Chapter 14 legarda

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Kotler Chapter 14 Presentation by Jose Legarda

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Chapter 14 legarda

  1. 1. 1<br />Developing Pricing Strategies and Programs<br />Chapter 14<br />Jose Eduardo D. Legarda<br />ASMPH Batch 2012<br />
  2. 2. Outline: Price Strategies and Programs<br />Consumer Psychology and Pricing<br />Reference Prices<br />Price –quality Inferences<br />Setting the Price<br />Market –Penetration Pricing<br />Price Optimization<br />Experience Curve Pricing<br />Analyzing Competitor Price Mix<br />
  3. 3. Outline: Price Strategies and Programs<br />Markup Pricing<br />Price Adaptation<br />Geographical Pricing<br />Differentiated Pricing<br />Respond to Competitor’s Price Change<br />
  4. 4. Consumer Psychology and Pricing<br />Reference Prices<br />Price –quality inferences<br />Price endings<br />Price cues<br />
  5. 5. Concept 1:Reference Prices<br />Kotler: JVC GR-D370 Mini Digital Video Camcorder<br /> Local: SRP of Car dealers<br />Medical: Package Discount for HPV vaccine<br />
  6. 6. Concept 2:Price –Quality Inferences<br />Kotler: Armani T-shirts v.s. Gap v.s. H&M<br /> Local: Honda City v.s. Kia Rio<br />Medical: JCI Accredited Hospitals v.s. Non- JCI accredited hospitals<br />
  7. 7. Steps in Setting the Price<br />Select the price objectives<br />Determine demand<br />Estimate costs<br />Analyze Competitor price mix<br />Select Pricing Method<br />Select Final Price <br />
  8. 8. STEP 1: Selecting the pricing objectives<br />Survival<br />Maximum current profit<br />Maximum market share<br />Maximum market skimming<br />Product –quality leadership<br />
  9. 9. Concept 3:Market –Penetration Pricing<br />Kotler: IKEA in China<br /> Local: Baguio Canola Oil<br />Medical: Importation of Labeled Medicines from India<br />
  10. 10. STEP 2: Determining Demand<br />Price Sensitivity<br />Estimating Demand Curves<br />Price Elasticity of Demand<br />
  11. 11. Concept 4:Price Optimization<br />Kotler: 27” Sharp Television v.s. Sansui<br /> Local: Ynzal Computers and Mac<br />Medical: CT- scan packages v.s. X-rays<br />
  12. 12. STEP 3: Estimating Costs<br />Standard costing<br />Activity Based Costing<br />Accumulated Production<br />Target costing<br />
  13. 13. Concept 5:Experience -Curve Pricing<br />Kotler: TI calculator Industry<br /> Local: Unilab<br />Medical: National Kidney Institue Dialysis Center<br />
  14. 14. Concept 6:STEP 4: Analyzing Competitor’s Price Mix<br />Kotler: Zantac<br /> Local: Network Providers (Globe, Smart, Sun)<br />Medical: Private practice with HMO coverage<br />
  15. 15. STEP 5: Selecting a Pricing Method<br />Markup Pricing<br />Target –return Pricing<br />Perceived –Value Pricing<br />Value Pricing<br />Going –rate Pricing<br />Auction type Pricing<br />
  16. 16. Concept 7:Markup Pricing<br />Kotler: Parker Hannifan<br /> Local: Dog food Retail Industry<br />Medical: Immunization in private practice of Pediatricians<br />
  17. 17. STEP 6: Selecting the Final Price<br />Impact of other marketing activities<br />Company pricing policies<br />Gain and Risk sharing pricing<br />Impact of price on other parties<br />
  18. 18. Price Adaptation Strategies<br />Geographic Pricing<br />Discount / Allowances<br />Promotional Pricing<br />Differentiated Pricing<br />
  19. 19. Concept 8:Geographical Pricing<br />Kotler: Procter and Gamble 320g Tide Clean White<br /> Local: Gold Eagle Beer<br />Medical: Various Profession fees depending on the hospital<br />
  20. 20. Concept 9:Differentiated Pricing<br />Kotler: Baltimore Orioles<br /> Local: Premium Movies<br />Medical: Price of Medicine in India v.s Philippines<br />
  21. 21. Concept 10:Responding to Competitor’s Price Change<br />Kotler: General Mills v.s. Kellogg’s<br /> Local: Asiacraft Boat Manufacturer <br />Medical: RiteMedv.s. Generics<br />
  22. 22. Outline: Price Strategies and Programs<br />Consumer Psychology and Pricing<br />Reference Prices<br />Price –quality Inferences<br />Setting the Price<br />Market –Penetration Pricing<br />Price Optimization<br />Experience Curve Pricing<br />Analyzing Competitor Price Mix<br />
  23. 23. Outline: Price Strategies and Programs<br />Markup Pricing<br />Price Adaptation<br />Geographical Pricing<br />Differentiated Pricing<br />Respond to Competitor’s Price Change<br />
  24. 24. My Conclusion: Price Strategies and programs<br />Consumer’s Perspective<br />Knowledge of Competition<br />And excellent marketing.<br />
  25. 25. 25<br />Developing Pricing Strategies and Programs<br />Chapter 14<br />Jose Eduardo D. Legarda<br />ASMPH Batch 2012<br />

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