m201 Final Prep Pricing Strategies
Terms
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-involves the use of a high price relative to competitive offerings
-sometimes used throughout the life of a product, as with luxury
-permits marketers to control demand, but also attracts competitor - Skimmingq
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continuous low prices
quality is questionable
wal mart a great example - Everyday Low Pricing
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-designed to de emphasize price as a competitive variable by pricing a good or -service at the general level of comparable offerings
-if demand isn't elastic overall revenue of industry will drop
-2/3 of all firms use this strategy - Competitive Pricing
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offering 2 or more complementary products and selling them for a single price
prevalent in the communications industry
exmp: AT&T offering a bundle of wireless, email etc - Bundle Pricing
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involves the use of a relative low price compared to the competition based on the theory that this low price will help market acceptance or penetration
price may rise to match competition once product has recognition in the market
works best with pr -
penetration pricing