Business Competition CustomersPricing StrategiesNon Pricing Strategies.
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Transcript of Business Competition CustomersPricing StrategiesNon Pricing Strategies.
Business Competition
Customers Pricing Strategies Non Pricing Strategies
Who are the customers?
Market segments:
•Age•Gender
•Income Group•Geographical area
•Interest groups•Behaviour (impulse shoppers)
Pricing Strategies
•Promotional Pricing: temporary price change i.e. 10% off
•Loss leaders: price is set lower than costs in the hope that customers also buy full price items i.e. supermarkets
•Penetration Pricing: low introductory price but price goes up one product is established i.e. interest magazines
•Skimming: high price to start, especially if there is little competition i.e. new technology
•Destroyer: low price to drive out the competition i.e. petrol
Non Pricing Strategies
•Opening hours•Product range
•Extra faculties, i.e. toilets, bag packing•Promotions I.e. BOGOF•Free gifts/competitions
•Reward schemes•Wrapping services
•Quality issues•Product availability