The document discusses pricing strategies for marketing training courses and licensing training materials. It provides context on how the company typically runs three-day training courses, charging $1,000 per attendee. For a new opportunity, a major client wants to license the training materials to train their own staff. The document considers what an appropriate licensing fee could be, ensuring it is low enough for the client to see value but high enough to maximize income for the company. It also compares this to the potential profit if the full training was provided.
This document discusses various pricing strategies that companies can employ. It outlines strategies for new product pricing such as market skimming and market penetration pricing. It also discusses product mix pricing strategies including product line, optional product, captive product, by-product, and product bundle pricing. Additionally, it covers price adjustment strategies like discounts, segmented pricing, psychological pricing, promotional pricing, geographical pricing, dynamic pricing, and international pricing. The strategies provide options for companies to set prices for new and existing products in different markets and customer segments.
This document discusses various pricing strategies and considerations. It begins by explaining that price cannot be determined in isolation and is determined by the intersection of what the buyer and seller value. It then discusses 3 main determinants of pricing: 1) the value to the customer, 2) the seller's costs, and 3) the influence relationship between buyer and seller. The document goes on to describe different pricing strategies such as skimming, penetration, maintaining price, increasing or decreasing price for new and established products. It also discusses flexible pricing, product line pricing, leasing, bundling, price leadership, and strategies to build a market.
This document discusses pricing strategy and methods. It covers various approaches to initially setting prices such as cost-based, competitor-based, and customer value-based pricing. Factors that influence pricing decisions are also examined, including price sensitivity of customers. The document outlines how companies can initiate price changes and strategies for responding to price wars initiated by competitors.
This document discusses pricing strategies in retailing. It outlines several basic pricing options like discount orientation, market orientation, and upscale orientation. It also discusses external factors that affect retail pricing like consumers, government regulations, manufacturers/suppliers, and competitors. Specific consumer factors discussed include price elasticity and different consumer segments. The document then covers government issues around pricing like price fixing, price discrimination, and other laws. It also discusses how manufacturers/suppliers can impact retail pricing. Finally, it outlines factors to consider when developing a retail price strategy, including objectives, policies, and methods for adjusting prices.
Full cost pricing is a method where a firm calculates the price of a product based on direct costs per unit plus overhead costs and profit margins. Overhead costs are estimated assuming less than full production capacity. There are different types of full cost pricing such as markup pricing, break-even pricing, and rate-of-return pricing. Product line pricing involves determining the lowest, highest, and differential prices for all products. Product life cycle pricing uses strategies like skimming and penetration pricing that vary based on the stage of the product's life cycle.
This document discusses various pricing strategies that companies can employ. It outlines strategies for new product pricing such as market skimming and market penetration pricing. It also discusses product mix pricing strategies including product line, optional product, captive product, by-product, and product bundle pricing. Additionally, it covers price adjustment strategies like discounts, segmented pricing, psychological pricing, promotional pricing, geographical pricing, dynamic pricing, and international pricing. The strategies provide options for companies to set prices for new and existing products in different markets and customer segments.
This document discusses various pricing strategies and considerations. It begins by explaining that price cannot be determined in isolation and is determined by the intersection of what the buyer and seller value. It then discusses 3 main determinants of pricing: 1) the value to the customer, 2) the seller's costs, and 3) the influence relationship between buyer and seller. The document goes on to describe different pricing strategies such as skimming, penetration, maintaining price, increasing or decreasing price for new and established products. It also discusses flexible pricing, product line pricing, leasing, bundling, price leadership, and strategies to build a market.
This document discusses pricing strategy and methods. It covers various approaches to initially setting prices such as cost-based, competitor-based, and customer value-based pricing. Factors that influence pricing decisions are also examined, including price sensitivity of customers. The document outlines how companies can initiate price changes and strategies for responding to price wars initiated by competitors.
This document discusses pricing strategies in retailing. It outlines several basic pricing options like discount orientation, market orientation, and upscale orientation. It also discusses external factors that affect retail pricing like consumers, government regulations, manufacturers/suppliers, and competitors. Specific consumer factors discussed include price elasticity and different consumer segments. The document then covers government issues around pricing like price fixing, price discrimination, and other laws. It also discusses how manufacturers/suppliers can impact retail pricing. Finally, it outlines factors to consider when developing a retail price strategy, including objectives, policies, and methods for adjusting prices.
Full cost pricing is a method where a firm calculates the price of a product based on direct costs per unit plus overhead costs and profit margins. Overhead costs are estimated assuming less than full production capacity. There are different types of full cost pricing such as markup pricing, break-even pricing, and rate-of-return pricing. Product line pricing involves determining the lowest, highest, and differential prices for all products. Product life cycle pricing uses strategies like skimming and penetration pricing that vary based on the stage of the product's life cycle.
This document discusses pricing strategies and considerations for establishing prices. It covers factors to consider like marketing objectives and costs. It also discusses different pricing approaches such as cost-based pricing, value-based pricing, and competition-based pricing. Specific strategies are outlined, like market skimming for new products or discount pricing. The conclusion emphasizes that pricing must support the overall marketing strategy and objectives.
The document discusses various pricing strategies and methods for determining prices. It covers determining a base price using cost-plus pricing, demand pricing, or profit maximization analysis. It also discusses adjusting base prices over time based on objectives, competition, or quality perceptions. Various forms of price flexibility are outlined, including discounts, allowances, promotions, customization, and geographic or segment-based pricing policies.
