Discuss the importance of understanding customer value perceptions and company costs when setting prices.
Identify and define the other important internal and external factors affecting a firm’s pricing decisions.
Describe the major strategies for pricing imitative and new products.
Explain how companies find a set of prices that maximizes the profits from the total product mix.
Discuss how companies adjust their prices to take into account different types of customers and situations.
Discuss key issues related to initiating and responding to price changes.
New-Product Pricing Strategies
Product Mix Pricing Strategies
Price Adjustment Strategies
Price Changes
Market-skimming pricing is a strategy with high initial prices to “skim” revenue layers from the market
Product quality and image must support the price
Buyers must want the product at the price
Costs of producing the product in small volume should not cancel the advantage of higher prices
Competitors should not be able to enter the market easily
Market-penetration pricing sets a low initial price in order to penetrate the market quickly and deeply to attract a large number of buyers quickly to gain market share
Price-sensitive market
Inverse relationship of production and distribution cost to sales growth
Low prices must keep competition out of the market
New Product Development & Product Life Cycle Strategies - MarketingFaHaD .H. NooR
New-Product Development Strategy
New-Product Development Process
Managing New-Product Development
Product Life-Cycle Strategies
Additional Product and Service Considerations
Acquisition refers to the buying of a whole company, a patent, or a license to produce someone else’s product
New product development refers to original products, product improvements, product modifications, and new brands developed from the firm’s own research and development
New-Product Pricing Strategies
Product Mix Pricing Strategies
Price Adjustment Strategies
Price Changes
Market-skimming pricing is a strategy with high initial prices to “skim” revenue layers from the market
Product quality and image must support the price
Buyers must want the product at the price
Costs of producing the product in small volume should not cancel the advantage of higher prices
Competitors should not be able to enter the market easily
Market-penetration pricing sets a low initial price in order to penetrate the market quickly and deeply to attract a large number of buyers quickly to gain market share
Price-sensitive market
Inverse relationship of production and distribution cost to sales growth
Low prices must keep competition out of the market
New Product Development & Product Life Cycle Strategies - MarketingFaHaD .H. NooR
New-Product Development Strategy
New-Product Development Process
Managing New-Product Development
Product Life-Cycle Strategies
Additional Product and Service Considerations
Acquisition refers to the buying of a whole company, a patent, or a license to produce someone else’s product
New product development refers to original products, product improvements, product modifications, and new brands developed from the firm’s own research and development
Pricing Understanding and Capturing Customer Value - MarketingFaHaD .H. NooR
outline
What Is a Price?
Customer Perceptions of Value
Company and Product Costs
Other Internal and External Considerations Affecting Price Decisions
Customer Value-based pricing uses the buyers’ perceptions of value, not the sellers’ cost, as the key to pricing. Price is considered before the marketing program is set.
Value-based pricing is customer driven
Cost-based pricing is product driven
Pricing Understanding and Capturing Customer Value - MarketingFaHaD .H. NooR
outline
What Is a Price?
Customer Perceptions of Value
Company and Product Costs
Other Internal and External Considerations Affecting Price Decisions
Customer Value-based pricing uses the buyers’ perceptions of value, not the sellers’ cost, as the key to pricing. Price is considered before the marketing program is set.
Value-based pricing is customer driven
Cost-based pricing is product driven
Digital marketing strategy and planning | About BusinessGaditek
Introduction
Respondent profiles
About Business
Adoption of digital transformation programs
Investing In Digital Marketing
Top Online Marketing Channels
What should the planning horizon for digital planning be?
Integration Of Digital And Traditional Marketing Activities
EXECUTIVE SUMMARY
Intro to social network analysis | What is Network Analysis? | History of (So...Gaditek
Social network analysis is a method by which one can analyze the connections across individuals or groups or institutions. That is, it allows us to examine how political actors or institutions are interrelated.
Marketing ethics and social responsibility | Criticisms of MarketingGaditek
Identify the major social criticisms of marketing.
Define consumerism and environmentalism and explain how they affect marketing strategies.
Describe the principles of socially responsible marketing.
Explain the role of ethics in marketing.
The marketing environment | Suppliers | Marketing intermediariesGaditek
Describe the environmental forces that affect the company’s ability to serve its customers.
Explain how changes in the demographic and economic environments affect marketing decisions.
