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unit 3 revision - business - Coggle Diagram
unit 3 revision - business
monopoly - one supplier in the market has control over price and output - tend to be heavily regulated
oligopoly - market dominated by a small number of firms each with a large market share
e.g banking
monopolistic competition - many small firms offering differentiated products, each firm has a small market share
perfect competition - many competitors all offering same product (rae in reality)
Factors that influence pricing decisions
PED
Positioning
competitiveness of market/environment
order element of the marketing mix
stage of product life cycle
cost
Pricing strategies
Cost Plus - business calculates the cost of production/ services to determine final price
e.g hospitality
Loss Leader pricing - sets a price below costs to attract customers
Price skimming - Business set a high price fro a new product when introduced into the market
Price penetration - entering the market at a low price
e.g mobile phones
Competitive pricing -
predatory pricing - when a company undercuts their competitor by setting prices below their costs (primarily to eliminate a competitor) e.g no - illegal
4 key factors that influence business pricing decisions
cost (internal)
product life cycle (internal)
Competition (external)
Nature of product (external)
:
Boston Matrix
marketing MIX
