Entrep - Price and Promotions

Price

How much a consumer pays for a product/service based on perceived value.

Elastic Demand

A situation where an increase in price lowers the demand for a product.

Inelastic Demand

A situation where changes in price do not significantly affect the demand for a product.

Price Skimming

A pricing strategy where a company charges a higher price due to a substantial competitive advantage.

Penetration Pricing

A pricing strategy that starts with a low price to generate hype and increase market share.

Economy Pricing

A pricing strategy that keeps overhead low, leading to lower prices compared to name-brand items.

Premium Pricing

A strategy for luxury products that creates a perception of high quality and exclusivity.

Follow-the-Leader Pricing

A pricing strategy that uses a competitor's prices as a model.

Variable Pricing

A pricing strategy with standard list prices and price concessions for informed customers.

Product Line Pricing

Setting distinct price categories for similar retail merchandise.

Product Bundle Pricing

Combining several products in the same package to increase sales.

Psychological Pricing

Using pricing strategies to create a psychological impact on consumers.

Promotions

Communications strategies aimed at eliciting patronage and loyalty from customers.

Promotion Mix

A combination of promotional methods selected based on various factors.

Advertising

Paid non-personal presentation and promotion of products through mass media.

Sales Promotions

Activities designed to boost product sales through various action-oriented strategies.

Public Relations

Managing a company's communication and perception through press releases and media.

Personal Selling

Oral communication aimed at building relationships and closing sales.

Publicity

Free media coverage or sponsorships that promote a product or company.

Direct Marketing

Promotional activities directly targeting consumers through various channels.