Business Unit 2 Revision - Marketing

Here are a few Key Terms related to larger businesses and pricing - part of the 4p's

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Price - Pricing Strategies (Key words)

Penetration Pricing

 Is where the firm changes their prices from low prices when put in the market first to promote it to, high prices when it becomes successful (mainly associated with food products e.g. Yogurt

Loss Leader Pricing

Is when the price of a product is set below the cost (to make/buy) and is used to establish the product and for customers to buy with something else e.g. during christmas time Tesco's sell big boxes of celebrations at a low price for customers to buy it with other shopping items

Price Skimmimg

Opposite of penetration pricing; firms charge high prices for a product introduced into the market which makes the product desirable to customers and once the product becomes established prices drop to help it become mass market rather than a target audience of wealthy people only who would have got it within an instant, usually assoicated with technological products e.g. I-pad

Competitive Pricing

Is where the firm charges a similar price for its products as its competitiors because, there isn't much product differentiation e.g. petrol

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Comments

Shelina Akthar

Sorry it got cut off half way - last sentence says technological products e.g. I-pad and there was another key word - Competitive pricing its basically pricing at a similar price as your competitors usually happens when theres hardly and product differentiation

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