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This document contains 10 multiple choice questions about pricing strategies and programs from a marketing management chapter. The questions cover topics like how prices are typically set, factors that influence customer price sensitivity, the steps involved in adapting price, general pricing policies in large vs small companies, elasticity of demand, examples of different pricing strategies, and forms of price discounts and allowances.
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Penetration pricing is a strategy used by new entrants to gain market share by initially setting low prices. It aims to quickly switch customers from competitors by creating brand loyalty and generating significant demand. A company can use penetration pricing when there is little product differentiation, demand is price-elastic, and economies of scale can be realized. An example is a company entering the notebook market and selling notebooks below cost at $5.50 to capture market share from competitors selling at $10, utilizing their large production capacity. The strategy allows for rapid adoption but risks customers expecting permanently low prices and a price war damaging profitability long-term.
How should a company adapt prices to meet varying circumstances?
There are 5 price adaptation strategies a company can use:
1. Geographical pricing to set prices for customers in different locations, which may require alternative payment methods if buyers lack hard currency.
2. Price discounts and allowances to adjust list prices down for early payment, volume purchases, or off-season buying.
3. Promotional pricing techniques like loss leaders, rebates, or financing to stimulate early purchases.
4. Differential pricing to set different prices according to customer segments, products, locations, or time through various forms of price discrimination.
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Price is based on research, experience, and understanding of the market, to calculate a price expected to be profitable and sell enough volume to be sustainable as a business.
Price also must stand its ground against alternative options from competitors.
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Changing core marketing strategies and new product development is expensive and time-consuming, but the price is very flexible, and business can change it according to the needs of the situation. Price is the most adjustable aspect of the marketing mix, allowing a business to quickly respond to marketplace changes.
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There are 5 price adaptation strategies a company can use:
1. Geographical pricing to set prices for customers in different locations, which may require alternative payment methods if buyers lack hard currency.
2. Price discounts and allowances to adjust list prices down for early payment, volume purchases, or off-season buying.
3. Promotional pricing techniques like loss leaders, rebates, or financing to stimulate early purchases.
4. Differential pricing to set different prices according to customer segments, products, locations, or time through various forms of price discrimination.
5. In summary, the strategies are geographical pricing, price discounts and allowances, promotional pricing, and differential pricing.
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Price is perhaps the most crucial aspect of the marketing mix to determine whether customers make the purchase. If priced too low, you lose profitability. Priced too high, customers will choose a competitor.
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Pricing is at the core of marketing strategy, being one of the original ‘4Ps’ of the Marketing Mix.
Changing core marketing strategies and new product development is expensive and time-consuming, but the price is very flexible, and business can change it according to the needs of the situation. Price is the most adjustable aspect of the marketing mix, allowing a business to quickly respond to marketplace changes.
For customers, price is often the most crucial factor of their purchase decision. Businesses use price as a differentiating factor to set them apart from competitors and to target a segment of customers. Your price reflects your positioning in the market. Pricing helps create your brand identity.
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Psychological pricing is used by stores to get you to open up your wallet. These tactics can also be applied to improve your pricing strategy too.
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This document discusses various competition-based pricing strategies that companies can use, including price leadership, predatory pricing, penetration pricing, skimming pricing, prestige pricing, price discrimination, and promotional pricing. It notes that price leadership involves a dominant firm setting prices that competitors then follow. Predatory pricing aims to drive out rivals but can be anti-competitive. Penetration pricing uses low initial prices to gain market share, while skimming pricing charges high initial prices for innovative products before competitors enter. The document also outlines advantages and disadvantages of competition-based pricing strategies.
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Dear students get fully solved assignments
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*Understanding the value of linking sales and marketing
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*Understanding the strengths and weaknesses of sales
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*Considerations when considering financial strategies
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*Establishing and building a strong business partnering
relationship with senior sales and marketing management
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Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
help.mbaassignments@gmail.com
or
call us at : 08263069601
3.adapting the price
This is a presentation based on the text book 'Marketing Management' by Philip Kotler. It describes about developing pricing strategies and programs.
Psychological pricing
This document discusses psychological pricing strategies used by businesses to influence customer purchasing decisions. It describes techniques like charm pricing, reframing prices to seem smaller by removing commas or charging in installments. Other strategies aim to maximize reference prices by exposing customers to higher incidental prices or decoy products. Businesses can also reduce the pain of paying through bundling, shifting focus to time, or following the rule of 100 for discounts. The goal is to use customers' emotional responses to encourage sales.
