1、Price,Price,What is price Price strategies Pricing considerations Examples,1.What is price?,Narrowly defined, price is the amount of money charged for a product or service.Broadly defined, Price is the sum of all the values that consumers exchange for the benefits of having or using the product or s
2、ervice.,Price is one of the most important elements determining a firms market share and profitability.If a price is too high in the minds of consumers, sales will be lost. If a price is too low, revenues may not meet the companys goals for return on investment. Price is also one of the most flexibl
3、e elements of the marketing mix.,2.Price strategies,Premium pricing 保费定价法 Penetration pricing 渗透定价法 Economy pricing 经济定价法 Price skimming 价格吸脂定价法 Psychological pricing 心里定价法 Captive product pricing 垄断产品定价法 Product bundle pricing 产品捆绑定价法,Premium pricingUse a high price where there is a substantial com
4、petitive advantage for example ,rooms in Savoy hotels.Penetration pricingThe price charged for products and services is set artificially low in order to gain market share . Once this is achieved , the price is increased.,Economy pricingMarketing and manufacturing costs are kept to a minimum . Superm
5、arket often have economy brands for soups ,spaghetti ,etc.,Price skimmingCharge a high price because you have a new product type . However , the high price attracts new competitors into the market , and the price falls due to increased supply . DVD players were launched with this strategy.,Psycholog
6、ical pricingThe consumer responds on an emotional , rather than rational , basis . For example , charging 99 cents instead of 1 dollar,Captive product pricing Companies will charge a premium price where the consumer cannot choose a competitive productProduct bundle pricing Seller combine several pro
7、ducts in the same package . This also serves to move old stock . Videos and CDs are often sold using the bundle approach,3.Pricing considerations,Alternative solutions Ease of comparison Unique benefits/Unique Selling Points(USPs) Monetary significance Demand Price sensitivity Complementary costs,St
8、ick tea,Alternative solutions : our stick packaging is unique Ease of comparison : easy to compare price but different to compare taste Unique benefits/Unique Selling Points(USPs) : quality of tea ; stick format Monetary significance : tea is cheap , but the innovative packaging has a high value Dem
9、and : tea consumption is stable , but sales in speciality shops are on the rise . Price sensitivity : consumers are very price sensitive sales decrease when prices increase Complementary costs : none the customer doesnt even need a spoon!,4.Examples,Discounts and Allowances Discounts 折扣 Cash现金 Quant
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