Define competition-based pricing and list its types, including predatory pricing, premium pricing, going-rate pricing, and sealed-bid pricing. Also, briefly explain promotion strategies in business ma

Here are the solutions to your questions:

③ Competition-based pricing

Competition-based pricing is a strategy where a company sets its prices primarily by considering the prices of its competitors.

• a) Predatory pricing: This is a competition-based strategy where a company sets very low prices to drive competitors out of the market.
• b) Premium pricing: This strategy involves setting a high price to reflect high quality, exclusivity, or brand prestige. It is generally not considered a direct competition-based pricing strategy, as it focuses on value perception rather than direct competitive price matching.
• c) Going-rate pricing: This is a competition-based strategy where a company sets its price largely based on the prices charged by its major competitors.
• d) Sealed-bid pricing/auction: This is a competition-based method where prices are determined by competitive bids, often in a tender process, where companies compete on price.

Therefore, the types of competition-based pricing from the list are: a) Predatory, c) Going-rate, and d) Sealed-bid/auction.

Assignment

• 1. Promotion Strategies in Business Marketing

  • Promotion strategies are plans and methods used by businesses to communicate with their target audience about their products or services, aiming to persuade them to make a purchase. Key elements include advertising, sales promotion, public relations, personal selling, and direct marketing.

• 2. Distribution Strategies

  • Distribution strategies involve the methods and channels a company uses to make its products or services available to target customers. These strategies determine how products move from the producer to the final consumer, including choices like intensive, selective, or exclusive distribution, and using direct or indirect channels.