ABOUT THIS CONTENT
Basic notes from core MBA marketing course, focusing on pricing issuesSubject: Marketing
Table of Contents
Things To Consider
- Critical issues, pro and con, in adopting a formal or informal pricing strategy
- Points relevant to a specific pricing strategy
- Role of pricing strategies and policies in achieving a balanced position
Historical Perspective
- Pricing based on intuition
- Theories and concepts largely ignored
- Studied little
- Left out of marketing equation
Modern Perspective
- The final and very important focal point
- Helps attain other marketing objectives
- Should be tied to overall business strategy and
- Supported with a focused plan of implementation
Pricing Enables the Marketer To
- Segment markets
- Define products
- Create customer incentives
- Send signals to competitors
Role of Pricing
- Valuable strategic weapon
- Enhance and capitalize on competitive vulnerability
- Immediate impact on bottom line
Establishing Pricing Limits
- Upper bound
- how to measure this?
- economic value of product
- Lower bound
- frequently cost based
- average/marginal considerations
Role of the Customer
3 C’s for new product prices
- Customer
- Company
- Competition
Role of the Customer
- Micromarketing
- Quality vs price considerations
- Odd vs even pricing
- Prestige pricing
Basic Pricing Strategies
- Skimming
- Penetration
- Competitive
Naming a Price
- Within boundaries
- Little sensitivity to price
- Fairness
- More art than science
Conclusions
- Pricing is essential to strategy, not an afterthought
- Integrated framework
- target market
- image
- marketing mix
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