Term

The Product Life Cycle

Definition

The Product Life Cycle is the stages a product goes through from the research and development stage until its decline and removal from the market in the market

Term

Cost-plus Pricing

Definition

Calculated by dividing the total production costs by the number of units produced. Then an additional amount is added called the mark up. External factors are not taken into account Average price + mark-up = price charged

Term

Penetration Pricing

Definition

Setting a low initial price with the aim of gaining customer loyalty and market share quickly. Works best in mass markets