In the Marketing Category, we aim to provide reference notes on different topics of Marketing.
What is Going Rate Pricing? Going Rate Pricing is a pricing strategy where a company sets its prices for products or services based on what its competitors are charging. In this method, the company essentially follows the pricing trends set by its rivals in the market. This approach is commonly used in industries with homogeneous … Read more
What is Differential Pricing? Differential pricing is a strategic approach where a company sets different prices for the same product, considering diverse customer types, purchase timings, and other factors. Also known as discriminatory pricing, flexible pricing, multiple pricing, or variable pricing, this method allows businesses to tailor their pricing based on customer segments, ensuring a … Read more
What is Value Based Pricing? Value based Pricing, often referred to as value pricing, sets product or service prices based on the perceived value to consumers. This approach ensures that the price aligns with what customers believe the product is worth. For example, a famous painting or a fine dining experience commands a high price … Read more
What is Perceived Value Pricing? Perceived Value Pricing is a pricing strategy determined by what customers are willing to pay for a product or service based on their perception of its value, rather than its production cost. This approach focuses on the customer’s mindset and product knowledge. Businesses set prices considering the image customers have … Read more
What is Break Even Pricing? Break even pricing is a method that helps businesses determine the price at which they neither make a profit nor suffer a loss on a sale. It’s the point where total revenue matches total costs. This pricing approach is often used to gain market share and potentially reduce costs for … Read more
What is Target Return Pricing? Target Return Pricing is a pricing method used to calculate the price for a product that will ensure a desired profit or rate of return on investment, assuming a specific quantity of the product is sold. It involves setting the price based on the expected rate of return on the … Read more
What is Markup Pricing? Markup pricing is a method businesses use to set prices for their products or services. It involves adding a specific amount, called a markup, to the production cost. The formula for markup pricing is: Selling Price = Cost Price + Markup (profit). The markup covers not only the production cost but … Read more