price and place
Lecture 5: PRICE AND PLACE
Price:
- Define the pricing concept and explain different pricing methods ( cost oriented, competitor oriented and market oriented pricing)
-Explain pricing strategies for new products( market penetration and market skimming) AND existing products. ( Understand condition and when we can use it)
-Consider ethical issue in pricing ( don’t think it will be on the exam)
PLACE:
Define place(distripution) concept and explain the role of intermediaries in distribution channel
Describe types of distribution channels
Explain factors to consider in formulating channel strategy
Consider ethical issues in distribution
Past exam questions:
1.Define two pricing strategies for new products: MARKET SKIMMING AND MARKET PENETRATION. List the conditions which are suitable for each of these strategies according y. Provide examples for each strategy.
2. Critically assess the benefits of two pricing strategies for new products: market skimming dn market penetration. Discuss which pricing method you would use and why in lunching the new Iphone and the game console PS4
PRICE:
What will happen if we charge too much for a product o too little? If you charge too little, then you have to understand that demand fo a product or service could be high, we will be losing a profit for the organization, and if you charge too much for a poduct we have to think about competitors, who can charge less than us.
1. Pricing Concept:
Out of marketing mix(4Ps) pice is the revenue earner. The other thee elements of the marketing mix – product, promotion and place are costs.
2. THE DEMAND CURVE:
In the demand curve we r talking about the product and the price relathionship. For example is you charge £50 FOR A particular t-shirt or jeans , then the quantity in the market could be lets say 2000 units. If they decries the price from £50 to £30 then you except the demand fo the product to increase from Quantity1 to quantity 2. And from 2000 units
Price:
- Define the pricing concept and explain different pricing methods ( cost oriented, competitor oriented and market oriented pricing)
-Explain pricing strategies for new products( market penetration and market skimming) AND existing products. ( Understand condition and when we can use it)
-Consider ethical issue in pricing ( don’t think it will be on the exam)
PLACE:
Define place(distripution) concept and explain the role of intermediaries in distribution channel
Describe types of distribution channels
Explain factors to consider in formulating channel strategy
Consider ethical issues in distribution
Past exam questions:
1.Define two pricing strategies for new products: MARKET SKIMMING AND MARKET PENETRATION. List the conditions which are suitable for each of these strategies according y. Provide examples for each strategy.
2. Critically assess the benefits of two pricing strategies for new products: market skimming dn market penetration. Discuss which pricing method you would use and why in lunching the new Iphone and the game console PS4
PRICE:
What will happen if we charge too much for a product o too little? If you charge too little, then you have to understand that demand fo a product or service could be high, we will be losing a profit for the organization, and if you charge too much for a poduct we have to think about competitors, who can charge less than us.
1. Pricing Concept:
Out of marketing mix(4Ps) pice is the revenue earner. The other thee elements of the marketing mix – product, promotion and place are costs.
2. THE DEMAND CURVE:
In the demand curve we r talking about the product and the price relathionship. For example is you charge £50 FOR A particular t-shirt or jeans , then the quantity in the market could be lets say 2000 units. If they decries the price from £50 to £30 then you except the demand fo the product to increase from Quantity1 to quantity 2. And from 2000 units