Marketing_Management_kotler11_basic

Marketing_Management_kotler11_basic - PricingProducts:...

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Pricing Products:  Pricing Strategies Chapter 11
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  11 - 2 Learning Goals 1. Describe the major strategies for pricing  imitative and new products 2. Understand how companies find a set of  prices that maximize the profits from the total  product mix 3. Learn how companies adjust their prices to  take into account different types of customers  and situations 4. Explore the key issues related to imitating and  responding to price changes
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  11 - 3 Once the top discount  retailer in the U.S. Wal-Mart positioned on  price and Target as  “upscale discount” Kmart tried a value  repositioning approach  which turned to a price  war with Wal-Mart Kmart failed to deliver on  its value proposition Forced into bankruptcy  and closing of nearly 1/3  of stores Kmart emerged from  bankruptcy in May 2003 How are they positioned  now? Case Study Kmart Kmart
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  11 - 4 Definitions Market-Skimming Pricing Setting a high price for a new product to skim  maximum revenues layer by layer from  segments willing to pay the high price. Market-Penetration Pricing Setting a low price for a new product in order  to attract a large number of buyers and a  large market share. Goal 1:  Describe the major strategies for pricing imitative and new products
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  11 - 5 Product Mix  Pricing Strategies Product Line Pricing Setting price steps between product  line items.  Price points Optional-Product Pricing Pricing optional or accessory products  sold with the main product Goal 2:  Understand how companies find a set of prices that maximize profits
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  11 - 6 Product Mix  Pricing Strategies Captive-Product Pricing Pricing products that must be used  with the main product  High margins are often set for supplies Services: two-part pricing strategy  Fixed fee plus a variable usage rate Goal 2:  Understand how companies find a set of prices that maximize profits
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This note was uploaded on 10/01/2011 for the course MKT 702 taught by Professor Eminesozer during the Fall '11 term at University of Michigan.

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Marketing_Management_kotler11_basic - PricingProducts:...

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