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Pricing - PowerPoint PPT Presentation

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Pricing. Internal Factors. Factors to Consider When Setting Prices. Pricing Decisions. Positioning Objectives. Target Market. External Factors. Marketing Objectives. Internal Factors Affecting Pricing Decisions. Marketing-Mix Strategy. Costs. Organizational Considerations.

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    Presentation Transcript
    1. Pricing

    2. Internal Factors Factors to Consider When Setting Prices Pricing Decisions Positioning Objectives Target Market External Factors

    3. Marketing Objectives Internal Factors Affecting PricingDecisions Marketing-Mix Strategy Costs Organizational Considerations

    4. Marketing Objectives that Affect Pricing Decisions Survival Low Prices to Cover Variable Costs and Some Fixed Costs to Stay in Business. Current Profit Maximization Choose the Price that Produces the Maximum Current Profit, Cash Flow or ROI. Marketing Objectives Market Share Leadership Low as Possible Prices to Become the Market Share Leader. Product Quality Leadership High Prices to Cover Higher Performance Quality

    5. Marketing Mix Variables that Affect Pricing Decisions Product Design and Quality Marketing-Mix Strategy Non-Price Factors Distribution Promotion

    6. Market and Demand External Factors Affecting Pricing Decisions Competitors’ Costs, Prices, and Offers Other External Factors Economic Conditions Reseller Needs Government Actions Social Concerns

    7. What is Cost-Plus Pricing and Why is it Popular? Sellers Are More Certain About Costs Than Demand Minimizes Price Competition Perceived Fairness to Both Buyers and Sellers

    8. Product Customer Cost Value Price Price Cost Value Product Customers Value-Based Pricing Cost-Based Pricing Value-Based Pricing

    9. Setting Prices Competition-Based Pricing Going-Rate Company Sets Prices Based on What Competitors Are Charging. Sealed-Bid Company Sets Prices Based on What They Think Competitors Will Charge.