week 8 - Pricing, Logistics, Retailing and Wholesaling 1....

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Pricing, Logistics,  Pricing, Logistics,  Retailing and Wholesaling Retailing and Wholesaling
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Pricing Pricing Objectives 1. Explain how marketing objectives, marketing-mix strategy and  costs and other company factors affect pricing decisions 2. List and discuss factors outside the company that affect pricing  decisions 3. Explain how price setting depends on consumer perceptions of  price and on the price-demand relationship 4. Compare the five general pricing approaches 5. Compare the five general pricing approaches 6. Describe the major strategies for pricing new products 7. Explain how companies find a set of prices that maximises the  profits from the total product mix 8. Explain how companies adjust their prices to take into account  different types of customers and situations 9. Explain why companies decide to change their prices
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Factors affecting pricing  Factors affecting pricing  decisions decisions
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Pricing parameters Pricing parameters Costs Variable costs Total costs Production levels costs Experience curve costs Organisational considerations
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Experience curve Experience curve
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Pricing considerations Pricing considerations Pricing in different types of markets Consumer perceptions of price and value Price and demand relationship Price elasticity of demand Competitor’s prices and offers Other external factors
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Art or science? Art or science? Pricing requires more than technical expertise. It  requires creative judgment and awareness of buyers’  motivations The key to effective pricing is the same one that opens  doors in other marketing functions: a creative awareness  of who buyers are, why they buy and how they make  their buying decisions The recognition that buyers differ in these dimensions is  as important for effective pricing as it is for effective  promotion, distribution or product development
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Know your competitors Competitors’ prices and their reactions to other  companies’ pricing must be considered Each company must learn the price and quality  of their competitors’ offers which may provide a  basis for its own strategy Know both competitors and customers!!
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This note was uploaded on 09/06/2009 for the course MGMT mrkt taught by Professor Arodgers during the Spring '08 term at University of Central Arkansas.

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week 8 - Pricing, Logistics, Retailing and Wholesaling 1....

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