pricing strategies

Question 1

what are the market segmentation primary
bases (4)

Answer 1

• geographic
• psychographic
• demographic
• behavioural

Question 2

what are the 4 stages of the product life cycle

Answer 2

• introduction
• growth
• Maturity
  ~ Decline

Question 3

what are the 5 consumer purchase decision processes

Answer 3

• problem recognition
• information search
• alternative evaluation
• purchase decision
• post purchase evaluation

Question 4

what are the 5 Porters forces

Answer 4

supplier power
buyer power
threat of substitution
threat of new entry
competitive rivalry

Question 5

what is the model of maslows heriachy of needs

Answer 5

model for understanding motivations for human behaviour

Question 6

what is the order of Maslows Heirachy of needs

Answer 6

physiological needs = food, water

safety and security = health, employment, property

love and belonging = friends, family, intamacy

self esteem = confidence, achievement, being unique

self actualisation = mortality, creativity, acceptance, meaning and inner potential

Question 7

what is integrated marketing communications

Answer 7

a theory and set of business practices that facilitate consistent messaging across channels and produce a unified brand experience for customers

Question 8

what are the 3 organisation markets

Answer 8

1. producer marketing
2. reseller marketing
3. institutional marketing

Question 9

what is producer marketing

Answer 9

any or all operations which are performed by any producer in prep for market

Question 10

what is reseller marketing

Answer 10

licensed resellers buy finished products to resell to their customers for profit

Question 11

what is institutional marketing

Answer 11

the strategy responsible for the set of communication actions of a company with its audience - goal of strategy is to strengthen brand image

Question 12

what are the 13 pricing strategies

Answer 12

1. penetration pricing
2. price skimming
3. competitive pricing
4. dynamic pricing
5. value based pricing
6. premium pricing
7. promotional pricing
8. psychological pricing
9. bundle pricing
10. freemium pricing
11. loss leader
12. cost plus
13. geographic

Question 13

what is penetration pricing

Answer 13

offering a lower price during is initial offering

Question 14

what is price skimming

Answer 14

when introducing new products with no competition.

they charge a high price at first then
lower it overtime.

Question 15

what is competitive pricing

Answer 15

focuses on existing market rate for similar products

Question 16

what is dynamic pricing

Answer 16

Prices fluctuate based on marker and consumer demands

Question 17

what is value based pricing

Answer 17

prices are set according to what consumers think your product is worth

Question 18

what is premium pricing

Answer 18

intentionally higher than the average market value

increasing perceived quality of the product

Question 19

is millie the best girlfriend ever

Answer 19

yes i love her

Question 20

what is promotional pricing

Answer 20

brands temporally reduce the price which attracts customers

Question 21

what is psychological or odd pricing

Answer 21

when they price at odd number to make the product seem cheaper

e.g $1.99

Question 22

what is bundle pricing

Answer 22

2 or more products are combined to be offered at a lower price than if they were sold separately

Question 23

what is freemium

Answer 23

free trials to test products

Question 24

what is loss leader

Answer 24

brings customers to your store to buy a highly discounted product, while they are there they may purchase full price products

Question 25

what is cost plus pricing

Answer 25

bussniess sets price by adding a chosen percentage to the cost of production

Question 26

what is geographic pricing

Answer 26

setting price at different levels based on a customers geographic location