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Chapter 8(a) - Coggle Diagram
Chapter 8(a)
Objective 1
What Is a Price
Price
Objective 2
Major Pricing Strategies
Value-Based Pricing versus Cost-Based Pricing
value-based pricing
cost-based pricing
Customer Value-Based Pricing
Good-value pricing
Everday low pricing (EDLP)
High-low pricing
Value-added pricing
Customer Value-Based Pricing
Cost-based pricing is product driven
Price is set to match perceived value
Value-based pricing is customer driven
Three Major Pricing
Competition and other external factors
Consumer perceptions of value
Product costs
Cost-Based Pricing
Fixed costs
heat
interest
rent
executive salaries
Variable costs
raw materials
packaging
Total costs
Cost-plus pricing
Break-even pricing (target return pricing)
competition based pricing
Objective 3
Other Marketing Strategy, Objectives and Mix
The Market and demand
Organizational Considerations
Pricing In Different Types of Markets
Target costing
Analyzing the Price-Demand Relationship
The Economy and Other External Factors
Reseller's response to price
Government
Economic conditions
Social concerns
Price Elasticity of Demand
Price elasticity
Inelastic demand
Elastic demand