Marketing (Price) Flashcards
1
Q
What influences Price
A
- Competition -Production -Target audience
- Brand -Demand -Stage in product life cycle
- Quality -Location -State of the economy
2
Q
Pricing strategies
A
- Cost plus -Competitor -Physiological
- Skimming -Destroyer -Prestige
- Penetration -Loss leader -BOGOF
3
Q
Destroyer
A
Setting the price low to get rid of competition, then raising it
4
Q
Physiological
A
Trying to convince the consumer that its a better deal than it is
E.G. £19.99
5
Q
Skimming
A
Companies charge a high price to begin with then lower the price to help the product become mass market
6
Q
Loss leader
A
The price is set below cost then when the product is established the company will increase the price
7
Q
Penetration
A
When companies charge a very low price when the product is new
8
Q
Prestige
A
Charging the product at a high price to give the illusion of quality
