MKTG
Class 15 - Pricing.pptx

Attract new customers who will purchase other

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Attract new customers … Who will purchase other products Market penetration: price low to attract volume Early in product life cycle to generate buzz & demand Late in product life cycle to milk incremental profits Predatory pricing: discourage competition Iacobucci, “Marketing Management e5 © 2018, 2015
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High Pricing Strategy: determine customers’ willingness to pay, then price right below sensitivity point Price for margins Price for image Price for differentiation Quality Rarity Iacobucci, “Marketing Management e5 © 2018, 2015
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Pricing in the Middle Strategy: reference competition; adjust to corporate and brand strategy Price higher If you offer more benefits If you accrue more brand equity Enhance image Price lower Perception as “good value” Market/macro shifts Iacobucci, “Marketing Management e5 © 2018, 2015
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Pricing in Review Pricing strategies are low, medium, or high Pricing can be used to Shape a brand’s positioning Attract/repel different targets There is a yin and a yang to pricing – it’s economic and psychological 1 5
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