Pricing Strategies

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Pricing Strategies for Business Management

Educación Empresariales Tecnología

Pricing Strategies Price? Cost-Plus Destroyer

The Marketing Mix When two or more companies are producing the same product or service in the same market, they are in direct competition. The marketing mix can become the difference in success or survival.

The Marketing Mix “4 Ps” ,[object Object],[object Object],[object Object],[object Object],[object Object]

What is a Pricing Strategy? ,[object Object],[object Object]

Pricing Strategies ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Cost-Plus Pricing ,[object Object],This may be the approach of small businesses who are not market driven.

Cost-Plus Pricing ,[object Object],[object Object]

Penetration Pricing ,[object Object],[object Object]

Skimming ,[object Object],[object Object],[object Object]

Destroyer Pricing ,[object Object],[object Object]

Value Pricing ,[object Object],[object Object]

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Product line,Product MIX,Product line pricing, Product line pricing refers to the practice of reviewing and setting prices for multiple products in coordination with one another.) It is the process that retailers use to separate goods into various cost categories creating different quality levels in the minds of their customers. Product line pricing is more effective when there are ample price gaps between each category so that the consumer is well informed of the quality differentials. Pricing different products within the same product range at different price points. The greater the features and the benefit obtained the greater the consumer will pay. This form of price discrimination assists the company in maximizing turnover and profits. Ex: Samsung offering different smart phones with different features at different prices. This strategy is used for setting the price for entire product line. In many companies now days develop product line instead of a single product so product line pricing is setting the price on the basis of cost difference between different products in a product line. Marketer also keeps in mind the customer evolution of different features and also competitive prices.

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Use How To Choose The Right Price For Your Product Or Service PowerPoint Presentation Slides to create a visually-sound presentation. This PPT theme helps you in showcasing and setting the selling price of a company product. Consolidate all the elements required to construct an effective pricing plan. Employ this well-structured PowerPoint slideshow to portray what determines the price of a product. Our PPT template is ideal for demonstrating how to calculate the price of a product. Elucidate premium pricing, economy pricing, psychology pricing, penetration pricing, price skimming, and anchor pricing. Utilize this PowerPoint presentation to educate the audience about the basics of how to price a product for retail. Shed light on bundle pricing, value pricing, promotional pricing, cost-based pricing, and loss leader pricing using PPT slideshow. Showcase how pricing of products and services is carried out. Illustrate the law of demand or subscription pricing model by utilizing the impactful visuals of our PowerPoint theme. Cover aspects like dynamic pricing model, pricing options, and three-tier pricing strategy by downloading this PPT presentation. https://bit.ly/3dw3DJg

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All of these questions are answered I just need you to read the answers, understand them and paraphrase them in your own way with keeping the same idea. Just rewrite it with the same idea but in a different phrase than these. Essay Questions: 1. Identify and discuss reasons why firms become so infatuated with pricing. Why is pricing given a great deal of attention? Answer/ ANS: There is no other component of the marketing program that firms become more infatuated with than pricing. There are at least four reasons for the attention given to pricing. First, the revenue equation is pretty simple: Revenue equals the price times quantity sold. There are only two ways for a firm to grow revenue: increase prices or increase the volume of product sold. Rarely can a firm do both simultaneously. Although there are literally hundreds of ways to increase profit by controlling costs and operating expenses, the revenue side has only two variables—one being price and the other being heavily influenced by price. A second reason that firms become enamored with pricing is that it is the easiest of all marketing variables to change. Although changing the product and its distribution or promotion can take months or even years, changes in pricing can be executed immediately in real time. Likewise, product, distribution, or promotion changes can also be quite expensive, especially if research and development (R&D) or production must be rescheduled. Conversely, changing prices is a very low-cost option. The third reason for the importance of pricing is that firms take considerable pains to discover and anticipate the pricing strategies and tactics of other firms. Salespeople learn to read a competitor’s price sheet upside down at a buyer’s desk. Retailers send “secret shoppers” into competitors’ stores to learn what they charge for the same merchandise. In this age of e-commerce, tracking what competitors charge for their goods and services has become so daunting that an entire price-tracking industry has emerged. Finally, pricing is given a great deal of attention because it is considered to be the only real means of differentiation in mature markets plagued by commoditization. When customers see all competing products as offering the same features and benefits, their buying decisions are primarily driven by price. Having a solid understanding of these issues is important because far too many firms and their managers use a seat-of-the-pants approach to pricing by guessing the best price for their goods and services. Guessing is never a good strategy in marketing; it can be downright deadly when it comes to setting prices. 2. In many (if not most) circumstances, cutting prices to increase sales volume is not a good idea. Explain why this is so. What are some alternatives that are preferable to cutting prices? Answer/ ANS: All marketers understand the relationship between price and revenue. However, firms cannot charge high prices without goo.

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Pricing Strategies

1. Pricing Strategies Price? Cost-Plus Destroyer

2. The Marketing Mix When two or more companies are producing the same product or service in the same market, they are in direct competition. The marketing mix can become the difference in success or survival.

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