Marketing Pricing

Negotiated pricing
Final price established through buyer/seller bargaining
secondary market pricing
one price for primary target market and a different price for another market
periodic discounting pricing
systematic or patterns temporary price reductions
random discounting pricing
unsystematic temporary price reductions
differential pricing (definition)
charging different prices to different buyers for the same quality and quantity
Differential pricing (examples)
negotiated pricing
secondary market pricing
periodic discounting pricing
random discounting pricing
new product pricing (definition)
setting the price for new products is one of the most fundamental decisions in the marketing mix
price skimming
charging the highest possible price that buyers who most desire the product will pay
penetration pricing
setting the price below competing brands to penetrate a market and gain market shares quickly
New product pricing (examples)
Price Skimming
Penetration pricing
Product line pricing strategies (definition)
establishing and adjusting prices of multiple products within a product line
(the goal is to maximize profits for an entire product line)
captive pricing
basic product in a product line is prices low while required related items are priced higher
premium pricing
giving the highest quality products a line the highest prices
bait pricing
low pricing on one item in a line with the intention of selling higher priced items in the line
price lining
limited the number of prices for selected lines of merchandise
product-line pricing strategies (examples)
captive pricing
premium pricing
bait pricing
price lining
psychological pricing techniques (definition)
attempts to influence a customers perception of price to make the products price more attractive
reference pricing
positioning a moderately priced item next to a more expensive brand to make it seem lower in price
bundle pricing
packaging complementary products to be sold at a single price
multiple unit pricing
packaging together two or more identical products to be sold at a single price
everyday low prices
setting a low price on products on a consistent basis
psychological pricing techniques
reference pricing
bundle pricing
multiple unit pricing
everyday low prices
odd-even pricing
customary pricing
prestige pricing
internal reference price
a priced developing in the buyers mind through experience with product
external reference price
a comparison price provided by others
selling against the brand
stocking well known branded items at high prices in order to sell store brands at discounted prices
odd-even pricing
ending the price with certain numbers that influence buyers perceptions of the price
customary pricing
pricing certain goods on the basis of tradition
prestige pricing
setting prices at an artificially high level to convey prestige or high quality
value conscious buyers
concerned about both price and quality of a product
price conscious buyers
strive to always pay low prices
prestige sensitive buyers
focus on products that signify prominence and status
professional pricing
used by people with great ill or experience in a field or activity. professionals have an ethical responsibility not to overcharge customers
promotional pricing (definition)
price is often coordinated with promotion
price leader
products priced below the usual markup, near cost, or below cost.
management hopes sales of regularly priced merchandise will offset the reduced revenues from the price leaders
special event pricing
advertised sales or price cutting is used to increase sales volume and is linked to a holiday, a season, or other event
comparison discounting
the pricing of a product at a specific level and simultaneously comparing it to a higher price
promotional pricing (examples)
price leader
special event pricing
comparison discounting
price discount categories
trade
quantity
cash
seasonal
allowance
trade functional discounts
reduction off list price a producer gives for performing certain functions
quantity discount
reduction from list price for purchasing in large quantities (put bike together)
cumulative discounts
aggregated over a stated time period (coffee cards)
non-cumulative discounts
buy 6 get 1 free
cash discounts
price reductions given to buyers for prompt payment or cash payment
seasonal discount
price reduction given to buyers for purchasing goods or services out of season
allowance
a concession in price to achieve a desired goal
unfair trade practice acts
laws that prohibit wholesalers and retailers and retailers from selling below cost
price fixing
an agreement between two or more firms on the price they will charge for a product
predatory pricing
charging a very low price for a product with intent of driving competitions out of business or out a market