Principles of Marketing 12-1 Session 12 Pricing Considerations and Approaches Text:Chapter 10 制计价蜀易大孝 国际商学院市场营销学系
Principles of Marketing Pricing Considerations and Pricing Considerations and Approaches Approaches Session 12 Session 12 12 － 1 12 － 1 Text: Chapter 10
Outline 12-2 I.Factors Affecting Price Decisions II.The Market and Demand III.Approaches to setting prices 国际商学院市场营销学系
12－1 12－1 12－2 Outline 12－2 I. Factors Affecting Price I. Factors Affecting Price Decisions Decisions II. The Market and Demand II. The Market and Demand III. Approaches to setting III. Approaches to setting prices
1.Factors Affecting Price Decisions 12-3 Internal Factors Marketing Objectives External Factors Marketing Mix Strategy Costs Pricing Organizational Decisions >Nature of the considerations market and demand >Competition >Other environmental factors (economy, resellers, government) 制计价蜀易大孝 国际商学院市场营销学系
I. Factors Affecting Price Decisions Internal Factors Marketing Objectives Marketing Mix Strategy Costs Organizational considerations Internal Factors Marketing Objectives Marketing Mix Strategy Costs Organizational considerations External Factors ¾Nature of the market and demand ¾Competition ¾Other environmental factors (economy, resellers, government) External Factors ¾Nature of the market and demand ¾Competition ¾Other environmental factors (economy, resellers, government) Pricing Decisions Pricing Decisions 12 － 3 12 － 3
Internal Factors Affecting Pricing 12-4 Decisions:Marketing Objectives Survival Low Prices to Cover Variable Costs and Some Fixed Costs to Stay in Business. Current Profit Maximization Marketing Choose the Price that Produces the Maximum Current Profit,Etc. Objectives Market Share Leadership Low as Possible Prices to Become the Market Share Leader. Product Quality Leadership High Prices to Cover Higher Performance Quality and R&D. 制卧经价蜀易大考 国际商学院市场营销学系
Marketing Objectives Survival Low Prices to Cover Variable Costs and Some Fixed Costs to Stay in Business. Current Profit Maximization Choose the Price that Produces the Maximum Current Profit, Etc. Market Share Leadership Low as Possible Prices to Become the Market Share Leader. Product Quality Leadership High Prices to Cover Higher Performance Quality and R & D. Internal Factors Affecting Pricing Decisions: Marketing Objectives 12－4 12－4
Internal Factors Affecting Pricing 12-5 Decisions:Marketing Mix Customers Seek Products that Give them the Best Value in Terms of Benefits Received for the Price Paid. Product Design Nonprice Price Distribution Positions Promotion 制卧经价蜀易大学 国际商学院市场营销学系
Price Product Design Distribution Promotion Nonprice Positions Internal Factors Affecting Pricing Decisions: Marketing Mix 12－5 12－5 Customers Seek Products that Give them the Best Value in Terms of Benefits Received for the Price Paid
Types of Cost Factors that 12-6 Affect Pricing Decisions Total Costs:Sum of the Fixed and Variable Costs for a Given Level of Production Fixed Costs(Overhead) Variable Costs Costs that don't Costs that do vary vary with sales or directly with the production levels. level of production. Executive Salaries,Rent Raw materials 制卧价蜀易大考 国际商学院市场营销学系
Types of Cost Factors that Affect Pricing Decisions 12 － 6 12 － 6 Variable Costs Costs that do vary directly with the level of production. Raw materials Variable Costs Costs that do vary directly with the level of production. Raw materials Fixed Costs (Overhead) Costs that don’t vary with sales or production levels. Executive Salaries, Rent Fixed Costs (Overhead) Costs that don’t vary with sales or production levels. Executive Salaries, Rent Total Costs ：Sum of the Fixed and Variable Costs for a Given Level of Production
Costs Considerations 12-7 Cost Per Unit at Different Levels of Production Per Period SRAC LRAC 囂 Quantity Produced per Day 制卧价策易大考 国际商学院市场营销学系
Costs Considerations Cost per unit 1 2 3 4 SRAC LRAC Quantity Produced per Day 1,000 2,000 3,000 4,000 Cost Per Unit at Different Levels of Production Per Period 12 － 7 12 － 7
Experience Curve 12-8 >（ Or the learning curve indicates that average cost drops with accumulated production experience. > Strategy:price products low;sales increases;costs continue to decrease; and then lower prices further. Risks are present. 制卧价策易大考 国际商学院市场营销学系
Experience Curve ¾ Or the learning curve indicates that average cost drops with accumulated production experience. ¾ Strategy: price products low; sales increases; costs continue to decrease; and then lower prices further. ¾ Risks are present. 12 － 8 12 － 8
External Factors 12-9 Affecting Pricing Decisions Market and Demand Competitors'Costs, Prices,and Offers Other External Factors Economic Conditions Reseller Needs Government Actions Social Concerns 制卧价蜀易大岁 国际商学院市场营销学系
Market and Demand Competitors’ Costs, Prices, and Offers Other External Factors Economic Conditions Reseller Needs Government Actions Social Concerns External Factors Affecting Pricing Decisions 12－9 12－9
Il.The Market and Demand 12-10 Different Types of Markets Pure Competition > Monopolistic Competition Oligopolistic Competition > Pure Monopoly 制卧经价蜀易大考 国际商学院市场营销学系
II. The Market and Demand Different Types of Markets ¾ Pure Competition ¾ Monopolistic Competition ¾ Oligopolistic Competition ¾ Pure Monopoly 12 －10 12 －10