Lecture Basic Marketing: A global managerial approach - Chapter 17: Pricing objectives and policies
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In this chapter you will: Understand how pricing objectives should guide strategic planning for pricing decisions; understand choices the marketing manager must make about price flexibility and price levels over the product life cycle; understand the many possible variations of a price structure, including discounts, allowances, and who pays transportation costs;...
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Nội dung Text: Lecture Basic Marketing: A global managerial approach - Chapter 17: Pricing objectives and policies
- Chapter 17: Pricing Objectives and Policies For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited.
- Strategic Planning for Price Target Market Product Place Promotion Price Pricing objectives Geographic Discounts and Price levels terms— Price allowances— over product who pays flexibility to whom and life cycle transportation when and how Exhibit 171 172 For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited.
- Pricing Objectives Target Return Profit Oriented Maximize Profits Dollar or Unit Sales Growth Pricing Sales Objectives Oriented Growth in Market Share Meeting Competition Status Quo Oriented Nonprice Competition Exhibit 174 173 For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited.
- Price Flexibility Policies Oneprice policy The same price to all customers who purchase products under essentially the same conditions and quantities Exchange rate changes may make this difficult in international markets Flexible pricing (e.g., in channels, business markets, expensive consumer shopping products) Issues: Use is increasing because of impact of information technology, customer databases, scanners, etc. Selling costs may be higher if prices are negotiated “Signals” to competitors Customer dissatisfaction may be a problem “Gray channels” and crossshipping 174 For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited.
- Price Level Policies Skimming Pricing Price Sell at high price before reducing to Initial next price level “Skim the cream” skimming and repeat pricing involves price selling at a high price to those who Second are willing to pay price before aiming at more pricesensitive Final consumers. price Quantity 175 For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited.
- Price Level Policies Penetration Pricing Price Whole market price Penetration pricing involves selling the whole market at one low price. Quantity 176 For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited.
- Discount Pricing Quantity Seasonal Discount Pricing Sale Cash Trade 177 For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited.
- Allowances Advertising Allowance Stocking Common Kinds Allowance of Allowances Push Money Allowance Trade-In Allowance 178 For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited.
- Geographic Pricing Policies F.O.B. Common Zone Geographic Pricing Policies Uniform Delivered Freight Absorption 179 For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited.
- Value Pricing ???? Focus Focus on on Customer Customer Requirements Requirements $ ???? ???? Target Target Market Market and Competition Competition and ???? ???? Fits Fits with with Strategy Strategy Planning Planning 1710 For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited.
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