You don't have much to RECAP here because you didn't need to know much about it for PAPER 1. What you do need to know for your PAPER 1 resit is:
- PAYMENT TERMS - does the customers need to pay NOW or in INSTALMENTS?
- Do your customers need to pay in CASH or can they pay by CREDIT CARD?
- Do they get a DISCOUNT if they buy in large quantities?
- How does the PRICE compare with that of your competitors eg Waheeds data stick's!
- Does your PRODUCT represent good VALUE FOR MONEY!
- Do you WANT OR NEED this product and is it WORTH spending money on it to feel good!
- Have you covered all your COSTS so that you make a PROFIT?
- How will the PRICE effect DEMAND? - HIGHER PRICE = LESS DEMAND generally!
- Can you reduce the PRICE to sell more even if you make a smaller PROFIT on LOTS more SALES (TESCO always had a policy to sell it cheap and stack it high at the onset) Asda and Primark still do
- SMALL business start ups might not have a BRAND LOYALTY so keep the price down until they have! See page 44-45
Now test what you know by downloading the worksheet here or open and print off your email
Remember that the 4 P's of the MARKETING MIX are INTERLINKED
FOR PAPER 2 you will need to understand:
- about pricing decisions for growth
- the factors affecting pricing decisions See pages 161 -164
You will also need to know about the different TYPES of PRICING DECISIONS
- Price Skimming
- Penetration Pricing
- Competitive Pricing
- Loss leader
- Cost plus pricing
And the factors that influence the price:
- Costs
- Demand
- Degree of competition
- Company's objectives and approach to pricing
- Product life cycle - where is your PRODUCT or SERVICE in it?
- Rest of the MARKETING MIX
Now try this worksheet here to see if you have learnt any more about pricing after today.
Homework
Revise for key term test tomorrow and take a letter home to get signed so that you can attend the SATURDAY CLUB the weekend before your PAPER 1 RESIT
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