MarketingCh14

MarketingCh14 - Figure 14-1, p. 356: Steps in Setting Price...

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Figure 14-1, p. 356: Steps in Setting Price
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Step 4: Selecting An Approximate Price Level Demand Approaches Skimming- new needed pharmaceutical, Penetration- price very low to reach more customers, Prestige- $3000 Gucci Bag, Price Lining- line of products for different price points, Odd-Even- $9.99 instead of $10, Target- what consumers willing to pay then work backwards, Bundle - Comcast, Yield Management- Airlines making sure their planes are full Cost Approaches Standard Mark-up- set mark-ups for certain groups of products, Cost-Plus –Known cost then bid above that, Experience Curve- as we make more of a product we gain experience and use that for our pricing With the information they now have, managers can now begin to think about setting an actual price. They will want to begin by determining a reasonable starting point for price. There are several approaches they can take.
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Profit-Oriented Approaches Target profit, Target ROI, Target Return on Sales Competition Oriented Approaches
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MarketingCh14 - Figure 14-1, p. 356: Steps in Setting Price...

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