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‘The marketing mix – pricing’ (Factors affecting pricing (Market (Demand,…
‘The marketing mix – pricing’
Types of pricing
cost-based pricing
break-even analysis
direct/marginal cost pricing
-taking into account increase cost as sales go up
Second market discounting
-different prices to different markets
-Also international market
Cost- plus pricing
-mark up pricing
-adding a percentage for profit
competitor-based pricing
Going rate pricing
Competitors current pricing ?
Marketing offering compare ? customer value?
how strong competitors?
Competitive bidding
Charge what they think competitors might
customer based pricing
customer-value-based pricing
market-orientated pricing
Demand pricing
Customers willingness to buy
Good-value pricing
Fair price against quality
Value-added pricing
Adding features or services
-differentiates
-allows higher price charged
Psychological-based pricing
emotional response
Lower price perceptions
Factors affecting pricing
Objectives
Organisational and pricing
Market
Demand
Perceptions
Competition
The economy
margins
Social concerns
Legal issues
Political factors
Product mix pricing
Captive-product pricing
By-product pricing
Optional-product pricing
Product line pricing
Product bundle pricing
Pricing in business markets
variety of discounts to intermediaries
cash
seasonal
quanitity
allowances
trade or functional
Informing price decisions
Grigsby
conjoint analysis
Van Westendorp survey/ price sensitivity analysis
Elasticity analysis
General survey
Kotler and Armstrong
Experimentation
Ethical considerations
Segmented pricing
Super-sized pricing
Dynamic pricing