Pricing Strategies
Companies must consider laws governing fair pricing practices when setting prices. These laws address issues like price fixing, predatory pricing, and unfair discrimination within and across distribution channels. Price fixing involves competitors agreeing on prices, while predatory pricing undercuts rivals. Unfair discrimination occurs when sellers charge different prices to similar customers. Laws also regulate requiring retail prices and deceptive advertising of price savings.
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This document provides sample practice questions and short answers selected from the Dunn & Lusch textbook to help students prepare for upcoming examinations. It notes that the questions listed are not meant as a spotting exercise and may not appear identically on the exam. Students are advised to thoroughly read the assigned chapters and practice end-of-chapter questions to adequately prepare. Several multiple choice questions and short answers are then provided relating to Chapter 10 on Retail Pricing, covering topics like how location affects pricing, when to use penetration pricing, the difference between variable and flexible pricing, and what type of retailer typically uses leader pricing. Students are directed to additional lecture notes and formulas to practice calculation questions on markups, maintained markups, and
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The law of attraction is the most powerful force in the universe. If you work against it, it can only bring you pain and misery. Successful people know this but have kept it hidden from the lower class for centuries because they did not want to share their wealth. The universal law of attraction is simple. We attract whatever we choose to give our attention to. If we focus on bad things, we will attract more bad things. But the minute you stop focusing on bad and focus on good, you change the pattern and now good things start coming your way.
If we knew the law of attraction and applied it in our lives daily, we would have so much power and control that it would be scary. We could have what we wanted, and when we wanted it. We would have total control of our lives. If you think of yourself as a powerful attractor, you will attract more of what you want in your life, simply by thinking about it, then acting on it. But there is one ingredient you cannot leave out or the law of attraction won't work.
When we think of an object in our mind, we then send that image to our hearts and act on it with emotion. A formula makes this easy to follow: TFAR (Thoughts, Feelings, Actions, and Results) When we take necessary action, the universe shows up and gives us the results we wanted.
The law of attraction works by performing three steps. And these steps must be done for the process to work. These steps are:
1. Getting clear. You must know what it is you want or else you won’t get it. The universe won’t know what you are asking for, so how can it deliver?
2. Vibrate to the level of energy corresponding to what you want. If you want something and you think about it, feel it, and act on it, you must keep that level of energy going until you achieve the results you are after.
3. Attract what you want like a magnet. If you focus on what you want but don’t allow it to come into your life, it won’t. You have to be willing to accept it and acknowledge it. Then when you act, it will occur.
Whatever you do during the course of a day, whatever thoughts you think about, you are attracting. If you use it every day, regularly, and practice it this way, you will eventually find that it becomes a habit that you will subconsciously practice.
You may not believe it, but the steps you need to take are easy. But you must do them, believe in them, and believe in yourself, or they will not work. Are you ready to get tuned into the universe and get clear? Can you work in harmony with the laws of the universe and become successful?
If so here are the steps you need to follow:
1. Get clear. You must know exactly what it is you want. If you are in doubt, vague, or too general, you won’t get anywhere. You must know exactly what it is you want first. Only then will you be able to focus and concentrate on that thought?
2. Visualize what you want and vibrate to it. You must form a mental image in your mind so you can see it as if you had it in your possession. For women, you can do the
Chap 11 e161
Kmart once dominated the discount retail market but lost market share to competitors like Walmart. Kmart tried repositioning itself as a value retailer but this led to a price war with Walmart that Kmart failed to win. Kmart was forced into bankruptcy and closed about a third of its stores. The document discusses various pricing strategies companies use for new and existing products, including market skimming, market penetration, product line pricing, and segmented pricing. It also covers how companies adjust prices in response to competitors and changing market conditions.
pricing policy
This document discusses pricing decisions and strategies. It covers understanding price, factors that affect pricing like costs and competition, methods for setting prices, and adapting prices over time and locations. The key steps in setting a price include selecting objectives, determining demand and costs, analyzing competitors, choosing a pricing method, and selecting the final price. Common pricing methods are markup pricing, absorption cost pricing, target-return pricing, and perceived value pricing. Companies also consider geographical pricing, discounts, promotional pricing, and price changes over time in response to costs or competitors.
price adjustment strategies, marketing by Phillip Kotler
This document discusses various price adjustment strategies used in marketing. It identifies six main strategies: 1) discount and allowance pricing to reward customers for behaviors like early payment or volume purchases, 2) segmented pricing where different prices are charged to different customer segments, 3) psychological pricing below whole numbers, 4) promotional pricing for temporary price reductions, 5) geographical pricing based on location, and 6) international pricing considering factors in different countries. The strategies allow companies to adjust their basic prices for customers, products, locations, and situations.
