Pricingstrat
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There are several pricing strategies that can be used including penetration pricing, market skimming, value pricing, loss leader pricing, and psychological pricing. Penetration pricing uses a low initial price to gain market share, while market skimming uses a high initial price for products with short lifecycles. Other strategies include using perceived value to set prices, pricing some products below cost to attract customers, and playing on consumer perceptions with pricing like $9.99 instead of $10. Pricing must also consider factors like elasticity, costs, targets, and competitors.
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Unit3 product pricing
Penetration pricing involves setting a low initial price to gain market share for products with long life cycles, like food items. Market skimming uses high initial prices for products with short life cycles or impending competition. Value pricing sets prices according to customer perceptions of worth. Loss leaders are goods sold at a loss to attract customers who will buy other profitable items.
Understanding Pricing Strategies
The document discusses factors that influence demand and the downward sloping demand curve. It explains that as price increases, consumers will substitute to other goods (substitution effect) and have less income to purchase all goods (income effect), leading to a reduction in quantity demanded. Various pricing strategies are then outlined such as penetrating the market with low prices, skimming by charging high prices initially, and pricing according to perceived value.
Price
The document discusses several factors that influence a product or service's price, including costs, demand and elasticity, competition, government objectives, stage of the life cycle, and positioning relative to competitors. It also outlines various pricing strategies such as price skimming, penetration pricing, competitor-based pricing, cost-plus pricing, and psychological pricing. Whether the price is high or low depends on these factors, like whether costs are high, demand is inelastic, there is strong branding or few substitutes.
Business Objectives and Pricing Strategies
In this short revision video we look at a range of business objectives and how they affect the price that might be charged to consumers.
Key revision points:
Objectives often driven by managerial motives
Interdependent behaviour in an oligopoly - firms must consider the likely reactions of rivals
Most businesses are satisficers rather than maximisers
Regulatory interventions do matter e.g. price capping
More firms now use big data to drive revenues
Consumers are increasingly sensitive to issues surrounding fair / ethical pricing
Pricing Theories
This presentation includes notes collected from various sources from internet during my study journey with regard to the topic Pricing Theory
2011.2.19 marketing
1. The document discusses various factors that affect pricing decisions for businesses, including costs, competition, the product life cycle, demand, and perceptions of quality.
2. It describes different pricing objectives like profit maximization, market share goals, and status quo pricing. It also covers cost-based strategies like markup pricing and break-even analysis.
3. New technologies like the internet and yield management systems can impact pricing by increasing price transparency, stimulating variable demand, and optimizing profits from limited capacity.
Perfect competition
This document summarizes the concepts of perfect competition in the short run and long run. It discusses how a perfectly competitive firm determines profit-maximizing output by producing at the quantity where marginal revenue equals marginal cost. In the short run, firms can increase or decrease output but cannot exit the industry. In long run equilibrium, firms earn zero economic profit and the industry supply curve is determined by the minimum average cost of production as the number of firms adjusts.
11perfectcompetitionclass 131210044835-phpapp02
This document discusses the concept of perfect competition. It defines perfect competition as a market with many small buyers and sellers, homogeneous products, perfect information, and free entry and exit. Under perfect competition, each firm is a price taker and faces a horizontal demand curve. In the short run, a perfectly competitive firm will produce where price equals marginal cost to maximize profits or minimize losses. In the long run, the market reaches equilibrium when no firms want to enter or exit and each firm produces at the lowest point on its long-run average total cost curve.
Recommended
Unit3 product pricing
Penetration pricing involves setting a low initial price to gain market share for products with long life cycles, like food items. Market skimming uses high initial prices for products with short life cycles or impending competition. Value pricing sets prices according to customer perceptions of worth. Loss leaders are goods sold at a loss to attract customers who will buy other profitable items.
Understanding Pricing Strategies
The document discusses factors that influence demand and the downward sloping demand curve. It explains that as price increases, consumers will substitute to other goods (substitution effect) and have less income to purchase all goods (income effect), leading to a reduction in quantity demanded. Various pricing strategies are then outlined such as penetrating the market with low prices, skimming by charging high prices initially, and pricing according to perceived value.
