Pricing strategies in marketing by philip kotler 4p,video sharing on skype,mac photo editing software free zebra,software editing ubuntu - Good Point

Pricing Strategies Pricing Strategies Additional Considerations Chapter 11 Priciples of Marketing by Philip Kotler and Gary Armstrong PEARSON. 3 Price-Adjustment Strategies Discuss how companies adjust their prices to take into account different types of customers and situations. 5 Public Policy and Marketing Overview the social and legal issues that affect pricing decisions. New-Product Pricing Strategies Pricing strategies usually change as the product passes through its life cycle. Market-Skimming Pricing Market-skimming pricing (or price skimming) set a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales. Market-Penetration Pricing Market-penetration pricing sets a low price for a new product in order to attract a large number of buyers and a large market share. Product Mix Pricing Strategies The strategy for setting a product’s price often has to be changed when the product is part of a product mix.
Product Line Pricing Product line pricing sets the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors’ prices. Optional Product Pricing Many companies use optional product pricing - offering to sell optional or accessory products along with the main product. Captive Product Pricing Captive-product pricing sets a price for products that must be used along with a main product, such as blades for razor and games for a video-games console. By-Product Pricing Using by-product pricing, the company seeks a market for these by-products to help offset the costs of disposing of them and help make the price of the main product more competitive. Product Bundle Pricing Using product bundle pricing, sellers often several products and offer the bundle at a reduced price.
Price Adjustment Strategies Companies usually adjust their basic prices to account for various customer differences and changing situations.
Discount and Allowance Pricing Discount is a straight reduction in price on purchases during a stated period of time or in larger quantities.
Discount and Allowance Pricing Allowance is promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer’s products in some way.
Segmented Pricing In segmented pricing, the company sells a product or service at two or more prices, even though the difference in prices is not based on differences in costs. Psychological Pricing In using psychological pricing, sellers consider the psychology of prices, not simply the economics. Promotional Pricing With promotional pricing, companies will temporarily price their products below list price - and sometimes even below cost - to create buying excitement and urgency. Geographical Pricing Geographical pricing sets prices for customers located in different parts of the country or world. Dynamic and Internet Pricing They are using dynamic pricing - adjusting prices continually to meet the characteristics and needs of individual customers and situations. International Pricing Companies that market their products internationally must decide what prices to charge in different countries. Price Changes After developing their pricing structures and strategies, companies often face situations in which they must initiate price changes or respond to price changes by competitors.
Initiating Price Changes In some cases, the company may find it desirable to initiate either a price cut or a price increase.

Buyer Reactions to Price Changes A price increase, which would normally lower sales, may have some positive meanings for buyers.
Competitor Reactions to Price Changes The competitor can interpret a company price cut in many ways.
If the company decides that effective action can and should be taken, it might make any of four responses. Pricing within Channel Levels Price-fixing states that sellers must set prices without talking to competitors.
Pricing across Channel Levels Robinson-Patman Act seeks to prevents unfair price discrimination by ensuring that sellers offer the same price terms to customers at a given level of trade.
Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Clipping is a handy way to collect and organize the most important slides from a presentation. Strategic Marketing Management (8th Edition) outlines the essentials of marketing theory and offers a structured approach to identifying, understanding, and solving marketing problems.
Strategic Marketing Management, 8th Edition ePub (Adobe DRM) can be read on any device that can open ePub (Adobe DRM) files. 2 Product Mix Pricing Strategies Explain how companies find a set of prices that maximizes the profits from the total product mix. 4 Price Changes Discuss the key issues related to initiating and responding to price changes. In this case, the firm looks for a set of prices that maximizes its profits on the total product mix.
In product line pricing, management must determine the price steps to set between the various products in a line. And when you order a new computer, you can select from a bewildering array of processors, hard drives, docking systems, software options, and service plans. Another aspect of psychological pricing is reference prices - prices that buyers carry in their minds and refer to when looking at a given product. We will look at five geographical pricing strategies for the following hypothetical situation. The price that a company should charge in a specific country depends on many factors, including economic conditions, competitive situations, laws and regulations, and the nature of the wholesaling and retailing system. It might think the company is trying to grab a larger market share or that it’s doing poorly and trying to boost its sales.
Sellers are also prohibited from using predatory pricing - selling below cost with the intention of punishing a competitor or gaining higher long- run profits by putting competitors out of business. This book delineates a comprehensive framework for articulating sound marketing strategies to guide business decisions involving product and service design, branding, pricing, sales promotion, communication, and distribution. Companies bringing out a new product face the challenge of setting prices for the first time.
Pricing is difficult because the various products have related demand and costs and face different degrees of competition. The reference price might be formed by noting current prices, remembering past prices, or assessing the buying situation.

A seller may simply offer discounts from normal prices to increase sales and reduce inventories. FOB- origin pricing Uniform- delivered pricing Zone pricing Basing- point pricing Freight- absorption pricing ? This practice means that the goods are placed free on board a carrier. A price change, especially a drop in price, can adversely affect how consumers view the brand. Or it might think that the company wants the whole industry to cut prices to increase total demand. You can send these slides to your personal contacts who might be interested in Business Diagrams.
The concepts, principles, and frameworks advanced in this book apply to a wide range of organizations, from startups to established market leaders, from packaged-goods manufacturers to value-added service providers, from nonprofit entities to for-profit corporations. They can choose between two broad strategies: market- skimming pricing and market-penetration pricing.
More importantly, they should account for differences in customer perceptions of the value of different features. Rising costs squeeze profit margins and lead companies to pass cost increases along to customers.
Second Company might improve quality and increase price, moving its brand into a higher price-value position.
Customer-segment pricing Different versions of the product are priced differently but not according to differences in their costs. Manufacturers sometimes offer cash rebates to consumers who buy the product from dealers within a specified time; the manufacturer sends the rebate directly to the customer.
Third Company might launch a low-price “fighter brand” - adding a lower-price item to the line or creating a separate lower-price brand. When a company cannot supply all that its customers need, it may raise its prices, ration products to customers, or both.
Quantity Discount A sellers offers a discount to trade- channel members who perform certain functions, such as selling, storing, and record keeping. Trade-in allowance It’s the payments or price reductions that reward dealers for participating in advertising and sales support programs.
Product-form pricing A firm varies its price by the season, the month, the day, and even the hour.
Functional Discount (Trade Discount) A price reduction to buyers who buy merchandise or services out of season. Time pricing A company charges different prices for different locations, even though the cost of offering each location is the same.

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