Marketing Mix: PriceBUSI-141 Principles of Marketing

2

Price Topics Covered

• Defining Price

• 6 Elements in Price Planning

• Price Objectives

• Examine the Price Environment

• Price Strategies

• Psychological Strategies

3

What is Price? (281)

• The assignment of value

• Amount the consumer must exchange to receive offering or product

• Most often perception is Price = Money

• Can also be goods, services, favors, votes

• Anything the other party considers valuable

4

Six Elements of Price Planning (281)

PRICE

Objectives

Demand

Costs

Environment

Strategy

Tactics

5

Develop Price Objectives

• Profit

• Sales

• Market Share

• Competitive Effect

• Customer Satisfaction

• Image Enhancement

6

Examine the Price Environment (293 – 296)

The Economy

• Business Cycle• Inflation• Economic

Growth• Consumer

Confidence

Competition

• Price Wars• Industry

Structure

Government Regulations

• Industry Regs• Product Regs

Consumer Trends

• Demographics• Culture

International Environment

• Adapt to Different Practices

• Government Regs

• Distribution

7

Price Strategies (297 – 300)

The X and Os

• Cost

• Demand

• Competition

• Customer’s Needs

• New Product Pricing

Psychological Strategies(307 - 308)

• Odd-Even Pricing

• Price Lining

• Prestige Pricing

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Have an AWESOME Fall break!!

Quiz next TuesdayChapters 8 – 10