Learn about various pricing strategies, including their benefits and drawbacks, such as cost-plus, competitive, penetration, skimming, and promotional pricing. Be prepared to recommend and justify a suitable pricing strategy based on specific scenarios, and grasp the concept of price elasticity, distinguishing between price elastic and inelastic demand, and its relevance in pricing decisions, though detailed calculations will not be required.

Quick explanation

Learn about various pricing strategies, including their benefits and drawbacks, such as cost-plus, competitive, penetration, skimming, and promotional pricing. Be prepared to recommend and justify a suitable pricing strategy based on specific scenarios, and grasp the concept of price elasticity, distinguishing between price elastic and inelastic demand, and its relevance in pricing decisions, though detailed calculations will not be required

• This point belongs to Marketing mix, especially Marketing mix outcomes.
• You need to be able to learn about various pricing strategies, including their benefits and drawbacks, such as cost-plus, competitive, penetration, skimming, and promotional pricing. Be prepared to recommend and justify a suitable pricing strategy based on specific scenarios, and grasp the concept of price elasticity, distinguishing between price elastic and inelastic demand, and its relevance in pricing decisions, though detailed calculations will not be required.
• The key ideas to know are Justify, Explain, and Identify.
• Use the linked flashcards and practice questions to check recall, then practise applying the idea in an exam-style answer.