Page 39 - Microsoft Word - 00 ACCA F1 Notes Prelims.docx

Business organisation and structure

Pricing issues:

 Cost
 Customers Promotional
Product issues:  Competition issues:
 Corporate objectives
 Product Promotion is

definition – what These issues can be essentially about
exactly the blended to give a range of market
product should pricing tactics: communication.
be The primary aim is

 Product  Cost plus pricing to encourage
customers to buy
positioning –  Penetration pricing the products by
how does our  Perceived quality pricing moving along the
product  Price discrimination AIDA timeline:
compare with  Going rate pricing
the offerings of  Price skimming  Awareness
 Interest
our  Loss leaders  Desire
competitors?  Captive product pricing  Action

Promotional
techniques
include:
 Advertising
 Sales

promotion
techniques
The 4 P’s  Personal
selling
 Public relations

Place (distribution) issues:

Key decision is whether to sell direct to the ultimate consumer

without using middlemen or use the channel strategy which
comprises a mixture of retailer, distributors, wholesalers, shipping

agents etc

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