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Flashcards in Pricing strategies Deck (7)
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1
Q

3 steps in Pricing strategies

A
  1. Investigate the company
  2. Investigate the product
  3. Determine a pricing strategy
2
Q

Investigate the company (4)

A
  1. How big is it?
  2. What products does it have?
  3. Is it leader in the field?
  4. Is it in charge of its own pricing strategies?
3
Q

Investigate the product (4)

A
  1. How does it compare with that of the competition?
  2. Are there substitutions or alternatives?
  3. Where is the product in its growth cycle?
  4. Is there a supply-and-demand issue at work?
4
Q

Determine pricing strategy

A
  1. Competitive analysis
  2. Cost-based pricing
  3. Price-based costing
5
Q

Competitive Analysis (7)

A
  1. Are there similar products out there?
  2. Hoe does our product compare with the competition?
  3. Do we know competitors cost?
  4. How are its products priced?
  5. Are there substitutions available?
  6. Is there a supply-and-demand issue?
  7. What will the competitive response be?
6
Q

Cost-based pricing

A
  1. Take all costs and add a profit to it

2. Risky due to misjudgements

7
Q

Price-based costing

A
  1. What are people willing to pay for this product?

2. Compare to other products