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The Marketing Mix - Pricing - Coggle Diagram
The Marketing Mix -
Pricing
Types of Pricing
Cost-based pricing
Used to work out what price level is required to cover the full cost
Competitor-based pricing
Set in relation to competitors pricing
3 Questions to factor
How offering compares
How strong are the competitors
What are competitor pricing strategies
Customer-based pricing
Demand Pricing
Willingness to buy
Good-value pricing
Fair-priced
Value-added pricing
Adding features to offering
Psychological-based pricing
Emotional response £7.99 vs £8
Factors affecting pricing decisions
Cost
Competition
Value Perception
Organisational
Marketing & Pricing Objectives
STEEPLE
Product Mix Pricing
Product Line Pricing
Different features of range of product i.e. Car
Optional-product pricing
Optional accessories
Captive-product pricing
Associated products need to use principle product (ink cartridges)
By-product pricing
Offsetting principle cost through by-products
Product bundle pricing
Products bundled together at lower costs
Pricing in Business Markets
Trade / functional discounts
Quantity discounts
Cash discounts
Seasonal discounts
Allowances
Informed Pricing Decisions
4 Approaches
General Survey
Van Westendorp Survey
Conjoint analysis
Scenario based customer feedback
Elasticity modelling
Ethical Considerations
Dynamic Pricing
Segmented pricing
Different prices for different customers
Super-sized pricing