Pricing Strategy
What is Competition Pricing
Setting a price in comparison with competitors. Really a firm has three options and these are to price lower, price the same or price higher
What is Supply and Demand
With most products demand increases with lower prices, demand decreases with higher prices
the value of money (or its equivalent) placed on a good or service. It is usually expressed in monetary terms.
PRICE
What are pricing objectives?
Goals that guide a business in setting the cost of a product or service to potential consumers.
What is brand loyalty?
When a customer will not buy a substitute product over a brand name of their choice.
What is Premium Pricing
The price set is high to reflect the exclusiveness of the product.
This “P” refers to how a business tells customers about a product.
promotion
What is a product?
Anything a business offers that satisfies needs or wants is called this.
All or nothing! LOSE ALL of your points If you do not complete one or the other.
Sing: https://www.youtube.com/watch?v=Pcm2yDp8XxI&list=RDPcm2yDp8XxI&start_radio=1
How does Professor Wolters begin EVERY video? (What phrase is used?)
Hey there fellow marketers, Professor Wolters here.
What is Cost Based Pricing?
DOUBLE POINTS available if you identify the cost based mark-up which doubles the cost of production
The business takes into account the cost of production and distribution, they then decide on a mark up which they would like for profit to come to their final pricing decision.
DOUBLE POINTS: Keystone mark-up
What is an example of psychological pricing?
Setting prices just below a whole number—for example, $9.99.
What is a markup?
The difference between the selling price and the cost of goods
Which pricing strategy is being used when a popular brand keeps its price high to maintain an image of luxury and exclusivity.
Prestige
What is a target market?
The group of people a business most wants to reach with its products.
What is Penetration Pricing
the business sets a low price to increase sales and market share. Once market share has been captured the firm may well then increase their price.
What is consumer perception?
Businesses limit a supply on the market to make the consumer think that it is worth more.
used to determine when your business will be able to cover all its expenses and begin to make a profit.
breakeven analysis
Give or Take? (You must choose 1st!)
(Give) just dance a go!
(Take) it from me, you should have selected give! -700 points
What is skimming?
The brand sets an initial high price and then slowly lowers the price to make the product available to a wider market. The objective is to skim profits of the market layer by layer.
What will it cost you? OR What price are you willing to pay?
Sing: https://www.youtube.com/watch?v=bcgabils0XQ
Dance:https://www.youtube.com/watch?v=5v5ACZzXKYU
Cost: TBD by Ms. Payne
Why is price important?
It creates value in the minds of consumers. Many customers use price to make judgments about products and the companies that make them.
Buying something because your friends have it is an example of this influence.
peer/social influence
What is price relative to income?
If a price increases dramatically and it is beyond a customer’s budget, they are less likely to buy it.