pricing strategies?? (1 Viewer)

[pig_93]

im wondering in regard to "pricing strategies"
i dont really know what they are or where they fit in the scheme of things...is it in the "price" section of the marketing mix or what??

all i know is that there is one, and thats price skimming and i sorta know what that is. other than that, plz help! exam on tuesday...eek

 

[manifestation]

im wondering in regard to "pricing strategies"
i dont really know what they are or where they fit in the scheme of things...is it in the "price" section of the marketing mix or what??

all i know is that there is one, and thats price skimming and i sorta know what that is. other than that, plz help! exam on tuesday...eek

Yeah the Marketing has the 4 P's right. So pricing fits in the Price part.

Price

Most businesses use a "cost plus" method for setting the prices of their products. This involves determining unit production costs and then adding in a profit margin. However, many other factors are involved. Consider "perceived price" (what you think consumers will be prepared to pay), demand elasticity (is it elastic or inelastic?), competitors' pricing (can you afford to undercut their prices?), pricing objectives (what do you want to achieve Ð increased market share? increased profits? market leadership? etc.)

Example 1 Luxury cars

What is the "perceived value" of such cars?
Will consumers be prepared to buy "cheap" cars?
Example 2 Perfume

How much does it cost to make?
Why is the price set so high?
Example 3 Soft drinks

Can businesses afford a "price war"?
Why is Coca Cola so successful?

hope that helps mate

ciao

 

[Emily.]

theres a number of pricing strategies, ill give a brief overview then u can go look them up in your text book:
prestige pricing: where a business prices its products high so customers in the market perceive them as being prestige, eg. luxury cars, cosmetics, etc.
price points: where a business assigns only set prices to groups of products, eg a 2 dollar shops, bargain bins where theyre all a set price, or CDs (you know how cds are all priced the same? like singles at 5/8 bucks, albums at 20/30)
theres a few others like price skimming, loss leader and price penetration but i forget what these are so look them up

 

[stazi]

how I wish I did business studies in yr 11 and 12. I'm doing mktg in uni now and it's practically the same thing