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Pricings Prodcuts: Understanding and Capturing Costumer Value - Coggle…
Pricings Prodcuts: Understanding and Capturing Costumer Value
What is Price?
Price is the only element in the marketing mix that produces revenue; all other elements represent costs
Price is the amount of money charged for a product or service.
Factors to Consider When Setting Prices
Break-Even Analysis and Target Profit Pricing
Target profit pricing: price + break even + make the profit
Break-even pricing: total costs =l to total revenue - profit.
Other Internal and External Considerations Affecting Price Decisions
Internal. Ex : Marketing strategy, objectives, and marketing mix, Organizational considerations,...
External. Ex: The market and demand, Competitors’ strategies and prices, Other environmental factors,...
Company and Product Costs
Cost-based pricing
Variable costs.Ex: Packaging, Raw materials,...
Total costs = Fixed costs + variables cost
Fixed costs.Ex: Rent, untilities, interesrt,..
The Market and Demand
Monopolistic competition
Oligopolistic competition
Pure competition
Pure monopoly
Customer Perception of Value
Value-based pricing
Value-added pricing
Good-value pricing:High-low pricing +Everyday low pricing (EDLP)
Value-added pricing: Pricing power+Cost-based pricing
Good-value pricing
Overall Marketing Strategy, Objectives and Mix
Target costing
Non-price strategies
Price Elasticity of Demand: Inelastic demand+ Elastic demand