MarketingWeek2ThePrice.pptx

3. PRINCIPLES OF MARKETING

4. OBJECTIVES:  Identify factors to consider when setting prices

5. OBJECTIVES:  Identify factors to consider when setting prices  Discuss new product pricing

6. OBJECTIVES:  Identify factors to consider when setting prices  Discuss new product pricing  Explain general pricing approaches/strategies

8. Guess the Picture!

9. Guess the Picture! • Directions: Learners will guess the following pictures based on what classification of product they belong:

12. SHOPPING GOODS

15. CONVENIENCE GOODS

18. SPECIALTY GOODS

20. Perfect Match!

21. Perfect Match! • Directions: Match column A with the correct name of price on column B

22. Perfect Match! Directions: Match column A with the correct name of price on column B Column A Column B Education fee Bus ride tuition Netflix subscription Service of a physician taxes Government service fare

33. Price  is the money, good, or service exchanged for the ownership or use of a good or service

34. Setting The Prices

35. Steps in setting its pricing policy: 1. 2. 3. 4. 5. 6.

36. Steps in setting its pricing policy: 1. Selecting the Pricing Objective

37. Steps in setting its pricing policy: 1. Selecting the Pricing Objective 2. Determining the Demand

38. Steps in setting its pricing policy: 1. Selecting the Pricing Objective 2. Determining the Demand 3. Estimating Cost

39. Steps in setting its pricing policy: 1. Selecting the Pricing Objective 2. Determining the Demand 3. Estimating Cost 4. Analyzing competitor’s Costs, prices and offers

40. Steps in setting its pricing policy: 1. Selecting the Pricing Objective 2. Determining the Demand 3. Estimating Cost 4. Analyzing competitor’s Costs, prices and offers 5. Selecting a pricing method

41. Steps in setting its pricing policy: 1. Selecting the Pricing Objective 2. Determining the Demand 3. Estimating Cost 4. Analyzing competitor’s Costs, prices and offers 5. Selecting a pricing method 6. Selecting the final price

42. Steps in setting its pricing policy: 1. Selecting the Pricing Objective - a company can pursue any of five major objectives through pricing: survival, maximum current profit, maximum market share, maximum market skimming, or product-quality leadership

43. Steps in setting its pricing policy: 2. Determining the Demand - in the normal case, demand and price are inversely related: the higher the price, the lower the demand

44. Steps in setting its pricing policy: 3. Estimating Cost - a company charge a price that covers its cost of producing, distribution and selling the product including a fair return for its effort and risk

45. Steps in setting its pricing policy: 4. Analyzing competitor’s costs, prices and offers - while demand sets a ceiling and costs set a floor to pricing, competitors’ prices provide an in between point you must consider in setting prices

46. Steps in setting its pricing policy: 5. Selecting a pricing method - determine best approach for the product

47. Steps in setting its pricing policy: 6. Selecting the final price - adopt the chosen pricing strategy

49. Steps in setting its pricing policy: 1. Selecting the Pricing Objective 2. Determining the Demand 3. Estimating Cost 4. Analyzing competitor’s Costs, prices and offers 5. Selecting a pricing method 6. Selecting the final price

50. Types of Pricing Approaches/ Strategies

51. Types of Pricing Approaches/Strategies  Penetration Pricing  Skimming Pricing  Competition Pricing  Product Line Pricing  Bundle Pricing  Psychological Pricing  Premium Pricing  Optional Pricing  Cost Based Pricing  Cost Plus Pricing

52. Types of Pricing Approaches/Strategies  Penetration Pricing - a low price is set by the company to build up sales and market share. Once a position is created, the prices may be raised.

53. Types of Pricing Approaches/Strategies  Skimming Pricing - the initial price is set high and may slowly be brought down.

54. Types of Pricing Approaches/Strategies  Competition Pricing When trying to go head to head with competitors offering similar benefits, a company may decide to: a. price higher to create a higher quality perception b. price the same to show more benefits for the same price c. price lower to try to gain a wider customer base

55. Types of Pricing Approaches/Strategies  Product Line Pricing - different products in the same range may be set at different prices.

56. Types of Pricing Approaches/Strategies  Bundle Pricing - a group of products may be bundled together and sold at a reduced price.

57. Types of Pricing Approaches/Strategies  Psychological Pricing - often a company will make small changes to prices to make a customer think the item is priced lower than it is.

58. Types of Pricing Approaches/Strategies  Premium Pricing - a high price is set to establish an exclusive product of high quality

59. Types of Pricing Approaches/Strategies  Optional Pricing - a company may add optional extra items within the price to increase a product’s attractiveness.

60. Types of Pricing Approaches/Strategies  Cost Based Pricing - a company may determine the exact cost of producing and selling an objective, add markup that may be desirable for profits and price accordingly.

