Marketing Principles - Part 1 of 2

The practice of pricing goods at a high level in order to give the appearance of quality. Example: Lamborghini.

• Prestige pricing

• Multi-unit pricing

• Everyday low prices

• Odd/even pricing

A pricing strategy in which the customer buys multiple units of the same product and pays a lesser price for them. Example: "Buy 2, get 1 free!"

• Multiple-unit pricing

• Everyday low prices

• Odd/even pricing

• Optional product pricing

The price at which a product or service is sold.

• Selling price

• Production cost

• Profit

• Manufacturing

The amount left over (or earned) after a sale once expenses are paid. For example, if it costs you $0.30 cents in materials to make a single glass of lemonade, then you sell it for $1.00, your _______ will be $0.70 cents.

• Selling price

• Production cost

• Profit

• Manufacturing

A pricing strategy used by retailers which promises customers the lowest prices in their store without having to use a coupon, wait for a sales event, or take any other actions to get a reasonable price on the items they purchase. Example: Walmart.

• Everyday low prices

• Odd/even pricing

• Optional product pricing

• Price bundling

When a business sells their product for a much cheaper price than they ordinarily would and relies on the sales of optional products to make up for the difference. Example: KitchenAid selling attachments for their mixers.

• Price bundling

• Optional product pricing

• Captive product pricing

• Loss-leader pricing

What is the correct order of distribution?

• 1. Manufacturer

  2. Distributor

  3. Retailer

  4. Consumer

• 1. Distributor

  2. Manufacturer

  3. Retailer

  4. Consumer

• 1. Retailer

  2. Manufacturer

  3. Distributor

  4. Consumer

• 1. Consumer

  2. Retailer

  3. Distributor

  4. Manufacturer

Retail stores and websites are both examples of what marketing principle?

• Product

• Price

• Place

• Promotion

The pricing of products that have both a “core product” and a number of “accessory products.” This is similar to the “Optional product” pricing model, except with this pricing, you MUST buy the accessory products in order to continue using the core product. Example: HP printers and ink cartridges.

• Captive product pricing

• Loss-leader pricing

• Optional product pricing

• Price bundling

The full price consumers pay at the store.

• Retail price

• Wholesale price

• Manufacturer's discount

• Baseline