Price
The document discusses several factors that influence a product or service's price, including costs, demand and elasticity, competition, government objectives, stage of the life cycle, and positioning relative to competitors. It also outlines various pricing strategies such as price skimming, penetration pricing, competitor-based pricing, cost-plus pricing, and psychological pricing. Whether the price is high or low depends on these factors, like whether costs are high, demand is inelastic, there is strong branding or few substitutes.
Business Objectives and Pricing Strategies
In this short revision video we look at a range of business objectives and how they affect the price that might be charged to consumers.
Key revision points:
Objectives often driven by managerial motives
Interdependent behaviour in an oligopoly - firms must consider the likely reactions of rivals
Most businesses are satisficers rather than maximisers
Regulatory interventions do matter e.g. price capping
More firms now use big data to drive revenues
Consumers are increasingly sensitive to issues surrounding fair / ethical pricing
Pricing Theories
This presentation includes notes collected from various sources from internet during my study journey with regard to the topic Pricing Theory
2011.2.19 marketing
1. The document discusses various factors that affect pricing decisions for businesses, including costs, competition, the product life cycle, demand, and perceptions of quality.
2. It describes different pricing objectives like profit maximization, market share goals, and status quo pricing. It also covers cost-based strategies like markup pricing and break-even analysis.
3. New technologies like the internet and yield management systems can impact pricing by increasing price transparency, stimulating variable demand, and optimizing profits from limited capacity.
Perfect competition
This document summarizes the concepts of perfect competition in the short run and long run. It discusses how a perfectly competitive firm determines profit-maximizing output by producing at the quantity where marginal revenue equals marginal cost. In the short run, firms can increase or decrease output but cannot exit the industry. In long run equilibrium, firms earn zero economic profit and the industry supply curve is determined by the minimum average cost of production as the number of firms adjusts.
11perfectcompetitionclass 131210044835-phpapp02
This document discusses the concept of perfect competition. It defines perfect competition as a market with many small buyers and sellers, homogeneous products, perfect information, and free entry and exit. Under perfect competition, each firm is a price taker and faces a horizontal demand curve. In the short run, a perfectly competitive firm will produce where price equals marginal cost to maximize profits or minimize losses. In the long run, the market reaches equilibrium when no firms want to enter or exit and each firm produces at the lowest point on its long-run average total cost curve.
A2 Micro Business Economics
This document provides an overview of business objectives and the growth of firms. It discusses that while private businesses seek profit, public sector businesses are state-owned. It also notes that businesses have a range of objectives beyond just profit maximization, including increasing market share, revenue maximization, and pursuing ethical goals. The document then examines reasons why businesses may depart from pure profit maximization, such as imperfect information, being multi-product firms, and behavioural theories where different stakeholders have varying objectives. Alternative objectives that businesses may pursue include satisficing behavior, sales revenue maximization, and managerial satisfaction models.
Business Economics Glossary
This document provides definitions for various business economics concepts. Some key points include:
- Abnormal profit refers to profits above normal levels due to barriers to entry preventing competition.
- Oligopoly is a market structure with a small number of producers where each considers the actions of others.
- Economies of scale refer to lower long-run average costs from increased output, while diseconomies are higher costs from outputs beyond the optimal scale.
- Barriers to entry protect incumbent firms by making entry difficult for new competitors.
Chap5
This chapter discusses perfect competition and profit maximization in competitive markets. It contains the following key points:
1. Under perfect competition, there are many small firms and buyers/sellers, homogeneous products, free entry and exit, and perfect information. Firms are price takers and maximize profits by producing where marginal revenue equals marginal cost.
2. In the short run, firms will shut down if price falls below average variable cost or operate at a loss if price is between average variable and average total cost. In the long run, zero economic profits are achieved through free entry and exit of firms.
3. External changes like shifting demand curves or new technology can impact market equilibrium price and quantity in both the
Perfect competition
Perfect competition is a market structure with many small firms, homogeneous products, perfect information and free entry and exit. In the short run, firms maximize profits where marginal cost (MC) equals marginal revenue (MR). Abnormal profits attract new firms, lowering prices to normal profits when MC equals average cost (AC). Allocative efficiency occurs where MC equals average revenue (AR). In the long run, productive, allocative and profit maximizing efficiencies are achieved at the same output level.
