MKTG470_Chapter 06

MKTG470_Chapter 06 - Chapter6 Seekprofit Covercosts...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
Revenue and Profit Objectives Seek profit Cover costs Patronage and User-Based Objectives Build demand - Demand maximization - Full capacity utilization Build a user base - Stimulate trial and adoption of new service - Build market share/large user base Chapter 6
Background image of page 1

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

View Full DocumentRight Arrow Icon
What Makes Service Pricing Strategy  Different and Difficult? Harder to calculate Variability—define a “unit of service”  Many services hard to evaluate Time factor Delivery channels Other reasons?
Background image of page 2
The Main Bases for Pricing: Costs Value to customer Competition
Background image of page 3

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

View Full DocumentRight Arrow Icon
Three Main Approaches to Pricing Cost-based pricing Set prices relative to financial costs Value-based pricing Relate price to value perceived by customer Competition-based pricing Monitor competitors’ pricing strategy
Background image of page 4
Cost-based Pricing:  Traditional vs. Activity-based Costing Traditional costing approach Emphasizes expense categories (arbitrary  overhead allocation) May result in reducing value generated for  customers ABC management systems Link resource expenses to variety and  complexity of goods/services produced Yields accurate cost information
Background image of page 5

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

View Full DocumentRight Arrow Icon
Value-based Pricing Understanding Net Value Value exchange will not take place  unless customer sees it Net value = ? Monetary price is not sole outlay.  Others? Customers compare net values
Background image of page 6
Value-based Pricing: Strategies for Enhancing Value Need effective communication Reduce related-monetary costs  Cut other expenses associated with searching, 
Background image of page 7

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

View Full DocumentRight Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/17/2011 for the course MKTG 470 taught by Professor Dr.valenti during the Spring '11 term at Nicholls State.

Page1 / 18

MKTG470_Chapter 06 - Chapter6 Seekprofit Covercosts...

This preview shows document pages 1 - 8. Sign up to view the full document.

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