Identify the major trends in the firm’s natural and technological environments.
Explain the key changes in the political and cultural environments.
Discuss how companies can react to the marketing environment.
strategic planning | Customer Relationships | Partnering to Build Gaditek
Explain companywide strategic planning and its four steps.
Discuss how to design business portfolios and growth strategies.
Explain marketing’s role in strategic planning and how marketing works with its partners to create and deliver customer value.
Describe the elements of a customer-driven marketing strategy and mix, and the forces that influence it.
List the marketing management functions, including the elements of a marketing plan.
Define marketing and the marketing process.
Explain the importance of understanding customers and identify the five core marketplace concepts.
Identify the elements of a customer-driven marketing strategy and discuss the marketing management orientations.
Discuss customer relationship management and creating value for and capturing value from customers.
Describe the major trends and forces changing the marketing landscape.
When most people in the industry talk about online or digital reputation management, what they're really saying is Google search and PPC. And it's usually reactive, left dealing with the aftermath of negative information published somewhere online. That's outdated. It leaves executives, organizations and other high-profile individuals at a high risk of a digital reputation attack that spans channels and tactics. But the tools needed to safeguard against an attack are more cybersecurity-oriented than most marketing and communications professionals can manage. Business leaders Leaders grasp the importance; 83% of executives place reputation in their top five areas of risk, yet only 23% are confident in their ability to address it. To succeed in 2024 and beyond, you need to turn online reputation on its axis and think like an attacker.
Key Takeaways:
- New framework for examining and safeguarding an online reputation
- Tools and techniques to keep you a step ahead
- Practical examples that demonstrate when to act, how to act and how to recover
Financial curveballs sent many American families reeling in 2023. Household budgets were squeezed by rising interest rates, surging prices on everyday goods, and a stagnating housing market. Consumers were feeling strapped. That sentiment, however, appears to be waning. The question is, to what extent?
To take the pulse of consumers’ feelings about their financial well-being ahead of a highly anticipated election, ThinkNow conducted a nationally representative quantitative survey. The survey highlights consumers’ hopes and anxieties as we move into 2024. Let's unpack the key findings to gain insights about where we stand.
The What, Why & How of 3D and AR in Digital CommercePushON Ltd
Vladimir Mulhem has over 20 years of experience in commercialising cutting edge creative technology across construction, marketing and retail.
Previously the founder and Tech and Innovation Director of Creative Content Works working with the likes of Next, John Lewis and JD Sport, he now helps retailers, brands and agencies solve challenges of applying the emerging technologies 3D, AR, VR and Gen AI to real-world problems.
In this webinar, Vladimir will be covering the following topics:
Applications of 3D and AR in Digital Commerce,
Benefits of 3D and AR,
Tools to create, manage and publish 3D and AR in Digital Commerce.
The digital marketing industry is changing faster than ever and those who don’t adapt with the times are losing market share. Where should marketers be focusing their efforts? What strategies are the experts seeing get the best results? Get up-to-speed with the latest industry insights, trends and predictions for the future in this panel discussion with some leading digital marketing experts.
5 big bets to drive growth in 2024 without one additional marketing dollar AND how to adapt to the biggest shifting eCommerce trend- AI.
1) Romance Your Customers - Retention
2) ‘Alternative’ Lead Gen - Advocacy
3) The Beautiful Basics - Conversion Rate Optimization
4) Land that Bottom Line - Profitability
5) Roll the Dice - New Business Models
Short video marketing has sweeped the nation and is the fastest way to build an online brand on social media in 2024. In this session you will learn:- What is short video marketing- Which platforms work best for your business- Content strategies that are on brand for your business- How to sell organically without paying for ads.
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In this talk Felipe Bazon will share how him and his team at Hedgehog Digital share our journey of making C-Levels alike, specially CMOS realize that SEO is the backbone of digital marketing by showing how SEO can contribute to brand awareness, reputation and authority and above all how to use SEO to create more robust global marketing strategies.
Mastering Local SEO for Service Businesses in the AI Era is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
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Key Takeaways:
Current consumer landscape; Steps to mapping an effective consumer journey; Understanding the value of personalization; Integrating mapping and personalization for success; Brands that are getting It right!; Best Practices; Future Trends
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• Uncover the power of a foundational marketing system that dynamically communicates with prospects and customers on autopilot.
