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Chap014
 

Chap014

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    Chap014 Chap014 Presentation Transcript

    • 14
      Managing Pricing Decisions
      Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved
      McGraw-Hill/Irwin
    • LEARNING OBJECTIVES
      Understand the integral role of price as a core component of value
      Explore different pricing objectives and related strategies
      Identify pricing tactics
      Describe approaches to setting the exact price
      Determine discounts and allowances to offer to channel members
      Understand how to execute price changes
      Examine legal considerations in pricing
      14-2
    • PRICE IS A CORE COMPONENT OF VALUE
      Value is a ratio of the bundle of benefits a customer receives from an offering compared to the costs incurred by the customer in acquiring that bundle of benefits.
      Price – or more specifically the customer’s perception of the offering’s pricing – is a key determinant of perceived value.
      14-3
    • Elements of Managing Pricing Decisions
      EXHIBIT 14.1
      Establish Pricing Objectives and Related Strategies
      Select Pricing
      Tactics
      Set the Exact
      Price
      Determine Channel
      Discounts and Allowances
      Execute Price
      Changes
      Understand Legal Considerations in Pricing
      14-4
    • ESTABLISH PRICING OBJECTIVES AND RELATED STRATEGIES
      Pricing objectives are the desired or expected result associated with a pricing strategy.
      Pricing objectives must be consistent with other marketing-related objectives as well as with the firm’s overall objectives for doing business.
      14-5
    • ESTABLISH PRICING OBJECTIVES AND RELATED STRATEGIES
      Penetration Pricing
      Price Skimming
      14-6
    • ESTABLISH PRICING OBJECTIVES AND RELATED STRATEGIES
      Profit Maximization and Target ROI
      Price Elasticity Of Demand
      Competitor-Based Pricing
      Price war
      Stability pricing
      14-7
    • ESTABLISH PRICING OBJECTIVES AND RELATED STRATEGIES
      Value Pricing
      Value pricing overtly attempts to take into account the role of price as it reflects the bundle of benefits sought by the customer.
      14-8
    • Generic Price-Quality Positioning Map
      EXHIBIT 14.3
      High Price
      Feasible
      Positions
      Feasible
      Positions
      Low Quality
      High Quality
      Feasible
      Positions
      Low Price
      14-9
    • summary of tactical pricing approaches
      EXHIBIT 14.4
      Product
      Line Pricing
      Captive
      Pricing
      Auction Pricing
      Price Bundling
      EDLP and High/Low Pricing
      Pricing
      Tactics
      One-Price and Variable Pricing
      Reference Pricing
      Odd/Even Pricing
      Prestige Pricing
      14-10
    • SELECT PRICING TACTICS
      Product Line Pricing
      Price points
      Captive Pricing
      Complementary pricing
      Price Bundling
      Reference Pricing
      Prestige Pricing
      Odd/Even Pricing
      14-11
    • SELECT PRICING TACTICS
      One-Price Strategy and Variable Pricing
      Everyday Low Pricing (EDLP) and High/Low Pricing
      Auction Pricing
      14-12
    • SET THE EXACT PRICE
      14-13
    • DETERMINE CHANNEL DISCOUNTS AND ALLOWANCES
      Discounts are direct, immediate reductions in price provided to purchasers.
      Allowances remit monies to purchasers after the fact.
      14-14
    • DETERMINE CHANNEL DISCOUNTS AND ALLOWANCES
      14-15
    • DETERMINE CHANNEL DISCOUNTS AND ALLOWANCES
      Geographic Aspects of Pricing
      14-16
    • EXECUTE PRICE CHANGES
      A change in an offering’s price – either up or down – can dramatically impact the effectiveness of the overall marketing mix variables in reflecting your offering’s positioning in the eyes of customers.
      Just Noticeable Difference (JND)
      14-17
    • UNDERSTAND LEGAL CONSIDERATIONS IN PRICING
      14-18
    • Thank You, Please Visit Us At :
      http://wanbk.page.tl