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Year 1 - Introduction to Marketing > week 22 - pricing > Flashcards

week 22 - pricing Flashcards

(63 cards)

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1
Q

price

A

money charged for product or service

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2
Q

why pricing importnat

A

only elementin mking mix directly geenrate reveneu

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3
Q

pricing plays key roleincreating and capturing

A

custoemr value

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4
Q

actual price in not equal to

A

perceievd

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5
Q

how does pricing link to overlal strategy

A

acts as communicator to customer

own prices v competitor prices

help w posoition your offering in a way consumer will fins approipriage

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6
Q

unless we aree luxury products ow do ew want our price to be percieved

A

cheaper than the actual price

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7
Q

what is aspirational price demand

A

as price goes up quantity increases too

e.g sneaker collectors , jewellrey , house s

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8
Q

how do we price product

A

start w min to produce product , istribute and promote

then goes to max , the extnet o dcustomers wilingness to pay

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9
Q

diff mkts have diff

A

maxes

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10
Q

waht are the 3 ways we can set price

A

cost

customer vlaue

competition

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11
Q

cost based pricing relates to what concept

A

production/selling

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12
Q

value base dpricing relates to what cnept

A

marketing concept

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13
Q

competitor based pricnig rlates to

A

market based approach

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14
Q

which generic pricing has got higher threshold of willingness to pay

A

value

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15
Q

what is cost based pricing and wahat is siles/most popular or

A

sell price based on costs of producing , selling and fair return for company’s effort and risk

cost plus pricing

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16
Q

adv of csot based pricing -3

A

simple to calculate

more certainty about cost than about value/demand

no adjustments to demand changes are needed

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17
Q

disadvantage of cost based pricing 5

A

fails to consider

target market
demand
competition
product life cycle - as we can charge based on this
product’s image

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18
Q

what is customer value based pricing

A

doing mkt research and audience research

capturing requiremants and value added

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19
Q

what are teh factors we consider in the customer’s value assessment

A

functinoal beenfis

social benefits

financial aspeccts

self expresive benefits

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20
Q

what a re the approaches to custoemr calue based pricnig 2

A

good value

value added

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21
Q

what is good value pricing

A

offering right combo of quality and good serivce at a fair price

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22
Q

what is value added pricing

A

attaching value added features and services to differntiate a company’s offers and charge higher prices

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23
Q

whats competitoor abased pricing

A

setting prices based on competitors stratefies , prices , csots and market offerings

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24
Q

what are the optinos w copm based pricing q

A

price lowe- cost leadership
price higher - differentiatino strat
price same - pricce matching

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25
q to ask when doing competitor based pricing
percieved customer value of firm offerings v copmetitors offerings current pricing strategis of competitiors and how strong are current competitors
26
btu whats wrong w competitor based pricing
cmop price may not affect true customer value price could ignore production costs danger of price wars - not viable forsmoall ppplayer
27
why may a small business not be able to compete w compb base dpricni
costs higher , e.g small bakeer dont got established supply chains unlike morrisons xso charing samemena dont got money to cover costs / reinvest in busines
28
whats negative of cost base compared to customer value based pricing
dont find out what customers value so could be overxharging and if elastic this lower price may iuncrerase revenue which busness is missing out on whereas capturing consumer value goives a better die as you can structure cost and pricign appopriatley
29
whats good about higher price - int erms of positinoinf
can position yourself as premium
30
what are the 7 pricing strateies
premium freemium penetration skimming product line budnle captive product pricing
31
premium pricing what goods is it to do with , what is it part of and what does it impact
luxury higher price is part of branding and positioning price impacts branding
32
freemium meaning
free product you can use extra feature to pay or it
33
what is penetration
low price for new product to attract large number of buyers and mkt share
34
in price penetration what musyt the makret be
highly price sensitive
35
in price penettration teh low price myst helpp
keep cmopetition out
36
when is mtkpenetration even more importnt e..g working conditions
mkt you unfmailiar w and established brands must be highyl price sensitive or else why would customers switch
37
what is price skimming
price start high redues progressiveley
38
price skimming is oten related to what type of costs
high r and d ocsts
39
what must support high pric ein price penetration
quality and imahe
40
what is product loine pricing q
get poduct line w every upgrade the price incereases
41
what is bundle pricing
got two products and just a get a more competitive price
42
wheat ansoff amtrix would we use bundle priing for
penetratino as we sellingn same things to customers just another way to repackage and offer a variety
43
captive product
one main product underpriced them complementary products relativley overpriced idea is cant use main w/o complementary hence lower price and looks more appealing e.g printers + ink
44
what are the two types - pay what you want
pick your price name your price
45
what is pick your price
got options to choose from the seller
46
what is name your price
seller not obliged to set your price - you can pick price that you want
47
what is pay what you watn
free to use
48
what are the two types of segmented pricing
customer segment pricing product form pricing
49
customer sement pricing
segent based on dif customers ee..g student dals ,
50
what is product form pricing
offering comparable product in terms of cost for different pricepoints e.g. airline bs , econ, first class
51
what's key about the difff between first class , econ
not much but consumer perception of the differnce is huge
52
what are the unethical (and often illegal ) pricing strategies
price discrimination retail price maintenance deceptive pricing
53
what is price discrimnation
offering same quality products to two diff price points
54
retail price maintenance
retailers set price manufacturers will try control price when thtey can 0only guide not tell retailers to price
55
what os deceptive pricing
raise the price b4 black friday to make it look like a deal
56
psychology of pricing is about
price quality relationship
57
psychology of pricing
postiive not storng xorrelation between perceived and objective price qualityu relation perception depends on producty type consumers held more accurat price qualit perceptinos for non durable products than durable products e..g fast moving consumer goods
58
anchor pricing
price piint serves as refernce , esp when we didnt know what it was before anchor price point is highest one and first one we see - + makes the other ones look cheaper
59
what kind of good does anchor pricing use
popular luxury good / when we don't have price quality baseline show expensive item first so everything also looks cheaper
60
what is charm pricing
end w 99p but w quick perceptions brains round up to 1st number so it looks like the 1st number
61
odd even pricing meaning
odd - cheaper and better dea, even - more luxury whole - luxury and more established
62
decoy item
one item don't want you to buy and exists to guide your decision making e.g. medium fries when compared to large looks like a bragain
63
what is centre stage pricing
go for middle price as don't like stuff that is too high or too low they want you to buy the middle thing works well in realtil top shelf expensive low shelf cheapest middle - mmiddle pruice point

Year 1 - Introduction to Marketing (15 decks)

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