Chapter 9 Pricing

,单击此处编辑母版标题样式,单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,*,*,Chapter,9,Pricing,What is a price,Price,The amount of money charged for a product or service,The sum of all the values that consumers exchange for the benefits of having or using the product or service.,Todays new pricing environment,Fixed price policy,（固定价格方针）,Setting one price for all buyers,Dynamic pricing,（动态定价）,Adjusting prices continually to meet the characteristics and needs of individual customers and situations.,Pricing: an important but difficult decision,The only element in the marketing mix that produces revenue,Changing quickly,One of the most flexible elements,Factors to consider,when setting prices,Product costs,Other internal and external factors,Consumer perceptions of value,Price floor,No profits below this price,Price ceiling,No demand above this price,1. Customer perceptions of value,Value-Based pricing,Setting prices based on buyers perceptions of value rather than on the sellers cost.,Product,Cost,Price,Value,Customers,Cost-based pricing,Customers,Value,Price,Cost,Product,Value-based pricing,Wrong way,Right way,1) Good-Value pricing,Offering just the right combination of quality and good service at a fair price.,“less-expensive version”,“Everyday,low,pricing”,(EDLP),Benz E-Class,2) Value-added pricing,Attaching value-added features and services to differentiate a companys offers and charging higher prices,Value-added pricing can increase pricing,power,Power to escape price competition and to justify higher prices and margins without losing market share.,2.,Company and product costs,Cost-based pricing,Setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk,1) Cost-plus pricing,2) Break-even analysis and target profit pricing,1) Cost-plus pricing,Adding a standard markup,（加价）,to the cost of the product.,Benefits,The simplest method,A similar price and smaller possibility of price wars,A fairer way to both buyers and sellers,Drawbacks,Ignored demand and competitor,2),Break-even,analysis and,target profit pricing,Setting price to break even on the costs of making and marketing a product; or setting price to make a target profit.,Break-even point,Target profits,3. Other internal and external considerations,Internal factors,Marketing strategy,Objectives,Mix,Organisational,External factors,Market and demand,Competitor,Other,1) Marketing strategy,Targeting,Positioning,Generic strategies,Competitive strategies,2) Objectives,Attract new or retain existing,Prevent competition or stabilise the market,Keep loyalty and support of resellers,Avoid government intervention,Create excitement,Help the sales of other products in the companys line,3) Marketing mix strategy,Price,Product design,Distribution,Promotion,Price is a crucial product-,positioning,factor that defines the products market, competition, and design,Price-positioning strategy: Target costing,Pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met.,Nonprice position strategy,Best strategy is not to charge the lowest price, but rather to differentiate the marketing offer to make it worth a higher price.,4) Organisational considerations,Who set the price?,Top management,Marketing department,Pricing department,Product management,Salespeople,5) The market and demand,Pricing in different type of market,Pure competition,（完全竞争）,Market consists of many buyers and sellers trading in a uniform commodity. No single buyer or seller has much effect on the going market price,Pure monopoly,（完全垄断）,Market consists of one seller. This seller has absolute domination on pricing,Monopolistic competition,（垄断竞争）,Market consists of many buyers and sellers who trade over a range of prices rather than a single market price.,Oligopolistic competition,（寡头竞争）,Market consists of a few sellers who are highly sensitive to each others pricing and marketing strategies.,Demand curve,A curve that shows the number of unit the market will buy in a given time period, at different prices that might be charged.,Price elasticity of demand,A measure of the sensitivity of demand to changes in price,3 determinations of price elasticity of demand,Product uniqueness,Substitute product,Income relevance,6) Competitors costs, prices, and offers,Whose offerings are better?,How strong are current competitors?,How does the competitive landscape influence customer price sensitivity?,7) Other external factors,Economic conditions,Resellers,Government,Social concerns,Pricing Strategies,New-Product pricing strategies,1,.,Market-skimming pricing (,市场撇脂定价,),Setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales.,Applying