• Harness neuroscience and Tribal Alignment to transform your communication strategies, turning potential clients into fans and those fans into loyal customers.
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SMM Cheap - No. 1 SMM panel in the worldsmmpanel567
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TL;DR. These are the three themes that stood out to us over the course of last month.
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In the world of content creation, many AI bloggers have drifted away from their original vision, resulting in low-quality articles that search engines overlook. Don't let that happen to you! Join us to discover how to leverage AI tools effectively to craft high-quality content that not only captures your audience's attention but also ranks well on search engines.
Disclaimer: Some of the prompts mentioned here are the examples of Matt Diggity. Please use it as reference and make your own custom prompts.
2. Roadmap: Previewing the Concepts
Copyright 2007, Prentice Hall, Inc. 9-2
1. Discuss the importance of understanding
customer value perceptions and company costs
when setting prices.
2. Identify and define the other important internal
and external factors affecting a firm’s pricing
decisions.
3. Describe the major strategies for pricing imitative
and new products.
4. Explain how companies find a set of prices that
maximizes the profits from the total product mix.
5. Discuss how companies adjust their prices to
take into account different types of customers
and situations.
6. Discuss key issues related to initiating and
responding to price changes.
3. Copyright 2007, Prentice Hall, Inc. 9-3
The Past
1970s: Toys ‘R’ Us
emerges as a toy retailing
category killer, offering
greater product selection
and lower prices than its
small store competition.
Explosive growth occurs.
Late 1990s: Wal-Mart
uses toys as a loss
leader, pricing lower than
Toys ‘R’ Us and becomes
the largest toy retailer.
Toys ‘R’ Us – Pricing for Success
Case Study
The Present
Toys ‘R’ Us tries price
matching and fails
miserably, losing sales,
profit, and market share.
New ownership closes
stores, cut costs, and steps
away from the price war.
Efforts focus on top-selling,
higher margin or exclusive
items, store atmosphere,
shopper experiences, and
customer service.
4. Copyright 2007, Prentice Hall, Inc. 9-4
What Is a Price?
Narrowly, price is the amount of money
charged for a product or service.
Broadly, price is the sum of all the
values that consumers exchange for
the benefits of having or using the
product or service.
5. Copyright 2007, Prentice Hall, Inc. 9-5
Major Considerations in
Setting Price
Customer perceptions of value
Other internal and external
considerations
– Marketing strategy, objectives, mix
– Nature of the market and demand
– Competitors’ strategies and prices
Product costs
6. Copyright 2007, Prentice Hall, Inc. 9-6
Customer Value Perceptions
Customer-oriented pricing:
– Involves understanding how much value
consumers place on the benefits they
receive from the product and setting a
price that captures that value.
Value-based pricing:
– Uses buyers’ perceptions of value, not the
seller’s cost, as the key to pricing.
• Good value pricing
• Value-added pricing
7. Copyright 2007, Prentice Hall, Inc. 9-7
Internal Factors Affecting
Pricing Decisions
Company and Product Costs:
– Fixed Costs:
• Costs that do not vary with production
or sales level.
– Variable Costs:
• Costs that vary directly with the level of
production.
8. Copyright 2007, Prentice Hall, Inc. 9-8
Cost-Based Pricing
Cost-plus pricing
– Adding a standard markup to the cost of
the product
Break-even pricing
Target-profit pricing
9. Copyright 2007, Prentice Hall, Inc. 9-9
Internal Factors Affecting
Pricing Decisions
Marketing Objectives:
– Company must decide on its strategy for
the product.
– General pricing objectives:
• Survival
• Current profit maximization
• Market share leadership
• Product quality leadership
10. Copyright 2007, Prentice Hall, Inc. 9-10
Internal Factors Affecting
Pricing Decisions
Marketing Mix Strategy:
– Price decisions must be coordinated with
product design, distribution, and
promotion decisions to form a consistent
and effective marketing program.
– Target costing:
• Pricing that starts with an ideal selling
price, then targets costs that will ensure
that the price is met.
11. Copyright 2007, Prentice Hall, Inc. 9-11
Internal Factors Affecting
Pricing Decisions
Organizational Considerations:
– Must decide who within the organization
should set prices.
– This will vary depending on the size and
type of company.
