Marketing Essentials

Section 1: Basic Pricing Policies

After You Read Online Action

Key Terms and Concepts

  1. The two most common methods of cost-oriented pricing are cost-plus pricing and markup pricing.
  2. The key to demand-oriented pricing is the consumer's perceived value of the item.
  3. Three actions marketers can take are: price above the competition, price below the competition, or price in line with the competition (going-rate pricing).

    4. Academic Skills

  4. $96; $200 X .40 = $80; $200 - $80 = $120; $120 X .20 = .20 = $24; $120 - $24 = $96
  5. Competitive-bid pricing is a type of competition-oriented pricing that determines the price for a product based on bids submitted by competitors to a company or government agency. Laws require most government agencies to request bids based on certain specifications so they can select the company that offers the lowest prices.
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