Pricing Strategies

Cost-plus: a method of establishing a selling price in which an agreed percentage is added to the cost price to cover profit.

Value-based:  Pricing method based on the perceived worth of good or service to its intended customers.

 

Competitive: Good, service, or offer that can hold its own against competing products because it offers an attractive value for money proposition to its buyers.

Going-rate: Current percentage rate of a commission, discount, or interest.

 

Skimming: The illegal practice of taking money from cash receipts for personal use. "Skimming" refers to removing the top layer of a liquid. Because a person skimming is not reporting the cash as income it is not reported for taxation purposes, thus making skimming a form of tax evasion.

Discount: Deduction from the par value of a financial instrument, made in advance of its sale.

 

Loss-leader: Good or service advertised and sold at below cost price. Its purpose is to bring in (lead) customers in the retail store (usually a supermarket) on the assumption that, once inside the store, the customers will be stimulated to buy full priced items as well.

Psychological: Having to do with psychology, the study of the human mind and behavior.

 

Marketing Mix: Product

convenience goods: The items which are bought frequently, immediately and with minumum shoopping efforts. These include candy, ice-cream, cold drinks, cigarettes, magazines and medicines.

Shopping Goods: The items in which the consumer is willing to invest a great deal of time and effort. For example, consumers will spend a great deal of time looking for a new car or a medical procedure.

Specialty goods are those that are of interest only to a narrow segment of the population—e.g., drilling machines. Industrial goods can also be broken down into subgroups, depending on their uses.

Del Monte Can

National brand goods:brand name used by a manufacturer whenever that product is sold.For example, Del Monte is a national brand for food products.In contrast, many marketers offer products under a variety of brand names called private labels , unique to each distributor or retailer

Store, or private label brands are as the name suggests, brands that are owned by retail store chains or consortia thereof store brands sell at lower prices than do national brands. Product such as coffee, rice, canned vegetables, that carries the store’s name.

Regional brands, as the name suggests, are typically sold only in one area.For example, 

Shaoxing Hometex——a Famous Regional Brand in Zhejiang,China. It provide products about home texitles.

 

 

Co-branding involves firms using two or more brands together to maximize appeal to consumers. For example, Nike and iPod combine together produce the Nike+iPod Sports Kit, a device which measures and records the distance and pace of a walk or run.

Benefits of Brand Leader

    Brand Leader means most widely sold and recognized product in a particular market segment. Also called market leader, a brand leader usually also commands the largest profit margins. The benefit of brand leader is that they have higher sales than those of any competing business in the same market. And the product from the brand leader can be given the most prominent position in the shop. Even more, the brand leader can sell to shops with a lower discount rate because the shops have the higher demand of the brand product. Since the producer of the leading brand get the higher sales level and higher profits. Furthermore, the item or brand is the market leader can be used in advertising, because consumers are often more rely on the brand product then normal one, and they tend to buy the most popular brands.