Pricing - Pricing • Price includes: • Monetary •...

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Unformatted text preview: Pricing • Price includes: • Monetary • Non-monetary – Risk – Inconvenience – Hassle Pricing Feasibility Set Demand Cost O b j e c t i v e s C o m p e t i t i o n M a r k e t i n g M i x L e g a l E n v i r o n m e n t W h o l e s a l e r s & R e t a i l e r s Monetary & Non-monetary • ( P ₁ (P ₂ (P ) ₃ ) ) Price & Other 3Ps P ↑ Product quality ↑ P ↓ Product quantity ↑ P(monetary) ↑ Promotion ↑ P (monetary ↑ Distribution ↑ P (total) ↑ ↓ Promotion ↑ P (total) ↑ ↓ Distribution ↑ Cost Plus & Demand Based • Cost plus – Most often used – Focus on cost structure – Add mark-up Demand based Focus on consumer Focus on competition In-synch with marketing concept Cost Plus & Demand Based • Cost plus • M → W → R → C • Demand based • M ← W ← R ← C Beginning & ending price • Beginning Price – Pb • Ending Price – Pe • Pb Pe • $10 M $15 • $15 W $20 • $20 R $25 Mark-up % Based on beginning cost (Pb) MU% = Pe - Pb Pb Based on ending price (Pe) MU% = Pe – Pb Pe 4 Pricing Scenarios • Cost plus & MU% on Pb MU% = Pe - Pb – Pb • Cost plus & MU% on Pe MU% = Pe - Pb – Pe 1. Given1....
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This note was uploaded on 03/19/2012 for the course MAR 3023 taught by Professor Philipdowns during the Fall '12 term at Florida State College.

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Pricing - Pricing • Price includes: • Monetary •...

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