Thursday, 18 April 2013

2nd P of Marketing - Price

Account and justify your pricing strategy according to the 4 main factors of Pricing:  

  1. Customer (what do they want)
  2. Costs (fixed, variable, etc)
  3. Competition (same, higher or lower?)
  4. Corporate Objectives (profit making, non-profit?)
Pricing Techniques

ìCost-plus pricing: Profit = Price – Cost (Bottom-line)
ìGoing-rate pricing: “Follow the competitor”
ìMarket Skimming: “Start high”
ìMarket Penetration: “Start Low”
ìOdd and Even Pricing: Using Psychology

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