Lesson One

This lesson we learnt about pricing strategies like :

• Skim Pricing
• Penetration Pricing

Skim Pricing is when you introduce your product for a high price in order to skim off the top of the market.

Penetration Pricing is when you introuce a product at a low initial price in order to gain a share of the market.

for more information about skim pricing vs penetration pricing you can go to this website.

http://www.tutor2u.net/business/presentations/marketing/skimmingvpenetration/default.html

We also learnt about television ads that promote their product as cheap and easy to return if you arent satisfied. When in reality their product is not cheap, its is only cheap in the beginning. The you have the monthly fees and and the cost of sending it. And they dont tell you that when you return it you have to spend a lot of money on sending costs.

We also learnt about what people look before they buy a product from charity.

1. price
2. use (s)
3. quality
4. which charity
5. is the charity well known

this is what i learnt in lesson one.