Theory question 103
Pricing(a) List two pricing strategies in marketing. (b) State four attributes of a product brand.
(c) Explain five importance of price to a producer.
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(a) Any two: penetration pricing; skimming pricing; cost-plus pricing; competitive (going-rate) pricing; psychological pricing; discriminatory pricing; promotional/loss-leader pricing; geographical pricing.
(b) Any four: short and easy to pronounce; easy to remember and recognise; distinctive; suggests the product's benefits or quality; legally protectable; not offensive in any language/culture; adaptable to new products.
(c) Any five, explained: price determines revenue and profit; helps the firm recover its costs; is a tool for competing with rivals; affects the quantity demanded; helps position the product (quality image); helps the firm achieve market share objectives; affects survival of the firm.
Give two named strategies and explain how price affects the producer.