Kotler Chapter 14 Presentation by Jose Legarda

1. 1 Developing Pricing Strategies and Programs Chapter 14 Jose Eduardo D. Legarda ASMPH Batch 2012

2. Outline: Price Strategies and Programs Consumer Psychology and Pricing Reference Prices Price –quality Inferences Setting the Price Market –Penetration Pricing Price Optimization Experience Curve Pricing Analyzing Competitor Price Mix

3. Outline: Price Strategies and Programs Markup Pricing Price Adaptation Geographical Pricing Differentiated Pricing Respond to Competitor’s Price Change

4. Consumer Psychology and Pricing Reference Prices Price –quality inferences Price endings Price cues

5. Concept 1:Reference Prices Kotler: JVC GR-D370 Mini Digital Video Camcorder Local: SRP of Car dealers Medical: Package Discount for HPV vaccine

6. Concept 2:Price –Quality Inferences Kotler: Armani T-shirts v.s. Gap v.s. H&M Local: Honda City v.s. Kia Rio Medical: JCI Accredited Hospitals v.s. Non- JCI accredited hospitals

7. Steps in Setting the Price Select the price objectives Determine demand Estimate costs Analyze Competitor price mix Select Pricing Method Select Final Price

8. STEP 1: Selecting the pricing objectives Survival Maximum current profit Maximum market share Maximum market skimming Product –quality leadership

9. Concept 3:Market –Penetration Pricing Kotler: IKEA in China Local: Baguio Canola Oil Medical: Importation of Labeled Medicines from India

10. STEP 2: Determining Demand Price Sensitivity Estimating Demand Curves Price Elasticity of Demand

11. Concept 4:Price Optimization Kotler: 27” Sharp Television v.s. Sansui Local: Ynzal Computers and Mac Medical: CT- scan packages v.s. X-rays

12. STEP 3: Estimating Costs Standard costing Activity Based Costing Accumulated Production Target costing

13. Concept 5:Experience -Curve Pricing Kotler: TI calculator Industry Local: Unilab Medical: National Kidney Institue Dialysis Center

14. Concept 6:STEP 4: Analyzing Competitor’s Price Mix Kotler: Zantac Local: Network Providers (Globe, Smart, Sun) Medical: Private practice with HMO coverage

15. STEP 5: Selecting a Pricing Method Markup Pricing Target –return Pricing Perceived –Value Pricing Value Pricing Going –rate Pricing Auction type Pricing

16. Concept 7:Markup Pricing Kotler: Parker Hannifan Local: Dog food Retail Industry Medical: Immunization in private practice of Pediatricians

17. STEP 6: Selecting the Final Price Impact of other marketing activities Company pricing policies Gain and Risk sharing pricing Impact of price on other parties

18. Price Adaptation Strategies Geographic Pricing Discount / Allowances Promotional Pricing Differentiated Pricing

19. Concept 8:Geographical Pricing Kotler: Procter and Gamble 320g Tide Clean White Local: Gold Eagle Beer Medical: Various Profession fees depending on the hospital

20. Concept 9:Differentiated Pricing Kotler: Baltimore Orioles Local: Premium Movies Medical: Price of Medicine in India v.s Philippines

21. Concept 10:Responding to Competitor’s Price Change Kotler: General Mills v.s. Kellogg’s Local: Asiacraft Boat Manufacturer Medical: RiteMedv.s. Generics

22. Outline: Price Strategies and Programs Consumer Psychology and Pricing Reference Prices Price –quality Inferences Setting the Price Market –Penetration Pricing Price Optimization Experience Curve Pricing Analyzing Competitor Price Mix

23. Outline: Price Strategies and Programs Markup Pricing Price Adaptation Geographical Pricing Differentiated Pricing Respond to Competitor’s Price Change

24. My Conclusion: Price Strategies and programs Consumer’s Perspective Knowledge of Competition And excellent marketing.

25. 25 Developing Pricing Strategies and Programs Chapter 14 Jose Eduardo D. Legarda ASMPH Batch 2012