Business Administration - Entrepreneurship and Small Business EBM530 Chapter Notes - Chapter 3: Mass Media, Price Skimming, Cognitive Dissonance
28 Oct 2016
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Projected image: the impression of your business created in the minds of potential customers by everything you do. Expected image: an impression carried by customers of what your business should be like. Cognitive dissonance: the psychological discomfort felt when trying to hold two opposing ideas in the mind at the same time. Naming the business: get attention, be easy to remember, project the image you want. Marketing mix: product or service strategy, pricing strategy, distribution strategy, promotion strategy. Penetration pricing: setting prices lower than those of the competition: new to the market. Price skimming: setting prices high than those of the competition: customers expect higher prices = better quality. If priced to high, but they see lower price elsewhere may cause cognitive dissonance. Competitive pricing: setting prices at the same level as those of the competition: not cheaper. Negotiation: the process used to arrive at the terms of an agreement: do your homework.