This document discusses pricing strategies and factors that affect pricing decisions. It explains that pricing is the process of determining the revenue a company will receive for its products. Pricing must achieve financial goals, fit market realities, and support product positioning. Factors like costs, customers, competition, and other variables influence pricing. Common pricing strategies include penetration pricing, skimming pricing, competition pricing, product line pricing, bundle pricing, psychological pricing, premium pricing, and optional pricing. The document also outlines basic pricing guidelines and different types of price discounts.
There are three major influences on pricing decisions: customers, competitors, and costs. Short-run pricing decisions have a time horizon of less than one year and consider relevant variable costs, while long-run decisions consider fixed costs and aim to earn a reasonable return on investment. Target costing sets a target price and derives the maximum allowable cost, while cost-plus pricing adds a markup to total costs to determine price.
The document discusses various factors and strategies companies consider when setting prices. It covers internal factors like costs, objectives, and competitors as well as external factors like demand, the market, and regulations. The document also outlines three main approaches to setting prices - cost-based, value-based, and competition-based - as well as various pricing strategies companies use like discounts, price discrimination, and adjusting prices.
This document discusses various pricing strategies and policies that companies use to price their products and services. It begins by defining pricing and explaining factors that affect pricing decisions like costs, competition, and company objectives. It then outlines several common pricing strategies such as penetration pricing, skimming pricing, competition pricing, bundle pricing, psychological pricing, and premium pricing. For each strategy, it provides a brief definition and example to illustrate how that strategy can be implemented. The document provides an in-depth overview of different approaches to setting prices.
This document discusses pricing strategies in retailing. It outlines several factors that affect retail pricing, including consumers, competitors, manufacturers/suppliers, and government regulations. It also describes basic pricing options like discount orientation, market orientation, and upscale orientation. The document then examines specific pricing strategies retailers can use, such as cost-plus pricing, competition-based pricing, and demand-based pricing. It provides examples of how to calculate markups and make price adjustments over time through markdowns. The overall aim of the pricing strategies discussed is for retailers to set prices that achieve profits while satisfying customers.
What is Pricing Strategy and what are the objectives and factors affecting the Pricing Strategy.
There are Certain types of Pricing Strategies as well. Each and every strategy has its own affect on the product and services offered by an organization.
Pricing , penetration or skimming model of pricingAlan Cherian
The document discusses various pricing strategies that companies can use including penetration pricing, premium pricing, price skimming, economy pricing, and psychological pricing. It provides details on penetration pricing, including that it aims to capture market share by entering with a low price. While it can help with adoption and word-of-mouth initially, it can also establish long-term low price expectations that are difficult to raise later. Price skimming is described as launching a new product at a high initial price to earn high profits before gradually lowering costs over time. The advantages include high margins for cost recovery but disadvantages include increased competition and potentially limiting sales.
The document outlines various steps and strategies for setting prices, including:
1) Determining pricing objectives, studying costs and demand, and monitoring competitors' prices.
2) Common pricing strategies are cost-oriented pricing, demand-oriented pricing, and competition-oriented pricing.
3) Specific pricing techniques include promotional pricing, variable pricing, price lining, and psychological pricing.
The document discusses various pricing strategies and concepts, including new product pricing strategies like market skimming and market penetration pricing. It also covers product mix pricing strategies, price adjustment strategies such as discounts and segmented pricing, and factors to consider when making price changes. Public policy concerns related to pricing such as predatory pricing and unfair trade practices are also summarized.
Digitally empowered, price-conscious consumers have rocked retailers’ worlds. High profile announcements by mega-retailers to drive sales and combat “showrooming” have been showcased in the media and at conferences around the world.
RSR’s fifth annual benchmark study on retailers’ pricing capabilities moves beyond the hype to the truth.
This document discusses the role of strategic pricing for product managers. It begins by covering the need for strategic pricing to anticipate market changes rather than just reacting. It then discusses basic economic concepts for pricing like estimating demand curves and revenue maximization. It also covers common pricing techniques like cost-based, customer-based, and market-based pricing. The document emphasizes that value-based, proactive, and profit-driven strategies are most effective. It provides steps for identifying customer value drivers, estimating economic value, and using techniques like conjoint analysis to understand willingness to pay. Finally, it discusses the key role of product managers in collaborating across functions to define value propositions and drive strategic pricing based on market and customer insights.
The document discusses various methods for setting prices, including:
1) Mark-up pricing which calculates costs and adds a desired profit margin.
2) Target return pricing which sets a price to achieve a desired profit on investment.
3) Perceived value pricing which bases price on how customers value both tangible and intangible benefits.
4) Auction-type pricing including English, Dutch, and sealed-bid auctions which determine price through competitive bidding processes.
This chapter discusses pricing strategies and the importance of understanding customer value perceptions when setting prices. It examines factors companies must consider, including costs, demand, competitors' prices, and overall marketing strategy. The chapter also explores different pricing approaches like value-based pricing, which uses customers' perceptions of value rather than production costs. Cost-based pricing sets prices by adding a markup to costs.
This document outlines various pricing strategies and concepts. It discusses new product pricing strategies like market skimming and market penetration pricing. It also covers product mix pricing strategies, price adjustment strategies, factors to consider when making price changes, and public policy issues related to pricing.
