Ch14 Developing Pricing Strategies and Programs Top 10 Questions V54

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Top 10 Learning Concepts
Kotler Chapter 14

Zaragoza S080135
De Ungria V54
(Reupload due to Previous Visual Lapses)

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Ch14 Developing Pricing Strategies and Programs Top 10 Questions V54

  1. 1. TOP 10 Learning Concepts Ch 14 Developing Pricing Strategies and Programs Meghann Thereze O. Zaragoza April 1, 2011 meghanngettingthere.blogspot.com
  2. 2. AT A GLANCE <ul><li>Consumer Psychology and Pricing </li></ul><ul><li>6 Steps in Setting Price </li></ul><ul><li>Cost Terms and Production </li></ul><ul><li>Price- Adaptation Strategies </li></ul>meghanngettingthere.blogspot.com
  3. 3. Consumers arrive at Price Perceptions via 4 Key Points meghanngettingthere.blogspot.com From Philip Kotler’s, Marketing Management, 13 th Edition Reference Prices Price-quality Inferences Price Endings Price Cues
  4. 4. #1 Consumers COMPARE an OBSERVED price to an internal price they remember or an external reference meghanngettingthere.blogspot.com From Philip Kotler’s, Marketing Management, 13 th Edition Reference Prices
  5. 5. #2 Consumers use PRICE as an Indicator of QUALITY meghanngettingthere.blogspot.com From Philip Kotler’s, Marketing Management, 13 th Edition Price-quality Inferences
  6. 6. #3 Prices that end in “9” or an odd number are deemed to be a bargain meghanngettingthere.blogspot.com From Philip Kotler’s, Marketing Management, 13 th Edition Price Endings
  7. 7. #4 More signs, more exposure = Less effective cues meghanngettingthere.blogspot.com From Philip Kotler’s, Marketing Management, 13 th Edition Price Cues
  8. 8. Consumers arrive at Price Perceptions via 4 Key Points meghanngettingthere.blogspot.com From Philip Kotler’s, Marketing Management, 13 th Edition Reference Prices Price-quality Inferences Price Endings Price Cues
  9. 9. There are 6 Steps in Setting Price meghanngettingthere.blogspot.com From Philip Kotler’s, Marketing Management, 13 th Edition Select the Price Objective Determine Demand Estimate Costs Analyze Competitor Price Mix Select Pricing Method Select Final Price
  10. 10. STEP 1: Companies decides its GOAL of where it wants to POSITION its MARKET OFFERING <ul><li>Survival </li></ul><ul><li>Maximum Current Profit </li></ul><ul><li>Greatest Market Share </li></ul><ul><li>Largest Market Skimming </li></ul><ul><li>Product-quality Leadership </li></ul>meghanngettingthere.blogspot.com From Philip Kotler’s, Marketing Management, 13 th Edition
  11. 11. STEP 2: Determine the DEMAND that impacts the PRICE and Company’s Marketing Objectives meghanngettingthere.blogspot.com From Philip Kotler’s, Marketing Management, 13 th Edition Price Sensitivity Price Elasticity of Demand Guess/Estimate Demand Curves
  12. 12. STEP 3: Estimate the Costs that will set the Price Floor meghanngettingthere.blogspot.com From Philip Kotler’s, Marketing Management, 13 th Edition Types of Costs Accumulated Production Activity-Based Cost Accounting Target Costing
  13. 13. Company Costs take Two Forms: Fixed and Variable <ul><li>Fixed </li></ul><ul><li>Variable </li></ul><ul><li>Total </li></ul><ul><li>Average </li></ul><ul><li>Cost at Different Levels of Production </li></ul>meghanngettingthere.blogspot.com From Philip Kotler’s, Marketing Management, 13 th Edition
  14. 14. STEP 4: Analyze the Competitor’s Costs, Prices and Offers meghanngettingthere.blogspot.com From Philip Kotler’s, Marketing Management, 13 th Edition
