What's it: Cost-plus pricing is a pricing strategy in which the company adds up the profit margin (markup) to the cost of making the product. This is the most basic and simplest method because it uses cost as the basis of calculation.Another term
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Marginal Cost Pricing: How to Calculate, Advantages, Disadvantages
What's it: Marginal cost pricing refers to a pricing approach in which a firm charges a product according to its marginal cost. In this case, the company takes into account the variable costs per unit.How to calculate marginal-cost
Sampling: Meaning, Concepts and Methods
What's it: Sampling is the process of selecting a subset of the population to use for research. A population can be things or people. In this article, I am specifying this topic with market research.In market research, the
Penetration Pricing: Purpose, Importance, Pros and Cons
What's it: Penetration pricing is a pricing strategy by which a company charges a low price initially and slowly increases it over time. This strategy's main objective is to penetrate the market, that is, to get as many customers as possible and
Promotional pricing: Meaning, Types, Advantages, and Disadvantages
What's it: Promotional pricing is a pricing tactic to attract interest and increase short-term sales. Companies, especially those in the retail industry, usually adopt it to deplete warehouse stock or increase sales during peak
Demand-Oriented Pricing: Definition and How It Works
What's it: Demand-oriented pricing is a pricing strategy in which a firm adjusts its price to fluctuations in demand. This strategy is suitable for several cyclical or seasonal products. Usually, periods fall into two categories: peak periods
Premium Pricing: How It Works, Advantages And Disadvantages
What's it: Premium pricing is a pricing strategy in which a company offers high prices for its product quality. The keywords are of high price and quality.The company charges a high price to differentiate its products from the competitors'
Destroyer Pricing: Meaning, How it works, Purposes, Pros, Cons
What's it: Destroyer pricing is a low pricing strategy to drive competitors out of the market. After being expelled, the company can act as a monopolist in the market. Other terms for this strategy are undercutting and predatory pricing.The
Competitive Pricing: Types, How It Works, Advantages, and Disadvantages
What's it: Competitive pricing is a pricing strategy in which firms use competitors or industry averages as benchmarks for pricing. They may charge higher, close, or lower prices than the average competitor. So, companies' first task is to gather and
Cash Cow in the BCG Matrix [Summarized]
What's it: A cash cow is a product or business unit with a high market share in a low-growth market. In other words, a product is in a mature market and has a dominant position, perhaps as a market leader.It is one of four quadrants in the
Question Mark in the BCG matrix [Explained]
What's it: Question mark is a product or business unit with a low market share but in a high growth market. The product has an opportunity to increase market share and dominate the market.The question mark is one of the four categories of
Dogs in the BCG Matrix: Meaning, Implications to The Company
What's is: A dog is a product or business unit with a low market share and in a low-growth market. It is one of the four categories of the BCG matrix apart from the star, cash cow, and question mark.Well, I will briefly discuss the