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Chapter 7 Developing Price Strategies and Programs

By Lawrence Stone,2014-02-28 10:18
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Chapter 7 Developing Price Strategies and Programs

选用教材

营销管理

    []菲利普科特勒著第十一版

    上海经济出版社

    第七章 价格策略

教学目的:通过定价与战略方案的讲授,使学生掌握关于“价

    格营销策略”的相关知识,并培养实际运用能力。

    教学重点:如何修订产品的价格以适应变化环境和机会的需

    要?

    教学难点:公司怎样发起价格变动和怎样对价格变动做出反

    应?

    教学时数:6(讲授、讨论、实践) 教学内容与步骤:

    Chapter 7 Developing Price Chapter 7 Developing Price

    Strategies and Programs Strategies and Programs

    Kotler on Marketing

    Sell value, not price. Sell value, not price.

    Chapter Objectives

    ? In this chapter, we focus on three questions: ? In this chapter, we focus on three questions: ? How should a price be set on a product or service for the ? How should a price be set on a product or service for the first time? first time?

    ? How should the price be adapted to meet varying ? How should the price be adapted to meet varying circumstances and opportunities? circumstances and opportunities?

    ? When should the company initiate a price change, and how ? When should the company initiate a price change, and how should it respond to a competitors price change? should it respond to a competitors price change?

    Figure 16.1: Nine Price-Quality Strategies

    Figure 16.2: Price Should Align with Value

    Setting the Price

    ? Step 1: Selecting the pricing objective ? Step 1: Selecting the pricing objective

    ? Survival ? Survival

    ? Maximize current profits ? Maximize current profits

    ? Maximize their market share ? Maximize their market share

    ? Market-penetration pricing ? Market-penetration pricing

    ? Best when: ? Best when:

    ? Market is highly price-sensitive, and a low price stimulates market growth, ? Market is highly price-sensitive, and a low price stimulates market growth,

    ? Production and distribution costs fall within accumulated production ? Production and distribution costs fall within accumulated production

    experience, and experience, and

    ? Low price discourages actual and potential competition ? Low price discourages actual and potential competition

    Many companies engage in market skimming, Many companies engage in market skimming, offering new products at whatever price the market will offering new products at whatever price the market will bear, then over time decreasing the price in order to bear, then over time decreasing the price in order to gain the maximum profit from each market segment. gain the maximum profit from each market segment. Can you think of any products that wouldnt fit this Can you think of any products that wouldnt fit this pricing model? Why not? pricing model? Why not?

    ? Step 2: Determining Demand ? Step 2: Determining Demand

    ? Price sensitivity ? Price sensitivity

    ? Total Cost of Ownership (TCO) ? Total Cost of Ownership (TCO)

    Setting the Price

    ? Tom Nagle offers this list of factors associated ? Tom Nagle offers this list of factors associated with lower price sensitivity with lower price sensitivity

    ? The product is more distinctive ? The product is more distinctive

    ? Buyers are less aware of substitutes ? Buyers are less aware of substitutes

    ? Buyers cannot easily compare the quality of substitutes ? Buyers cannot easily compare the quality of substitutes

    ? The expenditure is a smaller part of the buyers total income ? The expenditure is a smaller part of the buyers total income

    ? The expenditure is small compared to the total cost of the end product ? The expenditure is small compared to the total cost of the end product

    ? Part of the cost is borne by another party ? Part of the cost is borne by another party

    ? The product is used in conjunction with assets previously bought ? The product is used in conjunction with assets previously bought

    ? The product is assumed to have more quality, prestige, or exclusiveness ? The product is assumed to have more quality, prestige, or exclusiveness

    ? Buyers cannot store the product ? Buyers cannot store the product

? Estimating Demand Curves ? Estimating Demand Curves

    ? Price Elasticity of Demand ? Price Elasticity of Demand

    ? Inelastic ? Inelastic

    ? Elastic ? Elastic

    ? Price indifference band ? Price indifference band

    Setting the Price

    ? Step 3: Estimating Cost ? Step 3: Estimating Cost

    ? Types of Cost and Levels of Production ? Types of Cost and Levels of Production

    ? Fixed costs (overhead) ? Fixed costs (overhead)

    ? Variable cost ? Variable cost

    ? Total cost ? Total cost

    ? Average cost ? Average cost

    ? Accumulated Production ? Accumulated Production

    ? Experience curve (Learning curve) ? Experience curve (Learning curve)

? Differentiated Marketing Offers ? Differentiated Marketing Offers

    ? Activity-based cost (ABC) accounting ? Activity-based cost (ABC) accounting ? Target costing ? Target costing

    ? Step 4: Analyzing Competitors Cost, Prices, and ? Step 4: Analyzing Competitors Cost, Prices, and

    Offers Offers

    Setting the Price

    ? Step 5: Selecting a Pricing Method ? Step 5: Selecting a Pricing Method ? Markup Pricing ? Markup Pricing

    Unit Cost = Unit Cost =

    variable cost + (fixed cost/unit sales) variable cost + (fixed cost/unit sales)

? Markup price ? Markup price

    Markup price= Markup price=

    unit cost/ (1 desired return on sales) unit cost/ (1 desired return on sales)

