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Marketing Mix - Pricing (Factors in pricing decisions (cost, competition,…

- - - - If sales fall, pricing needs to rise to achieve
    - - only accounts for costs that increase as sales go up
      - ie Hotel (Better to receive some revenue for an unused procudt than nothing
      - However, fixed costs would need to be covered at other times
      - Also known as "second market discounting"
        
        charging different prices to different markets
    - - adding a "markup" on the cost to achieve profit
        
        used in lawyers percieved to be "fair"
        
        does not consider customer demand or competitors charge
  - - - difference to competitor in terms of value
        
        Greater value = higher price
      - strength of current competitors
      - Competitors pricing strategies
    - - services priced in relation to what they think competitors will price
  - - - adding features to increase value
    - - prestige pricing to signal quality
      - or odd-even pricing (ie £7.99)
- - - - ie car types
  - - - mobile phone screen / case
  - - - ink cartridges
  - - - grain from beer used for marmite
  - - - ie meal deals
- - - - ie providing storage
  - - - ie holidays
  - - - ie trading in used parts