Price strategy & price discrimination
The document discusses various pricing strategies and determinants of price. It covers cost-based pricing approaches like cost-plus pricing and marginal cost pricing. It also discusses competition-based pricing strategies like penetration pricing. Other topics include product life cycle pricing, price discrimination, export pricing, and peak load pricing. The key factors that influence pricing decisions are the degree of competition, objectives of the firm, costs of production, demand in the market, and supply of the product.
Profit maximization and perfect competition
1) A firm produces at the quantity where marginal revenue equals marginal cost to maximize profits. This is the point where additional revenue from producing another unit equals the additional costs.
2) A firm's profit is maximized by producing at the output level where marginal revenue equals marginal cost. Producing more would mean marginal costs exceed marginal revenues, reducing profits.
3) In the short run, a competitive firm will produce the quantity where marginal revenue equals marginal cost to maximize profits. The firm's profit is represented by the rectangle between average total cost and marginal cost at the profit-maximizing quantity.
Business Costs
Students should be able to:
Illustrate and perform simple calculations using total cost; total fixed cost; total variable cost; average total cost; average fixed cost; average variable cost and marginal cost.
Draw and interpret cost curves; distinguish between short run and long run costs; and explain the shape of the average cost curve in terms of diminishing marginal returns and economies of scale.
Perfect Competition
The document discusses the concept of perfect competition in economics. It provides the key characteristics that define a perfectly competitive market including that there are many small firms, no barriers to entry or exit, identical products, and complete information. Firms are price takers and seek to maximize profits by producing where marginal cost equals marginal revenue. In the long run, perfect competition leads to zero economic profits as new firms enter if profits are positive and firms exit if losses occur.
3 2-10 pricing
This document discusses various concepts related to pricing. It defines different types of pricing like rent, tuition, fees, etc. It then explains that price is the only element that generates revenue while other elements are costs. It also communicates the value of a product. The document further discusses selecting a pricing objective, determining demand and costs, analyzing competitors' prices, selecting a pricing method and the final price. Different pricing strategies and objectives like survival pricing, penetration pricing, skimming pricing are also summarized. The concepts of price elasticity, cost estimation methods, different pricing techniques and promotional pricing strategies are also briefly covered in the document.
Price floors and ceilings
The document discusses market inefficiencies such as deadweight loss that can occur due to market interferences like taxes, regulations, incomplete information, monopolies, and external supply issues. It provides examples of price floors, which establish a minimum legal price to help firms, and price ceilings, which set a maximum legal price to help consumers. While intended to help groups, both policies can result in unintended consequences like surpluses, shortages, and reductions in quality and efficiency. Students are assigned homework problems related to these concepts.
Perfect Competition in the Long Run
This document discusses perfect competition in the long run. It provides two scenarios to analyze how a perfectly competitive firm, Joe the catfish farmer, would respond to a decline in prices. If prices fell to $71/unit, Joe should shut down his business as it would be cheaper than producing at a loss. However, if prices only fell to $81/unit, Joe should continue operating in the short run to minimize his losses until prices potentially increase. The document also discusses how, in perfect competition, the constant entry and exit of firms in response to profits and losses drives prices toward the lowest point on the average total cost curve in the long run.
Pricing strategies and practices
This document discusses different pricing strategies that firms can use, including cost-plus pricing, multiple product pricing, and peak load pricing. Cost-plus pricing involves adding a markup percentage to average variable costs. Multiple product pricing is needed when a firm has multiple differentiated products that have separate demand curves but shared costs. Peak load pricing addresses how to set electricity prices given fluctuating demand levels between peak and off-peak times.
Pricing strategies
The document discusses various pricing strategies and factors that influence pricing decisions. It covers concepts like price elasticity, costs, competitors' prices, and consumer psychology. Some key pricing strategies mentioned are penetration pricing, market skimming, value pricing, going rate pricing, cost-plus pricing, and differentiated pricing. The document also discusses initiating and responding to price changes, including how companies may react to competitors lowering or raising their prices.
