1.3.3 pricing strategies Flashcards
1
Q
price
A
the money charged for a product/service
2
Q
stages of price setting
A
- develop price objective
- assess target market ability to purchase
- determine product demand
- analyse demand cost + profit relationship
- evaluate competitor prices
- select pricing strategy
- decide price
3
Q
pricing method
A
used to calculate the actual price
4
Q
pricing tactics
A
adopted in short run to suit particular situation
5
Q
price leader
A
price changes are followed by rivals (eg Tesco’s)
6
Q
pricing strategies
A
adopted over medium/long term to achieve marketing objectives
7
Q
price takers
A
have not option but to change ruling market price (iceland/coop/budgens)
8
Q
price makers
A
able to fix their own price (apple)
9
Q
price followers
A
follow the price chnaging lead of market leader (lidl, asda)
10
Q
different types of pricing to reflect social change (5)
A
- subscription pricing
- dynamic pricing
- price comparison sites
- online sales
- auction sites
11
Q
subscription pricing
A
- user pays a monthy amount for the service
- customers pay a higher price for an ad free service
- eg netflix, spotify etc
12
Q
dynamic pricing
A
- relying on chnages in the demand + supply of product
- tracking number of clicks a product has
- use price to attract customers
- eg amazon, premier inn
13
Q
price comparison sites
A
- give lots of info in variety of formats - may be difficult to compare
- eg confused.com, gocompare
14
Q
online sales
A
- black friday
- attract more customers
- get rid of stock
15
Q
auction sites
A
- sellers advertise a product on the site for a minimum price + invite bids from potential buyers
- have timelines on them, closer to the bid the price will rise
- eg ebay, gumtree
