Price Flashcards
1
Q
price
A
the amount of money charged for a product or service
2
Q
price in the positioning strategy
A
- product strategy
2. distribution strategy
3
Q
product strategies
A
set low prices for tthe prroduct and makethe supplies required to run itt expensive
4
Q
what influences pricing distribution strategies
A
- ttype of channel
- distribution intensity
- channel configuration
5
Q
roles of pricing
A
- signal to the buyer
- instrument of competition
- improving financial performance
- marketing program considerations
6
Q
ROP: Signal to the buyerr
A
- provides fast and direct communication
- provides basis of comparrioson between brands
- can be used to position brand as high quality
7
Q
ROP: instrument of competition
A
- offers a way to quickly attack competitrs
8
Q
pricing strategy steps
A
- set pricing objectives
- analyse the pricing situation
- cost analysis
- competitor analysis
9
Q
pricing objectives examples
A
- gain market position
- achieve financial perrformance
- product positioning
- stimulate demand
- influence competition
10
Q
cost analysis examples
A
- composition of product cost
- volume effect on cost
- competitive advantage
- experience effect
- control over cosr
11
Q
illustrative pricing strategies
A
- high active
- high passive
- low active
- low passive
12
Q
high active pricing strategy
A
when tthere is a high pice in promotional activities
13
Q
high passive strattegy
A
when high price is essential to gain margins to serve small target markets
14
Q
low active strategy
A
low pice in oder for rapid growth to occur
15
Q
legal considerations
A
- price fixing
- price discrimination
- deceptive pricing
- predatoy pricing