61. Types of Pricing Approaches/Strategies  Cost Plus Pricing - a percentage is added to the costs as a profit margin to determine final price.

63. Types of Pricing Approaches/Strategies  Penetration Pricing  Skimming Pricing  Competition Pricing  Product Line Pricing  Bundle Pricing  Psychological Pricing  Premium Pricing  Optional Pricing  Cost Based Pricing  Cost Plus Pricing

64. Arrange Me!

65. Arrange Me! Directions: Arrange the following event in chronological order by writing the number concern in the blank provided. ___ 1. Analyzing competitor’s costs, prices and offers ___ 2. Determining the demand ___ 3. Selecting the final price ___ 4. Selecting the Pricing objective ___ 5. Estimating Cost ___ 6. Selecting a pricing method

66. Let’s Answer!

67. Arrange Me! Directions: Arrange the following event in chronological order by writing the number concern in the blank provided. ___ 1. Analyzing competitor’s costs, prices and offers ___ 2. Determining the demand ___ 3. Selecting the final price ___ 4. Selecting the Pricing objective ___ 5. Estimating Cost ___ 6. Selecting a pricing method

68. Arrange Me! Directions: Arrange the following event in chronological order by writing the number concern in the blank provided. _4_ 1. Analyzing competitor’s costs, prices and offers ___ 2. Determining the demand ___ 3. Selecting the final price ___ 4. Selecting the Pricing objective ___ 5. Estimating Cost ___ 6. Selecting a pricing method

69. Arrange Me! Directions: Arrange the following event in chronological order by writing the number concern in the blank provided. _4_ 1. Analyzing competitor’s costs, prices and offers _2_ 2. Determining the demand ___ 3. Selecting the final price ___ 4. Selecting the Pricing objective ___ 5. Estimating Cost ___ 6. Selecting a pricing method

70. Arrange Me! Directions: Arrange the following event in chronological order by writing the number concern in the blank provided. _4_ 1. Analyzing competitor’s costs, prices and offers _2_ 2. Determining the demand _6_ 3. Selecting the final price ___ 4. Selecting the Pricing objective ___ 5. Estimating Cost ___ 6. Selecting a pricing method

71. Arrange Me! Directions: Arrange the following event in chronological order by writing the number concern in the blank provided. _4_ 1. Analyzing competitor’s costs, prices and offers _2_ 2. Determining the demand _6_ 3. Selecting the final price _1_ 4. Selecting the Pricing objective _3_ 5. Estimating Cost ___ 6. Selecting a pricing method

72. Arrange Me! Directions: Arrange the following event in chronological order by writing the number concern in the blank provided. _4_ 1. Analyzing competitor’s costs, prices and offers _2_ 2. Determining the demand _6_ 3. Selecting the final price _1_ 4. Selecting the Pricing objective _3_ 5. Estimating Cost _5_ 6. Selecting a pricing method

74. Evaluation: Directions: Look for the best match of pricing approaches from the given responses inside the word pool.

75. Evaluation: Directions: Look for the best match of pricing approaches from the given responses inside the word pool. WORDPOOL Penetration Skimming Competition Cost plus Bundle

76. Evaluation: Directions: Look for the best match of pricing approaches from the given responses inside the word pool. WORDPOOL Penetration Skimming Competition Cost plus Bundle 1. A low price is set by the company to build up sales and market share.

77. Evaluation: Directions: Look for the best match of pricing approaches from the given responses inside the word pool. WORDPOOL Penetration Skimming Competition Cost plus Bundle 2. A percentage is added to the costs as a profit margin to determine final price.

78. Evaluation: Directions: Look for the best match of pricing approaches from the given responses inside the word pool. WORDPOOL Penetration Skimming Competition Cost plus Bundle 3. Supermarkets often use this method through their buy one get one free offer.

79. Evaluation: Directions: Look for the best match of pricing approaches from the given responses inside the word pool. WORDPOOL Penetration Skimming Competition Cost plus Bundle 4. The initial price is set high and may slowly be brought down.

80. Evaluation: Directions: Look for the best match of pricing approaches from the given responses inside the word pool. WORDPOOL Penetration Skimming Competition Cost plus Bundle 5. Price lower to try gain a wider customer base.

81. Let’s Check!

92. Assignment:

93. Assignment: Pricing Strategies Which Would You Choose? Learners will apply their knowledge of pricing approaches/strategies to a business scenario and justify why they have chosen that particular pricing strategy. Business Scenario: You’re planning to open a Snack House near the Movie Theater in your area, how are you going to set prices for your snacks and drinks? Why?

94. Thank you…….

MarketingWeek2ThePrice.pptx

Recommended

Recommended

More Related Content

Similar to MarketingWeek2ThePrice.pptx

Similar to MarketingWeek2ThePrice.pptx (20)

Recently uploaded

Recently uploaded (20)

MarketingWeek2ThePrice.pptx