Marketing Strategies and Pricing Methods: Distribution and Price Setting

Marketing

Way of presenting your business to your customers that clearly communicates the value of your product or service

Marketing Plan

Detailed guide with two primary parts: marketing goals and strategies for reaching those goals

Bundling (Pros vs. Cons)

Combining the price of several different services (and/or physical products) into one price

Pros: Increased sales and average order value

Cons: Decreased profit margins

Cost-Based Pricing

Pricing method that sets a product's price based on what it costs the business to provide it

Demand-Based Pricing

Pricing method that sets a product's price based on how much money customers are willing to pay for the product

Competition-Based Pricing

Pricing method that sets a product's price based on the price at which competitors' price similar products

Intensive Distribution

Type of distribution that makes a product available at as many sales outlets as possible

Exclusive Distribution

Type of distribution that gives a specific retailer, or authorized dealer, the sole right to sell a product in a particular geographical area

Selective Distribution

When retailers or sales outlets are chosen based on a set of criteria they must meet

Markup Prices

Price created when a retailer adds an additional amount to the cost of a wholesale product to make a profit

Markdown Prices

Price created when a retailer wants to reduce the price of an overstocked product