whether it is appropriate to have an investment strategy/build strategy, hold strategy, harvesting strategy, or divest strategy.

Portfolio Management – The arrangement of investments so as to achieve a balance of risks and rewards acceptable to the investor. The term can be applied to a global product portfolio.

Position Analysis – The analysis of existing products including the manufacturing program of the present company and of the subsidiaries, analysis of competitors’ market shares, a technical and economic evaluation of all products in comparison with competitors’ products, assessment of manufacturing capacity, assessment of sales capacity in the field and in the home organization, appraisal of product knowledge within the group, analysis of custom duties and tariffs, and some study of innovations to be expected in the future.

Position Description – A written description that helps the incumbent of a position know what is expected of him or her. It includes the organizational unit, position title, purpose of the position, reporting relationships, duties and responsibilities, and authority (if any).

POSSE – A decision support system for making product design decisions. The approach uses conjoint analysis to identify the relation between the attributes possessed by a product and the desirability of that product, for each of the set of potential customers. In a second step, the level of market demand for any potential product is estimated by aggregating the individual preference models across customers. An optimization routine then reveals the most desirable product (or products) in terms of some specific management objective (e.g.,maximizing incremental market share). This objective may take into account the presence of specific other products in the market and/or any cannibalization effect of the new product on specific existing products. Finally, the market segment most attracted to this optimal new product is identified.

Possession Utility – The increased usefulness created by marketing through making it possible for a customer to own, use, and consume a product. It is also called ownership utility.

Post Exchange – A retail store operated by armed forces primarily for the convenience of military base personnel and their families. It is also called a PX.

Post-Purchase Evaluation – The evaluation of a product or service after consumption. This may involve remorse as well as the feeling of satisfaction or dissatisfaction.

Post-Testing – The testing of advertising effectiveness after the audience is exposed to the advertising in the market place.

Postindustrial Society – A concept referring to the next stage in our societal evolution in which the production of knowledge will be our major activity and most of the employment opportunities will be in the service sector.

Postpone Method – A method used by salespeople to respond to prospect objections by asking permission to address the prospect’s concerns at a later time.

Postponement – 1. (channels of distribution definition) This concept holds that changes in the form and identity of a product and inventory location should be shifted to the latest possible point in the marketing process in order to reduce the costs of the marketing system. 2. (physical distribution definition) an economic term used to describe a strategy whereby the seller postpones any customization of the product until a firm demand is received from the buyer. A common example would be when the consumer buys paint that is custom mixed at the hardware store after the order is placed by the customer.

Poverty Level – The poverty level is based solely on money income and updated every year to reflect changes in the consumer price index; it reflects the consumption requirements of families based on their size and composition. It is used to classify families as being above or below poverty level.

Pragmatic Validity – An approach to validation of a measure based on the usefulness of the measuring instrument as a predictor of some other characteristic or behavior of the individual; it is sometimes called predictive validity or criterion related validity.

Preapproach – The activities preceding the sales call that include prospecting, collecting information, and planning the sales presentation.

Predatory Pricing – The practice of selectively pricing a product below that of competition so as to eliminate competition, while pricing the product higher in markets where competition does not exist or relatively weaker.

Preemptive Pricing – The practice of setting prices low so as to discourage competition from entering the market.

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