Chapter 18

Chapter 18 - CHAPTER 18 Pricing Concepts Principles of...

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

View Full Document Right Arrow Icon
CHAPTER 18 Pricing Concepts Principles of Marketing Minneapolis Community and Technical College Instructor: Dave Skogstrom Office: Management Education Center, Room 1050 Phone: 612-659-6422 Email: www.dave.skogstrom@minneapolis.edu .
Background image of page 1

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

View Full DocumentRight Arrow Icon
Chapter Objectives Pricing Concepts CHAPTER    18 1 2 4 7 8 Outline the legal  constraints on pricing. Identify the major  categories of pricing  objectives. Explain price elasticity  and its determinants. List the practical  problems involved in  applying price theory  concepts to actual  pricing decisions. Explain the major cost- plus approaches to  price setting. List the chief  advantages and  shortcomings of using  breakeven analysis in  pricing decisions. Explain the use of yield  management in pricing  decisions. Identify the major  pricing challenges  facing online and  international marketers. 5 3 6
Background image of page 2
CHAPTER 18 Pricing Concepts For the 101th (and maybe final) Time ? You are the marketing manager. What is your responsibility? ? What are the steps in a marketing strategy? ? What do you control? ? What don’t you control? ? When things change in the marketing environment, what do you do?
Background image of page 3

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

View Full DocumentRight Arrow Icon
CHAPTER 18 Pricing Concepts Steps in Setting Price - chapter 18 slides examine the first 3 steps of the price setting process. Steps 4-6 are examined in Chapter 19. Slide 13-12
Background image of page 4
CHAPTER 18 Pricing Concepts The exchange value of a good or service. Value expressed in dollars and cents (in US). Great regulator of the economy -- regulates economic activity. Influences your profits as well as your employment of the factors of production. The exchange value of a good or service. Value expressed in dollars and cents (in US). Great regulator of the economy -- regulates economic activity. Influences your profits as well as your employment of the factors of production. Price Price
Background image of page 5

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

View Full DocumentRight Arrow Icon
CHAPTER 18 Pricing Concepts Remember Your Lessons from Chapter 2 (I know that’s a lot to ask, but humor me by trying) Based on your mission statement: 1. You begin by determining your overall company objectives. 2. Based on those objectives, you set your marketing objectives. 3. Based on your mktg obj., you then establish your mktg strategy. 4. As part of your marketing mix elements, you develop pricing obj. 5. Out of pricing objectives come your pricing strategies. 6. Pricing strategy involves specific pricing policies and procedures. 7. Finally, and not until now, can you come up with your selling price. Setting a PRICE begins by looking at pricing objectives.
Background image of page 6
Pricing Concepts Pricing Objectives – 4 Choices 1. Profitability Objectives -- a) profit maximization b) target return 2. Volume Objectives -- a) sales maximization b) market share 3. Meeting Competition Objectives 4. Prestige Objectives Again, before you set your price, you must first decide what your pricing objectives will be. ? What will influence your Pricing
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 11/26/2011 for the course BUSN 1142 taught by Professor Skogstrom during the Fall '10 term at MCTC.

Page1 / 53

Chapter 18 - CHAPTER 18 Pricing Concepts Principles of...

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