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Pricing Strategy

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The presentation is about Pricing Strategy. An important concept in Marketing, it is a tool which is used for deciding what the price of the product should be and what are the factors that influnce the price of the product, etc.

EducationBusiness
1 of 26
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Stages for establishing prices ,[object Object]
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[object Object],[object Object],[object Object],What is Amart trying to do with this ad? Do you think it would attract a great deal of interest? Why? ,[object Object]
Pricing-Lec 22 & 23 Competitive Strategy Positioning Continuum price Unique - ness Low cost focus Differentiation focus Strategic Pricing Concerns Legal Concerns Ethical Concerns ,[object Object]
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[object Object],[object Object],[object Object],Skimming Pricing Strategy Introduction Growth Maturity Decline Strategic Pricing Concerns Legal Concerns Ethical Concerns Penetration Pricing Strategy ,[object Object]
[object Object],[object Object],[object Object],Penetration Pricing Strategy Introduction Growth Maturity Decline Strategic Pricing Concerns Ethical Concerns Skimming Pricing Strategy Legal Concerns ,[object Object]
[object Object],[object Object],[object Object],Pricing-Lec 22 & 23 Strategic Pricing Concerns Legal Concerns Ethical Concerns ,[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],Stage 6: Determination of a specific price ,[object Object]
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[object Object],Figure: Break-Even Chart for Determining Target-Return Price and Break-Even Volume Variable cost Below this point total cost is more than total income Above this point total income is more than total cost ,[object Object]
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Pricing Strategy

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Editor's Notes

  1. This is an example of the ‘Cash Flow’ price objective. Critical Thinking Question : What is Amart trying to do with this ad? Do you think it would attract a great deal of interest? Why? Answer : Amart is trying to attract potential customers within a defined and short period of time, to clear stock and increase cash flow. Yes – it is likely that the low price per pair, coupled with the offer of 2 pairs for $80, will be highly attractive to buyers who are flexible in their purchase preferences (i.e.. not brand-loyal to competitive runners) and have funds to spend immediately. It should induce many to bring forward their purchase intentions.