DONE W6 - Chapter 10 - TR2201 Entrepreneurial Marketing...

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TR2201 Entrepreneurial Marketing KWOK Ying Yao [email protected]
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CHAPTER CHAPTER 10 10 Pricing Strategies Pricing Strategies
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Ch. 10: Pricing Strategies 10 - 3 Pricing Is governed both by art and science. Requires balancing a multitude of complex forces. Influences every aspect of a small company. Is an important signal of a product’s or service’s value to customers . Involves both math and psychology.
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Ch. 10: Pricing Strategies 10 - 4 A Strategic Approach to Pricing 3 Potent Forces at work in Pricing: Image Price conveys image Do not underprice – image impacted, lost profits, customers not solely price driven Competition Not necessary to meet or beat pricing Price wars Value
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Ch. 10: Pricing Strategies 10 - 5 Focus on Value The “right” price for a product or service depends on the value it provides for a customer. Two aspects of price: Objective value Perceived value determines the price customers are willing to pay . Value is not synonymous with low price.
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Ch. 10: Pricing Strategies 10 - 6 Dealing with Rising Costs Pass along rising costs Explain the reasons behind price increases Focus on improving efficiency Consider absorbing cost increases Modify the product or service to lower its cost
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Ch. 10: Pricing Strategies 10 - 7 Dealing with Rising Costs Diversify your product line Anticipate rising costs and try to lock in prices of raw materials early Emphasize the value of your company’s product or service to customers
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Ch. 10: Pricing Strategies 10 - 8 What Determines Price? What Determines Price?
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This note was uploaded on 01/18/2012 for the course TR 3001 taught by Professor Kok during the Spring '08 term at National University of Singapore.

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DONE W6 - Chapter 10 - TR2201 Entrepreneurial Marketing...

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