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UNIT
3
Planning a marketing strategy
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23
Now read the attachment that Martin sent to his team and find words or phrases that mean
the following:
1 when a customer pays the same fee each month / year / etc.
2 to sell a group of things (like products or services) as a package
3 reduced price
4 another word for
product launch
5 enhanced features or services that customers have to pay more money for
Match these di≈erent pricing models to the definitions.
1 captive product pricing
2 economy pricing
3 geographical pricing
4 penetration pricing
5 premium pricing
6 price skimming
Now decide which model is being discussed.
6
Cable Internet package pricing model
I have a few questions I’d like everyone to think about in advance of the
meeting. As you know, we’re introducing a new DSL package, and we need to
decide what we should be charging for our services. Some points to consider are:
• What should our pricing model be? A monthly flat fee or charge by data
volume?
• Do we want to offer different prices in different regions?
• Should we bundle our services and offer a discount?
• What about adopting a penetration pricing strategy for the roll-out? How
long should these prices be valid for (3 months, 6 months, …)?
• What optional extras shall we offer (e.g. guaranteed 24-hour servicing)?
Please think about these questions, and we can discuss everything in more detail
7
a pricing goods/services as cheaply as possible
b charging a high price for an item where you have a
competitive advantage
c charging a high price for a unique high-quality item
d pricing goods at a very low price to encourage people to
buy them – often the prices are later raised
e pricing according to area where goods are sold
f pricing one item very low and its complement very high
A
Naturally we need
to price our goods lower in
countries with a lower
per-capita income.
B
We at Chamonix
Écrit believe the quality
of our pens justifies
their cost.
E
Our own-label brands
sugar, flour, and milk have much
lower prices than the brand-name
competitors.
C
These low prices
will only be in e≈ect for the
first six months. After that
they will be raised
by 10–25%.
D
Yes, the printers
we sell are inexpensive,
but we charge quite a bit for
the ink cartridges.