Flashcards
3.3.4: Making marketing decisions: using the marketing mix (PRICE)
Cards in this deck (4)
- 1Price: (Key Features)-competitors products/price
-cost of production, promotion etc.
-market conditions (market share, demand etc.)
-state of the economy
-power of customers
-location of business
-brand image
-brand loyalty
-product quality
-PED - 2Two Pricing Strategies For Initial Launch:-Penetration pricing: where low prices are charged to help attract customers to gain a foothold in the market and establish market share e.g. new food products
-Price skimming: high prices are charged to gain a high profit margin from early adopters. Mostly used when a business has a strong, established brand image already e.g. Apple - 3Early Adopters:people who are willing to pay high prices to purchase products when they are first launched (common in technology markets)
- 4Other Pricing Strategies/Methods:-Loss leaders: a short term tactic where firms set lower prices than usual to attract customers who they hope will buy other full priced products e..g. mobile phone games
-Psychological pricing: prices are set to appear lower to the consumer e.g. £9.99 rather than £10
-Price discrimination: higher prices are charged to some customers for the same product/service e.g. train fares (age)
-Cost-plus pricing: the average cost of producing a product plus a sum to ensure profit is made e.g. petrol
-Mark-up: the percentage added to a product to ensure a profit is made
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- A level Business Studies (3.3: Decision making to improve marketing performance) Flashcards on 3.3.4: Making marketing decisions: using the marketing mix (PRICE), created by Ashleigh-Jade Jones on 20/04/2017.
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- Ashleigh-Jade Jones
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