Lesson 6 part 2 Flashcards
refers to the method and approach a business uses to set the prices of it’s products or services
Pricing Strategy
The ultimate judge of wheter your price delivers a superior value is the customer
Customers
The most obvious component of pricing decisions
Costs
It must work in concert with everything else you’re trying to achieve
Company objectives
This is where managers often make fatal pricing decisions.
Competition
If you sell through “middle men” to get to the end-suers of your products or services,
Channel members
Setting initially high prices for a new product to capitilize on early adopters and gradually lowering prices over time
Example of pricing strateigies / framework
Skiimming pricing
Setting low initial prices to quickly gain market share and penetrate the market, with the possibility of raising prices later
Example of pricing strateigies / framework
Penetration Pricing
Setting prices based on the perceived value of the product or service to the customer, rather than solely on costs or competitor prices
Example of pricing strateigies / framework
Value-Based Pricing
refers to the customer’s evaluation of a product or service’s worth based on their expectations and experiences, rather than its actual cost or intrinsic value
Perceived value
Setting prices in line with or slightly below competitors’ prices to remain competitive in the market
Example of pricing strateigies / framework
Competitive Pricing
Offering multiple products or services together at a discounted price compared to purchasing them seperately
Example of pricing strateigies / framework
Bundle Pricing
Adjusting prices in real-time based on demand fluctiations, inventory levels, or other market conditions
Example of pricing strateigies / framework
Dynamic Pricing
Offering a basic version of a product or service for free with the option to upgrade to a premium version for a fee
Freemium Pricing
refers to the chammel or the route through which goods move from the source to the final user
Place
refers to the connected network of individual, organization, resources, activities and technologies involved in the manufacture and sale of a product or service
Supply chain
distribution is limited to a select number of dealers, usually one or a few
Product Distribution types
Exclusive distribution
makes the product available in as many retail outlet as possible
Intensive distribution
lies between intensive distribution or exclusive distribtuion. and which only a few retail outlets cover a specific geographical area
Selective distribution
The process of marketing communation between company that sells the product and the potential customer, with the purpose of influencing the attitued and behavior
Promotion
Usually for the purpose of selling products or services, trough the use of various froms of media, such as print or braodcast notices
Advertising
