MKTG EXAM 2 marketing 2080

Marketing Mix (4Ps)
price, product, place, promotion
high price, low demand
low price, high demand
Location Based Pricing
customers pay different amount based on their location
EX: concerts, football games
Time Pricing
paying different amount based on the time you buy
EX: buying airplane tickets, happy hour
Customer Segment Pricing
different types of customers pay different prices
EX: movie theater- kids, elderly, military
Psychological Pricing
thinking products cost less than they do
EX: house costs $179,000…we tell others it costs $170,000
Dynamic Pricing
price can be negotiable
EX: cars, houses
International Pricing
Foreign items cost more in the US and cater to the wealthy, however in that item’s home country they are average.
Product Line Pricing
Good, Better, & Best
Optional Product Pricing
Customizes products for how you want them
EX: most seen in car sales, pizza….The more you add, the more you pay $$
Captive Product Pricing
Refills are expensive
EX: printers and razors…application is cheap, ink/blades are expensive. Also, Ballparks, Kingisland…cheap entrance fee, food is $$$$
By-Product Pricing
Instead of tossing out leftover product, selling the product
EX: hotdogs, potato skins, donut holes
Product Bundle
Vacation bundles, happy meals….manages demand, cheap and convinent
is a quality indicator
PLC (Product Life Cycle)
Introduction, Growth, Maturity, Decline
Product is introduced at a high price
Price drops, product continues to grow
Price levels out as does growth
growth goes down, product starts to fade out