Pricing Strategies - PowerPoint PPT Presentation

Loading...

PPT – Pricing Strategies PowerPoint presentation | free to view - id: 775e00-NmM5Z



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Pricing Strategies

Description:

Pricing Strategies Chapter 26 Cost-Oriented Pricing Markup Pricing difference between cost and price Cost-Plus Pricing costs and expenses, plus desired profit ... – PowerPoint PPT presentation

Number of Views:131
Avg rating:3.0/5.0
Slides: 29
Provided by: Holly177
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Pricing Strategies


1
Pricing Strategies
  • Chapter 26

2
Cost-Oriented Pricing
  • Markup Pricing difference between cost and
    price
  • Cost-Plus Pricing costs and expenses, plus
    desired profit

3
Cost-Oriented Examples
4
Demand-Oriented Pricing
  • Consumers perceived value
  • Number of substitutes available
  • Brand loyalty
  • Minor differences tickets, fridge colors

5
Demand-Oriented Examples
6
Competition-Oriented Pricing
  • Price Above
  • Price Below
  • Price In Line with Competition
  • Ignore Cost and Demand
  • Competitive-Bid Pricing

7
Competition-Oriented Examples
8
Combining Pricing Considerations
  • Cost-Oriented determines the price floor
  • Demand-Oriented determines range
  • Competition-Oriented determines relative position
  • Product to product considerations

9
Pricing Policies
  • One-Price Policy all customers are charged the
    same price
  • Flexible-Price Policy customers pay different
    prices for the same type or amount of merchandise
  • Bargaining takes place with cars, antiques,
    furniture, and jewelry
  • Internet sites name your price

10
One-Price versus Flexible-Price
11
New Product Introduction
  • Skimming Pricing high price when demand is
    greater than supply
  • Penetration Pricing lower price to gain market
    share

12
Skimming versus Penetration
13
Psychological Pricing
  • Techniques that create an illusion for customers
    or that make shopping easier for them

14
Odd-Even Pricing
  • Setting prices that all end in either odd or even
    numbers
  • Odd numbers convey a bargain (9.99, 79,
    845.67)
  • Even numbers convey a quality image (100, 20,
    50)

15
Odd-Even Pricing
16
Prestige Pricing
  • Higher-than-average prices suggest status and
    prestige
  • Many assume higher price equals higher quality

17
Prestige Example
18
Multiple-Unit Pricing
  • Suggests a bargain and helps to increase sales
    volume
  • 3 for 99
  • The 1 for 2, 2 for 3, 3 for 5 dilemma

19
Multiple-UnitExample
20
Bundle Pricing
  • Several complementary products in a package sold
    at a single price
  • Help to sell items that may not have sold on
    their own

21
Bundle Price Example
22
Promotional Pricing
  • Loss leader
  • Special event
  • Rebates

23
Everyday Low Prices
  • Low prices that are set on a consistent basis
    with no intention of raising them or offering
    discounts in the future
  • Sales stability
  • Wal-Mart is famous for this

24
Everyday Low Prices Example
25
Price Lining
  • All items in a certain category are set at the
    same price. 25, 35, and 50.
  • Make the price differences large enough to
    differentiate
  • Allows sales people to easily offer a more
    expensive (more profitable) alternative

26
Price Lining Example
27
Discount Pricing
  • Cash Discounts incentives to pay the bill early
    (2/10, net 30)
  • Quantity Discounts lower price for larger
    quantity
  • Trade Discounts prices to wholesalers versus
    retailers
  • Seasonal Discounts price change based on time
    of year (Christmas lights, mower)

28
Discount Pricing
About PowerShow.com