logging in or signing up marketing kanwalgurleen Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 335 Category: Entertainment License: All Rights Reserved Like it (0) Dislike it (0) Added: November 12, 2008 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... Premium member Presentation Transcript Pricing Concepts : 1 Pricing Concepts Course Instructor: Kanwal Gurleen Lecturer, LSB Learning Objectives : 2 Learning Objectives 1. Discuss the importance of pricing decisions to the economy and to the individual firm. 2. List and explain a variety of pricing objectives. 3. Explain the role of demand in price determination. Learning Objectives (continued) : 3 Learning Objectives (continued) 4. Understand the concept of yield management systems. 5. Describe cost-oriented pricing strategies. 6. Demonstrate how the product life cycle, competition, distribution and promotion strategies, customer demands, the Internet and extranets, and perceptions of quality can affect price. Learning Objectives : 4 Learning Objectives 7. Describe the procedure for settingthe right price. 8. Identify the legal and ethical constraints on pricing decisions. 9. Explain how discounts, geographic pricing, and other special pricing tactics can be used to fine-tune the base price. Learning Objective : 5 Learning Objective Discuss the importance of pricing decisions to the economy and to the individual firm. The Importance of Price : 6 The Importance of Price To the consumer...Price is the cost of something In the broadest sense, price allocates resources in a free-market economy To the seller...Price is revenue and profit source What is Price? : 7 What is Price? Price is that which is given up in an exchange to acquire a good or service. The Importance of Priceto Marketing Managers : 8 The Importance of Priceto Marketing Managers The Importance of Price : 9 The Importance of Price Marketers must select a price that is not too high or not too low, a price that equals the perceived value to target consumers Trends Influencing Price Setting : 10 Trends Influencing Price Setting Learning Objective : 11 Learning Objective List and explain a variety of pricing objectives. Pricing Objectives : 12 Pricing Objectives Profit-Oriented Pricing Objectives : 13 Profit-Oriented Pricing Objectives Profit Maximization : 14 Profit Maximization Setting prices so that total revenue is as large as possible relative to total costs. Return on Investment : 15 Return on Investment ROI = Net Profit after taxes Total assets Sales-Oriented Pricing Objectives : 16 Sales-Oriented Pricing Objectives Market Share : 17 Market Share A company’s product sales as a percentage of total sales for that industry. Sales Maximization : 18 Sales Maximization Short-term objective to maximize sales Ignores profits, competition, and the marketing environment May be used to sell off excess inventory Status Quo Pricing Objectives : 19 Status Quo Pricing Objectives Maintain existing prices Meet competition’s prices Status Quo Pricing Objectives Learning Objective : 20 Learning Objective Explain the role of demand in price determination. Demand and Supply : 21 Demand and Supply Elasticity of Demand : 22 Elasticity of Demand Consumers’ responsiveness or sensitivity to changes in price. Elasticity of Demand : 23 Elasticity of Demand Elasticity of Demand : 24 Elasticity of Demand Factors that Affect Elasticity : 25 Factors that Affect Elasticity Learning Objective : 26 Learning Objective Understand the concept of yield management systems. Yield Management Systems : 27 Yield Management Systems A technique for adjusting prices that uses complex mathematical software to profitably fill unused capacity. YMS Yield Management Systems : 28 Yield Management Systems Learning Objective : 29 Learning Objective Describe cost-oriented pricing strategies. The Cost Determinant of Price : 30 The Cost Determinant of Price The Cost Determinant of Price : 31 The Cost Determinant of Price Markup Pricing : 32 Markup Pricing Break-Even Pricing : 33 Break-Even Pricing Learning Objective : 34 Learning Objective Demonstrate how the product life cycle, competition, distribution and promotion strategies, customer demands, the Internet and extranets, and perceptions of quality can affect price. Other Determinants of Price : 35 Other Determinants of Price Stages in the Product Life Cycle : 36 Stages in the Product Life Cycle Distribution Strategy : 37 Distribution Strategy The Impact of the Internet : 38 The Impact of the Internet Allows price and product comparisons Prices are coming down Data collection allows sellers to tailor products and prices Extranet : 39 Extranet A private electronic network that links a company with its suppliers and customers. Prestige Pricing : 40 Prestige Pricing Charging a high price to help promote a high-quality image. Indicators of Quality : 41 Indicators of Quality Learning Objective : 42 Learning Objective Describe the procedure for setting the right price. Steps in Setting the Right Price : 43 Steps in Setting the Right Price Pricing Objectives : 44 Pricing Objectives Price Strategy : 45 Price Strategy A basic, long-term pricing framework, which establishes the initial price for a product and the intended direction for price movements over the product life cycle. Choosing a Price Strategy : 46 Choosing a Price Strategy Price Skimming : 47 Price Skimming Penetration Pricing : 48 Penetration Pricing A pricing policy whereby a firm charges a relatively low price for a product initially as a way to reach the mass market. Penetration Pricing : 49 Penetration Pricing Penetration Pricing : 50 Penetration Pricing Price Fixing : 51 Price Fixing An agreement between two or more firms on the price they will charge for a product. Predatory Pricing : 52 Predatory Pricing The practice of charging a very low price for a product with the intent of driving competitors out of business or out of a market. Learning Objective : 53 Learning Objective Explain how discounts, geographic pricing, and other special pricing tactics can be used to fine-tune the base price. Tactics for Fine-Tuning the Base Price : 54 Tactics for Fine-Tuning the Base Price Tactics for Fine-Tuning the Base Price : 55 Tactics for Fine-Tuning the Base Price Value-Based Pricing : 56 Value-Based Pricing The price is set at a level that seems to the customer to be a good price compared to the prices of other options. Special Pricing Tactics : 57 Special Pricing Tactics You do not have the permission to view this presentation. 