Principles of Marketing 13-1 Session 13 Pricing Strategies Text:Chapter 11,Appendix 2 制计价蜀易大孝 国际商学院市场营销学系
Principles of Marketing Pricing Strategies Pricing Strategies 13 － 1 13 － 1 Session 13 Text: Chapter 11, Appendix 2
13-2 Outline I.New Product Pricing Strategies II.Product Mix Pricing Strategies III.Adjustment Strategies IV.Initiating Reactions to Price Changes 国际商学院市场营销学系
Outline I. New Product Pricing Strategies I. New Product Pricing Strategies II. Product Mix Pricing Strategies II. Product Mix Pricing Strategies III. Adjustment Strategies III. Adjustment Strategies IV. Initiating & Reactions IV. Initiating & Reactions to Price Price Changes Changes 13－2 13－2
I.New Product Pricing Strategies 13-3 1.Market Skimming Pricing Setting a high price to maximize revenue from the target market segment. Results in Fewer,But More Profitable Sales. 制卧经价蜀易大学 国际商学院市场营销学系
13 － 3 13 － 3 1. Market Skimming Pricing Setting a high price to maximize revenue from the target market segment. Results in Fewer, But More Profitable Sales. I. New Product Pricing Strategies
I.New Product Pricing Strategies 13-4 2.Market Penetration Pricing Setting a low price to attract a large number of buyers and gain a dominant market share. Attract a Large Number of Buyers and Win a Larger Market Share. 制计价蜀易大孝 国际商学院市场营销学系
2.Market Penetration Pricing Setting a low price to attract a large number of buyers and gain a dominant market share. Attract a Large Number of Buyers and Win a Larger Market Share. I. New Product Pricing Strategies 13 － 4 13 － 4
13-5 ll.Product Mix Pricing Strategies >Product Line Pricing Setting Price Steps Between Product Line Items >Optional-Product Pricing Pricing Optional Products Sold With The Main Product >Captive-Product Pricing Pricing Products That Must Be Used With The Main Product >By-Product Pricing Pricing Low-Value By-Products To Get Rid of Them >Product-Bundle Pricing Pricing Bundles Of Products Sold Together 制卧价蜀易大学 国际商学院市场营销学系
13 － 5 13 － 5 II. Product Mix Pricing Strategies ¾Product Line Pricing Setting Price Steps Between Product Line Items ¾Optional-Product Pricing Pricing Optional Products Sold With The Main Product ¾Captive-Product Pricing Pricing Products That Must Be Used With The Main Product ¾By-Product Pricing Pricing Low-Value By-Products To Get Rid of Them ¾Product-Bundle Pricing Pricing Bundles Of Products Sold Together
Ill.Adjustment Strategies I 13-6 Price Adjustment Strategies Discount Segmented Psychological Cash Customer Quantity Product Form Seasonal Location Functional Time Allowances 国际商学院市场营销学系
Price Adjustment Strategies Price Adjustment Strategies Discount Discount Segmented Segmented Psychological Psychological Cash Cash Quantity Quantity Seasonal Seasonal Functional Functional Allowances Allowances Customer Customer Product Form Product Form Location Location Time Time 13 － 6 13 － 6 III. Adjustment Strategies - I
lll.Adjustment Strategies Il 13-7 More Price Adjustment Strategies Promotional > International > Value > Geographical 制计价蜀易大孝 国际商学院市场营销学系
13 － 7 13 － 7 More Price Adjustment Strategies ¾ Promotional ¾ International ¾ Value ¾ Geographical III. Adjustment Strategies - II
IV.Initiating Price Changes 13-8 Price Cuts >Excess Capacity >Falling Market Share >Dominate Market Through Lower Costs Price Increases >Cost Inflation >Overdemand: Company Can't Supply All Customer's Needs 制计价蜀易大孝 国际商学院市场营销学系
13－8 13－8 Price Cuts ¾Excess Capacity ¾Falling Market Share ¾Dominate Market Through Lower Costs Price Increases ¾Cost Inflation ¾Overdemand: Company Can’t Supply All Customer’s Needs IV. Initiating Price Changes
Reactions to Price Changes 13-9 Price Cuts Are Seen by Buyers As: Being Replaced by Newer Models >Current Models Are Not Selling Well > Company is in Financial Trouble > Quality Has Been Reduced Price Comes Down Further Competitors Reactions When: Number of Firms is Small √Product is Uniform Buyers are Well Informed 国际商学院市场营销学系
Reactions to Price Changes Price Cuts Are Seen by Buyers As: ¾ Being Replaced by Newer Models ¾ Current Models Are Not Selling Well ¾ Company is in Financial Trouble ¾ Quality Has Been Reduced ¾ Price Comes Down Further Competitors Reactions When: 9 Number of Firms is Small 9 Product is Uniform 9 Buyers are Well Informed 13 － 9 13 － 9
Assessing/Responding to Competitor's Price Changes (Fig.11.1) 13-10 No Hold current price; Has competitor continue to monitor cut price competitor's price Yes Will lower price negatively affect No our market share Reduce price and profits LYes No Raise perceived quality Can/should effective action be taken？ Improve quality and Yes increase price Launch low-price “fighting brand" 制计价蜀易大孝 国际商学院市场营销学系
Assessing/Responding to Competitor’s Price Changes (Fig. 11.1) 13 －10 13 －10 Has competitor cut price ? Hold current price; continue to monitor competitor’s price No Will lower price negatively affect our market share and profits ? Yes Can/should effective action be taken ? Yes No No Yes Reduce price Raise perceived quality Improve quality and increase price Launch low-price “fighting brand