Notesale: Turn your study into money

Document Preview

Extracts from the notes are below, to see the PDF you'll receive please use the links above

---

Marketing exam notes
Price is the perceived value placed on things
...

Have to look at pricing from a customers perspective
Setting prices: price objectives, need to assess target markets evaluation of price, evaluate
competitors prices, select pricing basis, select pricing strategy, determine a specific price
...

Profit: Some just want as much profit as possible
Return on investment: Some companies just want to return their investment
Market share: Some companies want to control the market rather than make profit
Cash flow: One objective might just be to keep money coming in like smaller companies
Status quo: Keeping the peace by not starting a price war
Product quality: Price tends to determine the quality
Inelastic demand, necessity products that if you change the price the quantity won’ change much
whereas elastic demand is the opposite
...

Mark Up- this is used with a batch of products, have the cost then put a percentage on top,
supermarkets use this, they want to make so much of a percent on a product so they'll just add
10% to it
...

Competition based pricing:
Me too/status quo- Companies keep the same prices as others to deny any chance of a price war
...
standard price but reduce it for
different segments
...
some people do very much just wait until
a certain sale as they know its coming which is a problem
...

Selecting a price strategy:
Price Skimming- Used for technological products i
...
xbox
...
to recover search and development
costs and marketing is why the high price is out, makes people think its good quality because of
price
...
e
...

Penetration pricing- when firms want to capture a large part of consumers quickly, low pricing
strategy, used when want to gain market share quickly, use price promotion so low price isn't seen
as normal, builds brand loyalty and is elastic demand
...
Printer aswell need
cartridges etc all adds up
...

Physiological pricing:
Reference pricing- at what point they will stop paying a certain price
Bundle pricing- get things included with it to ensure the sale, perceived value for a customer
Multiple unit pricing- buy one get one free, lowering the price of unit for the customer
Everyday low pricesodd-even prices- 99p or round up to £10, perception into making it seem good even tho its just a
penny off etc
...


Physical evidence- Atmospheric, the environment in which the product works, colour is extremely
important
Create physical evidence to increase loyalty
Use physical evidence to build brand image, like wearing uniform correctly etc
...
Although it targets customers in the age group of 13-40 years but majority of its
customers are of 15-30 years of age who hail from upper middle class or the luxury class of customers
...




---