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Topic 9: Pricing and Credit Strategies - Coggle Diagram
Topic 9: Pricing and Credit Strategies
Pricing techniques impact every aspect
Customers
Cash Flow
Image: Send important signals to customers: quality, prestige and uniqueness
Profit
Focus on Value
Objective value: the products and services the customer willing to pay if they understood perfectly the benefits of the product or service
Perceived value: they do not have access to 'perfect information' therefore depend upon their perception of what the product or service is worth
Dealing with rising costs
Use cheaper raw materials
Modify the product or services to lower its costs
Focus on improving efficiency
Offer products in smaller sizes or quantities
Add a surcharge
Eliminate discounts, coupons and freebies
Communicate with customers
Three Goals for introduce a new product
Maintaining market share as competition grows
Earning a profit
Getting the product accepted
Evolutionary products
Me-too products
Revolutionary products
Three Pricing Strategies for introduce a new product
Skimming
Life cycle pricing
Penetration
Pricing Established Goods
Discount
Bundling
Geographic pricing
Optional-product pricing
Leader pricing
Captive-product pricing
Dynamic pricing
By-product pricing
Freemium pricing
Suggested retail prices
Price lining
Follow-the-leader pricing
Odd pricing
Pricing for Manufacturers
Absorption costing
Variable or direct costing
Cost-plus pricing
Options for selling on credits
Installment credit
Trade credit
Debit card
Layaway
Credit card