Sumary

Question 1

Outcome 1 // explain price and its importance in marketing

Answer 1

Price… generates revenues.

The most imp. factor is how the customer view the price related with They receive

Question 2

Outcome 2 // how 5 Cs influence price decisions

Answer 2

COMPANY OBJECTIVES
C. focus image set high prices… C focus value low prices.

CUSTOMERS
Understand customer reactions to price…helps marketers set prices
Demand and price elasticity // Gauge customer sensitivity to prices

COSTS
Prices and levels of profitability
Break even point

COMPETITION
Intense competition /Competition war
Marketing structure of the industry (oligopoly, monopoly, pure competition)

CHANNEL MEMBERS
Manufacturers, wholesalers and retailers

Question 3

Outcome 3 // Pricing methods // Various strategies

Answer 3

Fixed percentage and markup

METHODOLOGY

COMPETITOR BASED PRICING
Should use also in consumers reactions

VALUED BASED APPROACH

COST BASED APPROACH

New products in the market
Price Skimming or penetration market

Question 4

Outcome 4 // Pricing tactics

Answer 4

1. Pricing tactics aimed at customers
Price lining,
price bundling
leader pricing
Quantity discounts
Coupons and rebatess

2. Business to business-pricing tactics
Seasonal discounts
cash discounts
Allowances
Quantity discounts
uniform deliverd

Question 5

Outcome 5 // Legal ethical issues about pricing

Answer 5

Deceptive reference price
loss leader pricing
Bait and switch