Price Flashcards
What is the definition of breakeven?
The point at which the total costs is equal to total revenue
What is the definition of Mark-Up?
The sum added to the trade price paid for a product to cover the intermediary’s costs and profit
What is the definition of penetration pricing?
The tactic of setting prices low in order to gain as much market share as possible as quickly as possible
What is the definition of Pricing objectives?
What the organisation is trying to achieve through its pricing, measured in financial or market share terms
What is the definition of Pricing method?
The means by which pricing is calculated
What is the definition of Pricing policies and strategies?
The overall strategic guidelines for the pricing decision, which specify pricing’s role within and integrated marketing mix
What is the definition of Pricing tactic?
The short term manipulation of price to achieve specific goals
What is the definition of Psychological pricing?
The use of price as a means of influencing a consumer’s behaviour
What is the definition of Price skimming?
Prices are set high to attract the least price sensitive market segments
What is the definition of transfer pricing?
Prices are changed for the exchange of goods and services between different departments or operating devisions within the same organisation
What are the internal influences on pricing?
- Organisational objectives
- Costs
- Marketing Objectives
What are the external influences on pricing?
- Customers and consumers
- Legal and regulatory
- Channels of distribution
- Competitors
- Demand and price elasticity
- Politics
