MKT 100 Study Guide - Final Guide: Price Skimming, Tacit Collusion, Pricing Strategies

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Fathima Saleem

Document Summary

Describe various pricing strategies and tacics and their use in markeing. The various methods of seing prices each have their own set of advantages and disadvantages. The ixed percentage and markup approaches are quick and easy but fail to relect the compeiive environment or consumer demand. Although it is always advisable to be aware of what compeitors are doing, using compeitor-based pricing should not occur in isolaion without considering consumers" reacions. Taking a value-based approach to pricing, whether the improvement value or the total cost of ownership, in conjuncion with these other methods provides a nicely balanced method of seing prices. Companies tend to use diferent pricing strategies and tacics for diferent products or diferent markets. Pricing strategies are a long-term approach to pricing products, whereas price tacics focus more on short-term aspects of the ive cs of pricing. The various pricing strategies can be grouped into three broad categories: cost- based strategies, value-based strategies, compeitor-based strategies.