1. Price is the amount paid by the customer for a good or service

2. The factors influencing price Customer sensitivity to price Features of the product Quality Income Level of competition in the market Availability of the product Cost of production

3. Methods of pricing Penetration pricing offers low price to gain market share - then increases price E.g. Magazines Price skimming where prices are high - usually during introduction of a new product and ultimately price will reduce e.g. new albums or films on release, Mobile Phones

4. Methods of pricing Promotional pricing A range of tactics which includes special offer pricing for a limited period of time E.g. Buy one get one free Psychological pricing Prices is set at a level that seems price is lower E.g. A price of Rf. 99.99 seems lower than Rf. 100

5. Methods of pricing Premium pricing Uses a high price, but gives a good product/service E.g. Mercedes Benz Economy pricing Cost of the product plus simple profit E.g. Groceries