ABSTRACT
Removing chances for the competition to penetrate the market, by offering bulk buys
pricing
High fixed costs
The relevant application of season’s timings
Benefit both the producer and consumer
4. Cost-plus pricing
Covering the cost of overheads, plus percentage on top, to meet marketing/profit objectives
Often used for projects which are difficult to cost out or take a long time to complete
n The price element of the marketing mix should find marketing aiming to blend price, quality and perceived value
n Price is the only element of the mix that creates income for the organization
n Demonstrate your understanding and show that customers are fickle; they have considerable choice and therefore have a significant influence on supply and demand
n Prices will vary according to what people will pay and also what they are prepared to pay
n Therefore pricing needs to be used with some flexibility to meet those requirements. You should be able to show how you might achieve this level of flexibility
critical success to price are to maintain the organization’s objectives, whilst at the same time remaining sensitive to customer needs
n The key to price is to link the product quality with a clear indication of value for money. Pitching the price at the right level may be the difference between success and failure
n Go to www.cimvirtualinstitute.com and www.marketingonline.co.uk for additional support and guidance
