Marketing on Price

Marketing Julia L. Lucy10/17/2009
PRICE
PRICE
PRICE
PRICE

Price is one of four major strategy decisions for marketing managers
How flexible will prices be
Level of price over the product life cycle
Who will receive discounts and allowances
How will transportation cost be handled

PRICING OBJECTIVES
PROFIT - ORIENTED OBJECTIVES
Target return objective
Profit maximization objective
SALES - ORIENTED OBJECTIVES
STATUS QUO – ORIENTED OBJECTIVES

PRICING POLICIES
Price Flexibility Policies
One –Price Policy
Flexible – Price Policy
Price-Level Policies – Over the Product Life Cycle
Skimming price policy
Penetration Pricing Policy
Introductory Price Dealing

DISCOUNT POLICIES & ALLOWANCES

Advertising Allowances
Stocking Allowances
Push Money ( or prize money) Allowances
Trade – In Allowances

Discounts
Quantity Discounts
Cumulative Quantity Discounts
Noncumulative Quantity Discounts
Seasonal Discounts
Net
Cash Discounts
2/10, Net 30
Trade
Sale Price
Everyday Low Pricing

What Does The Customer Say?

IS IT LEGAL?
Unfair Trade Practice Acts
Dumping
Phony List Prices
Price Fixing
Price Discrimination

Price – Profit – Poof
Bread is made for laughter,and wine gladdens life,and money answers everything.
—Ecclesiastes 10:19
“However”
Keep your life free from love of money, and be content with what you have, for he has said, “I will never leave you nor forsake you.”
—Hebrews 13:5