Documenti di Didattica
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PRICING
You pay rent for your apartment, tuition for your
education, and a fee to your dentist or physician.
The airline, railways, taxi and bus companies
charge you a fare; the local utilities call their
price a rate; and the local bank charges you
interest for the money you borrow.
The guest lecturer is paid an honorarium and the
government official takes a bribe to pass a file
which was his job anyway.
PRICING
A firm must set a price for the first time when
It develops a new product
It introduces its regular product into a new
distribution channel or geographical area
It enters bids on new contract work ( as in
Industrial Sale )
PRICING
A company must set its price in relation to the
value delivered and perceived by the customer
PRICING
Higher price
PRICING
Lower price
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DETERMINING DEMAND
Each price will lead to a different level of demand
and have a different impact on a companys
marketing objectives.
Demand and price are inversely related i.e.
Higher the price, lower the demand
Company needs to consider : Price sensitivity
Price elasticity of demand
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ESTIMATING COSTS
Fixed costs
Variable costs
Learning curve
Activity based costing
Target costing
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PRICING METHODS
Markup pricing
Target return pricing
Perceived value pricing
Value pricing
Going rate pricing
Sealed bid pricing
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NEW-PRODUCT PRICING
STRATEGIES
Pricing Strategies
Market
skimming pricing
Market penetration pricing
NEW-PRODUCT PRICING
STRATEGIES
Pricing Strategies
sensitive market
Inverse relationship of production and distribution
cost to sales growth
Low prices must keep competition out of the market.
PRODUCT-MIX PRICING
STRATEGIES
Pricing Strategies
Product
line pricing
Optional product pricing
Captive product pricing
By-product pricing
Product bundle pricing
PRODUCT-MIX PRICING
STRATEGIES
Pricing Strategies
Product
Normal Hair
$3.90
Anti-dandruff
$4.90
Oily Hair
$3.90
PRODUCT-MIX PRICING
STRATEGIES
Pricing Strategies
Optional
PRODUCT-MIX PRICING
STRATEGIES
Pricing Strategies
Captive
fee
Variable usage fee
1 bottle: $2.70
Allowances
Cash
Allowances
segment pricing
Product form segment pricing
Location pricing
be effective:
Market
must be segmentable
Segments must show different degrees of
demand
Watching the market cannot exceed the
extra revenue obtained from the price
difference
Must be legal
Noting
current prices
Remembering past prices
Assessing the buying situations
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leaders
Special event pricing
Cash rebates
Low interest financing
Longer warrantees
Free maintenance
too frequently
Copies by competitors can create deal-prone
customers who will wait for promotions and avoid
buying at regular price.
Creates price wars.
pricing
Uniformed delivery pricing
Zone pricing
Basing point pricing
Freight absorption pricing
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conditions
Competitive conditions
Laws and regulations
Infrastructure
Company marketing objectives
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PRICE CHANGES
Initiating Pricing Changes
Price cuts
Price increases
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PRICE CHANGES
Initiating Pricing Changes
Price cuts is a reduction in selling
price.
Excess
capacity
Increase market share
Price
increases is an increase in
selling price
Cost
inflation
Increased demand and lack of supply
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PRICE CHANGES
Buyer Reactions to Pricing Changes
Price cuts
New
Price
increases
Product
is hot
Company greed
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PRICE CHANGES
Responding to Price Changes
Questions
Why
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PRICE CHANGES
Responding to Price Changes
Solutions
Reduce
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PSYCHOLOGICAL PRICING
It is used to lessen the impact of the actual
pricing in the consumers mind
It is used as a surrogate to indicate the product
quality or esteem
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GEOGRAPHICAL PRICING
Different pricing at different locations
Could be in terms of barter, countertrade and
foreign currency
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PROMOTIONAL PRICING
Loss leader pricing
Special event pricing
Cash rebate
Low interest financing
Longer payment terms
Warranties and service contracts
Psychological discounting
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DISCRIMINATORY PRICING
Customer segment
Product form
Image pricing
Location pricing
Time pricing
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PRECONDITIONS
Market
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RESPONDING TO COMPETITOR
PRICE CHANGES
Maintain price
Maintain price and add value
Reduce price
Increase price and quality
Launch a low price fighter
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Thank You
ravisuno@gmail.com
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