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4Ps (Price (Cost-Plus (Adding a percentage markup on the product, Ads:…
4Ps
Price
Cost-Plus
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Ads; Simple and easy to calculate, doesn't require a pricing specialist
Disadv: Doesn't take into account competiton, so product may not sell
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Price skimming
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Adv: If the product sells, the firm can obtain lots of profit
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Disadv: When the price gets lowered, customers who bought it at the highest point may feel ripped off and may not make repeat purchases
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Penetration
Pricing the product at a price much lower to competitors to attract customers away from their rivals for their new product launch
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Predatory
Pricing the product at such a very low level that it forces competitors out of the market because it is not profitable for them
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Psychological
When a company uses pricing tricks to trick you into buying a product such as 19.99 or 19.95 instead of 20
Adv: Makes consumers think its cheaper when it isn;t, making them buy it and earn the company revenue
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Product
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Design mix
Triangle which consists of the three elements that all products need to address in the development stage
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Place
Distribution channel
All the organisations through which a product must pass between its point of production and consumption
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