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Matakuliah : J0504 - Strategi Pemasaran
Tahun
: 2009
Pricing strategy
Pertemuan 20
Buku 1 Hal: 347-369
Learning Objective
 Strategic Role of Price
 Analyzing the Pricing Situation
 Selecting the Pricing Strategy
 Determining Specific Prices and Policies
Bina Nusantara
Cost Analysis for Pricing Decisions
• Determine the components
of the cost of the product.
• Estimate how cost varies with
the volume of sales.
• Analyze the cost competitive
advantage of the product.
• Decide how experience in
producing the product affects
costs.
• Estimate how much control
management has over costs.
Determining Feasible Prices
Range of feasible prices
Price too high; little or
no demand
Price Ceiling
Price Floor

Nature of demand in target market

Business and marketing strategy

Product differentiation

Competitors’ prices

Prices of substitutes

Product costs
Price too low; no profit possible
SELECTING THE PRICING STRATEGY

How much flexibility exists?

How to position price relative to costs?

How visible to make the price of the
product?
Determinants of Pricing Flexibility
Demand
Competition
Demand-Cost Gap
Costs
Pricing
Objectives
Above
Competition
Skim strategy
Neutral strategy
(same as competition)
Below
Competition
Penetration strategy
Diplomacy rather than
force
Select competitive
confrontations
Competitive
Pricing Issues
Signaling
Target
segments
instead of
volume
Illustrative Price Strategies
Active
strategy
Low
relative
price
Lowactive
strategy
Highactive
strategy
Lowpassive
strategy
Highpassive
strategy
Passive
strategy
High
relative
price
DETERMINING SPECIFIC PRICES AND
POLICIES

Selecting Specific Prices

Policies to Manage Pricing Strategy

Special Pricing Issues
Basis of Determining
Specific Prices
Cost
Demand
Competition
Establishing Pricing Policy and Structure
Policy
Discounts, allowances, returns, and other
operating guidelines
Pricing Structure
Product mix and line pricing relationships
How individual items in the line are priced
in relation to one another
Managing Pricing Strategy
1.
The more that the competitors and customers know about your
pricing, the better off you are. In an information age, it is necessary to
be transparent about prices and the value of a firm’s offerings.
2.
In highly competitive markets, the focus should be on those market
segments that provide opportunities to gain competitive advantage.
Such a focus leads to a value-oriented pricing approach.
3.
Pricing decisions should be made within the context of an overall
marketing strategy that is embedded within a business or corporate
strategy.
4.
Successful pricing decisions are profit oriented, not sales volume or
market share oriented.
Managing Pricing Strategy
5.
6.
7.
8.
9.
10.
Prices should be set according to customers’ perceptions of
value.
Pricing for new products should start as soon as product
development begins.
The relevant costs for pricing are the incremental avoidable
costs.
A price may be profitable when it provides for incremental
revenues in excess of incremental costs.
A central organizing unit should administer the pricing
function. Generally, it is better to avoid letting salespeople
set price, especially without access to profitability
information and specific training in pricing and revenue
management.
Pricing management should be viewed as a process and price
setting as a daily management activity, not a once-a-year
activity.
Special Pricing Situations
Price Segmentation
Value Chain (Distribution Channel) Pricing
Price Flexibility
Product Life Cycle Pricing