1. Pricing – Task 9 – by 27th November
John Lewis

2. Marketing mix
Ways to attract the customer

3. Pricing . Will affect image – value or premium To cover costs
To attract customers
To match or better rivals

4. Competition based pricing
– price charged is similar to rivals
Search for John Lewis Pricing

5. Competing with Value Pricing?

6. Premium Pricing
Charging a high price for additional quality or extra service
Waitrose sell a range of luxury food items and food for entertaining

7. Price Skimming
Charging a high price to start with then the price is reduced over time to attract a larger market. High prices can help to pay off expensive research costs. Early innovators may pay these high prices.

8. Psychological Pricing
Using £99 99p etc in pricing. May only be 1p or a £1 cheaper but can influence people to think that item is much cheaper than it actually is.

9. Penetration Pricing
Prices charged are low for a short period to get people to try a product. Often used with new magazines and food items. If people like it they may continue to buy it

10. Sale or Discount Pricing
Use to clear stock that is not selling or is out of season.

11. Cost plus Pricing
Working out costs to make a product and then adding on a mark up for that product. This guarantees that a profit is made on each good. Often used on car industry, electrical goods etc

12. Example – IPAD Mini

13. Product Bundle Pricing

14. Questions Read both articles – 2011 and 2012
What has been the impact of the price match policy on the performance of the JL partnership? In 2011 & 2012
Do you think it is right for John Lewis to focus on competitive prices?