Chapter 26 Marketing Application Flashcards
What’s the benefit to cost plus pricing
Great way to start off your product because all costs, expenses and profit being factored into the price
Why is Prestige pricing beneficial? Give 2 reasons
- Can make your product stand out from competition
- consumers may view your product as higher quality or higher class
What’s the benefit of Bundle pricing
Will attempt to increase sales by offering extra incentive products for no charge
Multiple unit pricing
Lowering prices in order to increase the amount of sales
What is the benefit of promotional pricing?
You can use advertising in order to bring in new customers for seasonal promotions
What is the benefit of discount pricing
May bring in a different income level of customers
Penetration pricing
Pricing policy that sets the initial price for a new product very low to encourage as many people to buy it as possible
What is one benefit to odd/ even pricing?
When you set the price to a even or odd number it conveys to a customer that their is a bargain which may increase demand
How can advertising be used for a main market strategy for the introduction stage?
You would tell customers how the product benefits them
How can advertising be used for a main market strategy for the growth stage?
Advertising can explain why consumers love the product so much
How can introducing new products be used for a main market strategy for the maturity stage?
Will offer more competition in the marketplace
How can altering or modernizing the product offerings be used for a main market strategy for the decline stage?
Product can be packaged differently or redesign the product in order to bring a new group of consumers
What product life cycle stage is penetration and cost plus pricing in?
Introduction stage
What product life cycle stage is odd/ even pricing and prestige pricing in?
Growth stage
What product life cycle stage is multiple unit pricing and bundle pricing in?
Maturity
