Observation

Most candidates had no idea of the pricing strategies. For the attributes of a product brand, most candidates were stating the advantages or functions of product brand and a few others listed the attributes without explanation. For question 3c, most candidates’ did not attempt the question, few wrote the advantages of advertising. Expected responses are as follows;

(a) Two pricing strategies

(i) Market penetration pricing strategy

(ii) Market skimming pricing strategy

(iii) Satisfactory rate of return

(iv) Mark-up pricing strategy

(v) Product line pricing

(vi) Geographic pricing strategy

(vii) Discriminating pricing strategy

(viii) Psychological pricing strategy

(ix) Competitive based pricing

(viii) Predatory pricing strategy

 

(b) Attributes of a product brand

(i) The brand name should be easily remembered

(ii) The brand symbol should be readily recognized

(iii) The trade mark should be unique

(iv) The brand name should be short

(v) It should reflect the nature of the product

(vi) The brand name should be legally safe. etc

 

(c) Importance of pricing to an organization

(i) Raising of revenue – Price plays a pivotal role in the marketing of good and services as it attracts revenue for the business

(ii) Sales volume – Price can be used to increase the volume of sales

(iii) Product value – Price can be used to determine the value of the product to the customers

(iv) Corporate image – Price can be used to build a corporate image for the company

(v) Product quality – Price gives a perception of quality a customer is likely to ` receive

(vi) Prevention of competition – Price can be used to prevent competitors from entering the marketing