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Reading 9 - Marketing Mix - Pricing - Coggle Diagram
Reading 9 - Marketing Mix - Pricing
3 types
Competitor Based
Customer Based
Cost Based
Cost Based
Estimate of what would need to be sold at full price and what can be reduced in order to cover full outlay of production and distribution so that no profits are lost
Break Even Analysis - Page 75
Competitor Based
Pricing is set in line with competitors
Customer Based
Setting cost based on the value - 4 different types
Psychological based - Pricing to gain emotional response - Using odd numbers to perceive lower costs
Value added pricing - Addition of services or features that is different to what competitors are offering
Demand Pricing - Based on willingness to buy
Good value pricing - Setting fair price based on balance of quality and price
5 types of product mix pricing (Kotler & Armstrong)
Captive product pricing - Replacement & associated products
By product pricing - Selling products used to make the main one
Optional product pricing - Additional items or services
Product line pricing - Price based on range (different models of cars)
Pricing in business markets
Quantity Discounts - Discount for buying large amounts
Cash Discounts
Trade or functional discounts - Storage/Transportion/Credit
Seasonal discounts - Buying out of season stock
Economic value to customers (EVC) very important
Allowances - Reductions for related actions - celebrity endorsements