Pricing strategies
- Created by: bethany_george
- Created on: 31-05-17 15:32
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- 2.2.2
- Pricing strategies
- Cost-plus pricing - used to calculate the gross profit margin.
- Predatory pricing - lowering price so low to force rivals out the market.
- Penetration pricing - lowering price in order to enter the market & attract customers.
- Price skimming - setting a high price before competitors enter the market.
- Competitive pricing - charging a price similar to competitors to offer range of choice.
- Psychological pricing - pricing a good below the whole number, i.e. 0.99p
- Factors that determine the appropriate strategy
- USP's / differentiation
- PED
- Amount of competition
- Strength of the brand
- Stage in the product life cycle
- Pricing strategies
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