Marketing

Table of Contents

1. Topic pack - Marketing - introduction
2. 4.1 The role of marketing - notes
3. 4.1 The role of marketing - questions
4. 4.2 Marketing Planning - notes
5. 4.2 Marketing planning - questions
6. 4.3 Product introduction - notes
7. 4.3 Product - questions
8. 4.3 Product - simulations and activities
9. 4.4 Price - notes
   1. Price
   2. Summary of pricing strategies - SL
   3. Summary of pricing strategies - HL
   4. Cost-based strategies
   5. Cost-plus pricing (mark-up pricing)
   6. Marginal cost pricing
   7. Pricing - Contribution pricing
   8. Pricing - Absorption cost and full cost pricing
   9. Competition-based pricing
   10. Price leadership
   11. Predatory pricing
   12. Going rate pricing
   13. Market-based pricing
   14. Penetration pricing
   15. Skimming pricing
   16. Price discrimination
   17. Loss leader
   18. Psychological pricing
   19. Promotional pricing
   20. Supply and demand
   21. Elasticity
   22. Elasticity and sales revenue
   23. Price elasticity and the product life cycle
   24. Income elasticity of demand (YED)
   25. Cross elasticity of demand (XED)
   26. Advertising elasticity of demand (AED)
10. 4.4 Price - questions
11. 4.4 Price - simulations and activities
12. 4.4 Promotion - notes
13. 4.5 Promotion - questions
14. 4.6 Place (distribution) - notes
15. 4.7 International marketing - notes
16. 4.7 International marketing - questions
17. 4.8 E-commerce - notes
18. 4.8 E-commerce - questions
19. Printable version

Promotional pricing

Promotional pricing is the use of pricing strategies to support specific promotional strategies. This may include the use of offers (buy one, get one free - BOGOF), discounts or perhaps simply offers. These offers will often be associated with a particular promotional campaign or perhaps time-limited. An example may include the sales that most retail stores will have a few times a year.

The aim of these sales is to encourage people to purchase at a time when demand might otherwise have been low and perhaps the firm has excess stock. This discounted policy is likely to happen towards the end of a product's life cycle. It may also be employed when a new outlet opens and the firm wants to create a buzz of excitement and encourage customers to visit the store.

1

Pricing strategies Match the definitions below to the appropriate pricing strategy. a) Deliberately setting a low price to build market share Choose... Price discrimination Contribution pricing Penetration pricing Cost-plus pricing Skimming pricing Destroyer pricing b) Setting price at average cost plus an agreed profit margin Choose... Price discrimination Contribution pricing Penetration pricing Cost-plus pricing Skimming pricing Destroyer pricing c) Setting different prices to different consumers Choose... Price discrimination Contribution pricing Penetration pricing Cost-plus pricing Skimming pricing Destroyer pricing d) Setting price to cover variable cost and cover fixed costs to a certain extent Choose... Price discrimination Contribution pricing Penetration pricing Cost-plus pricing Skimming pricing Destroyer pricing e) Deliberately setting a low price to try to force rivals out of the market Choose... Price discrimination Contribution pricing Penetration pricing Cost-plus pricing Skimming pricing Destroyer pricing f) Setting a high price to earn a high level of profit Choose... Price discrimination Contribution pricing Penetration pricing Cost-plus pricing Skimming pricing Destroyer pricing Yes, that's correct. Well done.No, that's not right. Have another go. You may like to have a look back at the definitions before trying again.Your answer has been saved.

2

Pricing strategies Match the definitions below to the appropriate term. a) Products which are priced at below cost price to attract people to buy them. Choose... Price leadership Loss leaders Marginal cost Going rate pricing Known-price items Predatory pricing b) A product that is regularly purchased by a consumer and where the price is very familiar to them. Choose... Price leadership Loss leaders Marginal cost Going rate pricing Known-price items Predatory pricing c) A pricing strategy where firms examine the prices of their competitors and then set their own prices broadly in line with other prices. Choose... Price leadership Loss leaders Marginal cost Going rate pricing Known-price items Predatory pricing d) A market situation where prices are established by a dominant firm, one which other firms in the industry accept as a leader. The other firms will tend to follow the pricing set by the market leader. Choose... Price leadership Loss leaders Marginal cost Going rate pricing Known-price items Predatory pricing e) The increase in cost resulting from the production of one more unit. Choose... Price leadership Loss leaders Marginal cost Going rate pricing Known-price items Predatory pricing f) Charging a deliberately low price is charged in an attempt to lever out some of a firm's competitors. Choose... Price leadership Loss leaders Marginal cost Going rate pricing Known-price items Predatory pricing Yes - that is correct. All the matches are right.Some of the matches you have chosen are wrong. Have another go.Your answer has been saved.