Mm.12.10
The document discusses developing pricing strategy and provides information on:
- Factors that influence pricing like costs, demand, competition
- Common pricing mistakes like not adjusting for market changes
- Consumer psychology related to pricing like reference prices
- Methods for setting prices like cost-based, demand-based, competition-oriented pricing
- Steps in setting price which include selecting objectives, determining demand, analyzing costs and competition
Best practice in pricing processes
This document reviews best practice in pricing processes to provide a reference against which current practices and proposals can be tested. Our objectives have been: to research the attributes of world-class pricing through publications and academic sources; to investigate how these attributes are applied in practice to products and services; to assess pricing processes in successful businesses.
In recent years a new attitude toward pricing has emerged. Deregulation and international free trade agreements have increased competition. Price promotion has eroded the power of brand loyalty. Pricing has assumed greater importance to most businesses.
As markets increasingly assume a global dimension, customers can more easily compare prices between one region or country and another, using the internet or a fax machine. They can often locate the same product, or an
acceptable substitute, from another source. Customers are more demanding and fickle, and their expectations increasingly difficult to fulfil.
Price inflation in western economies is now at its lowest for decades. Price increases are no longer accepted without protest from customers, if at all.
The Chairman of General Electric has predicted the onset of the ‘Value Decade’. Global price competition will strengthen because of: reduced product differentiation; global over-capacity for production; significantly diminished trade barriers; efficient information and distribution systems; providing customers with easy access to the prices of suppliers; a growing lack of customers’ loyalty to individual suppliers. Choice will be increasingly driven by price.
This is a challenging scenario that reinforces the need for an integrated strategy and concerted managerial action on pricing.
Pricing processes have lagged behind developments in the market place. They are often characterised by internal conflict between accountants wishing to maximise profit per unit and marketing specialists who seek to maximise
throughput. They are also affected by the potential for strained relations with good customers.
Some companies have downsized their operations to a level where diminishing returns cause them to question the benefits of continuing to focus upon reducing costs. As they switch their attention from cost cutting to adding
value, pricing naturally assumes increased weight in the marketing mix.
We have found many companies reluctant to discuss their own processes.
Some may wish to avoid betraying a lack of sophistication.
Pricing Strategies
The document discusses various pricing strategies and approaches. It covers factors that influence pricing decisions, both internal like costs and objectives, and external like competitors and consumer perceptions. It also describes three main approaches to determining prices: cost-based using costs of production, buyer-based using perceived value, and competition-based by considering competitors' prices. Specific pricing strategies are also outlined, like penetrating the market with low introductory prices or "skimming the cream" with high initial prices.
Mma6e chapter-14 final
This document provides an overview of pricing strategies and concepts from the textbook "Marketing Management: An Asian Perspective, 6th Edition". It discusses key learning issues around pricing, outlines the chapter contents, and summarizes various pricing strategies and consumer psychology concepts. Specifically, it examines how companies set initial prices, adapt prices over time, determine pricing objectives, estimate demand, and consider factors like competitors' prices, costs, and consumer reference prices.
Retailing in pricing
This document discusses various retail pricing strategies. It explains that retailers must consider their costs of goods and operating expenses to determine the right price. There are several popular pricing strategies retailers can adopt, including competitive pricing, discount pricing, full price pricing, psychological pricing, vendor pricing, and multiple pricing. Competitive pricing involves pricing below, at, or above competitors. Discount pricing focuses on high sales volumes with low margins. Full price retailers target exclusive markets less sensitive to price. Psychological pricing uses techniques like odd-ending prices. Vendor pricing follows manufacturers' suggested retail prices. Multiple pricing offers deals like buy two get one free.
All of these questions are answered I just need you to read the an.docx
All of these questions are answered I just need you to read the answers, understand them and paraphrase them in your own way with keeping the same idea. Just rewrite it with the same idea but in a different phrase than these.
Essay Questions:
1. Identify and discuss reasons why firms become so infatuated with pricing. Why is pricing given a great deal of attention?
