Pricing_Concepts_-_Lau

Pricing_Concepts_-_Lau - Pricing Concepts 1 Pricing...

Info iconThis preview shows pages 1–15. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Pricing Concepts
Background image of page 1

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

View Full DocumentRight Arrow Icon
2 Pricing Concepts Price is something of value that is exchanged for something else Barter is an exchange without money or currency
Background image of page 2
3 Pricing Concepts Consumers relate to price in terms of a Demand Schedule
Background image of page 3

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

View Full DocumentRight Arrow Icon
4 Demand Schedule Pizzas Quantity Demanded 1 2 3 4 5 6 Price 20 18 16 14 12 10
Background image of page 4
5 Demand Curve ____________________________ ______________________________________ Price Quantity Desired 16 10 3 6 Movement on the curve
Background image of page 5

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

View Full DocumentRight Arrow Icon
6 Pricing Concepts Consumers relate to price in terms of a Demand Schedule An increase in price relates to a decreased quantity demanded
Background image of page 6
7 Pricing Concepts Organisations relate to price in much the same way as consumers. Orgs are more concerned with labour and component costs.
Background image of page 7

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

View Full DocumentRight Arrow Icon
8 Pricing Concepts Pricing decisions require consideration of the marketing mix
Background image of page 8
9 Pricing Concepts Product Factors: 1. Attributes of the product yielding value e.g, accessories for autos 2. Value of the Brand name 3. The added value of Intangibles
Background image of page 9

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

View Full DocumentRight Arrow Icon
10
Background image of page 10
11 Pricing Concepts Distribution Factors Price determination requires not only what the final buyer will pay but what margin the reseller will require to maintain an acceptable level of profit e.g., Manufacturers suggested retail price
Background image of page 11

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

View Full DocumentRight Arrow Icon
12 Pricing Concepts Promotion Factors Promotion can reinforce in the buyers minds the value of certain product attributes
Background image of page 12
13 Pricing Concepts The Competitive Environment All pricing theory can become irrelevant if competition forces a firm out of the market with lower prices.
Background image of page 13

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

View Full DocumentRight Arrow Icon
14 Pricing Concepts The Competitive Environment Price Competition used in circumstances where price is the primary variable considered when buying a product e.g, most newspaper ads are based on price competition only
Background image of page 14
Image of page 15
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 47

Pricing_Concepts_-_Lau - Pricing Concepts 1 Pricing...

This preview shows document pages 1 - 15. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online