The document discusses various pricing strategies used by companies, including new product pricing strategies, price-quality strategies, product-mix pricing strategies, and price adjustment strategies. For new product pricing, the strategies of market skimming and market penetration are described. For product-mix pricing, different situations involving product lines, optional products, captive products, by-products, and product bundles are outlined. Price adjustment strategies involve discounting, segmented pricing, psychological pricing, promotional pricing, geographical pricing, dynamic pricing, and international pricing.
The document discusses pricing, including defining price, the goals of pricing, and pricing strategies. It begins by defining price as the amount charged for a product or service. The goals of pricing include gaining market share, return on investment, and meeting competition. Pricing strategies discussed include cost-based pricing, demand-based pricing, competition-based pricing, and combinations of strategies. The document also covers pricing policies, the product life cycle, psychological pricing techniques, break-even analysis, and factors affecting pricing decisions.
The document discusses pricing strategies and the steps involved in setting prices. It outlines 6 main steps: 1) selecting a pricing objective, 2) determining demand, 3) estimating costs, 4) analyzing competitors, 5) selecting a pricing method, and 6) selecting the final price. It also discusses adapting prices based on factors like geography, discounts, promotions, and differentiation. The document provides examples and details for each step and concept.
This document discusses pricing strategies and considerations for establishing prices. It covers factors to consider like marketing objectives and costs. It also discusses different pricing approaches such as cost-based pricing, value-based pricing, and competition-based pricing. Specific strategies are outlined, like market skimming for new products or discount pricing. The conclusion emphasizes that pricing must support the overall marketing strategy and objectives.
The document discusses various pricing strategies and methods for determining prices. It covers determining a base price using cost-plus pricing, demand pricing, or profit maximization analysis. It also discusses adjusting base prices over time based on objectives, competition, or quality perceptions. Various forms of price flexibility are outlined, including discounts, allowances, promotions, customization, and geographic or segment-based pricing policies.
This document discusses pricing strategies and factors that affect pricing decisions. It explains that pricing is the process of determining the revenue a company will receive for its products. Pricing must achieve financial goals, fit market realities, and support product positioning. Factors like costs, customers, competition, and other variables influence pricing. Common pricing strategies include penetration pricing, skimming pricing, competition pricing, product line pricing, bundle pricing, psychological pricing, premium pricing, and optional pricing. The document also outlines basic pricing guidelines and different types of price discounts.
There are three major influences on pricing decisions: customers, competitors, and costs. Short-run pricing decisions have a time horizon of less than one year and consider relevant variable costs, while long-run decisions consider fixed costs and aim to earn a reasonable return on investment. Target costing sets a target price and derives the maximum allowable cost, while cost-plus pricing adds a markup to total costs to determine price.
The document discusses various factors and strategies companies consider when setting prices. It covers internal factors like costs, objectives, and competitors as well as external factors like demand, the market, and regulations. The document also outlines three main approaches to setting prices - cost-based, value-based, and competition-based - as well as various pricing strategies companies use like discounts, price discrimination, and adjusting prices.
This document discusses various pricing strategies and policies that companies use to price their products and services. It begins by defining pricing and explaining factors that affect pricing decisions like costs, competition, and company objectives. It then outlines several common pricing strategies such as penetration pricing, skimming pricing, competition pricing, bundle pricing, psychological pricing, and premium pricing. For each strategy, it provides a brief definition and example to illustrate how that strategy can be implemented. The document provides an in-depth overview of different approaches to setting prices.
This document discusses pricing strategies in retailing. It outlines several factors that affect retail pricing, including consumers, competitors, manufacturers/suppliers, and government regulations. It also describes basic pricing options like discount orientation, market orientation, and upscale orientation. The document then examines specific pricing strategies retailers can use, such as cost-plus pricing, competition-based pricing, and demand-based pricing. It provides examples of how to calculate markups and make price adjustments over time through markdowns. The overall aim of the pricing strategies discussed is for retailers to set prices that achieve profits while satisfying customers.
What is Pricing Strategy and what are the objectives and factors affecting the Pricing Strategy.
There are Certain types of Pricing Strategies as well. Each and every strategy has its own affect on the product and services offered by an organization.
Pricing , penetration or skimming model of pricingAlan Cherian
The document discusses various pricing strategies that companies can use including penetration pricing, premium pricing, price skimming, economy pricing, and psychological pricing. It provides details on penetration pricing, including that it aims to capture market share by entering with a low price. While it can help with adoption and word-of-mouth initially, it can also establish long-term low price expectations that are difficult to raise later. Price skimming is described as launching a new product at a high initial price to earn high profits before gradually lowering costs over time. The advantages include high margins for cost recovery but disadvantages include increased competition and potentially limiting sales.
The document outlines various steps and strategies for setting prices, including:
1) Determining pricing objectives, studying costs and demand, and monitoring competitors' prices.
2) Common pricing strategies are cost-oriented pricing, demand-oriented pricing, and competition-oriented pricing.
3) Specific pricing techniques include promotional pricing, variable pricing, price lining, and psychological pricing.
The document discusses various pricing strategies and concepts, including new product pricing strategies like market skimming and market penetration pricing. It also covers product mix pricing strategies, price adjustment strategies such as discounts and segmented pricing, and factors to consider when making price changes. Public policy concerns related to pricing such as predatory pricing and unfair trade practices are also summarized.