Answer/ ANS:
There is no other component of the marketing program that firms become more infatuated with than pricing. There are at least four reasons for the attention given to pricing. First, the revenue equation is pretty simple: Revenue equals the price times quantity sold. There are only two ways for a firm to grow revenue: increase prices or increase the volume of product sold. Rarely can a firm do both simultaneously. Although there are literally hundreds of ways to increase profit by controlling costs and operating expenses, the revenue side has only two variables—one being price and the other being heavily influenced by price.
A second reason that firms become enamored with pricing is that it is the easiest of all marketing variables to change. Although changing the product and its distribution or promotion can take months or even years, changes in pricing can be executed immediately in real time. Likewise, product, distribution, or promotion changes can also be quite expensive, especially if research and development (R&D) or production must be rescheduled. Conversely, changing prices is a very low-cost option.
The third reason for the importance of pricing is that firms take considerable pains to discover and anticipate the pricing strategies and tactics of other firms. Salespeople learn to read a competitor’s price sheet upside down at a buyer’s desk. Retailers send “secret shoppers” into competitors’ stores to learn what they charge for the same merchandise. In this age of e-commerce, tracking what competitors charge for their goods and services has become so daunting that an entire price-tracking industry has emerged.
Finally, pricing is given a great deal of attention because it is considered to be the only real means of differentiation in mature markets plagued by commoditization. When customers see all competing products as offering the same features and benefits, their buying decisions are primarily driven by price.
Having a solid understanding of these issues is important because far too many firms and their managers use a seat-of-the-pants approach to pricing by guessing the best price for their goods and services. Guessing is never a good strategy in marketing; it can be downright deadly when it comes to setting prices.
2. In many (if not most) circumstances, cutting prices to increase sales volume is not a good idea. Explain why this is so. What are some alternatives that are preferable to cutting prices?
Answer/ ANS: All marketers understand the relationship between price and revenue. However, firms cannot charge high prices without goo.
Price as a part of marketingmix
This document discusses pricing as part of the marketing mix. It begins with definitions of marketing management and pricing. Pricing objectives aim to achieve organizational goals like profits or market share. Price is determined based on customer benefits and perceptions of value. Companies consider cost-based, need-based, and market-based approaches to set prices. The conclusion emphasizes that price should relate to customer perceived value of product benefits.
Pricingineconomicdownturn Francois Delvaux 123594482937 Phpapp02
The document discusses pricing strategies for companies during economic downturns. It outlines common pitfalls like lowering prices too much or basing prices only on costs. The document recommends more proactive pricing approaches like reinforcing value, adapting offers for different customer segments, controlling discounts, preparing for price changes, and focusing on profitable customers.
price is to set a monetary cost for products and services of financial and ba...
This document discusses pricing strategies for financial services. It explains that pricing is a complex element of the marketing mix that must balance customer and supplier interests. Several approaches to setting prices are described, including cost-based pricing, market-based pricing, and regulation-based pricing. Specific factors considered for pricing different financial products like savings, investments, credit, and insurance are also outlined. The goal is to select a pricing objective and determine demand in order to optimize profitability while meeting customer needs.
Ch 14 Developing Pricing Strategies And Programs Manalang
The document discusses key concepts in developing pricing strategies and programs. It provides 10 learning questions related to pricing objectives, determining demand and price sensitivity, pricing methods, and factors to consider when selecting the final price. The questions cover topics like pricing mistakes, consumer pricing psychology, pricing objectives, demand curves, price adaptation strategies, approaches to avoid price shocks, and the impact of other marketing activities on price.
Ch 14 Developing Pricing Strategies And Programs- Manalang
The document discusses key concepts in developing pricing strategies and programs. It provides 10 learning questions related to pricing objectives, determining demand and price sensitivity, pricing methods, and factors to consider when selecting the final price. Specifically, it addresses pricing mistakes, the steps in setting price, consumer pricing psychology, pricing objectives, factors affecting price sensitivity, and approaches for avoiding price shock. The questions cover topics like reference pricing, price-quality inferences, geographical pricing, and the impact of other marketing activities on price.
Chapter 13 pricing pharmacist services
This presents the science and art of pricing pharmacist services and merchandise. It lays out the steps needed to price in community pharmacies.
Types Of Pricing Models For All Types Of Businesses PowerPoint Presentation S...
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