Principles of marketing: Lecture 26 provide students with knowledge about: price; price - quality strategies; price-adjustment strategies; discount and allowance pricing; segmented pricing; psychological pricing;... Please refer to this lesson for details!
MGT301 Principles of Marketing Lecture26 Summary of Lecture25 Setting Pricing Policy General Pricing Approaches Costbased Pricing Valuebased Pricing Competitionbased Pricing New Product Pricing Strategies Market Skimming Market Penetration Product Mix Pricing Strategies Product Product Mix Mix Pricing Pricing Strategies Strategies Product Line Pricing Product Line Pricing OptionalProduct Pricing OptionalProduct Pricing CaptiveProduct Pricing CaptiveProduct Pricing ByProduct Pricing ByProduct Pricing ProductBundle Pricing ProductBundle Pricing Today’s Topics Price Often the only marketing mix variable allowing for immediate competitive response Important part of product positioning Long term effects of pricing decisionsyour decisions may come back to haunt you! Price Quality Strategies Price Higher Quality Higher Lower Lower Premium Strategy Good-Value Good-Value Strategy Strategy Overcharging Overcharging Strategy Strategy Economy Economy Strategy Strategy PriceAdjustment Strategies Discount and Allowance Pricing Segmented Pricing Psychological Pricing Promotional Pricing Geographical Pricing International Pricing Promotional Pricing Loss LossLeaders Leaders Temporarily Pricing Products Below List Price to Increase ShortTerm Sales Through Special-Event Special-Event Pricing Pricing Cash CashRebates Rebates Low-Interest Low-Interest Financing Financing Longer LongerWarranties Warranties Free FreeMerchandise Merchandise Discounts Discounts Geographical Pricing F.O.B Common Common Geographic Geographic Pricing Pricing Policies Policies F.O.B. means “free on board” (e.g., at some place such as a factory, warehouse, destination,etc.) Customer pay the freight and take risk of shipping product F.O.B Zone Common Common Geographic Geographic Pricing Pricing Policies Policies Zone pricing sets some “average” price that is used anywhere within a specific geographic zone (I.e., may be a whole country or region), but prices differ between zones F.O.B Zone Common Common Geographic Geographic Pricing Pricing Policies Policies Uniform Delivered Making an average freight charge to all customers, usually used when transportation costs are low or for simplicity F.O.B Zone Common Common Geographic Geographic Pricing Pricing Policies Policies Uniform Delivered Freight Absorption Seller absorbs all or part of the freight costs to meet the prices of the nearest competitor … amounts to price cutting to appeal to distant customers Basingpoint pricing A geographical pricing strategy in which the seller designate some city as a basing point and charges all customers the freight cost from that city to the customers FOB Origin Uniform Delivered Pricing Pricing Tactics Tactics Based on Based on Geography Geography Zone Pricing FreightAbsorption BasingPoint International Pricing Adjusting prices for customers in different counties Price depends on costs, consumers, economic conditions, competitive situations, & other factors Enough for today. . Summary Price Quality Strategies Price Higher Quality Higher Lower Lower Premium Strategy GoodValue GoodValue Strategy Strategy Overcharging Overcharging Strategy Strategy Economy Economy Strategy Strategy PriceAdjustment Strategies Discount and Allowance Pricing Segmented Pricing Psychological Pricing Promotional Pricing Geographical Pricing International Pricing Next… Price Changes MGT301 Principles of Marketing Lecture26 ... Kinds Kinds of of Allowances Allowances Advertising or promotion allowance is a reduction from amount due to compensate middleman for promotion expenses, often as a percentage? ?of? ?total sales... Common Common Kinds Kinds of of Allowances Allowances Tradein allowances are relatively uncommon but in some business markets are critical Brokers often develop to get rid? ?of? ? used products Trade-In... Promotional Pricing Geographical Pricing International Pricing Next… Price Changes MGT301 Principles? ?of? ?Marketing Lecture? ?26