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Kotler MM 14e 14 Ippt

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12 views18 pages

Kotler MM 14e 14 Ippt

Uploaded by

ekotyas elastrina
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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1

14
Developing Pricing
Strategies and Programs
Synonyms for Price
 Rent  Special assessment
 Tuition  Bribe
 Fee  Dues
 Fare  Salary
 Rate  Commission
 Toll  Wage
 Premium  Tax
 Honorarium

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 14-2


Common Pricing Mistakes
 Determine costs and take traditional industry
margins
 Failure to revise price to capitalize on market
changes
 Setting price independently of the rest of the
marketing mix
 Failure to vary price by product item, market
segment, distribution channels, and purchase
occasion

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 14-3


Consumer Psychology
and Pricing
 Reference prices
 Price-quality inferences
 Price endings
 Price cues

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 14-4


Table 14.1 Possible Consumer
Reference Prices
 “Fair price”  Lower-bound price
 Typical price  Competitor prices
 Last price paid  Expected future price
 Upper-bound price  Usual discounted
price

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 14-5


Tiers in Pricing

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 14-6


Steps in Setting Price
Select the price objective

Determine demand

Estimate costs

Analyze competitor price mix

Select pricing method

Select final price


Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-7
Step 1: Selecting the Pricing Objective

 Survival
 Maximum current
profit
 Maximum market
share
 Maximum market
skimming
 Product-quality
leadership

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-8


Step 2: Determining Demand

Price Sensitivity

Estimating
Demand Curves

Price Elasticity
of Demand
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-9
Figure 14.1 Inelastic and
Elastic Demand

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 14-10


Figure 14.3 Cost per Unit as a
Function of Accumulated
Production

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 14-11


Figure 14.4 The Three Cs Model
for Price-Setting

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 14-12


Step 5: Selecting a Pricing Method
 Markup pricing
 Target-return pricing
 Perceived-value pricing
 Value pricing
 Going-rate pricing
 Auction-type pricing

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 14-13


Figure 14.5 Break-Even Chart for
Determining Target-Return Price
and Break-Even Volume

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 14-14


Geographical Pricing
 Pricing varies by location

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 14-15


Price Discounts and Allowances
 Discount
 Quantity discount
 Functional discount
 Seasonal discount
 Allowance

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 14-16


Promotional Pricing Tactics
 Loss-leader pricing
 Special-event pricing
 Cash rebates
 Low-interest financing
 Longer payment terms
 Warranties and service
contracts
 Psychological
discounting

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-17


Brand Leader Responses to
Competitive Price Cuts

 Maintain price
 Maintain price and add value
 Reduce price
 Increase price and improve quality
 Launch a low-price fighter line

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 14-18

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