Unit 8 Pricing

1. Unit 8 Pricing

2. Contents 1. Warm up 2. Term Study 3. Outline of The Texts 4. Discussion 5. More Information Foreign Language Teaching and Research Press

3. 1. Warm up An Introduction: Most other perishable products—milk, trendy sweaters—get cheaper the closer they are to being “expired”. Airline seats get more valuable the closer they get to being “expired”. The most valuable seat is the one that somebody must have an hour before take-off and is willing to pay almost any price for. How do you explain this? Foreign Language Teaching and Research Press

4. 1. Warm up Warm-up questions Text A Text B Foreign Language Teaching and Research Press

5. 1. Warm up Text A • There are two passengers on the same plane, sitting across the aisle from each other, one of whom paid $290 to fly from New York to Miami, one of whom paid $1290. Why? • Do you know what products get more expensive the closer they are to being expired? Text A terms Text B warm-up Foreign Language Teaching and Research Press

6. 1. Warm up Text B • Suppose you have designed a new product and you want to push it to the market. Then in what way will you price your product? • Have you ever heard of “scientific pricing”? Pwin (R)=<sum>NfN x P(R)N. Do you understand this equation? Foreign Language Teaching and Research Press

7. 2. Term Study Terms Text B Text A Foreign Language Teaching and Research Press

8. 2. Term Study (A) Microeconomics Microeconomics a branch of economics thatstudies how households and firms make decisions to allocate limited resources,typically in markets where goods or services are being bought and sold. Microeconomics examines how these decisions and behaviors affect the supply and demand for goods and services, which determines prices; and how prices, in turn, determine the supply and demand of goods and services. Foreign Language Teaching and Research Press

9. 2. Term Study (A) Microeconomics 微观经济学 又称个体经济学、小经济学，是宏观经济学的对称。微观经济学主要以单个经济单位(单个的生产者、单个的消费者、单个市场的经济活动)作为研究对象，分析单个生产者如何将有限的资源分配在各种商品的生产上以取得最大的利润；单个消费者如何将有限的收入分配在各种商品的消费上以获得最大的满足。同时，微观经济学还分析单个生产者的产量、成本、使用的生产要素数量和利润如何确定；生产要素供应者的收入如何决定；单个商品的效用、供给量、需求量和价格如何确定等等。微观经济学是研究社会中单个经济单位的经济行为，以及相应的经济变量的单项数值如何决定的经济学说。 Company Logo Foreign Language Teaching and Research Press

10. 2. Term Study (A) Microeconomics 微观经济学 的主要内容： 第一，均衡价格理论，也称价格理论； 第二，消费者行为理论； 第三，生产理论，即生产者行为理论； 第四，厂商均衡理论，或称市场结构理论； 第五，分配理论； 第六，一般均衡理论与福利经济学； 第七，市场失灵与微观经济政策。 Attention：微观经济学研究的是单个经济单位的经济行为；解决的问题是资源配置；其中心理论是价格理论。 Foreign Language Teaching and Research Press

11. 2. Term Study (A) Macroeconomics Macroeconomics is a branch of economics that deals withthe performance, structure, and behavior of a national or regional economy as a whole. It is the study of the behavior and decision-making of entire economies. Macroeconomists study aggregated indicators such as GDP, unemployment rates, and price indices to understand how the whole economy functions. They develop models that explain the relationship between such factors as national income, output, consumption, unemployment, inflation, savings, investment, international trade and international finance. Foreign Language Teaching and Research Press

12. 2. Term Study (A) Macroeconomics 宏观经济学是以国民经济总过程的活动为研究对象，因为主要考察就业总水平、国民总收入等经济总量，因此，宏观经济学也被称作就业理论或收入理论。 宏观经济学和微观经济学并不分开，“宏观”就是在“微观”的基本思维基础上发展的。但“宏观”又区别于“微观”。“微观”研究的是某个组织、部门或个人在经济社会上怎么样作出决策，以及这些决策会对经济社会有什么影响。而“宏观”则是研究整个的经济社会如何运作，并找出办法，让经济社会运行得更加稳定、发展得更快。 Company Logo Foreign Language Teaching and Research Press

13. 2. Term Study (A) Macroeconomics 宏观经济学的内容： 1）宏观经济理论：国民收入决定理论、消费函数理论、投资理论、货币理论、失业与通货膨胀理论、经济周期理论、经济增长理论、开发经济理论。 2）宏观经济政策：经济政策目标、经济政策工具、经济政策机制（即经济政策工具如何达到既定的目标）、经济政策效应与运用。 3）宏观经济计量模型：根据各派理论所建立的不同模型。这些模型可用于理论验证、经济预测、政策制定，以及政策效应检验。 Text A outline Text B terms Company Logo Foreign Language Teaching and Research Press

