emm 4 Class Four Pricing New Products

emm 4 Class Four Pricing New Products - Entrepreneurial...

Info icon This preview shows pages 1–16. Sign up to view the full content.

Entrepreneurial Marketing Emm 4 Pricing New Products & Services
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Introduction Marketing Plan Topics 3X 5 Cards-last call Hand out last week’s Case Today’s lecture/discussion
Image of page 2
Topics lecture/discussion -- Costs , design & pricing --Customer/Prospect perceptions & pricing --Different Pricing Strategies --Profits & pricing --Discuss MPO, sect. 2 “Inside Situation” --Employee of character -- Case discussion-
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Failure is inevitable..learn from it “I have missed more than 9,000 shots in my career. I have lost almost 300 games. On 26 occasions I have been entrusted to take the game winning shot, and I missed. I have failed over and over and over again in my life. And that is why I succeed.” Michael Jordan
Image of page 4
Costs and pricing What does it really cost to produce and deliver your product or service ?
Image of page 5

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Costs & pricing Fixed costs “burn rate” with no sales (e.g. admin, overhead, etc. ) Variable costs to produce , sell, deliver, service Sales -Variable costs(Cogs) -Fixed costs Profit/loss
Image of page 6
Costs & pricing If predicted Sales minus-Variable costs not enough to cover Fixed costs Think again Aim High .Always start prices high and come down, very hard to go up later.
Image of page 7

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Product & pricing What’s the difference Product Features & Benefits ?
Image of page 8
Product & pricing Features Something inherent in the product or service e.g. FedEx overnight delivery Benefits A “value” (benefit) to a user. e.g. wait till last minute to complete document/report/presentation
Image of page 9

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

“People don’t buy a quarter- inch drill. They want a quarter-inch hole” Ted Levitt
Image of page 10
Five reasons people buy 1. Like/trust/believe sales rep 2. Understand what they are buying 3. See value/fit(needs) in product/service 4. Price is “fair”(not necessarily lowest ) 5. Perceive product/service will help (e.g. with productivity, etc)
Image of page 11

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

About Value If customer thinks your price is too high Won’t buy..or Buy but are unhappy & avoid repeat business…and often tells others you are overpriced
Image of page 12
About Value If customer thinks your price is too low You may be seen as second rate …or You make a sale but leave too much $$ “on the table”..and Develop a discounter reputation
Image of page 13

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Usually ..more than price Airfare, phone service, computers never been cheaper. American Customer Satisfaction Index ( 200 companies/40 industries; 1-100) 1994 Today Airlines 72 66 Telecom 81 71 PCs 78 72 Overall 75 79 Price impacts initial purchase, less impact on subsequent satisfaction
Image of page 14
Purchasing- Decision making Low Cost Items: Intuitive decision making convenience, your own experience,.. e.g.food items, inexpensive clothing Mid Priced
Image of page 15

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 16
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern