leaders set market price Followers benchmark price against leaders Positioning

Leaders set market price followers benchmark price

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… leaders set market price Followers … benchmark price against leaders Positioning & differentiation brand premium PORTER’S FIVE FORCES… analyse COMPETITOR FACTORS Considerations
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FOCUS DIFFERENTIATIO COST LEADERSHIP Porter’s generic competitive strategies Relative price sensitivity Competitor Factors Price sensitivity
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4Cs Pricing Considerations P R I C E COST FACTORS COMPETITORS CUSTOMERS ECONOMICS
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Price elasticity … affect of price changes Resistance … to price rises… even if no fault Income … net/disposable income, credit rating etc Substitutes … both close and alternatives Experience … awareness of fair price/going rate Loyalty … stick with brand, premium pricing Customer Factors Considerations
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4Cs Pricing Considerations P R I C E COST FACTORS COMPETITORS COMPANY CONSIDERATIONS CUSTOMERS ECONOMICS
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Profitability … minimum ROI/ROCE etc Cash flow … may need to generate ready cash Growth … price to enter markets & gain share Share retention … use price to maintain share Positioning/brand … up/mid/down market Portfolio … price across mix of Company Factors Considerations
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PRICING TACTICS Psychological Considerations May sell best at high price... perfume Perceived quality… Clothes, shoes Exclusive… Cars, Sunglasses Gift pack price higher…shows you care Odd pricing £9.99 doesn’t seem £10
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