Market power and pricing
The document discusses market power and pricing strategies in various industries. It provides examples of market share concentrations in UK retail banking, with the top 5 banks holding 85% of the market. It also examines factors that give firms market power like entry barriers, economies of scale, and influence over regulators. The document then discusses concepts of economic efficiency including allocative, productive, and dynamic efficiency. It analyzes pricing strategies like price discrimination and how they can be used to segment markets. Finally, it considers factors that may explain falling smartphone prices such as intense competition, emerging markets, and satisficing consumer behavior.
Section 2 definition and diagrams
This document defines key economic terms related to demand and supply, costs, revenues, and profits. It discusses the law of demand and supply, equilibrium price, price elasticity, cost curves, revenues curves, and profit maximization. Diagrams are provided to illustrate demand and supply curves, cost curves, revenue curves, and the profit-maximizing level of output.
How to set the price
This document discusses how to set prices and outlines various pricing strategies and considerations. It identifies different types of costs businesses face including fixed, variable, and mixed costs. It also discusses other important variables that influence pricing like market conditions, competitors, demand, and desired profit. The document explains that price sensitivity depends on whether a good or service is elastic or inelastic to price changes. Finally, it presents several common pricing strategies such as price skimming, penetration pricing, loss leaders, and freemium models.
222
This document provides an introduction and overview of price discrimination. It discusses three main reasons why competition policy may be concerned with price discrimination: 1) it can exploit consumers if used by a dominant firm, 2) it can prevent a single market from forming across regions, and 3) it can be used to exclude actual or potential rivals. The document outlines different forms of price discrimination, including third-degree, first-degree, quantity discounts, and bundling discounts. It aims to explain the economic motives for price discrimination and when it has adverse or beneficial effects on consumers, rivals, and welfare.
Revision Webinar - Business Costs
This revision webinar focuses on the short run costs of businesses. It includes with examples a distinction between fixed and variable costs, average, marginal and total costs and short and long run costs.
11th Cairo Marketing Club (Pricing Strategies) by Dr.Ahmed Hany 31-3-2018
11th Cairo Marketing Club (Pricing Strategies) by Dr.Ahmed Hany 31-3-2018
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Pricing strategies
This document discusses pricing policies and strategies. It defines pricing policy as fixing prices for a certain period. Pricing strategies aim to realize prices based on consumer paying capacity, face competition, maximize profits, and stabilize prices. Specific strategies discussed include penetration pricing with low initial prices, market skimming with high initial prices, value pricing based on perceived worth, loss leaders to attract customers, and psychological pricing exploiting consumer perceptions. Other strategies address following competitors, price discrimination across markets, predatory pricing to disadvantage rivals, cost-based pricing, and considering price elasticity of demand.
Pricing Strategies
The document discusses various pricing strategies that can be used including penetration pricing, market skimming, value pricing, loss leader pricing, psychological pricing, price leadership, tender pricing, price discrimination, predatory pricing, absorption cost pricing, marginal cost pricing, contribution pricing, target pricing, and cost-plus pricing. It also covers how price elasticity influences pricing decisions and the relationship between changes in price and changes in quantity demanded and revenue.
ECO 9.ppt
The document outlines several pricing strategies that can be used including penetration pricing, market skimming, value pricing, loss leader pricing, psychological pricing, price leadership, tender pricing, price discrimination, predatory pricing, absorption cost pricing, marginal cost pricing, contribution pricing, target pricing, and cost-plus pricing. It also discusses how price elasticity influences pricing decisions and the relationship between percentage changes in price and quantity demanded.
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A2 Micro Business Economics
This document provides an overview of business objectives and the growth of firms. It discusses that while private businesses seek profit, public sector businesses are state-owned. It also notes that businesses have a range of objectives beyond just profit maximization, including increasing market share, revenue maximization, and pursuing ethical goals. The document then examines reasons why businesses may depart from pure profit maximization, such as imperfect information, being multi-product firms, and behavioural theories where different stakeholders have varying objectives. Alternative objectives that businesses may pursue include satisficing behavior, sales revenue maximization, and managerial satisfaction models.
Business Economics Glossary
This document provides definitions for various business economics concepts. Some key points include:
- Abnormal profit refers to profits above normal levels due to barriers to entry preventing competition.
- Oligopoly is a market structure with a small number of producers where each considers the actions of others.
