CHPTR: 6 MARKETING STRATEGY Flashcards
(21 cards)
- is one of the significant elements of
marketing mix (4P’s).
-is the amount that the customer pays for a
product; it is the amount of money exchanged
for something of value
Price
AN ACT PROVIDING PROTECTION TO CONSUMERS BY
STABILIZING THE PRICES OF BASIC NECESSITIES AND PRIME
COMMODITIES AND BY PRESCRIBING MEASURES AGAINST
UNDUE PRICE INCREASES DURING EMERGENCY SITUATIONS
AND LIKE OCCASIONS
REPUBLIC ACT NO.7581
also know as the PRICE ACT
May 27, 1992
- with reference to agricultural crops, fish and other
marine products, fresh meat, fresh poultry and dairy products, fertilizers, and other
farm inputs
Department of Agriculture
with reference to drugs;
Department of Health
, with reference to wood
and other forest products; and
Department of Environment and Natural Resources
- with reference to all other basic necessities
and prime commodities.
The Department of Trade and Industry
-, which is the undue accumulation by a person or combination of persons of
any basic commodity beyond his or their normal inventory levels or the refusal to
dispose of any basic necessity of prime commodity to the general public or the
unjustified taking out of any basic necessity or prime commodity from the channels of
reproduction.
Hoarding
- which is the sale or offering for sale of any basic necessity or prime
commodity at a price grossly in excess of its true worth.
Profiteering
-which is any agreement between competing firms in the same industry to
coordinate their actions to manipulate market outcomes such as prices, production
levels, or market shares.
Cartel
- Any person who commits
any act of illegal price manipulation of any basic necessity or prime
commodity under Section 5 hereof shall suffer the penalty of
imprisonment for a period of not less than five (5) years nor more than
Fifteen (15) years, and shall be imposed a fine of not less than Five
thousand pesos (P5,000) nor more than Two million pesos
(P2,000,000).
Penalty for Acts of Illegal Price Manipulation
are ways by
which businesses offer goods and
services at the “right” price.
Pricing Strategy
- is used when the goods and services are positioned to
luxurious and elegant. Having a higher price (compared to prevailing
market prices) projects the product is high-end and prestigious.
Example:
El Nido Resort caters a class A market, they have a Villa at
₱30,500 per night for maximum of 3 person
Prestige pricing
-Employs when the market price is insensitive. This is an effective
short-term policy since competition can easily come in and provide
more supply.
Example:
Before: ₱125.00, Now: ₱100.00
MARKET SKIMMING PRICING
- is used when setting a low initial selling
price to penetrate the market quickly and attract many buyers for a
large market share.
MARKET PENETRATION PRICING
- is a strategy used to attract buyers to purchase
because of the reduced rate of the bundle compared to the total cost
of the items if purchased individually.
Example:
3 for ₱100
Burger, fries and drinks for ₱150
PRODUCT BUNDLING PRICING
- are rates given to frequent or high-
volume users to attract them to purchase the products.
Example:
booking 10 rooms to earn one free
Special rates for long-staying guests
VOLUME DISCOUNTS
-This strategy addresses the seasonality aspect of the tourism
product. A price reduction is given to buyers who purchase services
out of season when the demand is lower or way ahead of time.
Example:
Piso fare
Merienda buffet for only ₱250.00 (2:00-5:00 PM)
DISCOUNT BASED ON
TIMEOFPURCHASE
-The company sells a product at two or more prices. The
difference in the price is not based on differences in cost
but instead tries to maximize the amount that each
customer pays.
Example:
Sold to a foreigner at $100.00, sold to a local resident
for only ₱2,000.00 only
DISCRIMINATORY PRICING
The use of ₱999 instead of ₱1,000 gives an impression that
the price is less than one thousand pesos when it actually is
just ₱1.00 less. In fact, the ₱1.00 is not of much value but it
makes a lot of differences in the mind of the buyer.
Example:
₱1,999
₱499
PSYCHOLOGICAL PRICING
Promotional pricing offers discounts and short-term
incentives especially during the introductory stage of the
product or during special activities such as anniversaries or
festivals
Example:
Buy one, Take one
PROMOTIONAL PRICING
-is offering the price below competitors
permanently, unlike promotional pricing where the price is
lowered temporarily.
VALUE PRICING
