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TOPIC G: Pricing Strategy - Coggle Diagram
TOPIC G: Pricing Strategy
Major Strategies
Competition-based
compare value
strength and pricing of competitors
Customer Value-based
good-value pricing
value-added pricing
Cost-based
cost-plus pricing
break-even pricing
experience/ learning curve
types of costs
Factors Affecting Pricing
market and competition
price elasticity of demand
organisational structure
economic situation
marketing strategy
New Product Pricing
Market Penetration Pricing
sales increase, costs decrease
maintain low-price position
price sensitive
Market Skimming Pricing
low cost of producing small volume
competition not able to enter market with lower prices
quality supports high price
Product Mix Pricing Strategy
Captive Product Pricing
By-product Pricing
Optional Product Pricing
Product Line Pricing
Product Bundle Pricing
Price Adjustments
Promotional Pricing
limited-time
special-event
cash rebates
discounts
free maintenance
Geographical Pricing
FOB- origin pricing
uniform-delivered pricing
zone pricing
base-point pricing
freight-absorption pricing
Psychological Pricing
high price, high quality
reference prices
Dynamic and Online Pricing
change according to:
costs
competitor pricing
customer preferences
market forces
demand
Segmented Pricing
product form pricing
customer-segment pricing
location-based pricing
time-based pricing
International Pricing
laws and regulations
nature of wholesaling and retailing
competitive situations
consumer perceptions and preferences
economic conditions
different marketing objectives in various countries
Discount/ Allowance Pricing
promotional allowance
trade-in allowance
seasonal discount
trade discount
cash discount