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21 Cards in this Set
- Front
- Back
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Is the amount of money charged for a product or service |
Price |
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Is the only element in the marketing mix that produce revenue |
Price |
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Uses the buyers perceptions of value not the sellers cost as the key to pricing |
Value based pricing |
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Uses buyers perception of value as the key to pricing |
Customer value based pricing |
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Offers the right combination of quality and good service at a fair price |
Good value pricing |
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Charging a constant everyday low price with few or no temporary price discounts |
Everyday low pricing |
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Charging higher prices on an everyday basis but running frequent promotions to lower price temporarily on selected items |
High low pricing |
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Attaches value added features and services to differentiate offers, support higher prices and build pricing power |
Value added pricing |
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Setting prices based on the cost for producing, distributing, and selling the product plus a fair rate of return for effort and risk. |
Cost based pricing |
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Also known as overhead, are the cost that do not vary with production or sales level |
Fixed Cost |
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Are cost that vary with the level of production |
Variable cost |
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Are the sum of the fixed and variable cost for any given level of production |
Total costs |
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Drop in the average cost with accumulated production experience |
Experience curve |
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Is the price at which total costs are equal to total revenue and there is no profit |
Break even pricing |
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Is the price at which the firm will break even of make the profit its seeking |
Target return pricing |
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Setting prices based on competitors strategies costs prices and market offerings |
Competition based pricing |
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Starts with an ideal selling price based on consumer value considerations |
Target Costing |
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Show the number of units the market will buy in a given period at different prices |
The demand curve |
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Illustrates the response of demand to a change in price |
Price elasticity of demand |
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Occurs when demand hardly changes when there is a small change in price |
Inelastic demand |
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Occurs when demand changes greatly for a small change in price |
Elastic Demand |
