Business price
- Created by: Supirinc
- Created on: 07-04-18 11:00
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- The marketing mix - PRICE
- what should a business consider when deciding a price?
- Market led pricing- a business will charge a price based in analysis on the market and considerationof price customers are willing to pay.
- Cost plus pricing- a business will price based on production costs and a mark up Tom make it profitable
- Competitive pricing- consider what competition charge.
- Role of demand and supply- the market place forces the price to be acceptable to buyers and sellers.
- Pricing stratagies.
- Penetration pricing- prices start low to gain loyalty and sales. Then they increase.
- Loss leader pricing- whereby a business sells the product at cost price, or at less Than gain a share of the market. Also used by business who know that’s the product they will sell will lead to consumers having to make further purchases, more expensive and profitable .
- Discrimination pricing- businesses charge different prices to different customers fir the same product. Based on: geography, time, age, concessions by market.
- Skimming pricing- prices start high an de get lower.
- Psychologicalpricing- business wants consumer to respond to their prices on an emotional level. E.g l only £1, 990 £999.”
- what should a business consider when deciding a price?
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