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THE MARKETING MIX - Pricing (pricing is (the cost of exchange in return…
THE MARKETING MIX - Pricing
pricing is
the cost of exchange in return for an offering (Fiona Harris 2017)
decision criteria on viability of an offering
communication device
readily manipulated
means of creating value for customers
developing customer relationships
(Kotler and Armstrong, 2016)
the only element in the marketing mix that generates revenue, everything else is cost (Jobber and Ellis-Chadwick, 2013; Dibb et al,, 2016; Kotler and Armstrong, 2016)
Types of Pricing
competitor based
going rate
how does offering compare in customer value?
how are current competitors?
competitors pricing strategies?
customer based
set on value to customers
Demand
Good value
Value added
Psychological based
cost based
full or total cost approach
break even analysis
direct cost pricing marginal cost pricing
used in a service offering like hotels and restaurants. Also known as second market discounting
cost plus pricing or mark up
law, construction, accountancy
Factors affecting decisions
cost
competition
value
objectives
marketing strategy
STEEPLE
who in org sets price
Product mix pricing
optional product pricin
captive product pricing
product line pricing
by product pricing
product bundle pricing
Business Markets
EVC - economic value to the customer
allowances
seasonal
cash
quantity
trade
Approaches for informing pricing decisions (Grigsby 2015)
Conjoint analysis
Elasticity modelling
Van Westendorp
General survey
Experimentation (Kotler and Armstrong 2016)
Ethical Decisions
descrimination
Dynamic prving
segmented pricing
super sized pricing