The four basic methods of making pricing decisions are cost-plus pricing, demand pricing, markup pricing and competitive pricing. These methods are used to determine the optimal price that a customer is willing to pay for a product or service.Continue Reading
According to McKinsey & Company, increasing the price of a product or service by only 1 percent translates into a profit increase of 8.7 percent, assuming volume remains the same. There are four methods a company can use to calculate the optimal price.
Deceptive pricing occurs when a retailer uses a pricing gimmick to make customers believe they are getting a bargain when they are not. Deceptive pricing can include a going-out-of-business sale or a bankruptcy sale when the company is not closing.Full Answer >
Selling, financing, promotion, pricing, product planning, distribution and risk management are seven functions of marketing, notes Hagerstown Community College. Another function of marketing is marketing information management.Full Answer >
Retail mix is a marketing plan that responds to a set of varying factors, such as location, pricing, personnel needs and offered services and goods. A retail mix plan targets strategies to attract customers and influence their purchasing ability. Retail mix also includes signage, placement of goods within the location and price discounts.Full Answer >
A low cost pricing strategy in marketing is an attempt by a company to increase sales by offering a product or service at a low price relative to competitors. This strategy, sometimes also called a price leadership strategy, is typically a difficult strategy for smaller businesses to employ because of the high sales volume needed to make up for smaller profit margins.Full Answer >