3.3.4 Marketing Performance(price promotion product) Flashcards
Marketing mix definition
The elements of a firms approach to marketing that enables it to satisfy and delight its customers.
Unique selling point definition
A key feature of a product that differentiates it from its rivals.
Penetration pricing definition
Low prices are charged to help attract customers; to gain a foothold in the market and establish market share. It is commonly used with new food products.
Price skimming definition
High prices are charged to gain a high profit margin from early adopters. It is commonly used when a business has already established a strong brand image and has a loyal customer base.
Early adopters definition
They are people who are willing to pay high prices to purchase products when they are first launched, very common in technology markets such as games or phones.
Price leadership and price taking definition.
Large market-leading firms,known as price leaders, are aboe to set the price in a market as they have the market power. This may be because they have a strong USP, brand image or brand loyalty. Smaller rivals, known as price takers, do not have as much market power and take the accepted price and follow.
Predator (or destroyer) pricing definition
Firm sets very low prices in order to drive other firms out of the market.
Premium pricing definition
Charging high prices for high quality goods, i.e luxury: cars, holidays or jewellery
Seasonal pricing definition
Different prices are charged depending on the level of demand. In peak seasons higher prices can be charged and vice versa.
Loss leaders definition
A short term tactic where firms set lower prices than usual to attract customers who they hope will buy other full price products.
Psychological pricing definition
Prices are set fo appear lower to the consumer, i.e products sold for £9.99. Or not including add on fees such as only advertising the entrace fee for paintballing but not the cost of the paintballs which are needed to play.
Price discrimination definition
Higher prices are charged to some customers for the same products/services, i.e taxi or trainfare.
Cost-plus pricing definition
The average cost of producing a product plus a sum to ensure profit is made.
Mark up definition
The percentage added to a product to ensure a profit is made.
Price elasticity of demand measures what?
The responsiveness (or sensitivity) of demand to a change in price.
