The Marketing Strategy

Question 1

4 factors affecting price

Answer 1

• competition
• nature of product
• cost of production
• economic environment

Question 2

Skimming pricing strategy

Answer 2

high price to gain profits quickly

Question 3

Penetration pricing strategy

Answer 3

sets low price to a attract initial customers

Question 4

Premium/ Prestige pricing strategy

Answer 4

sets high price to create image

Question 5

Psychological pricing strategy

Answer 5

setting a price that seems cheaper than it really is

Question 6

Loss leaders pricing strategy

Answer 6

entices customers in to a particular outlet

Question 7

Competition based pricing strategy

Answer 7

sets price of goods below customers to increase sales

Question 8

Predatory/destroyer pricing strategy

Answer 8

setting prices so low that new competition can’t afford to compete

Question 9

Market based pricing strategy

Answer 9

setting similar prices for similar products

Question 10

Promotional pricing strategy

Answer 10

e.g. BOGOF, 3 for 2, 10% off

Question 11

Cost plus pricing strategy

Answer 11

set price based on desired mark up