- Economies of scale refer to lower long-run average costs from increased output, while diseconomies are higher costs from outputs beyond the optimal scale.
- Barriers to entry protect incumbent firms by making entry difficult for new competitors.
Chap5
This chapter discusses perfect competition and profit maximization in competitive markets. It contains the following key points:
1. Under perfect competition, there are many small firms and buyers/sellers, homogeneous products, free entry and exit, and perfect information. Firms are price takers and maximize profits by producing where marginal revenue equals marginal cost.
2. In the short run, firms will shut down if price falls below average variable cost or operate at a loss if price is between average variable and average total cost. In the long run, zero economic profits are achieved through free entry and exit of firms.
3. External changes like shifting demand curves or new technology can impact market equilibrium price and quantity in both the
Perfect competition
Perfect competition is a market structure with many small firms, homogeneous products, perfect information and free entry and exit. In the short run, firms maximize profits where marginal cost (MC) equals marginal revenue (MR). Abnormal profits attract new firms, lowering prices to normal profits when MC equals average cost (AC). Allocative efficiency occurs where MC equals average revenue (AR). In the long run, productive, allocative and profit maximizing efficiencies are achieved at the same output level.
Price strategy & price discrimination
The document discusses various pricing strategies and determinants of price. It covers cost-based pricing approaches like cost-plus pricing and marginal cost pricing. It also discusses competition-based pricing strategies like penetration pricing. Other topics include product life cycle pricing, price discrimination, export pricing, and peak load pricing. The key factors that influence pricing decisions are the degree of competition, objectives of the firm, costs of production, demand in the market, and supply of the product.
Profit maximization and perfect competition
1) A firm produces at the quantity where marginal revenue equals marginal cost to maximize profits. This is the point where additional revenue from producing another unit equals the additional costs.
2) A firm's profit is maximized by producing at the output level where marginal revenue equals marginal cost. Producing more would mean marginal costs exceed marginal revenues, reducing profits.
3) In the short run, a competitive firm will produce the quantity where marginal revenue equals marginal cost to maximize profits. The firm's profit is represented by the rectangle between average total cost and marginal cost at the profit-maximizing quantity.
Business Costs
Students should be able to:
Illustrate and perform simple calculations using total cost; total fixed cost; total variable cost; average total cost; average fixed cost; average variable cost and marginal cost.
Draw and interpret cost curves; distinguish between short run and long run costs; and explain the shape of the average cost curve in terms of diminishing marginal returns and economies of scale.
Perfect Competition
The document discusses the concept of perfect competition in economics. It provides the key characteristics that define a perfectly competitive market including that there are many small firms, no barriers to entry or exit, identical products, and complete information. Firms are price takers and seek to maximize profits by producing where marginal cost equals marginal revenue. In the long run, perfect competition leads to zero economic profits as new firms enter if profits are positive and firms exit if losses occur.
3 2-10 pricing
This document discusses various concepts related to pricing. It defines different types of pricing like rent, tuition, fees, etc. It then explains that price is the only element that generates revenue while other elements are costs. It also communicates the value of a product. The document further discusses selecting a pricing objective, determining demand and costs, analyzing competitors' prices, selecting a pricing method and the final price. Different pricing strategies and objectives like survival pricing, penetration pricing, skimming pricing are also summarized. The concepts of price elasticity, cost estimation methods, different pricing techniques and promotional pricing strategies are also briefly covered in the document.
Price floors and ceilings
The document discusses market inefficiencies such as deadweight loss that can occur due to market interferences like taxes, regulations, incomplete information, monopolies, and external supply issues. It provides examples of price floors, which establish a minimum legal price to help firms, and price ceilings, which set a maximum legal price to help consumers. While intended to help groups, both policies can result in unintended consequences like surpluses, shortages, and reductions in quality and efficiency. Students are assigned homework problems related to these concepts.
Perfect Competition in the Long Run
This document discusses perfect competition in the long run. It provides two scenarios to analyze how a perfectly competitive firm, Joe the catfish farmer, would respond to a decline in prices. If prices fell to $71/unit, Joe should shut down his business as it would be cheaper than producing at a loss. However, if prices only fell to $81/unit, Joe should continue operating in the short run to minimize his losses until prices potentially increase. The document also discusses how, in perfect competition, the constant entry and exit of firms in response to profits and losses drives prices toward the lowest point on the average total cost curve in the long run.
