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18: Chapter Setting the Right Price
Objectives: http://road.uww.edu/road/naidug/260311/
Describe the procedure for setting the right price. Identify the legal and ethical constraints on pricing decisions. Explain how discounts, geographic pricing, and other special pricing tactics can be used to finetune the base price. Discuss product line pricing. Describe the role of pricing during periods of inflation and recession.
Chap. 18 Marketing 7e Lamb Hair McDaniel 2004 South-Western/Thomson Learning
1
1 Steps in Setting the Right Price
Establish pricing goals Estimate costs, demand, and profits Choose a price strategy Fine tune with pricing tactics
Results lead to the right price
Chap. 18 Marketing 7e Lamb Hair McDaniel 2004 South-Western/Thomson Learning
2
1 Pricing Objectives
Profit-Oriented Pricing Objectives Sales-Oriented Pricing Objectives Status Quo Pricing Objectives
Chap. 18 Marketing 7e Lamb Hair McDaniel 2004 South-Western/Thomson Learning
3
1 Price Strategy
A basic, long-term pricing framework, which establishes the initial price for a product and the intended direction for price movements over the product life cycle.

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