marketing mix, price

Question 1

what are some pricing stategies?

Answer 1

-price skimming
- price penetration
- psychological
- premium pricing
- competitor pricing

Question 2

what is price penetration

Answer 2

-inital low price to gain market share
- will increase over time, which may dissatisy customers

Question 3

what is psychological pricing

Answer 3

• appear in lower price bands eg) £99 instead of £100

Question 4

hey emily do a practice question on this, do urself a favour

Question 5

what is premium pricing

Answer 5

• high selling price
• gain a luxury image
• will only work if there is a competitive advantage

Question 6

what is competior pricing

Answer 6

• based on competiors pricing
• used in competitive markets
• usually business will have competive advantgae to gain customers from competitors

Question 7

cost plus

Answer 7

price of product+ profit= selling price
-doest consider competitor prices or what customers are willing to pay for

Question 8

loss leader

Answer 8

selling products at a loss to gain sales from other products

Question 9

what are price makers

Answer 9

creates market price , that competitiors will follow

Question 10

what are price takers?

Answer 10

will take price created by competiors

Question 11

analyse pricing strategies overall

Answer 11

advanbatges
- create image for products
- increase revenue as customers will be happy to buy if correct price is used
disadvantgaes
- competitors may not follow price
- wrong price will cuase custoemrs to go elsewhere