Marketing Pricing Strategies

These flashcards cover key concepts of pricing strategies in marketing as noted from the lecture.

Company Objective

Can be oriented towards profit, sales, or competitors.

Variable Costs

Costs that vary with production volume.

Fixed Costs

Costs that remain unaffected by the production volume.

Total Costs

The sum of variable and fixed costs.

Monopoly

A market structure regulated by the government, often with one provider.

Oligopoly

A market structure where prices are based on competitor actions.

Monopolistic Competition

A market structure where product differentiation outweighs price competition.

Pure Competition

A market structure with many suppliers and no barriers to entry.

Psychological Pricing

Setting prices that consider the psychological impact, like $9.99 for bargains.

Cost Based Method

Pricing based on the cost to produce goods.

Competitor Based Methods

Pricing that signals how a product compares to competitors.

Value Based Method

Setting prices focused on the overall value of the product.

Everyday Low Pricing

Pricing strategy aimed at minimizing the search costs of consumers.

High-Low Pricing

Pricing strategy that includes temporary price reductions during promotions.

Price Skimming

Setting a high initial price and lowering it over time.

Improvement Value Method

Pricing based on the perceived value improvements.

Cost Ownership Method

Pricing based on the total cost of owning the product over time.

Market Penetration Pricing

Starting with a low price to quickly gain market share.

Focal Product

The main product a brand is promoting or known for.

Horizontal Pricing Conflict

Conflict among competitors offering similar products.

Vertical Pricing Conflict

Conflict between members of the marketing channel.

Substitution Effect

Consumers switch products when prices rise, especially if substitutes are available.

Break Even Point

The level at which total revenue equals total cost.

Price Lining

Establishing price floor and ceiling for a line of products and setting price points in between.

Price Bundling

Pricing multiple products for a single, lower price.

Leader Pricing

Building store traffic by aggressively pricing a regularly purchased item.