conditions,Matching quality and image, and enough demand,Costs of a smaller volume have to be lower than the benefits by charging more,Competitors should not be easy to enter the market.,2. Market-penetration pricing,（市场渗透定价）,Setting a low price for a new product in order to attract a large number of buyers and a large market share,Applying conditions,Highly price sensitive market,Production and distribution costs must fall as sales volume increases,Product has to be always in the lower prices position,Product mix pricing strategies,Product-line pricing,Optional-product pricing,Captive-product pricing,By-product pricing,Product bundle pricing,1,.,Product-line pricing,Setting different prices for different product in a product line based on cost differences, different perceived features, and competitors price.,2,.,Optional-product pricing,（任选品定价）,The pricing of optional or accessory products along with their main product.,3. Captive-product pricing,（连带品定价）,Setting a price for products that must be used along with a main product.,4. By-product pricing,（副产品定价）,Setting a price for by-products in order to make the main products price more competitive,Main product and by-product can be interchangeable,5. Product bundle pricing,（捆绑定价）,Combining several products and offering the bundle at a reduced price,Price-adjustment strategies,Discount and Allowance pricing,Segmented pricing,Psychological pricing,Promotional pricing,Geographical pricing,International pricing,1. Discount and allowance pricing,（折扣与补贴定价）,Discount,A straight reduction in price on purchases during a stated period of time,Cash discount,A price reduction to buyers who pay their bills promptly.,Quantity discount,A price reduction to buyers who buy large volumes,Functional discount (trade discount),The discount towards trade-channel members who perform certain functions, such as selling, storing, and record keeping,Seasonal discount,A price reduction to buyers who buy merchandise or services out of season,Allowance,Promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturers products in some way,Trade-in allowances,Price reductions given for,tuning in an old item when,buying a new one.,Promotional allowance,Payments or price reductions to reward dealers for participating in advertising and sales support programs,2.,Segmented pricing,（差别定价）,Selling a product or service at two or more prices, where the difference in prices is not based on differences in costs,1,),Customer-segment pricin,g,（顾客差别定价）,Different customers pay different prices for the same product or service,2) Location pricing,A company charges different prices for different locations, even though the cost of offering each location is the same,3) Time pricing,Admission fee,Peak-season,Off-season,颐和园,30,20,天坛公园,15,10,北海公园,10,5,香山公园,10,5,北京动物园,15,10,3.,Psychological pricing,Pricing strategy considers the psychology of prices and not implies the economics; the price is used to say something about the product,1,),Reference prices,（参考定价）,Prices that buyers carry in their minds and refer to when looking at a given product,4. Promotional pricing,Temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales,Harmful effects of promotional pricing,Creating “deal-prone,（优惠交易倾向）,” customers who wait only for the promotion,Eroding a brands value in the eyes of customers,Price wars,5. Geographical pricing,The goods are placed free on board a carrier; the customer pays the freight from the factory to the destination,FOB-origin pricing,The company charges the same price plus freight to all customers, regardless of their location,Uniform-delivered pricing,All customers within a zone pay the same total price; the more distant the zone, the higher the price,Zone pricing,Seller designates some city as a basing point and charges all customers the freight cost from that city to the customer,Basing-point pricing,Seller absorbs all or part of the freight charges,Freight-absorption pricing,6. International pricing,Price change,Reasons for price cuts,Excess capacity,Falling in the face of strong price competition,Company want to dominate the market through lower costs,Reasons for price increase,C,ost inflation,Overdemand,Buyer reaction and competitor reaction,Responding to price changes,Has competitor cut price?,Will lower price negatively affect our market share and profits?,Hold current price; continue to monitor competitors price,Can/should effective action be taken?,YES,YES,NO,NO,NO,Reduce price,Raise perceived quality,Improve quality and increase price,Launch low-price “fighting brand”,YES,