MGMT 105 1st Edition Lecture 21Outline of Last Lecture I. Principles of Marketing – Marketing Processes and Consumer Behavior(Continued)Outline of Current Lecture II. Developing and Pricing ProductsCurrent Lecture- Pricing:process of determining what a company will receive in exchange for its products/what to chargeo 1. price skimming: setting an initially high price to cover new products costs and generate a profit Example: apple uses this when releasing new iPhoneo 2. penetration pricing: setting an initially low price to establish a new product in the market Example: planet fitness, no sign up cost, only $9.95 a month to get a huge volume of customers Example: introducing a new candy baro 3. price lining: setting a limited number of prices for certain categories of products (Price-points) Example: $19.99 or less Example: dollar storeo 4. dynamic pricing: price fluctuation can work out hugely beneficial - Example: eBay- Example: auctionsThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.o 5. Psychological pricing: people do not respond rationally. I gotta have it!o 6. odd even pricing: psychological pricing tactic based on the premise that customers prefer prices not stated in even dollar amountso 7. Discount: price reduction offered as an incentive to purchaseo 8. Promotion: communicating information through different waves or wayso 9. promotional mix: combination of tools used to promote a producto 10. Advertising: non personal communication used by an identified sponsor to inform an audience about a product Example: get something to stick in your head Example:
View Full Document