STEP 6:Selecting The Final

Price

Some factors to consider when

selecting the price

Impact of othermarketing activities 1

pricing policiesCompany 2

Gain-and-risk-sharing pricing

3rd

Impact of price on other parties

Last

Impact of other MARKETING ACTIVITIES

1

227 consumer

businesses

1BRANDS WITH AVERAGE QUALITYBUT HIGH ADVERTISING BUDGETS

Could charge premium prices

2Brands with high qualityAND HIGH

ADVERTISINGobtained the highest price

3 High prices and

high advertising are held

most inthe later stages

Company pricing policies2

Customers

DO NOT ALIENATE THEM

STEALTHPRICE

INCREASES

Example 1

IT IS THETHE ONLY

WAYTO COVER UPEXPENSES

SET UPa pricing department

and high-tech “cost-forecasting” system

Example 2

Government

Small business

Home PC buyer

Gain-and-Risk-Sharing

Pricing

3

Buyers and high

perceived level of

risk

A LEADINGMEDICAL PRODUCTS

FIRM

Example 3