WF SEM II Objective 3.03 C - Part III – Pricing New Products
a.Identify strategies for ______.
b.Select ______strategies.
c.Determine ______that can be used to adjust base prices.
d.Adjust base prices using ______.
e.Select ______pricing strategies.
f.Select ______to adjust base prices.
g.Identify ______.
h.Demonstrate ______for products.
New product Pricing Strategies
______pricing in the introductory stage of a new product's life cycle involves accepting a ______.
Price______involves setting the price relatively high to generate a ______.
A ______product generally supports a ______.
Product Mix Pricing Strategies
The product mix is the ______of products and services that a ______its market. Pricing strategies range from being the ______for consumers.
1.Cost Plus
Cost-plus pricing is the most basic type of ______and simply represents setting the cost of a product at some level ______the ______of producing and distributing that product. So, for instance, a jeweler might decide to price products at a 100 percent mark-up based on the costs that go into creating the product.
2.Competition Based
Competition-based pricing is pricing that is established specifically to address and ______to the prices of ______' products. Businesses may decide to price ______of the competition, but their decisions are based on an evaluation of what competitors are doing and how they want to position their ______.
- Discounts and Allowances are reductions to the selling price of goods or services.
■______Markdowns to get rid of slow-moving, obsolete merchandise
■______Markdowns
To increase sales and promote merchandise
To increase traffic flow and sale of complementary products generate excitement through a sale
■To ______to buy additional merchandise
There are five basic types of psychological pricing strategies:
- ______pricing is a strategy of setting prices in ______price, for example pricing an item at the odd $19.95 rather than the even price of $20.00. The intention of odd-even pricing is to make the price appear ______than it is.
- ______pricing works on the ______; rather than making prices seem low, ______. For example, a wine might be priced at $20 per bottle rather than $12 merely to give the ______that it is a ______product.
- ______pricing is a ______in which items are ______together, such as two for $5 rather than $2.50 per item. This strategy creates a sense of ______and can help boost sales volume by encouraging the ______.
- ______pricing is the psychological pricing strategy in which a price is ______in order to attract customers.
- Price ______is an effective form of psychological pricing for companies with an______product line; it involves creating a ______, for example a budget clothing line with items all priced below $10.
Geographical Pricing.
Geographical pricing sees ______in price in different parts of the ______. For example rarity value, or where ______costs increase price. In some countries there is more tax on certain types of product which makes them more or less expensive, or ______might be imported again raising price.
Segmentation Pricing
If you plan a product segmentation strategy, you may incur higher product development or manufacturing costs to create ______, so it is important to focus on segments where you can make a profit. ______enables you to offer the same basic product, but ______features that customers are willing to pay for or ______cost elements that are not important to customers.