Chapter 7 Pricing Strategies
Chapter 7 Pricing Strategies
一.Price Price is the sum of all the values that consumers exchange for the benefits of having or using the product or service. Price has been the major factor affecting buyer choice;nonprice factors have become increasingly important in buyer-choice behavior. Price is the only element in the marketing mix that produces revenues;all others represent costs
一．Price ◼ Price is the sum of all the values that consumers exchange for the benefits of having or using the product or service. ◼ Price has been the major factor affecting buyer choice; nonprice factors have become increasingly important in buyer-choice behavior. ◼ Price is the only element in the marketing mix that produces revenues; all others represent costs
Factors to consider when setting prices 1.Internal Factors 2.External Factors D Marketing Objectives ①Nature of the market 2 Marketing Mix Strategy Pricing and demand ③Costs Decisions ②Competition ③Other environmental ④Organizational considerations factors (economy, resellers,government)
二．Factors to consider when setting prices 1. Internal Factors ① Marketing Objectives ② Marketing Mix Strategy ③ Costs ④ Organizational considerations 2. External Factors ① Nature of the market and demand ② Competition ③ Other environmental factors (economy, resellers, government) Pricing Decisions
Internal Factors Affecting Pricing Decisions:Marketing Objectives Survival Low Prices to Cover Variable Costs and Some Fixed Costs to Stay in Business. Current Profit Maximization Choose the Price that Produces the Marketing Maximum Current Profit,Etc. Objectives Market Share Leadership Low as Possible Prices to Become the Market Share Leader. Product Quality Leadership High Prices to Cover Higher Performance Quality and R&D
Marketing Objectives Survival Low Prices to Cover Variable Costs and Some Fixed Costs to Stay in Business. Current Profit Maximization Choose the Price that Produces the Maximum Current Profit, Etc. Market Share Leadership Low as Possible Prices to Become the Market Share Leader. Product Quality Leadership High Prices to Cover Higher Performance Quality and R & D. Internal Factors Affecting Pricing Decisions: Marketing Objectives
Internal Factors Affecting Pricing Decisions:Marketing Objectives Other specific objectives include: Set prices low to prevent competition from entering the market, Prices might be reduced temporarily to create excitement or draw more customers. Nonprofit and public organization may have other pricing objectives such as: University aims for partial cost recovery, Hospital may aim for full cost recovery, Theater may price to fill maximum number of seats
Internal Factors Affecting Pricing Decisions: Marketing Objectives ◼ Other specific objectives include: Set prices low to prevent competition from entering the market, Prices might be reduced temporarily to create excitement or draw more customers. ◼ Nonprofit and public organization may have other pricing objectives such as: University aims for partial cost recovery, Hospital may aim for full cost recovery, Theater may price to fill maximum number of seats