Pricing strategies and practices
This document discusses different pricing strategies that firms can use, including cost-plus pricing, multiple product pricing, and peak load pricing. Cost-plus pricing involves adding a markup percentage to average variable costs. Multiple product pricing is needed when a firm has multiple differentiated products that have separate demand curves but shared costs. Peak load pricing addresses how to set electricity prices given fluctuating demand levels between peak and off-peak times.
Pricing strategies
The document discusses various pricing strategies and factors that influence pricing decisions. It covers concepts like price elasticity, costs, competitors' prices, and consumer psychology. Some key pricing strategies mentioned are penetration pricing, market skimming, value pricing, going rate pricing, cost-plus pricing, and differentiated pricing. The document also discusses initiating and responding to price changes, including how companies may react to competitors lowering or raising their prices.
Market power and pricing
The document discusses market power and pricing strategies in various industries. It provides examples of market share concentrations in UK retail banking, with the top 5 banks holding 85% of the market. It also examines factors that give firms market power like entry barriers, economies of scale, and influence over regulators. The document then discusses concepts of economic efficiency including allocative, productive, and dynamic efficiency. It analyzes pricing strategies like price discrimination and how they can be used to segment markets. Finally, it considers factors that may explain falling smartphone prices such as intense competition, emerging markets, and satisficing consumer behavior.
Section 2 definition and diagrams
This document defines key economic terms related to demand and supply, costs, revenues, and profits. It discusses the law of demand and supply, equilibrium price, price elasticity, cost curves, revenues curves, and profit maximization. Diagrams are provided to illustrate demand and supply curves, cost curves, revenue curves, and the profit-maximizing level of output.
How to set the price
This document discusses how to set prices and outlines various pricing strategies and considerations. It identifies different types of costs businesses face including fixed, variable, and mixed costs. It also discusses other important variables that influence pricing like market conditions, competitors, demand, and desired profit. The document explains that price sensitivity depends on whether a good or service is elastic or inelastic to price changes. Finally, it presents several common pricing strategies such as price skimming, penetration pricing, loss leaders, and freemium models.
222
This document provides an introduction and overview of price discrimination. It discusses three main reasons why competition policy may be concerned with price discrimination: 1) it can exploit consumers if used by a dominant firm, 2) it can prevent a single market from forming across regions, and 3) it can be used to exclude actual or potential rivals. The document outlines different forms of price discrimination, including third-degree, first-degree, quantity discounts, and bundling discounts. It aims to explain the economic motives for price discrimination and when it has adverse or beneficial effects on consumers, rivals, and welfare.
Revision Webinar - Business Costs
This revision webinar focuses on the short run costs of businesses. It includes with examples a distinction between fixed and variable costs, average, marginal and total costs and short and long run costs.
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11th Cairo Marketing Club (Pricing Strategies) by Dr.Ahmed Hany 31-3-2018
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*#Mahmoud_Bahgat*
*#Marketing_Club*
للاشتراك في نادي التسويق بالشرق الاوسط
*If you are a Marketer now*
To Join our whatsapp &Monthly Meeting in Middle East Cities
Send me ur data on Whatsap
00966569654916
*Fill ur data here as speaker or member*
https://lnkd.in/efkTE7T
Join now
*Marketing Club Facebook Page*
https://lnkd.in/gm4c4hD
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https://lnkd.in/gX-5au5
*Egyptian Pharmacists Society Facebook Page*
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•••••••••••••••••••••••••••••
*#Mahmoud_Bahgat*
00966568654916
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*#Legendary_ADLAND*
Complete Marketing Solutions
*www.TheLegendary.info*
•••••••••••••••••••••••••••••
للحصول على اقامة او شركة في اوروبا
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This document discusses pricing policies and strategies. It defines pricing policy as fixing prices for a certain period. Pricing strategies aim to realize prices based on consumer paying capacity, face competition, maximize profits, and stabilize prices. Specific strategies discussed include penetration pricing with low initial prices, market skimming with high initial prices, value pricing based on perceived worth, loss leaders to attract customers, and psychological pricing exploiting consumer perceptions. Other strategies address following competitors, price discrimination across markets, predatory pricing to disadvantage rivals, cost-based pricing, and considering price elasticity of demand.
