Entrepreneurship 8.1 - Pricing

The 6 P's of marketing are :Product, Price, Place, Packaging, People, Philanthropy

Price Objective:  An initial lower price can attract customers from competitors.

The pricing strategy that Louis Vuitton utilizes is the Demand-Based pricing strategy.

Demand-Based pricing sets a products price based on what it costs your business to provide it.

Price Objective: Prices can create or affect the image of a product in consumers' minds. 

The pricing strategy that Yeti uses is called the Demand-Based pricing strategy.

Competition-Based pricing focuses on what the competition charges.

Your price should be high enough to make a profit & low enough for your market to afford it.

Price Objective: Higher prices may lower the # of sales and lower prices may increase the sales

If you are targeting a luxury market, make sure that your price is lower than your competitor.

The pricing strategy that Walgreens and CVS uses is the Competition-Based pricing strategy.

The pricing strategy that BMW uses is called the Cost-Based pricing strategy.

Price Objective: You are introducing a new product, so you charge a high price.

The pricing strategy that Wal-Mart uses is called the Demand-Based pricing strategy.