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G. Pricing Strategy - Coggle Diagram
G. Pricing Strategy
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Product Mix Pricing
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3. Captive-product pricing - Pricing products that must be used with the main product (Ex. blades for razors)
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Definition
Price - The amount of money charged for a product or service / the sum of values that customer exchange for the benefits of the product.
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Major Pricing Strategy
1. Customer value-based pricing - Setting the price based on buyers' perceptions of value rather than on the seller's cost
Good-value pricing - Offering just the right combination of quality and good services at a fair price
Value-added pricing - Attaching value-added features and services to differentiate a market offering and charging higher prices
2. Cost-based pricing - Setting the price based on the costs of the producing, distributing and selling the product, plus a fair rate of return
Cost-plus pricing (mark-up pricing) - Adding a standard mark-up to the cost of the product. Setting the price: cost of production plus a mark up price for profit / revenue
Break-even pricing - Setting the price to break even on the costs of marketing ( No profits are made) if the product costs 30c to produce then the the price will be 30c
3. Competition-based pricing - Setting prices based on competitor's strategies, prices, costs and offering.
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