12. Copyright 2007, Prentice Hall, Inc. 9-12
External Factors Affecting
Pricing Decisions
The Market and Demand:
– Costs set the lower limit of prices while the
market and demand set the upper limit.
– Pricing in different types of markets:
• Pure competition
• Monopolistic competition
• Oligopolistic competition
• Pure monopoly
– Analyzing the price-demand relationship
– The price elasticity of demand
13. Copyright 2007, Prentice Hall, Inc. 9-13
External Factors Affecting
Pricing Decisions
Competitors’ Strategies and Prices
– How does the market offering compare?
– How strong is competition and what is
their pricing strategy?
– How does competition influence price
sensitivity?
Other External Factors
14. Copyright 2007, Prentice Hall, Inc. 9-14
New-Product Pricing Strategies
When to Use:
– Product’s quality and
image must support
its higher price.
– Costs of low volume
cannot be so high
they cancel the
advantage of
charging more.
– Competitors should
not be able to enter
market easily and
undercut the price.
Market Skimming:
– Set a high price for a
new product to
“skim” revenues
layer by layer from
the market.
– Company makes
fewer, but more
profitable sales.
15. Copyright 2007, Prentice Hall, Inc. 9-15
New-Product Pricing Strategies
When to Use:
– Market is highly
price sensitive so a
low price produces
more growth.
– Costs must fall as
sales volume
increases.
– Need to keep
competition out or
effects are only
temporary.
Market Penetration:
– Set a low initial price
in order to
“penetrate” the
market quickly and
deeply.
– Can attract a large
number of buyers
quickly and win a
large market share.
17. Copyright 2007, Prentice Hall, Inc. 9-17
Product-Line Pricing
Involves setting price steps between
various products in a product line
based on:
– Cost differences between products
– Customer evaluations of different features
– Competitors’ prices
18. Copyright 2007, Prentice Hall, Inc. 9-18
Optional- and Captive-
Product Pricing
Optional-Product
– Pricing optional or accessory products
sold with the main product (e.g., ice maker
with the refrigerator).
Captive-Product
– Pricing products that must be used with
the main product (e.g., replacement
cartridges for Gillette razors).
19. Copyright 2007, Prentice Hall, Inc. 9-19
By-Product and Product
Bundle Pricing Strategies
By-Product Pricing
– Pricing low-value by-products to get rid of
them (e.g., animal manure from zoo).
Product Bundle Pricing
– Pricing bundles of products sold together
(software, monitor, PC, and printer).
22. Copyright 2007, Prentice Hall, Inc. 9-22
Segmented Pricing
Selling a product or service at two or
more prices, where the difference in
prices is not based on differences in
costs.
Types:
1. Customer-segment
2. Product-form
3. Location pricing
4. Time pricing
23. Copyright 2007, Prentice Hall, Inc. 9-23
Psychological Pricing
Considers the psychology of prices
and not simply the economics.
Consumers usually perceive higher-
priced products as having higher
quality.
Consumers use price less when they
can judge the quality of a product by
examining it or recalling experiences.
27. Copyright 2007, Prentice Hall, Inc. 9-27
Dynamic Pricing
Adjusting prices continually to meet
the characteristics and needs of
individual customers and situations.
28. Copyright 2007, Prentice Hall, Inc. 9-28
International Pricing
Price depends on many factors,
including:
– Economic conditions
– Competitive situations
– Laws and regulations
– Development of the wholesaling and
retailing system
– Consumer perceptions and preferences
– Costs
30. Copyright 2007, Prentice Hall, Inc. 9-30
Responses to Price Changes
Buyer reactions to price changes
Competitor reactions to price changes
Firm responses to price changes:
– Reduce price to match competition
– Raise the perceived quality of its offer
– Improve quality and increase price
– Launch a low-price “fighting brand”
32. Rest Stop: Reviewing the Concepts
Copyright 2007, Prentice Hall, Inc. 9-32
1. Discuss the importance of understanding
customer value perceptions and company costs
when setting prices.
2. Identify and define the other important internal
and external factors affecting a firm’s pricing
decisions.
3. Describe the major strategies for pricing
imitative and new products.
4. Explain how companies find a set of prices that
maximizes the profits from the total product mix.
5. Discuss how companies adjust their prices to
take into account different types of customers
and situations.
6. Discuss key issues related to initiating and
responding to price changes.