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2nd shift lecs > Price Mix > Flashcards

Price Mix Flashcards

1
Q

communicates the intended value positioning of a product or brand to the market.

A

price

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2
Q

is the element of the marketing mix that produces revenue, and the easiest to adjust

A

price

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3
Q

highest amount that a retailer may charger to a consumer for a medicine placed under price regulation

A

Maximum Drug Retail Price (MDRP)

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4
Q

No medicine under price regulation shall be sold to a customer at a price higher than the MDRP

A

Under RA 9502

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5
Q

Enabling laws of RA9502

A

EO 821 and EO 155

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6
Q

On top of the MDRP ________ and _______ are still eligible to avail of special discounts

A

Senior citizens and PWDs (20%)

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7
Q

Violation penalty under RA 9502

A

Php 50,000 to Php 5,000,000

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8
Q

In 2009, EO 821 mandated the price reduction of 5 important molecules

A
  • amlodipine
  • atorvastatin
  • azithromycin
  • cytarabine
  • doxorubicin

first line for diseases

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9
Q

When was the EO repealed for MDRP to have a new set of medicines

A

2021

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10
Q

Innovator brand of amlodipine

A

Norvasc (MDRP by law)

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11
Q

Criteria for determining MDRP include:

A
  1. Public health priorities
  2. High price differentials compared to international prices
  3. Limited competition or lack of generic counterparts
  4. Expensive and commonly prescribed drugs
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12
Q

Drug products that were price-controlled can also be removed by the govt. from having MDRP (t or f)

A

T

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13
Q

3 General pricing concepts

A
  • Reference prices
  • Price-quality inferences
  • Price Endings
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14
Q

Comparing an observed price to an internal reference price they remember or an external frame of reference such as a posted “regular retail price”

A

Reference prices

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15
Q

Types of Reference Prices

A
  • Fair Price
  • Typical Price
  • Upper-bound price
  • Lower-bound price
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16
Q

Price based on customer’s feelings

A

Fair price

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17
Q

usual price of a product in the market (SRP)

A

Typical price

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18
Q

Maximum price that consumers would pay; also called reservation price (konting taas sa SRP)

A

Upper-bound price

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19
Q

Minimum price that consumers would pay; also called lower threshold price

A

Lower-bound price

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20
Q

Is a concept where price is used as an indicator of a product’s quality; higher price = higher quality

A

Price-quality inference

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21
Q

Pricing concept based on consumer psychology where price is determined based on the numerical structure of a product’s price

A

Price endings

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22
Q

Example of price endings

A
  • Odd number pricing
  • “9” endings pricing
  • 0 and 5 endings
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23
Q

Limitations of price endings pricing

A
  • only useful when consumer price knowledge is poor
  • not usually effective for items that are not bought frequently
  • not usually effective if product design changes frequently
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24
Q

Steps in setting a product’s price

A
  1. Selecting the Pricing Objective
  2. Determining demand
  3. Estimating costs
  4. Analyzing competitor’s costs, prices, and offers
  5. selecting a pricing method
  6. selecting the final price
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25
The company first decides where it wants to positions its market offering.
Selecting the Pricing Objective
26
5 Pricing Objectives
- Survival - Maximum current profit - Maximum market share - market skimming - product-quality leadership
27
intense competition, changing market wants, overcapacity
Survival
28
maximum profit based on demand and cost estimation
Maximum current profit
29
setting a lower price to capture/penetrate most of the market
Maximum market share
30
price starts very high and goes down slowly over time
market skimming
31
best-in class quality products can set highest price (Ex. innovator drug brands often set the highest price)
Product quality leadership
32
Price and demand normally has an ______ relationship
Inverse
33
Pertains to the reaction of a market changes in price. If a product price increases and demand goes down, it means the market is price sensitive
Price sensitivity
34
Sets the maximum (ceiling price)
Demand
35
sets the minimum (floor price)
Costs
36
also called as overhead are costs that remain constant in producing a product (rent, salary)
Fixed costs
37
are costs that change depending on production output (raw material and packaging material costs, electricity)
variable costs
38
Price should cover either fixed or variable cost to make price effective (t or f)
F - cover both fixed and variable cost
39
4 general methods in pricing
- markup pricing - target-return pricing - perceived-value pricing - value pricing
40
a company puts a markup above the production cost (unit cost) to determine the price of the product
Markup Pricing
41
Most popular pricing method
Markup pricing
42
the amount added to the cost it took to make the product and is the source of a company's profit
markup
43
the company decides on the price that would give back the target rate of return on the investment
target-return pricing
44
delivers its promised features and values and the customers perceive the value which justifies the price
perceived-value pricing
45
- where a company optimizes its production system so well that it can produce a product so efficiently that it can offer it at a very low price (while high quality is maintained) - made by innnovators
value pricing
46
Price adaptation strategies
- geographical pricing - price discounts (trade) - promotional pricing - differentiated pricing
47
the company decides how to price its products to different customers in different locations and countries
geographical pricing
48
different price discounts
- discount - quantity discount - functional discount - seasonal discount
49
a price reduction for buyers who pay promptly
discount
50
2% discount is given if a drugstore pays its orders within 30 days to the distributor)
discount
51
price reduction for buyers who buy more (large volumes)
quantity discounts
52
also called trade discount; offered to a buyer (drugstore) that also performs specific functions
functional discount
53
a price reduction given for products that are outside peak season
seasonal discounts
53
Different types of promotional pricing
- loss leader pricing - special customer pricing - psychological pricing
53
offering a well-known brand at a cheaper price during to stimulate customer traffic
loss-leader pricing
54
offering special prices to "club" members
special customer pricing
55
offering a usually high-priced product at a very low price (usually done for near-expired products that are still within acceptable shelf life)
psychological pricing
56
price adjustment to accommodate differences in products, customers, and locations
differentiated pricing
57
occurs when a company sells a product or service at a two or more prices that do not reflect a proportional difference in costs
price discrimination
58
Different types of price discrimination
- customer-segment pricing - product form pricing - channel pricing
59
offering the same product but at difference prices to different customer segment
customer-segment pricing
60
offering same product at different prices as different forms
product form pricing
61
offering the same product at different price based on location
channel pricing

2nd shift lecs (21 decks)

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