Learn Unit 1, Marketing Mix Price

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1. Describe cost plus pricing
This is where a business works out the cost to make the product and adds on some money for profit.
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2. Describe competitive pricing
This is where a firm tries to match the price being charged by competitors. Supermarkets do this.
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3. Describe price skimming
This is where a firm charges a high price to start with. Technology firms such as Apple do this where demand is high.
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4. Describe price penetration
This is where a firm charges a low price to gain market share. They they increase the price. Sky did this.
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5. Describe loss leaders
This is where a firm loses money on a product. But gains customers into the store to buy other products. Supermarkets use this strategy.
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6. List 4 things which may influence the price
1. What the customers are charging 2. How much it costs to make the product 3. Pricing strategy used 4. Stage in the life cycle.
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7. Explain what happens to sales as a price increases
Sales go down.
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8. Explain what happens to sales as the price is lowered
Sales go up.
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Card 2

Front

2. Describe competitive pricing

Back

This is where a firm tries to match the price being charged by competitors. Supermarkets do this.

Card 3

Front

3. Describe price skimming

Back

Preview of the front of card 3

Card 4

Front

4. Describe price penetration

Back

Preview of the front of card 4

Card 5

Front

5. Describe loss leaders

Back

Preview of the front of card 5
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