Digitally empowered, price-conscious consumers have rocked retailers’ worlds. High profile announcements by mega-retailers to drive sales and combat “showrooming” have been showcased in the media and at conferences around the world.
RSR’s fifth annual benchmark study on retailers’ pricing capabilities moves beyond the hype to the truth.
This document discusses the role of strategic pricing for product managers. It begins by covering the need for strategic pricing to anticipate market changes rather than just reacting. It then discusses basic economic concepts for pricing like estimating demand curves and revenue maximization. It also covers common pricing techniques like cost-based, customer-based, and market-based pricing. The document emphasizes that value-based, proactive, and profit-driven strategies are most effective. It provides steps for identifying customer value drivers, estimating economic value, and using techniques like conjoint analysis to understand willingness to pay. Finally, it discusses the key role of product managers in collaborating across functions to define value propositions and drive strategic pricing based on market and customer insights.
The document discusses various methods for setting prices, including:
1) Mark-up pricing which calculates costs and adds a desired profit margin.
2) Target return pricing which sets a price to achieve a desired profit on investment.
3) Perceived value pricing which bases price on how customers value both tangible and intangible benefits.
4) Auction-type pricing including English, Dutch, and sealed-bid auctions which determine price through competitive bidding processes.
This chapter discusses pricing strategies and the importance of understanding customer value perceptions when setting prices. It examines factors companies must consider, including costs, demand, competitors' prices, and overall marketing strategy. The chapter also explores different pricing approaches like value-based pricing, which uses customers' perceptions of value rather than production costs. Cost-based pricing sets prices by adding a markup to costs.
This document outlines various pricing strategies and concepts. It discusses new product pricing strategies like market skimming and market penetration pricing. It also covers product mix pricing strategies, price adjustment strategies, factors to consider when making price changes, and public policy issues related to pricing.
The document discusses various pricing strategies used by companies, including new product pricing strategies, price-quality strategies, product-mix pricing strategies, and price adjustment strategies. For new product pricing, the strategies of market skimming and market penetration are described. For product-mix pricing, different situations involving product lines, optional products, captive products, by-products, and product bundles are outlined. Price adjustment strategies involve discounting, segmented pricing, psychological pricing, promotional pricing, geographical pricing, dynamic pricing, and international pricing.
The document discusses pricing, including defining price, the goals of pricing, and pricing strategies. It begins by defining price as the amount charged for a product or service. The goals of pricing include gaining market share, return on investment, and meeting competition. Pricing strategies discussed include cost-based pricing, demand-based pricing, competition-based pricing, and combinations of strategies. The document also covers pricing policies, the product life cycle, psychological pricing techniques, break-even analysis, and factors affecting pricing decisions.
The document discusses pricing strategies and the steps involved in setting prices. It outlines 6 main steps: 1) selecting a pricing objective, 2) determining demand, 3) estimating costs, 4) analyzing competitors, 5) selecting a pricing method, and 6) selecting the final price. It also discusses adapting prices based on factors like geography, discounts, promotions, and differentiation. The document provides examples and details for each step and concept.
This document discusses pricing methods and strategies. It defines price and discusses factors that affect price decisions like marketing objectives, costs, the nature of the market, and competitors. It also covers major considerations in setting price like pricing objectives, strategies, and procedures. Common pricing mistakes and major pricing strategies like cost-based, value-based, and product mix pricing are summarized as well.
This document discusses pricing strategies and concepts. It covers the importance and objectives of pricing, factors to consider in pricing like costs and competitors, pricing strategies like cost-based, demand-based and competitor-based approaches. It also discusses concepts of costing for pricing like fixed costs, variable costs, contribution, break even point and margin pricing. The document provides examples and formulas to explain these pricing concepts.
The document discusses various pricing strategies and considerations for setting prices. It outlines key factors that affect pricing decisions, including costs, competition, consumers, and economic conditions. It then describes different pricing methods such as cost-based pricing, demand-based pricing, competition-based pricing, product line pricing, and promotional pricing strategies. The goal of pricing is to maximize profits while achieving other objectives like sales growth and market share.
Pricing should be a critical issue for the CEO as it is one of the most powerful levers in the business. Successful pricing also depends on clear goal and strategy alignment, which is the role of the CEO. This presentation was made in Seattle to a group of business leaders interested in improving pricing leadership.
The document discusses the 7Ps of marketing mix, which are the key areas companies use to develop their marketing strategy and tactics. It focuses on the "Product" P, explaining the different decisions involved in developing a product offering, including features, product lines, branding, packaging, and labeling. It also discusses methods for determining the "Price" P, such as cost-oriented pricing, target profit pricing, competition-based pricing, and value-based pricing. The key message is that in addition to costs, value to the customer should also be considered when setting product prices.
This document discusses digital pricing strategies. It begins by outlining some key tasks related to digital marketing and pricing. It then covers the basics of digital pricing economics and decisions that must be made. It explores basic strategies like cost-plus pricing and promotions. Dynamic strategies like auctions are also examined. More advanced approaches like price discrimination and bundling are described. The document also discusses how to respond to price cuts strategically. It outlines the digital pricing process and looks at how pricing works across the customer lifecycle stages of acquisition, conversion, retention and dissolution.
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.
