marketing mix - price

... Marketing Mix - Pricing There are a number of pricing policies which a business may adopt. The choice of policy depends on: Market-led pricing This method is where a business accepts the price at which competitors are charging at sets its price at the same level or slightly lower. This is usually used in a market were there is a strong number of competitors. My product would fit into this category as there is a lot of competitors in the drinks market. Cost-based pricing Were you work out the businesses total fixed and variable costs and then adding on the percentage profit. The calculation is as follows- Skimming This is often used in a market were there is little competition. A high price is set initially when the product gets a bit older people aren't as willing to pay as high a price so the price is lowered. The large price at

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