DEVELOPING PRICING STRATEGIES &
PROGRAMSMARKETINGMANAGEMENTS09Golingo, AldrichS130348
CONTENT:
• #BecausePriceMatters• #ItsBuyersVsSellers• #ConsumersPriceResponses• #SettingTheRightPrices• #EffectivePricingStrategies
#BecausePriceMatters
#ItsBuyersVsSellers
• Getinstantpricecomparisonsfromthousandsofvendors.
• Nametheirpriceandhaveitmet
• Getproductsfree.
• Monitorcustomerbehaviorandtailorofferstoindividuals
• Givecertaincustomersaccesstospecialprices
• Negotiatepricesinonlineauctionsandexchangesoreveninperson
#ConsumersPriceResponses• Fairprice(whatconsumersfeeltheproductshouldcost)
• TypicalPrice
• LastPricePaid
• Upper-BoundPrice(reservationpriceorthemaximummostconsumerswouldpay)
• Lower-BoundPrice(lowerthresholdpriceortheminimummostconsumerswouldpay)
• HistoricalCompetitorPrices
• ExpectedFuturePrice
• UsualDiscountedPrice
#SettingTheRightPrices• STEP1: SelectingthePriceobjective
• Survival,MaximumCurrentProfit,MaximumMarketShare,MaximumMarketSkimming,product– QualityLeadership
• STEP2:DeterminingDemand• PriceSensitivity,EstimatingDemandCurves,PriceElasticityofDemand,
• STEP3:EstimatingCosts• TypesofCosts&LevelsofProduction,AccumulatedProduction,TargetCosting,
• STEP4:AnalyzingCompetitors’Cost,PricesandOffers
• STEP5:SelectingaPricingMethod• MarkupPricing,Target-ReturnPricing,Perceived– ValuePricing,ValuePricing,Going-RatePricing,Auction– TypePricing
• STEP6:SelectingtheFinalPrice
#EffectivePricingStrategies• GEOGRAPHICALPRICING
• Barter
• Compensationdeal
• BuybackArrangement
• Offset
• PRICEDISCOUNTSANDALLOWANCES
• PROMOTIONALPRICING• Loss-leaderpricing
• Specialeventpricing
• Specialcustomerpricing
• Cashrebates
• Lowinterestfinancing
• Longerpaymentterms
• Warranties&servicecontracts
• Psychologicaldiscounting
• DIFFERENTIATEDPRICING
DEVELOPING PRICING STRATEGIES & PROGRAMS
SUMMARY:
• Understandingpricing
• PricingEnvironment
• Settingprices
• RespondingtoPriceChanges
• AdaptingPrices