Founder mentor presentation waleed e - revenueRafeh Saleh
- It is important for early stage startups to monitor their monthly burn rate as running out of cash is a major cause of failure. Burn rate is calculated as the cash balance at the beginning of the period minus the end balance divided by the number of months.
- Understanding unit economics, including revenues, customer acquisition costs, operational costs, and lifetime value is essential for evaluating the viability and profitability of a business model. Realistic forecasts are needed around these metrics.
- There are many factors to consider when determining the right price for a product or service, including costs, value provided, competitors' prices, and requirements of sales channels among others. Pricing strategies also require consideration around discounts, promotions, and maxim
This document outlines key concepts related to promotion and pricing strategies. It discusses integrated marketing communications, the promotional mix, and objectives of promotion. It describes different types of advertising, sales promotion, personal selling, and public relations. It also outlines pushing and pulling promotional strategies and different types of pricing strategies, including how firms set prices and consumer perceptions of price.
This document discusses key aspects of a business's cost structure and revenue streams. It introduces the importance of understanding costs for a sustainable business model. The document then covers:
1) Questions to evaluate key costs derived from the business model, including important expenses from key resources, activities, and how activities drive costs.
2) Types of costs like fixed, variable, and how costs are influenced by business value propositions.
3) Revenue streams can come from transactions, recurring payments, and different pricing strategies.
4) Financial statements are important for shareholders and investors to understand business progress and viability.
Pricing is a key element in determining the profitability and success of a business. The price must be set correctly - if too high, demand may decrease and the product may be priced out of the market, but if too low, revenue may not cover costs. Pricing strategies should consider the product lifecycle stage, costs, competitors, and demand factors. Common pricing methods include penetration pricing for new products, market skimming for premium products, value pricing based on perceived worth, and cost-plus pricing which adds a markup to costs. Price affects demand through price elasticity, with elastic demand more sensitive to price changes.
Pricing is a key element in determining the profitability and success of a business. It is important to set the right price that covers costs but also generates enough revenue. There are several pricing methods and factors that affect demand determination that marketers must consider when setting prices. These include penetration pricing, market skimming, value pricing, cost-plus pricing, and understanding price elasticity and how competitors' prices affect demand. Careful analysis of costs, competitors, and target markets is needed to select the optimal pricing strategy.
The document discusses pricing strategies and objectives. It explains that price is the only element of the marketing mix that generates revenue, while other elements like product, place and promotion result in costs. The key objectives for setting prices include survival, maximizing current profits, gaining maximum market share through penetration pricing, utilizing market skimming for new products, and being a quality leader through premium "affordable luxury" pricing. Firms estimate costs, including fixed, variable and total costs, and determine demand curves through surveys, price experiments and statistical analysis to identify the optimal price point between the price ceiling of demand and price floor of costs.
The document discusses pricing and performance in retail. It covers several topics:
1. It defines retail pricing and factors that influence retail prices such as manufacturing costs, competition, and consumer buying power.
2. It discusses various pricing strategies retailers can use such as cost-oriented, demand-oriented, competition-oriented, and differential pricing.
3. It explains the concepts of markups and markdowns that retailers use to adjust prices and increase sales.
4. It discusses methods retailers use to evaluate merchandise performance, including ABC analysis, sell-through analysis, and multi-attribute methods.
This document discusses different pricing strategies for a product. It outlines cost-based pricing methods which include marking up product costs by a percentage or adding a percentage to unknown costs. It also discusses competition-based pricing, including matching competitors' prices to be comparable, lowering prices to increase market share, or seeking larger market share through lower prices. Finally, it outlines customer-based pricing such as penetration pricing to attract new customers, price skimming to target early adopters, loss leaders to attract customers into making additional purchases, predatory pricing to restrict competition, and psychological pricing to make products seem cheaper than they are.
The document discusses pricing strategies and considerations. It begins by outlining key questions around how consumers evaluate prices, how companies should initially set prices and adapt prices over time. It then defines price and discusses factors to consider like customer perceptions of value, cost, and other marketing mix variables. The document also covers types of pricing like value-based, cost-based, good-value pricing and value-added pricing. It outlines the pricing process, including selecting objectives, estimating costs and demand, and choosing a final price. The document concludes by discussing strategies for adapting prices based on factors like location, promotions, and customer segments.
This document discusses various pricing strategies that can be used by companies. It covers major strategies such as customer value-based pricing, competition based pricing, and cost-based pricing. It also discusses product mix pricing strategies and price adjustment strategies including discounting, segmented pricing, and geographical pricing. The document provides examples and definitions for each strategy to explain how and when companies can apply different approaches to setting prices.
The document discusses pricing strategies for marketing training courses and licensing training materials. It provides context on how the company typically charges $1,000 per attendee for three-day courses, with costs of $5,000 per course. When approached to license materials to another company to train their own staff, the key considerations are determining a licensing fee that covers costs but also maximizes income, while being low enough for the client to see value.
This document provides an overview of segmentation, targeting, and positioning (STP) in marketing. It discusses the importance of STP for competing effectively and focusing on customer satisfaction. Key aspects covered include identifying distinct customer segments based on needs and characteristics, selecting target segments, and establishing a distinctive benefit positioning for each. Various segmentation variables, frameworks, and strategic approaches are explained, including geographic, demographic, psychographic segmentation, as well as Roger Best's seven step process and Michael Porter's five forces model. The document also discusses target market evaluation, selection, and different positioning strategies.
