unit 2 marketing mix

Question 1

firms create successful products by

Answer 1

the right product
right price
right place
suitable promotion

Question 2

price

Answer 2

not to low for the business

not too high for the customers

Question 3

what affects the price that the business charge

Answer 3

price of competitors
new businesses may have it cheap so customers may buy their product
cost to make product
profit wanted to make

Question 4

competitor pricing

Answer 4

the same product price set similar to their competitors

Question 5

cost plus pricing

Answer 5

it adds a percentage for profit to the total cost of making a product. this gives a selling price.

Question 6

penetration pricing

Answer 6

short term used by new businesses typically set the price lower than competitors

Question 7

skimming

Answer 7

new product is more advance than competitors so is typically higher but consumers will still buy it. AKA creaming

Question 8

differential pricing

Answer 8

used in transportation commonly

change different price for the same product for service

Question 9

promotional pricing

Answer 9

reduce prices to boost sales or get rid of old stock. they are sales

Question 10

psychological pricing

Answer 10

making prices seem much more cheap 9.99 instead of 10.00