Marketing Test 4 - Marketing 3820 Study Day April 3th...

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Marketing 3820 –Study Day – April 3th 10-11am, FINAL = MAY 5 Setting the Right Price (Chapter 18) Review (Pricing): pp. 279-290 (to two-part pricing), 1. What are the steps in setting the price on a product? Establish pricing goals, estimate demand, cost, and price, choose a price strategy, fine tune tactics 2. Price Skimming Penetration Pricing – Charging a low price initially to reach mass market; Better in price sensitive market, used to obtain high market share 3. Price Fixing– Agreement between 2+ firms to fix the price for a product. Illegal under Robinson- Patman Act. Price Discrimination– Charging different buyers different prices for the same product. It is only legal when: going out of business, doesn’t injure the competition, there is a real cost difference, to match the competition’s price, for perishable products 4. Predatory pricing - To sell a product below cost in certain geographical areas to eliminate competition (raising prices back to normal after competition shuts down). Use of loss leaders - 5. Understand the differences among different pricing tactics (discounts, geographic pricing policies) and think of an example for each. 6. Odd-even pricing - uses odd numbered prices to denote bargains and even to denote quality Price bundling
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This note was uploaded on 04/27/2009 for the course MKT 3820 taught by Professor Bobbitt during the Spring '09 term at Middle Tennessee State University.

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Marketing Test 4 - Marketing 3820 Study Day April 3th...

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