This document provides an overview of key concepts in consumer behavior and marketing. It discusses cultural, social, and personal factors that influence consumer decision making. Some key points covered include:
- Cultural factors like customs, traditions and subculture shape consumer wants and behaviors.
- Reference groups like family, friends and aspirational influences impact attitudes and purchasing decisions.
- Personal characteristics like age, occupation, personality and lifestyle values affect what and how consumers buy.
- The consumer decision making process involves problem recognition, information search, alternative evaluation, purchase, and post-purchase evaluation.
- Organizational and household buying differ in aspects like number of buyers, purchase size and complexity.
- Different buying situations and roles influence the
- Savlon's soothing product likely did not gain acceptance in the market because it did not have attributes similar to Dettol, which was already established.
- Savlon should consider reintroducing a product with Dettol-like attributes to appeal to the same market segment that finds Dettol's attributes desirable.
- A particular market segment Savlon could try to appeal to is consumers looking for a product with antibacterial properties similar to Dettol.
The document discusses marketing and introduces key concepts such as Dettol and Savlon products. It questions why Savlon's soothing product was not accepted by the market and whether Savlon should be reintroduced with attributes similar to Dettol. Good marketing is described as helping introduce beneficial new products to identify and meet human needs profitably. The American Marketing Association definition of marketing as the process of creating and delivering valuable offerings to customers is also presented, as well as the concept of marketing management as choosing target markets and growing customers through value creation and communication.
This document contains information about a Marketing Management course including the lecture structure, marks breakdown, and contact information for the professor. It also includes several self-assessment questions for students to reflect on their strengths, weaknesses, experiences, and qualifications.
The document discusses various marketing communication tools used by firms, including advertising, sales promotion, public relations, direct marketing, and personal selling. It provides details on each tool's objectives, strategies for implementation, and factors to consider when developing an integrated marketing communications plan. The goal of marketing communications is to inform, persuade, and remind consumers about a company's products and brands through an optimal mix of communication channels.
Brian Fitzsimmons on the Business Strategy and Content Flywheel of Barstool S...Neil Horowitz
On episode 272 of the Digital and Social Media Sports Podcast, Neil chatted with Brian Fitzsimmons, Director of Licensing and Business Development for Barstool Sports.
What follows is a collection of snippets from the podcast. To hear the full interview and more, check out the podcast on all podcast platforms and at www.dsmsports.net
Building Your Employer Brand with Social MediaLuanWise
Presented at The Global HR Summit, 6th June 2024
In this keynote, Luan Wise will provide invaluable insights to elevate your employer brand on social media platforms including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok. You'll learn how compelling content can authentically showcase your company culture, values, and employee experiences to support your talent acquisition and retention objectives. Additionally, you'll understand the power of employee advocacy to amplify reach and engagement – helping to position your organization as an employer of choice in today's competitive talent landscape.
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Tastemy Pandit
Know what your zodiac sign says about your taste in food! Explore how the 12 zodiac signs influence your culinary preferences with insights from MyPandit. Dive into astrology and flavors!
B2B payments are rapidly changing. Find out the 5 key questions you need to be asking yourself to be sure you are mastering B2B payments today. Learn more at www.BlueSnap.com.
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfthesiliconleaders
In the recent edition, The 10 Most Influential Leaders Guiding Corporate Evolution, 2024, The Silicon Leaders magazine gladly features Dejan Štancer, President of the Global Chamber of Business Leaders (GCBL), along with other leaders.
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....Lacey Max
“After being the most listed dog breed in the United States for 31
years in a row, the Labrador Retriever has dropped to second place
in the American Kennel Club's annual survey of the country's most
popular canines. The French Bulldog is the new top dog in the
United States as of 2022. The stylish puppy has ascended the
rankings in rapid time despite having health concerns and limited
color choices.”
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...my Pandit
Explore the fascinating world of the Gemini Zodiac Sign. Discover the unique personality traits, key dates, and horoscope insights of Gemini individuals. Learn how their sociable, communicative nature and boundless curiosity make them the dynamic explorers of the zodiac. Dive into the duality of the Gemini sign and understand their intellectual and adventurous spirit.
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...my Pandit
Dive into the steadfast world of the Taurus Zodiac Sign. Discover the grounded, stable, and logical nature of Taurus individuals, and explore their key personality traits, important dates, and horoscope insights. Learn how the determination and patience of the Taurus sign make them the rock-steady achievers and anchors of the zodiac.
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...APCO
The Radar reflects input from APCO’s teams located around the world. It distils a host of interconnected events and trends into insights to inform operational and strategic decisions. Issues covered in this edition include:
[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This presentation is a curated compilation of PowerPoint diagrams and templates designed to illustrate 20 different digital transformation frameworks and models. These frameworks are based on recent industry trends and best practices, ensuring that the content remains relevant and up-to-date.
Key highlights include Microsoft's Digital Transformation Framework, which focuses on driving innovation and efficiency, and McKinsey's Ten Guiding Principles, which provide strategic insights for successful digital transformation. Additionally, Forrester's framework emphasizes enhancing customer experiences and modernizing IT infrastructure, while IDC's MaturityScape helps assess and develop organizational digital maturity. MIT's framework explores cutting-edge strategies for achieving digital success.
These materials are perfect for enhancing your business or classroom presentations, offering visual aids to supplement your insights. Please note that while comprehensive, these slides are intended as supplementary resources and may not be complete for standalone instructional purposes.
