Principles of Marketing 10-1 Session 10 Pricing Considerations and Approaches Text:Chapter 10 對酒价置邑大孝 国际商学院市场营销学系 University of Intemational Business and Economics
国际商学院 市场营销学系 10－1 Principles of Marketing Pricing Considerations and Approaches Session 10 Text: Chapter 10
Outline 10-2 I.Factors Affecting Price Decisions II.The Market and Demand III.Approaches to setting prices 對计至（竹置多大孝 国际商学院市场营销学系 University of Intemational Business and Economics
国际商学院 市场营销学系 10－2 Outline I. Factors Affecting Price Decisions II. The Market and Demand III. Approaches to setting prices
10-3 I.Factors Affecting Price Decisions 雒對酒价置昌大专 国际商学院市场营销学系 University of Intemational Business and Economics
国际商学院 市场营销学系 10－3 I. Factors Affecting Price Decisions
l.Factors Affecting Price Decisions 10-4 Internal Factors Marketing Objectives Marketing Mix Strategy Pricing External Factors Costs Organizational Decisions >Nature of the considerations market and demand >Competition >Other environmental factors (economy, resellers, government) :對计至（的宜多大差 国际商学院市场营销学系 University of Intemational Business and Economics
国际商学院 市场营销学系 10－4 I. Factors Affecting Price Decisions Internal Factors Marketing Objectives Marketing Mix Strategy Costs Organizational considerations External Factors Nature of the market and demand Competition Other environmental factors (economy, resellers, government) Pricing Decisions
Internal Factors Affecting Pricing Decisions:Marketing Objectives 5 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. 對计至（竹置多大孝 国际商学院市场营销学系 University of Intemational Business and Economics
国际商学院 市场营销学系 10－5 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
Internal Factors Affecting Pricing Decisions:Marketing Mix Customers Seek Products that Give them the Best 10-6 Value in Terms of Benefits Received for the Price Paid. Product Design Nonprice Price Distribution Positions Promotion 计至（竹置多大学 国际商学院市场营销学系 University of Intemational Business and Economics
国际商学院 市场营销学系 10－6 Price Product Design Distribution Promotion Nonprice Positions Internal Factors Affecting Pricing Decisions: Marketing Mix Customers Seek Products that Give them the Best Value in Terms of Benefits Received for the Price Paid
Types of Cost Factors that Affect Pricing Decisions 10-7 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 對至（竹宜多大孝 国际商学院市场营销学系 University of Intemational Business and Economics
国际商学院 市场营销学系 10－7 Types of Cost Factors that Affect Pricing Decisions 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 Total Costs：Sum of the Fixed and Variable Costs for a Given Level of Production
Costs Considerations 10-8 Cost Per Unit at Different Levels of Production Per Period SRAC LRAC 20010 Quantity Produced per Day 對计至（竹質多土孝 国际商学院市场营销学系 University of Intemational Business and Economics
国际商学院 市场营销学系 10－8 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
Experience Curve 10-9 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. 對至（竹置多大孝 国际商学院市场营销学系 University of Intemational Business and Economics
国际商学院 市场营销学系 10－9 Experience Curve 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
Cost per Unit as a Function of Accumulated Production 10-10 Current $10 price B $8 A TI Experience $6 curve $4 $2 100,000 200,000 400,000 800,000 Accumulated Production 對至（竹宜多大学 国际商学院市场营销学系 University of Intemational Business and Economics
国际商学院 市场营销学系 10－10 Cost per Unit as a Function of Accumulated Production