Marketing 1-2 Pricing Unit

Value

Anticipated Satisfaction

Rate of Return

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Break Even Point

the point where sales revenue equals the costs and expenses of making and distributing a product

Price Fixing

When competitors agree to certain price ranges

Price Discrimination

charging different prices to different customers in similar situations

Unit Pricing

- including price information for a standard unit of measure

Loss Leader

item priced at or below Break Even Point

Price

The value in money (or equivalent) placed on a good or service

Market Share

A firm's percentage of total sales volume generated by all competitors in a given market

Return on Investment

a calculation used to determine the relative profitability of a product

Cost-Oriented Pricing

determine cost first

Mark-Up Pricing

Cost + a specific percentage.

Cost-Plus Pricing

Cost + a specific dollar amount

Demand-Oriented Pricing

based on what consumers are willing to pay - perceived v

Competition-Oriented Pricing

based on what competitors are charging (at, below, above)

Multiple Unit Pricing

offering more than one unit of an item in a package at a single price

Prestige Pricing

higher than average pricing to suggest status and high quality to consumer

Bundle Pricing

offering complimentary products in a package sold at a single price

Promotional Pricing

prices are reduced for a temporary period of time, generally used in conjunction with sales promotions

Everyday Low Pricing (EDLP)

setting prices low with no intention of raising or offering discounts in the future