Pricing And Place Flashcards
The methof of determining the value a producer will get in the exchange of goods anf services.
Pricing
Primary objective of earning profits
Pricing method
the ovjective once set gives the path to the business in which direction to go
Pricing objective
pricing objectives
- Survival
- Maximum current Profits
- Maximum market share
- Market skimming
- Product-quality leadership
The foremost pricing objective of any firm is to set the price that is optimum and help the product or service to survive in the market
survival
Estimating the demand and supply of goods and services in the market. Higher the demand, higher the priced charge
maximizing current profits
Charge low price to have an increase sale resulting from the.economies of sale
Market share
Charging high price fir the peoduct and services offered by the firms which are innovative, and uses modern technology
market skimming
Keep the price in coordance with the quality perceived by the customer.
Product-Quality Leadership
Competitive pricing. It focuses on the existing market rate for a company’s product or services
Competition based pricing
Focuses solely on the cost of producing your product or service. Also known as mark up pricing
Cost-plus pricing
surge pricing, demand pricing, or time-based pricing. A flexible pricing strategy where prices fluctuate based in market
Dynamic pricing
Free and premium. Its is when comoanies offers a basic version of their product hoping that users will eventually pay to upgrade
Freemium pricing strategy
when a company initially sells a product at a high price but lowers when the product drops in relevance (seasonal)
high-low pricing strategy
rate-based pricing. Trading time for money, (freelancers, contractors)
Hourly pricing
When companies charge the highest possible price for new product and lowers when it become less popular
Skimming pricing strategy
a pricing strategy used by businesses to attract customers. Lower peice during its initial offering
Pentration pricing strategy
Luxury pricinf, a prestige pricing strategies when companies price their product high to present the image that their producta are high value
Premium pricing strategy
Opposite of hourly pricing, charges fee per project
Project based pricing
Pricimg based on what customers is willimg to pay. (Bidding)
Value-based pricing
Process of moving products from the producer to the intended user in marketing mix
Place
can be defined as the activities and processes required to move a product from the producer to the consumer
distribution channels
4 tyoes if distrubutiin channel
1.Direct
2. Indirect
3. Duel distribution
4. Reverse channels
The manufacturer directly provides the product to teh consumer
direct
Company use an intermediary to sell products
indirect
Uses combinatiom of direct and indirect selling
Dual distrubution
Allows the consumer to send a product to the producer. (Deposite)
Reverse channel
Middlemen
intermediaries
Independent entitiy who acts as an extension of the producer by reperenting them to the user
agent
They purchase goods from a producer in bulk and store them in warehouse
Wholesaler
can only carry products from a sigmle brand or company
distributors
they can buy form the other intermediaries and sell the products
retailers
