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PRICEPRODUCT PLACEPROMOTION1One of the most fundamental of the four Ps Its the one that produces revenue Most flexibleCan change rapidly

Pricing for SuccessLorem Ipsum In libris graecis appetere mea. At vim odio lorem omnes, pri id iuvaret partiendo. Vivendo menandri et sed. Lorem volumus blandit cu has.Sit cu alia porro fuisset. Ea pro natum invidunt repudiandae, his et facilisis vituperatoribus. Mei eu ubique altera senserit, consul eripuit accusata has ne. In libris graecis appetere mea. At vim odio lorem omnes, pri id iuvaret partiendo. Vivendo menandri et sed. In libris graecis appetere mea. At vim odio lorem omnes, pri id iuvaret partiendo. Vivendo menandri et sed. Lorem volumus blandit cu has.Sit cu alia porro fuisset. Ea pro natum invidunt repudiandae, his et facilisis vituperatoribus. Mei eu ubique altera senserit, consul eripuit accusata has ne. Ea pro natum invidunt repudiandae, his et facilisis vituperatoribus.

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2Gonna go into the different pricing strategies but first give a context of pricing

What is price? How much you charge for a particular good

Boundaries of PricePRICE FLOORDICTATED BY YOUR PRODUCT COSTSNo profits below this point4PRICE CEILINGDICTATED BY YOUR COMPETITORS& COMPARABLE SUBSTITUTESAim for optimum priceNo demand above this point consumers perceive price to be tooo high

5Approaches to Pricing

3SPRICE DRIVERSThree Price Drivers:Value Driven: ConsumerCost Driven-ProductCompetitor Driven-Environment7Popular Pricing StrategiesMarket Skimming PricingPenetration PricingCost-Based PricingValue-Based PricingCompetitor-Based PricingMarket SkimmingCharging a premium price at introduction, and lowering prices strategically, ensuring that consumers who are willing to pay more, will pay the higher prices. May occur at the introduction stage of product life cyclePenetration PricingCharging a low price in order to penetrate market quicklyAppropriate to saturate market prior to imitation by competitorsCost-based PricingFull absorption cost methodRigid cost-plus pricingFlexible cost-plus pricingValue-based PricingCharges fairly low price for a high quality offering.

Associated with lowered cost of operationsCompetitor-based PricingConsiderations for Setting Price Does the price reflect the products quality?Is the price competitive given local market conditions?Should firm pursue market penetration, market skimming, or some other pricing objective?What types of discounts or allowances should be offered to international customers?Considerations for Setting Price (cont.)Should prices differ with market segment?What pricing options are available if the firms costs increase or decrease? Is demand in the international market elastic or inelastic?Are the firms prices likely to be viewed by the host-country government as reasonable or exploitative?Do the foreign countrys dumping laws pose a problem?15