Jewellarenav50 ch14developing pricing strategies and programs

755 views
663 views

Published on

JEWELLARENAV50CH14TOPTENCONCEPTS

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
755
On SlideShare
0
From Embeds
0
Number of Embeds
19
Actions
Shares
0
Downloads
33
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Jewellarenav50 ch14developing pricing strategies and programs

  1. 1. Developing Pricing Strategies and Programs<br />Jewell A. Arena<br />Ateneo Graduate School of Business<br /> Top 10 Concepts<br /> April 2010<br />
  2. 2. Ten Concepts<br />Pricing strategies requires setting , adapting and changing prices.<br />Six steps procedure insetting up the prices are selecting the pricing objective, determining demand, estimating costs, analyzing competitor’s costs, prices, and offers and selecting a pricing method and selecting the final price.<br />Five major objectives as to the company decides where it wants to position its market offering are survival, maximum current profit, maximum market share, maximum market skimming, product-quality leadership and other objectives.<br />Demand set the ceiling for the price. Marketers should consider price sensitivity, estimating demand curves and the price elasticity of demand.<br />Price of goods or services equals to cost of producing, distributing and selling and fair return for its effort and risk.<br />
  3. 3. Ten Concepts<br />6. In analyzing competitors’ costs, prices and offers we have to look into their geographical pricing, discounts and allowances, promotional pricing and differentiated pricing.<br />7. The seller charges different amounts to different classes of buyers like customer-segment pricing, product-form pricing, image pricing, channel pricing, location pricing and time pricing. <br />8. Six pricing method are mark-up pricing, target-return pricing, perceived-value pricing, value pricing, going-rate pricing, and auction-type pricing. <br />9. Factors that affect final price are impact of other marketing activities, company pricing policies, gain-and-risk sharing pricing, and the impact of price on other parties.<br />10. Companies should initiate price cuts, price increases and respond to competitor’s price changes.<br />
  4. 4. Setting the <br />Selecting the Pricing Objective<br />Product Quality Leadership<br />Survival<br />Max. Market Share<br />Max. Market Skimming<br />Max. Current Profit<br />Other Objectives<br />Price Elasticity of Demand<br />Demand Curves<br />Demand<br />Price Sensitivity<br />
  5. 5. Estimating Costs<br />Competitor’s<br />Price Changes<br />I have to deliver this Product to a Customer with an Image thru this Channel in this location at this time.<br />Fixed Costs<br />Variable<br />Costs<br />Variable<br />Costs<br />S<br />P<br />Company policy<br />=<br />Gains&Risk<br />R<br />D<br /> JALIEN<br />Auction <br />Analyzing Competitor’s Costs, Prices and Offers<br />P<br /> Other Parties<br />Mark-up Pricing<br />Target Pricing<br />G<br />Value<br />Selecting Pricing Method<br />Activity-Based Costs<br />Brand<br /> Selecting Final Price<br />
  6. 6. Developing Pricing Strategies and Programs<br />Jewell A. Arena<br />Ateneo Graduate School of Business<br /> Top 10 Concepts<br /> April 2010<br />

×