? Target-Return Pricing ? Target-Return Pricing

    Target-return price = Target-return price =

    unit cost + (desired return X investment capital)/unit sales unit cost + (desired return X investment capital)/unit sales Figure 16.8: Break-Even Chart for Determining Target-Return Price and Break-Even Volume

    ? Break-even volume ? Break-even volume

    Break-even volume = fixed cost / (price variable cost) Break-even volume = fixed cost / (price variable cost)

    ? Perceived-Value Pricing ? Perceived-Value Pricing

    ? Perceived value ? Perceived value

    ? Price buyers ? Price buyers

    ? Value buyers ? Value buyers

    ? Loyal buyers ? Loyal buyers

    ? Value-in-use price ? Value-in-use price

    Setting the Price

    ? Value Pricing ? Value Pricing

    ? Everyday low pricing (EDLP) ? Everyday low pricing (EDLP)

    ? High-low pricing ? High-low pricing

    ? Going-Rate Pricing ? Going-Rate Pricing

    ? Auction-Type Pricing ? Auction-Type Pricing

    ? English auctions (ascending bids) ? English auctions (ascending bids)

    ? Dutch auctions (descending bids) ? Dutch auctions (descending bids)

    ? Sealed-bid auctions ? Sealed-bid auctions

    ? Group Pricing ? Group Pricing

    Table 16.1: Effect of Different Bids

    on Expected Profit

     CompanCompanProbabilitExpected CompanCompanProbabilitExpected

     ys ys y of ys ys y of Profit Profit

     Bid Profit Getting Bid Profit Getting

     Award Award

     with This with This

     $ 9,5$ 100 0.81 $ 81 Bid $ 9,5$ 100 0.81 $ 81 Bid

     (Assume(Assume00 00 10,000 600 0.36 216 10,000 600 0.36 216 d) d)

    10,500 1,100 0.09 99 10,500 1,100 0.09 99

    11,000 1,600 0.01 16 11,000 1,600 0.01 16

    Some large entities, both public and private, currently bid Some large entities, both public and private, currently bid online for many products and services. Do you think there will online for many products and services. Do you think there will be a market for consumers to bid on electrical power, like major be a market for consumers to bid on electrical power, like major corporate electricity users do? What about oil for heating? Can corporate electricity users do? What about oil for heating? Can you think of any other products or services with a potential you think of any other products or services with a potential online auction market for home users?online auction market for home users?

    Setting the Price

    ? Step 6: Selecting the Final Price ? Step 6: Selecting the Final Price

    ? Psychological Pricing ? Psychological Pricing

    ? Reference price ? Reference price

    ? Gain-and-Risk-Sharing Pricing ? Gain-and-Risk-Sharing Pricing

    ? Influence of the Other Marketing Elements ? Influence of the Other Marketing Elements

    ? Brands with average relative quality but high relative advertising ? Brands with average relative quality but high relative advertising

    budgets charged premium prices budgets charged premium prices

    ? Brands with high relative quality and high relative advertising ? Brands with high relative quality and high relative advertising

    budgets obtained the highest prices budgets obtained the highest prices

    ? The positive relationship between high advertising budgets and ? The positive relationship between high advertising budgets and

    high prices held most strongly in the later stages of the product high prices held most strongly in the later stages of the product

    life cycle for market leaders life cycle for market leaders

    Setting the Price

    ? Brands with average relative quality but high relative advertising ? Brands with average relative quality but high relative advertising

    budgets charged premium prices budgets charged premium prices

    ? Brands with high relative quality and high relative advertising ? Brands with high relative quality and high relative advertising

    budgets obtained the highest prices budgets obtained the highest prices

    ? The positive relationship between high advertising budgets and ? The positive relationship between high advertising budgets and

    high prices held most strongly in the later stages of the product high prices held most strongly in the later stages of the product

    life cycle for market leaders life cycle for market leaders

    ? Company Pricing Policies ? Company Pricing Policies

    ? Impact of Price on Other Parties? Impact of Price on Other Parties

    Adapting the Price

    ? Geographical Pricing (Cash, Countertrade, Barter) ? Geographical Pricing (Cash, Countertrade, Barter)

    ? Countertrade ? Countertrade

    ? Barter ? Barter

    ? Compensation deal ? Compensation deal

    ? Buyback arrangement ? Buyback arrangement

    ? Offset ? Offset

    ? Price Discounts and Allowances ? Price Discounts and Allowances

    Table 16.2: Price Discounts and Allowances

Cash Discount:

A price reduction to buyers who pay bills promptly. A typical

    example is “2/10, net 30,” which means that payment is due within

    30 days and that the buyer can deduct 2 percent by paying the bill

    within 10 days.

Quantity Discount:

A price reduction to those who buy large volumes. A typical

    example is “$10 per unit for less than 100 units; $9 per unit for 100

    or more units.” Quantity discounts must be offered equally to all

customers and must not exceed the cost savings to the seller. They

    can be offered on each order placed or on the number of units

    ordered over a given period.

    Adapting the Price

    ? Promotional Pricing ? Promotional Pricing

    ? Loss-leader pricing ? Loss-leader pricing

    ? Special-event pricing ? Special-event pricing

    ? Cash rebates ? Cash rebates

    ? Low-interest financing ? Low-interest financing

    ? Longer payment terms ? Longer payment terms

    ? Warranties and service contracts ? Warranties and service contracts

    ? Psychological discounting ? Psychological