kotler11_basic - PricingProducts: PricingStrategies...

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Pricing Products:  Pricing Strategies Chapter 11
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11 - 2 Learning Goals 1. Describe the major strategies for pricing  imitative and new products 2. Understand how companies find a set of  prices that maximize the profits from the total  product mix 3. Learn how companies adjust their prices to  take into account different types of customers  and situations 4. Explore the key issues related to imitating and  responding to price changes
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11 - 3 Definitions Market-Skimming Pricing Setting a high price for a  new product  to skim  maximum revenues layer by layer from segments  willing to pay the  high price . Market-Penetration Pricing Setting a  low price  for a  new product  in order to  attract a large number of buyers and a large  market share. Goal 1:  Describe the major strategies for pricing imitative and new products
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11 - 4 Product Mix  Pricing Strategies Product Line Pricing Setting price steps  between product line   items.  Price points Optional-Product Pricing Pricing optional or  accessory  products  sold with the  main product Goal 2:  Understand how companies find a set of prices that maximize profits
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11 - 5 Product Mix  Pricing Strategies Captive-Product Pricing Pricing products that  must be used  with  the main product   High margins  are often set for supplies Services: two-part pricing strategy  Fixed fee plus a variable usage rate Goal 2:  Understand how companies find a set of prices that maximize profits
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11 - 6 Product Mix  Pricing Strategies By-Product Pricing Pricing  low- value by-products to  get rid of  them Product Bundle Pricing Pricing  bundles  of products sold  together Goal 2:  Understand how companies find a set of prices that maximize profits
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11 - 7 Product Line Pricing Product Line Pricing Setting Price Steps Between Product Line Items i.e. $299, $399 Product Line Pricing Product Line Pricing Setting Price Steps Between Product Line Items i.e. $299, $399 Optional-Product Pricing Optional-Product Pricing Pricing Optional or Accessory Products Sold With The Main Product i.e. Car Options Optional-Product Pricing Optional-Product Pricing Pricing Optional or Accessory Products Sold With The Main Product i.e. Car Options Captive-Product Pricing Captive-Product Pricing Pricing Products That Must Be Used With The Main Product i.e. Razor Blades, Film, Software
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kotler11_basic - PricingProducts: PricingStrategies...

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