MMC (Marketing Philosophies ( The holistic marketing concept is based on…
, Value-Based vs Cost-Based
The amount of money charged for a
product or service.More broadly,
The sum of all the values customers
exchange for the benefits of having or using
the product or service.
, Factors to consider when setting price
:check:Customer perceptions of value
:check:Price Ceiling - No demand above this price
:check:Price Floor - No profits below this price
:check:Marketing strategy, objectives, and mix
:check:Nature of the market & demand
:check:Competitors’ strategies & prices
, Price adaption
Companies do not set a single price, but rather develop a pricing structure that reflects variations in geographical demand and costs, market-segment requirements, purchase timing, order levels, delivery frequency, guarantees, service contracts and other factors. As a result of discounts, allowances and promotional support, a company rarely realizes the same profit from each unit of a product that it sells.
, New Product Pricing
1. Market-Skimming Pricing - Setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales.
- Market-Penetration Pricing - Setting a low price for a new product in order to attract a large number of buyers and a large market share.
), Core Marketing Concepts
, Marketing Communications
, Market Environment