Frameworks/Models included:
Microsoft’s Digital Transformation Framework
McKinsey’s Ten Guiding Principles of Digital Transformation
Forrester’s Digital Transformation Framework
IDC’s Digital Transformation MaturityScape
MIT’s Digital Transformation Framework
Gartner’s Digital Transformation Framework
Accenture’s Digital Strategy & Enterprise Frameworks
Deloitte’s Digital Industrial Transformation Framework
Capgemini’s Digital Transformation Framework
PwC’s Digital Transformation Framework
Cisco’s Digital Transformation Framework
Cognizant’s Digital Transformation Framework
DXC Technology’s Digital Transformation Framework
The BCG Strategy Palette
McKinsey’s Digital Transformation Framework
Digital Transformation Compass
Four Levels of Digital Maturity
Design Thinking Framework
Business Model Canvas
Customer Journey Map
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2. Assume you are the marketing manager for a large sales training
company. Over many years, your firm has developed a unique set of
sales training techniques. They make their income by sending in sales
trainers to firms (like insurance companies and real estate agencies)
to help train their sales people. Your firm typically runs three day
courses and charges the client $1,000 per attendee. Most firms send
around 15 sales people to each course. This gives the firm revenue of
$15,000 for a three-day training course. The associated variable costs
are $5,000 for the trainer and $1,000 for the training manuals that
are provided to the participants. Of course, a proportion of the
revenue needs to be allocated to fixed costs (of office rent,
computers, communication, support staff, promotion, and so on).
3. Therefore, as a rough estimate, each three-day training session
would generate around $5,000 gross profit. However, you now
have a new pricing dilemma. A major firm has approached you to
license (hire/rent) your training materials for a year to train their
own staff. That means that they just want a copy of your training
booklets/materials – they would then use their own training staff
and produce the training manuals themselves. The firm plans to
train around 100 of their sales staff (using your training materials)
over the next 12 months and they want to know what
your licensing fee would be.
Clearly there is little cost involved. It’s almost like ‘money for
nothing’, as you will simply send them the training manuals along
with an invoice. Therefore, your decision is what fee to charge. You
need to price it as a win-win situation – low enough so the client
receives value (and you don’t lose their business), yet high enough
to maximize the income from this opportunity.
4. • What would be the minimum you could charge to
cover costs?
• What could be the income/profit you would
receive if your firm did the full training for the
client (like your firm normally does)?
• Do you need to be concerned with what price
potential competitors might charge?
• Therefore, given your responses to the above
questions, what might be an appropriate
licensing fee?
5. • Dick Smith Foods virtually acts as the umbrella brand for a
number of independent Australian manufacturers that are
trying to compete with the large international firms whose
products often dominate the supermarket shelves. Dick Smith
Foods attempt to ‘copy’ major selling brands/products and
introduce similar products. As an example, they have tried to
duplicate the top-selling Arnott’s Tim Tams biscuits, with a
product that they have named “Temptims’ (note the similar
name).
• Dick Smith’s positioning is based on two aspects:
– That their products are Australian made, and consumers, therefore, are
supporting other Australians, and
– That their products offer more value than other leading brands/products
(as Dick Smith’s products sell at a discount mainly because they don’t
have as advertising budget).
6. • Assume that a series of taste-tests were conducted, with the
research comparing Arnott’s Tim Tams and Dick Smith’s
Temptims. The research revealed that 60% of consumers
prefer the taste of the Dick Smith product (over Tim Tams). As
a result, the market research company has recommended that
Dick Smith’s should increase the price from $1.75 (below
Arnott’s $2.50 price) to $3.00, in order to communicate the
superior quality of the product to the market.
7. • Should this brand (which tries to provide price
value) increase their price to be more
reflective of their product’s perceived quality?
• What impact will these proposed decisions
have on their overall positioning?
• Therefore, other than influencing profit
margins, how important is the role of price in
the firm’s marketing mix?
8. Price
• Price is the amount of money charged for a
good or service
• The only marketing mix element that
produces revenue
• Changing too much chases away potential
customers, charging too little cuts revenue
10. Internal Factors
Marketing Objectives
• Market Positioning influences strategy
• Other Pricing Objectives
– Survival
– Current Profit Maximization
– Market-Share Leadership
– Brad Equity Growth
– Product-Quality Leadership
• Not-for-profit objectives
– Partial or Full cost recovery
– Social Pricing
11. Internal Factors
• Marketing Mix Strategy
– Pricing must be carefully coordinated with other
marketing mix elements
• Costs
– Fixed vs. Variable Costs
• Organizational Considerations
– Who sets the price?
