Chapter_18_-_Pricing

Chapter_18_-_Pricing - Study Guide for Marketing 431 Summer...

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Unformatted text preview: Study Guide for Marketing 431 Summer 2009 Chapter 18 Price Strategy Legal Issues Price fixing Horizontal price fixing Sherman antitrust act Temptation for oligopolies Price signaling Vertical price fixing Consumer Goods Pricing Act Manufacturers cannot dictate prices to retailers MSRP Recent Supreme court decision not always illegal Price Discrimination Robinson-Patman act It is illegal to sell the same product to different customers at a different price Exceptions Cost Market conditions Study Guide for Chapter 18 Price Strategy Page 1 Marketing 431, Summer 2009 2009 Competition Deceptive pricing Bait and switch Advertised merchandise is not available Quantities limited Reference pricing Comparison prices Have to actually sell one at that price Make it clear this is not the stores price Predatory pricing Selling below your cost of production in order to drive a competitor out of business Price wars Price Theory Study Guide for Chapter 18 Price Strategy Page 2 Marketing 431, Summer 2009 2009 Price Strategies New Product Pricing Three approaches to market entry Skimming Charge high prices Pay back development costs Introductory phase of product life cycle Prices drop as demand picks up and competition increases Penetration Charge low prices Capture market share Growth stage of the product life cycle Discourage competition Experience curve Unit cost decreases 10-30% every time production doubles...
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This note was uploaded on 10/16/2011 for the course MKTG 431 taught by Professor Brucerobertson during the Spring '07 term at S.F. State.

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Chapter_18_-_Pricing - Study Guide for Marketing 431 Summer...

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