1. Price The charge the product is sold to the consumer at

2. Price The price of a product will affect the sales and the perceptions of the consumer High price high quality

3. What factors do business need to consider when setting the price? Costs of making the product/service Desired return or profit from the product Price charged by competitors novelty value or kudos of the product Any government policies or constraints

4. Long-Term Pricing Strategies Low Pricing Strategy Market Pricing Strategy High Pricing Strategy

5. Short-Term Pricing Tactics These are used by business to gain a competitive edge at various stages in the life of the product.

6. Skimming – high price to begin with Penetration Pricing – extremely low price set to begin with Destroyer Pricing – price set very low for a time Promotional Pricing – prices lowered for a short time Demand-Oriented Pricing – different prices at different times Short-Term Pricing Tactics

7. Short-term pricing These tactics may be used at various times during the life of the product. They provide the business with the opportunity to modify the price element of the marketing mix. They are regarded as tactical decisions as they have short-term impact.

8. Short-term pricing tactics may be adopted once the business has identified the long-term strategy. The short-term tactics complement the long-term strategy.

9. Make sure you can: Describe long term pricing strategies Describe and give examples of short- term pricing tactics Explain that short term tactics complement long term strategy