MKTG EXAM 2 marketing 2080

Marketing Mix (4Ps)
price, product, place, promotion
Skimming
high price, low demand
Penetration
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
Price
is a quality indicator
PLC (Product Life Cycle)
Introduction, Growth, Maturity, Decline
Introduction
Product is introduced at a high price
Growth
Price drops, product continues to grow
Maturity
Price levels out as does growth
Decline
growth goes down, product starts to fade out