14. 2. Term Study (B) Yield Management Yield management, also known as revenue management, isthe process of understanding, anticipating and influencing consumer behavior in order to maximize revenue or profits from a fixed, perishable resource (such as airline seats or hotel room reservations). This process was first discovered by Dr. Matt H. Keller. The challenge is to sell the right resources to the right customer at the right time for the right price. Yield management is a large revenue generator for several major industries. Foreign Language Teaching and Research Press

15. 2. Term Study (B) Yield Management 收益管理，20世纪80年代发展起来的一种现代科学营运管理方法。其核心是通过制定一套灵活的且符合市场竞争规律的价格体系，再结合现代化的微观市场预测及价格优化手段对公司资源进行动态调控，使得公司在实现长期目标的同时，又在每一具体营运时刻充分利用市场出现的机遇来获取最大受益。概括而言，收益管理目标是使公司产品能在最佳的时刻，以最好的价格，通过最优渠道，出售给最合适的顾客。收益管理的基本原理就是通过对市场的细分，对不同目的的顾客在不同时刻的需求进行定量预测，然后通过优化方法来确定动态的控制，最终使得总收益达到最大化，并保持公司的持续增长。 Foreign Language Teaching and Research Press

16. 3. Outline of the Texts Outline Text A Text B Foreign Language Teaching and Research Press

17. 3. Outline of the Texts Text A Outline Introduction: the mystery of pricing Paras. 1-4 There are various factors confounding accepted wisdom about pricing Paras. 5-13 Paras. 14-24 An example: the oddities of airline pricing Text A discussion Text B outline Foreign Language Teaching and Research Press

18. 3. Outline of the Texts Text B Outline Part 1 Paras. 1-8 The smart way to lower prices: discount less but sooner Part 2 Paras. 9-24 The new science of pricing: test and test again Foreign Language Teaching and Research Press

19. 4. Discussion Discussion questions TEXT TEXT TEXT TEXT Text A Text B Foreign Language Teaching and Research Press

20. 4. Discussion Text A • Have you got an idea whether your prices should be kept a secret? In a company, should all staff be informed of the pricing strategy or should the pricing strategy be held a secret by high-level managers? • In today’s information age, is it still possible to keep your pricing strategy a secret from your competitors or your consumers? More information Text B discussion Foreign Language Teaching and Research Press

21. 4. Discussion Text B • Will our society be overwhelmed by markdowns or such “slogans” as “跳楼价”, “赔本甩卖”, etc.? Do you feel excited at it or not very comfortable? • OPEC, CNBC and even money are all actually “devoted” to the topic of “price”. Have you had a further understanding of the role played by pricing in our society? More information Foreign Language Teaching and Research Press

22. 5. More Information Pricing Strategy One of the four major elements of the marketing mix is price. Pricing is an important strategic issue because it is related to product positioning. Furthermore, pricing affects other marketing mix elements such as product features, channel decisions, and promotion. Before the product is developed, the marketing strategy is formulated, including target market selection and product positioning. There usually is a tradeoff between product quality and price, so price is an important variable in positioning. Foreign Language Teaching and Research Press

23. 5. More Information Pricing Strategy • A general sequence of steps for developing the pricing of a new product: • Develop marketing strategy—perform marketing analysis, segmentation, targeting, and positioning. • Make marketing mix decisions—define the product, distribution, and promotional tactics. • Estimate the demand curve—understand how quantity demanded varies with price. Foreign Language Teaching and Research Press

24. 5. More Information Pricing Strategy • Calculate cost—include fixed and variable costs associated with the product. • Understand environmental factors—evaluate likely competitor actions, understand legal constraints, etc. • Set pricing objectives—for example, profit maximization, revenue maximization, or price stabilization (status quo). • Determine pricing—using information collected in the above steps, select a pricing method, develop the pricing structure, and define discounts. Foreign Language Teaching and Research Press

25. 5. More Information The supply and demand model The supply and demand model describes how prices vary as a result of a balance between product availability at each price (supply) and the desires of those with purchasing power at each price (demand). The graph depicts a right-shift in demand from D1 to D2 along with the consequent increase in price and quantity required to reach a new market-clearing equilibrium point on the supply curve (S). Foreign Language Teaching and Research Press

26. 5. More Information Circulation in macroeconomics Foreign Language Teaching and Research Press

27. 商务英语阅读 高等学校英语拓展系列教程 Business English Reading Thank You !