Transcript Segment Example

Price
Is the amount of money charged
for a good or service.
Is the sum of values consumer
exchange for the benefits of
having or using the product or
service.
Factors to consider when setting prices:
Marketing objectives
 Cost
 Organisational consideration
 Economy situation at that moment
 Market and demand
 Competitor’s prices and offers
 Price elasticity of demand
 Consumer perceptions of price and
value

Setting Pricing Policy
1.
2.
3.
4.
5.
6.
Selecting the pricing objective
Determining demand
Estimating costs
Analyzing competitors’ costs, prices and
offers
Selecting a pricing method
Selecting the final price
Setting the price
Auto market: Eight price points can be found.
Segment
Example
Ultimate
Gold Standard
Luxury
Special Needs
Middle
Ease/Convenience
Me Too, but Cheaper
Price Alone
Rolls-Royce
Mercedes-Benz
Audi
Volvo
Buick
Ford Escort
Hyundai
Kia
Pricing Strategies
For New Product:
1) Prestige Pricing : for status concern
2) Market-skimming
pricing : high price
3) Market-penetration
pricing : low price
Pricing Strategies
For existing product:
1) Cost-based : Cost + Profit = Price
2) Break-even : Price = Cost
3) Buyer/Value-based : Based on
customer’s thinking
4) Competition-based: Based on
rivals prices
Pricing Strategies
5) Product-bundle: Based on the
package
6) Price-adjustment: Based on types
of customers
7) Discriminary: Based on market
segmentation
8) Psychological : Based on
consumer’s mind set
9) Promotional: Temporary pricing