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Pricing management
Eka Ardianto
[email protected]
Provide the value:
Marketing Management
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The Four P Components of the Marketing Mix
SalesforceAdvertising
Communicate the value
Salespromotion
ProductDevelop-
ment
Pricing Distribu-ting
Provide the value
Choose and create
the value
Customersegmentation
Differen-tiation
MarketSelection/
focus
ValuePositi-oning
Branding
Value creation process
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Customer value = Perceived risk
Perceived quality
Monroe, 1990
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SelectingThe Pricing
Objective
DeterminingDemand
EstimatingCosts
Analyzing CompetitorsCosts, Price, Offers
SelectingPricing Method
Selecting
The FinalPrice
Setting Pricing Management
AdaptingThePrice
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SelectingThe Pricing
Objective
DeterminingDemand
EstimatingCosts
Analyzing CompetitorsCosts, Price, Offers
SelectingPricing Method
Selecting
The FinalPrice
SurvivalProfitMarket ShareMarket SkimmingProduct-Quality
AdaptingThePrice
Setting Pricing Management
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SelectingThe Pricing
Objective
DeterminingDemand
EstimatingCosts
Analyzing CompetitorsCosts, Price, Offers
SelectingPricing Method
Selecting
The FinalPrice
Price Sensitivity
Price Elasticity
Demand Curve
AdaptingThePrice
Setting Pricing Management
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SelectingThe Pricing
Objective
DeterminingDemand
EstimatingCosts
Analyzing CompetitorsCosts, Price, Offers
SelectingPricing Method
Selecting
The FinalPrice
Types of Costs and Levels of Production
Accumulated ProductionTarget Costing
AdaptingThePrice
Setting Pricing Management
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SelectingThe Pricing
Objective
DeterminingDemand
EstimatingCosts
Analyzing CompetitorsCosts, Price, Offers
SelectingPricing Method
Selecting
The FinalPrice
Possible
reactions
AdaptingThePrice
Setting Pricing Management
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SelectingThe Pricing
Objective
DeterminingDemand
EstimatingCosts
Analyzing CompetitorsCosts, Price, Offers
SelectingPricing Method
Selecting
The FinalPrice
Markup Pricing
Target-Return Pricing
Perceived-Value Pricing
Value Pricing
Going-Rate PricingAuction-Type Pricing
AdaptingThePrice
Setting Pricing Management
P i d l
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Perceived value
pricing
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Premium
strategyHigh value
strategy
Super value
strategy
Over charging
strategy
Mid value
strategy
Good value
strategy
Rip-off
strategy
False economy
strategy
Economy
strategy
High
Perceivedproduct
quality
Low
Perceivedprice
High Low
perceived qualityperceived risk
perceived qualityperceived risk
perceived qualityperceived risk
perceived qualityperceived risk
perceived qualityperceived risk
perceived qualityperceived risk
perceived qualityperceived risk
perceived qualityperceived risk
perceived qualityperceived risk
Med
Med
Value-based
pricing strategy
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SelectingThe Pricing
Objective
DeterminingDemand
EstimatingCosts
Analyzing CompetitorsCosts, Price, Offers
SelectingPricing Method
SelectingThe Final
Price
AdaptingThePrice
Impact of other mkt. activities
Company pricing policies
Gain-and- risk-sharing
Impact of price on other parties
Setting Pricing Management
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SelectingThe Pricing
Objective
DeterminingDemand
EstimatingCosts
Analyzing CompetitorsCosts, Price, Offers
SelectingPricing Method
SelectingThe Final
Price
AdaptingThePrice
Geographical pricing
Price discounts and allowances
Promotional pricing
Differentiated pricing
Setting Pricing Policy
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Competitive prices for comparable products Purchasing Power and
Customer's limit of willingness to pay
Profit Margin desired by the company
Optimum
Price Corridor Perceived
quality
Perceivedrisk
SelectingThe Final
Price
Considerat ion:
Impact of other marketing activities
Company pricing policies Gain-and-risk sharing
Impact on other parties
AdaptingThe
Price
Geographical Pricing Price discounts and allowances
Promotional Pricing
Differentiated Pricing
+ +
Price Ceiling
Price Floor(Product costs)
Value-based
pricing strategy
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End of slide
