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:
- 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.
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