– Some industries have pricing departments
12. External Factors Affecting Pricing
Decisions
• Nature of Market and Demand
– Types of Market
– Consumer Perceptions of Price and Value
– Price – Demand Relationship
• Demand Curve
• Price Elasticity
• Competitors costs, prices and offers
• Other Environmental Factors
– Economic Conditions
– Reseller reaction to prices
– Government may limit or restrict
– Social Considerations
13. General Pricing Approaches
• Cost-Based Approach
– Cost Plus pricing
– Break-Even Analysis and Target Profit Pricing
• Buyer Based Approach
– Value-Based Pricing
• Competition-Based Approach
– Going rate pricing
– Sealed bid pricing
15. Cost Plus Pricing
– Adding standard mark-up to costs
– SP = Cost per Unit + Mark up price
• Customers are price sensitive
• Popular because
– Simplifies pricing process
– Price competition may be minimized
– Fair to both buyers and sellers
16. Break-even
• BE= Fixed Costs/Contribution (SP-VC)
• Example - Meal - SP = $20, VC = $8
• Fixed costs are $2400 a day
• BE=$2400/$12 = 200
• Need to sell 200 meals @ $20 to break-even
• VC = 40%, contribution = 60%
• BE = $2400/.6 = $4000
19. Value Based Pricing
• Basing prices on products perceived value
• Price is considered along with the other
marketing mix variables before program is set
• Measuring perceived value
– Asking customers
– Conducting experiment
• Situations
– Overpriced
– Under priced
20. Competition-Based Approach
• Going Rate Pricing
– A firm bases its price largely on competitors prices
with less attention to its own costs or demands
– May price at the same level, above or below
competition
– Represents collective wisdom of the industry
concerning price that will give a fair return
– Holding on to going rate will prevent price wars
21. • Sealed bid pricing
– A firm bases its price on how it thinks competitors
will price rather than on its own costs or on
demand
– Firms bid for job
– The firm wants to win the contract
24. Setting Initial Product Prices
Market Skimming Market Penetration
> Setting a high price for a
new product to skim
maximum revenues
from the target market.
> Results in fewer, more
profitable sales.
> Popular night club
charges a high cover
charge
> Setting a low price for
a new product in order
to attract a large
number of guests.
> Results in a larger
market share.
> New Marriott
25. Existing-Product
Pricing Strategies
• Product-Bundle Pricing
– Pricing bundles of product sold together
• Price-Adjustment Strategies
– Discounts
• Cash
• Volume / Quantity
• Trade
• Seasonal
– Allowances
• Trade-in
• Promotional
– Yield Management or Segmented Pricing strategies
• Customer Segment
• Product-form pricing
• Location pricing
• Time pricing
– Discounts Based on Time of Purchase
– Discriminatory Pricing
29. MARKETING CHANNELS
• Sets of independent organizations participating in
the process of making a product or service
available for use or consumption
• Merchants – Wholesalers, Retailers
• Agents – Brokers, Manufacturers representative ,
sales agents
• Facilitators – Transport, Warehousing, Banks, Ad
Agencies
31. How Channel Members add alue?
• Information
• Promotion
• Contact
• Matching
• Negotiation
• Physical Distribution
• Financing
• Risk Taking
• Market Intelligence and Research
32. Importance of Channels
• Marketing Channel System is the set of marketing
channels a firm employs
• In US, channel member margins account for 30-
50% of selling price
• Push Strategy – low Brand loyalty, brand choice is
impulsive, Product benefits are well understood
• Pull Strategy – High Brand loyalty, high
involvement, Consumers perceive difference
between brands
33. Hybrid Channels or Multichannel
Marketing
• A single firm uses 2 or more marketing
channels to reach customer segments
• Philips, HP, LIC – Internet, Advisors,
Bancassurance
• Each channel targets a different segment of
buyers or different need states for one buyer
34. CHANNELS FOR CONSUMER PRODUCTS
DIRECT RESELLER WHOLESALER AGENT
Producer Producer Producer Producer
35. Producer Factors
Product Factors
Market Factors
Factors
Affecting
Channel
Choice
Exclusive Distribution
Selective Distribution
Intensive Distribution
Level of
Distribution
Intensity
What makes you choose a particular
channel?
39. Intensity Level Objective
Number of
Intermediaries
Intensive
Selective
Exclusive
Achieve mass market
selling.
Convenience goods.
Work with selected
intermediaries.
Shopping and some
specialty goods.
Work with single
intermediary. Specialty
goods and industrial
equipment.
Many
Several
One
LEVELS OF DISTRIBUTION INTENSITY
41. Channel Design Decisions
• Analyzing Consumer Needs and Wants
– Lot Size, Waiting and Delivery Time, Spatial
Convenience, Product Variety, Service backup
• Establishing Objectives and Constraints
• Identifying Major Channel Alternatives
– Types of Intermediaries, Number of
Intermediaries, Terms and Responsibilities of
Channel Members
• Evaluating Major Channel Alternatives
– Economic Criteria, Control and Adaptive Criteria
42. Channel Management Decision
• Selecting Channel members
• Training and Motivating Channel members
– Channel Power – Coercive, Reward, Legitimate,
Expert, Referent
– Channel Partnerships
• Evaluating Channel members
• Modifying Channel Design and Arrangements
• Channel Modification Decisions
• Global Channel Considerations
43. Channel Integration and Systems
• Vertical marketing systems – Includes
producers, wholesalers, retailers
– Corporate VMS – Future Group
– Administered VMS – Gillette
– Contractual VMS
• Horizontal Marketing Systems – 2 unrelated
companies put together resources or
programs to exploit market opportunity
44. Channel Conflict
• Conflict in generated when one channel
member’s actions prevent another channel
from achieving its goal
• Types – Horizontal, Vertical, Multi Channel
• Causes – Goal Incompatibility, Unclear roles
and rights, Differences in perception,
Intermediaries dependence on manufacturer
46. Network Marketing
• Also known as MLM
• Sales force are compensated not only for sales
they generate but also for the sales of other
sales people they recruit