2878466
Description
Mind Map by paigestraw, updated more than 1 year ago
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Created by paigestraw
almost 9 years ago
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Marketing Mix
- PRICE
- Pricing strategies are a range of pricing tools that can be
used to achieve long term aims of the business
- Price skimming: entering a
market with a high price to
attract early adopters and
recap high developments
costs. e.g. designer clothes,
PlayStation, ipad etc.
- Advantages: - high prices = 'must have'.. -
can recover higher research and
development costs... - early adopters'
usually but to be trendsetters
- Disadvantages: -cutting prices at a later
stage can damage image - 'Ripped off?'
- Advantages: - high prices = 'must have'.. -
can recover higher research and
development costs... - early adopters'
usually but to be trendsetters
- Penetration pricing: below market
pricing to establish product in
competitive market
- Advantages: -low priced/ high
sales volume.. - production cost
per unit kept down as business
can bulk buy.. - price can be
increased at later date.
- Disadvantages: - brand
image=cheap.. -up-market
outlets will not want stock
- Advantages: -low priced/ high
sales volume.. - production cost
per unit kept down as business
can bulk buy.. - price can be
increased at later date.
- Predator pricing - a firm sets low prices
to driver other firms out of the market.
e.g. cut price airline firms have led to
smaller firms closing down.
- aims to reduce
the number of
competitors in
the market
- aims to reduce
the number of
competitors in
the market
- Price skimming: entering a
market with a high price to
attract early adopters and
recap high developments
costs. e.g. designer clothes,
PlayStation, ipad etc.
- Pricing strategies for
existing products
- Price leader: a product that has a
significant market share and can
influence price
- sets own prices, others
follower, strong image,
dominant businesses
- sets own prices, others
follower, strong image,
dominant businesses
- Price taker: a strategy where a firm sets its
prices on the same level as the dominant firm
- no option to charge market price, no differentiation in product, other forms of marketing mix
- no option to charge market price, no differentiation in product, other forms of marketing mix
- Price leader: a product that has a
significant market share and can
influence price
- Pricing strategies are a range of pricing tools that can be
used to achieve long term aims of the business
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