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marketing kanwalgurleen Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 335 Category: Entertainment License: All Rights Reserved Like it (0) Dislike it (0) Added: November 12, 2008 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... Premium member Presentation Transcript Pricing Concepts : 1 Pricing Concepts Course Instructor: Kanwal Gurleen Lecturer, LSB Learning Objectives : 2 Learning Objectives 1. Discuss the importance of pricing decisions to the economy and to the individual firm. 2. List and explain a variety of pricing objectives. 3. Explain the role of demand in price determination. Learning Objectives (continued) : 3 Learning Objectives (continued) 4. Understand the concept of yield management systems. 5. Describe cost-oriented pricing strategies. 6. Demonstrate how the product life cycle, competition, distribution and promotion strategies, customer demands, the Internet and extranets, and perceptions of quality can affect price. Learning Objectives : 4 Learning Objectives 7. Describe the procedure for settingthe right price. 8. Identify the legal and ethical constraints on pricing decisions. 9. Explain how discounts, geographic pricing, and other special pricing tactics can be used to fine-tune the base price. Learning Objective : 5 Learning Objective Discuss the importance of pricing decisions to the economy and to the individual firm. The Importance of Price : 6 The Importance of Price To the consumer...Price is the cost of something In the broadest sense, price allocates resources in a free-market economy To the seller...Price is revenue and profit source What is Price? : 7 What is Price? Price is that which is given up in an exchange to acquire a good or service. The Importance of Priceto Marketing Managers : 8 The Importance of Priceto Marketing Managers The Importance of Price : 9 The Importance of Price Marketers must select a price that is not too high or not too low, a price that equals the perceived value to target consumers Trends Influencing Price Setting : 10 Trends Influencing Price Setting Learning Objective : 11 Learning Objective List and explain a variety of pricing objectives. Pricing Objectives : 12 Pricing Objectives Profit-Oriented Pricing Objectives : 13 Profit-Oriented Pricing Objectives Profit Maximization : 14 Profit Maximization Setting prices so that total revenue is as large as possible relative to total costs. Return on Investment : 15 Return on Investment ROI = Net Profit after taxes Total assets Sales-Oriented Pricing Objectives : 16 Sales-Oriented Pricing Objectives Market Share : 17 Market Share A company’s product sales as a percentage of total sales for that industry. Sales Maximization : 18 Sales Maximization Short-term objective to maximize sales Ignores profits, competition, and the marketing environment May be used to sell off excess inventory Status Quo Pricing Objectives : 19 Status Quo Pricing Objectives Maintain existing prices Meet competition’s prices Status Quo Pricing Objectives Learning Objective : 20 Learning Objective Explain the role of demand in price determination. Demand and Supply : 21 Demand and Supply Elasticity of Demand : 22 Elasticity of Demand Consumers’ responsiveness or sensitivity to changes in price. Elasticity of Demand : 23 Elasticity of Demand Elasticity of Demand : 24 Elasticity of Demand Factors that Affect Elasticity : 25 Factors that Affect Elasticity Learning Objective : 26 Learning Objective Understand the concept of yield management systems. Yield Management Systems : 27 Yield Management Systems A technique for adjusting prices that uses complex mathematical software to profitably fill unused capacity. YMS Yield Management Systems : 28 Yield Management Systems Learning Objective : 29 Learning Objective Describe cost-oriented pricing strategies. The Cost Determinant of Price : 30 The Cost Determinant of Price The Cost Determinant of Price : 31 The Cost Determinant of Price Markup Pricing : 32 Markup Pricing Break-Even Pricing : 33 Break-Even Pricing Learning Objective : 34 Learning Objective Demonstrate how the product life cycle, competition, distribution and promotion strategies, customer demands, the Internet and extranets, and perceptions of quality can affect price. Other Determinants of Price : 35 Other Determinants of Price Stages in the Product Life Cycle : 36 Stages in the Product Life Cycle Distribution Strategy : 37 Distribution Strategy The Impact of the Internet : 38 The Impact of the Internet Allows price and product comparisons Prices are coming down Data collection allows sellers to tailor products and prices Extranet : 39 Extranet A private electronic network that links a company with its suppliers and customers. Prestige Pricing : 40 Prestige Pricing Charging a high price to help promote a high-quality image. Indicators of Quality : 41 Indicators of Quality Learning Objective : 42 Learning Objective Describe the procedure for setting the right price. Steps in Setting the Right Price : 43 Steps in Setting the Right Price Pricing Objectives : 44 Pricing Objectives Price Strategy : 45 Price Strategy A basic, long-term pricing framework, which establishes the initial price for a product and the intended direction for price movements over the product life cycle. Choosing a Price Strategy : 46 Choosing a Price Strategy Price Skimming : 47 Price Skimming Penetration Pricing : 48 Penetration Pricing A pricing policy whereby a firm charges a relatively low price for a product initially as a way to reach the mass market. Penetration Pricing : 49 Penetration Pricing Penetration Pricing : 50 Penetration Pricing Price Fixing : 51 Price Fixing An agreement between two or more firms on the price they will charge for a product. Predatory Pricing : 52 Predatory Pricing The practice of charging a very low price for a product with the intent of driving competitors out of business or out of a market. Learning Objective : 53 Learning Objective Explain how discounts, geographic pricing, and other special pricing tactics can be used to fine-tune the base price. Tactics for Fine-Tuning the Base Price : 54 Tactics for Fine-Tuning the Base Price Tactics for Fine-Tuning the Base Price : 55 Tactics for Fine-Tuning the Base Price Value-Based Pricing : 56 Value-Based Pricing The price is set at a level that seems to the customer to be a good price compared to the prices of other options. Special Pricing Tactics : 57 Special Pricing Tactics