1. Pricing Fundamentals Flashcards
1
Q
Marketing Analysis (5 C’s)
A
- Clients
- Company
- Competitors
- Collaborators
- Context
2
Q
Marketing Mix (4 P’s)
A
- Product/Service
- Place/Channels
- Promotion
- Pricing
3
Q
Breakeven sales Formula
A
BE Sales Change (quantity) = -ΔP/(CM+ΔP)
4
Q
Tactical Pricing Orientations
A
- Cost-Driven Pricing
- Customer-Driven Pricing
- Competition-Driven Pricing
5
Q
Cost questions in pricing
A
- How much sales gain would be required to profit from a price cut?
- How much sales loss would be tolerable to profit from a price increase?
- What costs can we afford to insure and still earn a profit?
6
Q
Customer questions in pricing
A
- What prices can we convince buyers of that are supported by the value of our products and services?
- How can we better segment the market to reflect the differences in value to different types of customers?
7
Q
Competitive questions in pricing
A
- Which shares of the market can we most profitably serve?
- How can we most profitably serve them?
