Chapter 7. Pricing strategies.
At the end of this chapter, you will be able to develop realistic pricing strategies taking into account:
Marketing strategies – pricing strategies
Determination of pricing strategies, taking into account the external environment, internal factors and legal considerations.
Developing pricing strategies (1)
Compliance with provisions
in TPA and PSA particularly
TPA s.45 Anti-competitive
agreements, s.46 Misuse of
market power and s.48
Resale price maintenance.
As an aid for analysis and decision making, draw on tools such as:
500 2000 40006000
Demand for a hypothetical notebook computer at various price points
1Determine the motives for the price attacker and the capabilities of the competing organisation.
2Attempt to achieve superior performance (cost leadership or differentiation) based on customer needs.
3Show the competitor that the battle will not be easy.