Scribd
Upload
976 views

The Marketing Mix-Price

This document discusses factors that affect a firm's pricing decisions and strategies for pricing new products. It outlines internal factors like costs, objectives, and marketing mix strategy, and external factors like demand, competitors' prices, and economic conditions that must be considered. The major pricing strategies discussed are market skimming for new products, market penetration, and status quo pricing matching competitors. The document also covers price adjustment strategies like discounts and segmented pricing.

Uploaded by

abe618
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
976 views

The Marketing Mix-Price

This document discusses factors that affect a firm's pricing decisions and strategies for pricing new products. It outlines internal factors like costs, objectives, and marketing mix strategy, and external factors like demand, competitors' prices, and economic conditions that must be considered. The major pricing strategies discussed are market skimming for new products, market penetration, and status quo pricing matching competitors. The document also covers price adjustment strategies like discounts and segmented pricing.

Uploaded by

abe618
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 18

Price

The Marketing Mix


Objectives
• Understand factors affecting a firm’s
pricing decisions
• Discuss the major strategies for pricing
imitative and new products

2
Price
• Definition
–The amount of money charged for a product or
service
–The sum of the values that consumers
exchange for the benefits of having or using the
product or service
• Pricing includes not only the list price, but also
discounts, financing, and other options such as
leasing
• Pricing is important but difficult to decide
3
Factors to Consider When
Setting Prices

Internal Pricing External


Factors Decisions Factors

4
Internal Factors
• Marketing Objectives
–Market positioning
–Survival
–Current profit maximization
–Market share leadership
–Product quality leadership

5
Internal Factors
• Marketing Mix Strategy

– Target costing

Price plays a crucial


product-positioning
role in developing the
marketing mix

6
Internal Factors
– Nonprice position

7
Internal Factors
• Cost

Total Cost = Fixed Cost ＋ Variable Cost

• Organizational Considerations

8
External Factors
• The Market and Demand
– Different types of markets
I. Pure Competition
II. Monopolistic Competition( 垄断竞争 )
III. Oligopolistic Competition( 寡头垄断 )
IV. Pure Monopoly( 完全垄断 )
– Consumer perceptions of Price and Value
– The Price-Demand Relationship

9
External Factors
• Competitors’ Costs, Prices, and Offers
• Other External Factors
– Economic Conditions
– Resellers
– Governments

10
Major Considerations in
setting price
Consumer Price Ceiling No Demand
Perceptions above
this price
of Value

Competitors’ prices and Other


internal & external factors

Product Price Floor No profit


below
Costs this price
11
Pricing Strategies
• New-Product Pricing Strategies
 Market-Skimming Pricing( 市场撇脂定价
法)
—Setting a high price for a new
product to skim maximum revenues layer
by layer from the segments willing to
pay the high price

12
 Market-Penetration Pricing( 市场渗透定价 )
—Setting a low price for a new product in
order to attract a large number of buyers
and a large market share

13
 Status quo Pricing/Go-rating Pricing( 随
行就市定价 )
—Charging a price identical to or very
close to the competition’s price

14
Price-Adjustment Strategies
• Discount and Allowance( 补贴 ) Pricing
– Cash Discounts
– Quantity Discounts
– Functional Discounts/Trade Discounts
– Seasonal Discounts
– Trade-in Allowances( 以旧换新 )
– Promotional Allowances( 促销补贴 )

15
• Segmented Pricing( 分段定价 )
– Customer-Segment Pricing
– Product-Form Pricing
– Location Pricing
– Time Pricing

16
• Value-based
Pricing

17
• Geographic Pricing

• Leader Pricing/Loss Leader Pricing


—Attracting customers by selling a
product near or even below cost

18

You might also like