L7-Price - Price Is the amount of money charged for a good...

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Unformatted text preview: Price Is the amount of money charged for a good or service. Is the sum of values consumer exchange for the benefits of having or using the product or service. Factors to consider when setting prices: Marketing objectives Cost Organisational consideration Economy situation at that moment Market and demand Competitor's prices and offers Price elasticity of demand Consumer perceptions of price and value Setting Pricing Policy 1. 2. 3. 4. 5. 6. Selecting the pricing objective Determining demand Estimating costs Analyzing competitors' costs, prices and offers Selecting a pricing method Selecting the final price Setting the price Auto market: Eight price points can be found. Segment Ultimate Gold Standard Luxury Special Needs Middle Ease/Convenience Me Too, but Cheaper Price Alone Example Rolls-Royce Mercedes-Benz Audi Volvo Buick Ford Escort Hyundai Kia For New Product: 1) Prestige Pricing : for status concern 2) Marketskimming pricing : high price 3) Marketpenetration pricing : low price Pricing Strategies For existing product: 1) Costbased : Cost + Profit = Price 2) Breakeven : Price = Cost 3) Buyer/Valuebased : Based on 4) Competitionbased: Based on customer's thinking rivals prices Pricing Strategies Pricing Strategies 5) Productbundle: Based on the 6) Priceadjustment: Based on types 7) Discriminary: Based on market 8) Psychological : Based on segmentation consumer's mind set of customers package 9) Promotional: Temporary pricing ...
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