Methods companies use to price their products (PS)

The most common pricing procedure (C-PP)

The price of product and services is based on the customer. The pricing is based on market conditions (C-DP)

These decisions thoughtfully and implementing them effectively to maximize profitability is what we call “Strategic Pricing” (PSP)

Differences in pricing across customer or applications (value to customer) (V-B)

Companies anticipate destructive events and develop strategies in advance to deal with them (Proa

Company evaluates its success at price management. Invest rather than market share and growth relative to competitors (Prof-driv)

Refers to the process of delivering the products and services to the customers. -established market by creating different product and service offers. (VC)

Value based pricing involves offering of customers “good value” (TROVIP)

Best product/service we can offer to the customer? (P-C-P-V-C)

Best value we can offer to the customers? (C-V-P-C-P)

If the cost-based price proves ___, the manager may fix the dissappointing sales by allowing ___ in the price (U , F)

Is a pricing strategy that prioritizes the economic value of a good, requiring accurate of this value to determine the appropriate price (EEV)

refers to savings or income increases a customer gains from a product (MV)

Focuses on a products ability to create innate customer satisfaction (PV)

Measure of the benefit delivered from a good or service to an individual (EV)

One product to another (DV)

Multiple participants in the buying process (INI, US, INF, DEC, APP, BUY, GAT)

How to conduct value-based market segmentation (DBSC, IDVD, DOCA, CPaSS, CDSC, DSMaF)

Economic theory suggests setting prices at the demand curve’s equilibrium point. (PS)

The process of setting price Sett pri obj, Est the prod dem, ana the com pri, sett the pri meth, sele the pri meth

Managers must make strategic pricing choices to maximize growth profitably, focusing on price competition PC

Module 4 ^

Is how a company decides how much to charge for goods or services P Struc

Your structure prices the product competitively, you signal to consumers start buying your product is a good deal Conv Val

You can use a pricing structure to attract customers. If you want to attract a broad range of customers, a low-priced product structure might be effective Att Cus

A price structure allows you to create product tiers, each tier can include products with unique features and prices, and it may have its own group of competitive products Cr Ti

Price structures can allow you to establish product exclusivity. Part of the allure of a high-priced product is that it’s hard to get. Not everyone can afford the product and, by attaining it. You can achieve a certain status level. Est Exc

A price structure that can help align your sales strategy and marketing. price structure allows you to send a message to consumers about the kind of product you offer in about your company Al Mark

Is the pricing strategy in which a company charges different customers different prices for the same product or service. This can be done either by offering different levels of service or by targeting different customer segments that is often used to make maximize profits or to attract a wider variety of customers. companies may also use it to differentiate their products in the market. Seg Pri

Having a price structure can be beneficial because it can: Conv val, att cus, crea tier, estab excl

Is a pricing strategy in which a company charges different prices to different customer segments, based on their perceived value or ability to pay. Cus-seg pri

Is a pricing strategy in which different versions of a product such as different sizes or colors are priced differently Pro-form pri

It’s a pricing strategy in which different prices are charged for the same product based on its location. Loc pri

Is a pricing strategy in which prices are adjusted based on the time of the day, day of the week, or other factors Tim Pri

Forms of segmented pricing Cus-seg pri, prod-for pri, loc pri, tim pri

Advantages of segmented pricing Inc Pro, Inc Rev, Att Cus, Mor Fle, Dif Pro

Disadvantages of segmented pricing Pr Dis, Com Pri Str, Inc Com, Hig Cos, Une Pra

Three mechanics to form a segmented price structure Off con, pri met, pri fen

A seller can submit the market by configuring different offers, consisting of different bundles of features and services for different segments. Off con

These are units to which price is applied. It also defines what the buyer will see per unit of price paid. (terms of exchange) Pri met

It means to charge different customers, different price levels for the same products and services using the same metrics. this could be a fixed criteria that customers must need to qualify for a lower price Pri Fen

Uses _ as a pricing strategy to maximize profits from perishable inventory, such as hotel rooms and airline seats Yie Man

Is a companies approach to determining the price at which it offers a good or service to the market Pri pol

Your business likely understanda who its competitors arw and what they charge consumers. (Comp)

You might choose a pricing policy to meet a specific profit goal for your company (Prof goa)

Pricing policies directly affect how many people buy your company’s product and how much they purchase (sal__ tot__s)

The financial circumstances of your comapny may enable it to prioritize market strategy over immediate profit, or you may need to earn revenue as soon as possible to remain in business (fir_ heal__)

Companies often react to market shifts by changing prices (flexi)

To protect consumers, the government regulates the pricing of certain goods and services (gov regu)

Increasingly, companies that sell vast amounts of goods may automate pricing with specialized software

If your company sells the same product in wholesale, retail, or other venues, pricing policies may differ to each one (sal ven)

Objectives for pricing policies Pro, firm surv, limi comp, gai mar shar, acces, consu sati

Process of setting price Set pri obj, est the prod dem, ana the comp pri, sett the pric meth, selec the pric pol

Managers must make strategic pricing choices to maximize growth profitably, focusing on price competition (pric comp)