Chap 10 e161

Chapter 10 Pricing Products: Pricing Considerations and Approaches

Learning Goals ,[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Case Study Priceline.com 10 -

Definition ,[object Object],[object Object]

Price has Many Names ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

What is Price? ,[object Object],[object Object],[object Object],[object Object],[object Object]

Online travel seller Orbitz guarantees the lowest price Marketing in Action Click on screenshot for website 10 -

What is Price? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Factors to Consider When Setting Price ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Internal Factors

In these ads, State Farm positions on “relationship,” but Allstate positions on “price” Marketing in Action 10 -

Factors to Consider When Setting Price ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Internal Factors

Discussion Question ,[object Object],[object Object],[object Object],[object Object],[object Object],10 -

Factors to Consider When Setting Price ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Internal Factors

Cost per Unit at Varying Production Levels Figure 10.2 10 -

The Experience Curve Figure 10.3 10 -

Factors to Consider When Setting Price ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Internal Factors

Factors to Consider When Setting Price ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],External Factors

[object Object],Marketing in Action 10 -

The Demand Curve Figure 10.4 10 -

Factors to Consider When Setting Price ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],External Factors

Prices for MP3 players get more competitive with the help of online shopping agents like PriceGrabber.com Marketing in Action Click on screenshot for website 10 -

Factors to Consider When Setting Price ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],External Factors

Major Considerations in Setting Price Figure 10.5 10 -

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],General Pricing Approaches

[object Object],[object Object],[object Object],[object Object],General Pricing Approaches

[object Object],General Pricing Approaches Fixed Costs Total Costs Revenues Sales Volume in Thousands of Units Thousands of Dollars 0 10 20 30 40 1000 800 600 400 200 Break-even point Target Profit $200,000 Quantity To Be Sold To Meet Target Profit

Cost-based versus Value-based Pricing Figure 10.7 10 -

General Pricing Approaches ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Video Snippet Song uses value based pricing

The discount retailer Target has begun to offer “no wait” medical clinics in some stores at lower prices than traditional health care institutions Marketing in Action Source: Business Week 10 -

[object Object],[object Object],[object Object],[object Object],[object Object],General Pricing Approaches

Competitive Prices on Music Downloads Marketing in Action 10 -

Chap 10 e161

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Chap 10 e161