MRKTG PRICING

37問 • 2年前

問題一覧

Is the amount of money charged for a product or a service. More broadly, price is the sum of all the values that customers give up to gain the benefits of having or using a product or service.

Price

Price is only one element of the company's broader marketing strategy. Thús, before setting price, the company must settle on its overall marketing strategy for the product or service.

Marketing Strategies

Pricing may play an essential function in helping to achieve company objectives at many levels. A firm can set prices to draw new customers or profitably keep existing ones.

Objectives

Price choices must be harmonized with product design distribution, and promotion decisions to structure a reliable and valuable integrated marketing program.

Marketing Mix

Management must fix on who withi the organization should set prices. Companies handle pricing in a varien of ways.

Other Organizational Considerations

Both consumer and industrial buyers weigh the price of a product or service against the benefits of possessing it.

Nature of the Market

The market consists of many buyers and sellers trading in a uniform commodity, like wheat, copper, or financial securities.

Pure Competition

The market consists of many buyers and sellers who trade over a range of prices rather than a single market price.

Monopolistic Competition

The market consists of not many sellers who are extremely responsive to each other's pricing and marketing strategies.

Oligopolistic Competition

The market has only one seller. The seller may bea government monopoly (Philippine Postal Service), a private regulated monopoly (a power company), or a private non-regulated monopoly.

Pure Monopoly

Buyers are less price conscious when the product they are buying is inimitable or when it is high in quality, prestige, or exclusiveness.

Demand

Economic conditions can have a strong impact on the firm's pricing strategies.

Economy

Aside from the market and the economy, the company must think about some other factors in its external environment when setting prices.

Other Environmental Factors

Pricing strategies typically alter as the product passes through its life cycle. The introductory stage is especially demanding.

New Product Pricing

Many companies that create new products set high initial prices to "skim" revenues layer by layer from the market. Apple often applies this strategy, called

Market-Skimming Pricing

Instead of setting a high initial price to skim off small but profitable market segments, some companies use (?). Companies set a low preliminary price to break in the market fast and deeply to draw a large number of buyers quickly and gain a huge market share.

Market-Penetration Pricing

Price skimming is a pricing strategy in which a marketer sets a relatively high price for a product or service at first, then lowers the price over time.

Skimming

is the pricing technique of setting a relatively low initial entry price, often lower than the eventual market price, to attracta new customers.

Penetration

is a physiological pricing strategy that sets prices of luxury products to the expectations of a niche class of customers who associate higher prices with superior quality.

Prestige

Also referred to as product line pricing, is a marketing process wherein products or services within a specific group are set at different price points.

Price-lining

A type of psychological pricing where price is set based on customers' perception of a significant difference in cost between products priced at a whole number value and products priced slightly below this whole number.

Odd-Even

is a pricing method that involves identifying the price at which a product will be competitive in the marketplace.

Target

companies sell a package or set of goods or services for a lower price than they would charge if the customer bought all of them separately.

Bundle

is the process of understanding, anticipating, and influencing consumer behavior to maximize yield or profits from a fixed, perishable resource, such as hotel room reservations and airline seats.

Yield Management

involves adding a certain percentage to cost in order to fix the price.

Cost Plus Pricing

In this case, the firm determines the level of sales needed to cover all the relevant fixed and variable costs. is the price at which the sales revenue is equal to the cost of goods sold. In other words, there is neither profit nor loss.

Break-Even Pricing

The most experienced producer benefits from having lower costs than its competitors.

Experience Curve

It is a pricing method in which a seller sets prices with the purpose to make a certain amount of money.

Target profit

It is setting typical prices that will give companies a profit that is a specified percentage, say, 5% of the sales volume.

Target return on sales

Return on investment is one way of considering profits in relation to the capital invested.

Target return on investment

For some products where tradition, a standardized channel of distributión, or other competitive factors dictate the price.

Customary

Subjective feel for the competitors' price or market price using benchmark.

Above, at or below

Deliberately sells a product below its customary price to attract attention to it.

Loss leader

consider the underlying expected customer tastes and preferences more heavily than cost, profit and competition.

Demand-oriented approaches

the cost side of the pricing is given emphasis not the demand side. Price is set using the production and marketing costs and then adding to cover direct expenses, overhead and profit.

Cost-oriented Approaches

involves setting prices for products that will guarantee to make money on each sale.

Profit-oriented Approaches

involve setting prices based on competitors' strategies, costs, prices, and market offerings.

Competition-oriented Approaches

Industrial Revolution

Danny Wee · 16問 · 2年前

Industrial Revolution