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Pricing Chapter 16 Price
Introduction ,[object Object],[object Object],[object Object]
Price defined ,[object Object]
Internal factors affecting price ,[object Object],[object Object],[object Object],[object Object]
Marketing objectives ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Marketing mix strategy ,[object Object],[object Object],[object Object],[object Object]
Figure 16.1  Factors affecting price decisions
Costs ,[object Object],[object Object],[object Object],[object Object]
Costs at different levels of production Figure 16.2  Cost per unit at different levels of production
Costs as a function of production experience Figure 16.3  Cost per unit as a function of accumulated production: the experience curve
External factors affecting  pricing decisions ,[object Object],[object Object],External factors include the nature of the market and demand, competition and other environmental elements.
Pricing in different types of market ,[object Object],[object Object],[object Object],[object Object]
Pricing in different types of market ,[object Object],[object Object],[object Object]
Pricing in different types of market ,[object Object],[object Object]
Pricing in different types of market ,[object Object],[object Object]
Analysing the price-demand relationship  Figure 16.4  Inelastic and elastic demand
[object Object],[object Object],[object Object],[object Object],Price elasticity of demand ,[object Object],[object Object]
Price influence on profits ,[object Object],[object Object],[object Object],[object Object],[object Object]
Competitors and other  external factors impacting price ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Pricing considerations ,[object Object],[object Object],[object Object],[object Object],[object Object]
Pricing objectives ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Figure 16.5  Primary considerations in price settings Pricing objectives
1. Cost based pricing  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Figure 16.6  Break-even chart for determining target price Table 16.2  Break-even volume and profits at different prices *Assumes a fixed cost of €300,000 and a constant unit variable cost of €10.
 
2. Value based pricing ,[object Object],[object Object],[object Object]
Figure 16.7  Cost-based versus value-based pricing Source :  The Strategy and Tactics of Pricing , 3rd edn by Thomas T. Nagle and Reed K. Holden (2002), p. 4. Reprinted by permission of Pearson Education, Inc., Upper Saddle River, NJ 07458. Cost-based vs. value-based pricing
3. Competition based pricing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
New product price setting ,[object Object],[object Object]
Pricing for new products with  innovative features and benefits:  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Product-mix pricing strategies (1) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Product-mix pricing strategies (2) ,[object Object],[object Object],[object Object],[object Object],[object Object]
Table 16.4  Product-mix pricing strategies Product-mix pricing strategies (3)
Price adjustment strategies  Table 16.5  Price adjustment strategies
Discount and allowance pricing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Segmented pricing ,[object Object],[object Object],[object Object],[object Object],[object Object]
Psychological pricing ,[object Object],[object Object]
Promotional pricing ,[object Object],[object Object]
Geographical pricing (1) ,[object Object],[object Object],[object Object],[object Object],[object Object]
Geographical pricing (2) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Price changes ,[object Object],[object Object],[object Object],[object Object],[object Object]
Price changes ,[object Object],[object Object],[object Object]
Price changes ,[object Object],[object Object],[object Object]
Price changes ,[object Object],[object Object],[object Object]
Figure 16.9  Assessing and responding to a competitor’s price cut
Four typical responses to a  competitor’s change in price: ,[object Object],[object Object],[object Object],[object Object]

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Chapter 16

  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7. Figure 16.1  Factors affecting price decisions
  • 8.
  • 9. Costs at different levels of production Figure 16.2  Cost per unit at different levels of production
  • 10. Costs as a function of production experience Figure 16.3  Cost per unit as a function of accumulated production: the experience curve
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16. Analysing the price-demand relationship Figure 16.4  Inelastic and elastic demand
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.
  • 22. Figure 16.5  Primary considerations in price settings Pricing objectives
  • 23.
  • 24. Figure 16.6  Break-even chart for determining target price Table 16.2  Break-even volume and profits at different prices *Assumes a fixed cost of €300,000 and a constant unit variable cost of €10.
  • 25.  
  • 26.
  • 27. Figure 16.7  Cost-based versus value-based pricing Source : The Strategy and Tactics of Pricing , 3rd edn by Thomas T. Nagle and Reed K. Holden (2002), p. 4. Reprinted by permission of Pearson Education, Inc., Upper Saddle River, NJ 07458. Cost-based vs. value-based pricing
  • 28.
  • 29.
  • 30.
  • 31.
  • 32.
  • 33. Table 16.4  Product-mix pricing strategies Product-mix pricing strategies (3)
  • 34. Price adjustment strategies Table 16.5  Price adjustment strategies
  • 35.
  • 36.
  • 37.
  • 38.
  • 39.
  • 40.
  • 41.
  • 42.
  • 43.
  • 44.
  • 45. Figure 16.9  Assessing and responding to a competitor’s price cut
  • 46.