  15. 15. STEP 5: SELECT Prices through 6 METHODS considering Customer’s Demand, Cost Function and Competitors’ Prices meghanngettingthere.blogspot.com From Philip Kotler’s, Marketing Management, 13 th Edition Markup Target-return Perceived-value Going-rate Auction-type Value
  16. 16. STEP 5: Method #1 MARKUP -- ADD TO THE COST meghanngettingthere.blogspot.com From Philip Kotler’s, Marketing Management, 13 th Edition Markup
  17. 17. STEP 5: METHOD #2 -- TARGET-RETURN: PRICE THAT WILL YIELD THE WANTED ROI meghanngettingthere.blogspot.com From Philip Kotler’s, Marketing Management, 13 th Edition Target-return ROI
  18. 18. STEP 5: METHOD #3 PERCEIVED VALUE: WHAT THE CONSUMERS THINK meghanngettingthere.blogspot.com From Philip Kotler’s, Marketing Management, 13 th Edition Perceived-value
  19. 19. STEP 5: METHOD #4 VALUE: MORE FOR LESS meghanngettingthere.blogspot.com From Philip Kotler’s, Marketing Management, 13 th Edition Value
  20. 20. STEP 5: METHOD #5 GOING-RATE -- GO WITH THE FLOW meghanngettingthere.blogspot.com From Philip Kotler’s, Marketing Management, 13 th Edition Going-rate
  21. 21. STEP 5: SELECT Prices through 6 METHODS -- 6 AUCTION TYPE – LET THEM BID meghanngettingthere.blogspot.com From Philip Kotler’s, Marketing Management, 13 th Edition Auction-type
  22. 22. STEP 5: 6 Price Setting METHODS considering Customer’s Demand, Cost Function and Competitors’ Prices meghanngettingthere.blogspot.com From Philip Kotler’s, Marketing Management, 13 th Edition Markup Target-return Perceived-value Going-rate Auction-type Value
  23. 23. STEP 6: SELECT A FINAL PRICE considering 4 Important Factors meghanngettingthere.blogspot.com From Philip Kotler’s, Marketing Management, 13 th Edition Impact of Other Marketing Activities Company Pricing Policies Gain-and-Risk Impact of Price on Other Parties
  24. 24. Summary of 6 PRICE SETTING STEPS meghanngettingthere.blogspot.com From Philip Kotler’s, Marketing Management, 13 th Edition Select the Price Objective Determine Demand Estimate Costs Analyze Competitor Price Mix Select Pricing Method Select Final Price
  25. 25. ADAPT PRICES using a Price Structure through 4 Strategies meghanngettingthere.blogspot.com From Philip Kotler’s, Marketing Management, 13 th Edition Geographical Discounts/Allowances Promotional Differentiated
  26. 26. Prices for Different Customers in Different Locations meghanngettingthere.blogspot.com From Philip Kotler’s, Marketing Management, 13 th Edition Geographical
  27. 27. Companies give DISCOUNTS and ALLOWANCES to INCREASE PROFITS meghanngettingthere.blogspot.com From Philip Kotler’s, Marketing Management, 13 th Edition Discounts/Allowances
  28. 28. PROMOS help COMPANIES INCREASE SALES meghanngettingthere.blogspot.com From Philip Kotler’s, Marketing Management, 13 th Edition Promotional
  29. 29. Companies adjust prices to accommodate DIFFERENCES in customers and needs meghanngettingthere.blogspot.com From Philip Kotler’s, Marketing Management, 13 th Edition Differentiated
  30. 30. Companies develop a Price Structure in order to Adapt Prices through 4 Strategies meghanngettingthere.blogspot.com From Philip Kotler’s, Marketing Management, 13 th Edition Geographical Discounts/Allowances Promotional Differentiated
  31. 31. SUMMARY <ul><li>6 Step Procedure in Price Setting Policy </li></ul><ul><li>considering Many Factors </li></ul><ul><li>Companies set a Pricing Structure thru </li></ul><ul><li>Several Adaptation Strategies </li></ul>meghanngettingthere.blogspot.com meghanngettingthere.blogspot.com
  32. 32. TOP 10 Learning Concepts Ch 14 Developing Pricing Strategies and Programs Meghann Thereze O. Zaragoza April 1, 2011 meghanngettingthere.blogspot.com

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