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PRICE (The monetary or exchange value of a product/service) - Coggle…
PRICE (The monetary or exchange value of a product/service)
Context & Key Determinants (Pricing Environment)
Internal Factors (Company Centric)
Costs: Fixed, Variable, and Total costs of production
Break-Even Point: Minimum price required to cover all expenses
Marketing Objectives: Survival, Profit maximization, or Market share leadership
External Factors (Market Centric)
Value Perception: Customer willingness to pay based on Brand Equity
Supply & Demand: Price elasticity (how demand fluctuates with price changes)
Macroeconomics: Inflation, exchange rates, and government regulations
Competitors: Direct and indirect rival pricing strategies
Existential Types by Market Structure (Economic Types)
Perfect Competition
Market Price: Firms are "price takers", dictated entirely by supply/demand
Monopolistic Competition
Differentiated Pricing: Prices vary based on unique features and branding
Oligopoly
Status Quo Pricing: Few large firms matching each other's prices to avoid price wars
Monopoly
Monopoly Price: Set by a single dominant provider (often regulated by government)
Existential Types by Target Audience (B2B, B2C, B2G)
B2B (Business to Business)
Wholesale Price: Discounted prices for distributors buying in bulk
Geographical Pricing: Prices adjusted based on shipping and location costs
B2C (Business to Consumer)
Retail Price (MSRP): Manufacturer's Suggested Retail Price for final users
Direct-to-Consumer (DTC): Eliminating middlemen to offer lower prices
B2G (Business to Government)
Tender/Bid Pricing: Competitive sealed bids for public and state contracts
Strategic & Psychological Types (Actionable Pricing)
Market Entry Strategies
Penetration Pricing: Very low initial price to capture market share quickly
Price Skimming: High initial price to maximize revenue from early adopters
Product Mix Pricing
Optional-Feature Pricing: Low base price with paid add-ons or accessories
Captive-Product Pricing: Cheap main product, expensive consumables (e.g., printers & ink)
Product Bundle Pricing: Combining several products for a reduced total price
Psychological & Dynamic Pricing
Charm Pricing: Ending prices in .99 or .95 to appear significantly cheaper
Surge/Dynamic Pricing: Real-time price adjustments based on immediate demand (e.g., Uber, Airlines)
Premium/Prestige Pricing: Keeping prices artificially high to signal luxury and exclusivity