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The document discusses various pricing strategies that can be used including penetration pricing, market skimming, value pricing, loss leader pricing, psychological pricing, price leadership, tender pricing, price discrimination, predatory pricing, absorption cost pricing, marginal cost pricing, contribution pricing, target pricing, and cost-plus pricing. It also covers how price elasticity influences pricing decisions and the relationship between changes in price and changes in quantity demanded and revenue.
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The document outlines several pricing strategies that can be used including penetration pricing, market skimming, value pricing, loss leader pricing, psychological pricing, price leadership, tender pricing, price discrimination, predatory pricing, absorption cost pricing, marginal cost pricing, contribution pricing, target pricing, and cost-plus pricing. It also discusses how price elasticity influences pricing decisions and the relationship between percentage changes in price and quantity demanded.
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- Product K is nearing the end of its lifecycle and should be priced at $75 per unit to maximize contribution during the maturity stage, allowing 480 units of Product L to be produced per week.
- Product L is in the growth stage and should be priced at $126 per unit to maximize contribution while meeting the 2,000 hour weekly production capacity.
- Product M is highly innovative and will change the market, making it well-suited for a market skimming pricing strategy during the introduction stage.
pricing strategy presentation.pptx
This document discusses pricing strategies that businesses can use. It begins by defining price and pricing strategy. It then lists objectives that pricing strategies may aim to achieve, such as maximizing profits or increasing market share. Next, it outlines factors that influence pricing decisions, like costs and demand. The document proceeds to explain different types of pricing strategies including skimming, penetration pricing, value pricing, and cost-plus pricing. It concludes that setting clear pricing objectives is important for developing effective marketing strategies.
Lecture 8 mba_marketing_management_-_pricing
This document provides an overview of pricing strategies and concepts for MBA marketing management. It discusses 1) the theory of pricing including price elasticity and how costs, demand, and competition influence pricing, 2) pricing objectives like profit maximization, 3) strategic determinants of price like costs, demand, and competition, and 4) pricing strategies like market skimming, penetration pricing, and promotional pricing that are used at different stages of a product's lifecycle.
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The document discusses key concepts related to pricing, including defining price from the perspective of sellers and consumers. It explains approaches to selecting base price levels, such as demand-oriented, cost-oriented, profit-oriented, and competition-oriented. The document also covers calculating total revenue and costs, estimating demand curves, break-even analysis, pricing objectives and constraints that firms consider when determining prices.
Principles of marketing topic 6 price 2021
The document discusses various types of pricing strategies and concepts. It begins by defining key terms like cost, price, and different pricing strategies such as good-value pricing and value-added pricing. It then covers customer value-based pricing, cost-based pricing including incremental cost pricing and break-even analysis. Competitive based pricing and types like pricing at the current rate and closed bid pricing are explained. The document also discusses market skimming and penetration pricing strategies and concludes by summarizing product mix pricing strategies such as product line pricing, optional features pricing, captive product pricing, by-product pricing, and product bundle pricing.
Pricing strategies
Short presentation on different pricing strategies. Formulas for break even and margin calculation. Pros and cons of different pricing strategies.
Pricing
1. Pricing is a complex task that requires balancing both the science and art of capturing customer value while ensuring profitability.
2. Effective pricing ensures the customer perceives value that justifies the price, while allowing the firm to earn profits from sales. Simply competing on price often leads companies to lose value.
3. There are many objectives and methods firms can use for pricing, including cost-based, demand-based, and competition-oriented approaches. The optimal approach is to price according to customer perceived value while ensuring costs are covered.
Pricing strategies feb
The document discusses several pricing strategies including penetration pricing, market skimming, value pricing, loss leader pricing, psychological pricing, going rate pricing, tender pricing, price discrimination, destroyer pricing, and contribution pricing. Penetration pricing uses a low initial price to gain market share, while market skimming uses a high initial price for new products. Value pricing sets prices according to customer perceptions of worth.
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Pricingstrat
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