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PRICING, Channel Levels, uses the concept of, Based on, assess…

- - - - Cash discount
        
        Paying bills promptly (quickly)
      - Quantity discount
        
        Buying in large numbers (buying in
        bulk)
      - Functional discount
        (trade discount)
        
        Payment by sellers to channel members
        for doing something
      - Seasonal discount
        
        Buying out of season
    - - Trade-in allowance
        
        Accepting customers’ old products when
        they purchase a new product
      - Promotional allowance
        
        Reward dealers for participating in advertising and sales support programs (B2B – business to business)
  - - - prices that buyers carry in their minds and refer to when looking at a given product.
      - formed by
        
        assessing the buying situation
        
        remembering past prices
        
        noting current prices
    - - sellers consider the psychology of
        prices,
  - - - different customers pay different prices
        for the same product or service.
    - - different prices for different
        locations, but the cost of offering each location is the same
    - - varies prices by the season, the month,
        the day, and even the hour.
    - - different versions of the product are priced
        differently but not according to differences in their costs.
- - - - Pure Competition
      - Monopolistic Competition
      - Oligopolistic Competition
      - Pure Monopoly
- - - - Based on
        
        cost differences between
        the products
        
        customer evaluations of different features
        
        competitors' prices
  - - - price the main products' prices low and set high markups on the supplies (sản phẩm hỗ trợ)
  - - - can promote the sales of products consumers might
        not otherwise buy
      - but the combined price must be low enough
- - - - Set the ceiling for prices
        
        No demand above.
    - - Set the floor for prices
        
        No profits below.
- - - - Everyday low pricing (EDLP)
        
        charging a constant, everyday low price
        
        with few or no temporary price discounts.
      - High-low pricing:
        
        higher prices on an
        everyday basis
        
        running frequent promotions
      - Introduce less-expensive versions of established, brand-name products.
      - Redesign existing brands to offer more quality or lower price.
      - Offer less value but at very low prices.
    - - differentiate offers
      - support higher
        prices
      - build pricing power
    - - customer-oriented
        
        set a price capturing the value consumers place on the benefits they receive from the product.
  - - - Fixed costs/overhead
        
        do not vary
        with production or sales level.
      - Variable costs
        
        vary directly with the
        level of production.
      - Total costs
        
        the sum of the fixed + variable costs for any given level of production.
    - - The experience curve (the learning curve)
    - - add a standard markup to the cost
    - - Break-even pricing/ target profit pricing
        
        Another cost‑oriented pricing approach
        
        To determine the price at which it will break even on the costs or make a target profit .
        
        Break-even chart
        
        shows the total cost and total revenue expected at different sales volume levels.
  - - - Comparison of offering in terms of customer value
      - Strength of competitors
      - Competition pricing strategies
      - Customer price sensitivity
- - - - product’s quality and image must support its higher price,
      - enough buyers want the product at that price.
      - reasonable costs of producing a smaller volume
      - Competitors r unable to enter the market easily and
        undercut the high price.
  - - - The market must be highly price sensitive
      - Production and distribution costs must fall as sales volume increases.
      - low price must help keep out the competition,
      - the
        penetration pricier must maintain its low-price position
    - - penetrate the market quickly
        and deeply
      - attract a large number of buyers
      - win a
        large market share.
- - - - Buyer's
      - Competitor's