Marketing bán hàng - Chapter 17: Pricing objectives and policies

Chapter 17: Pricing Objectivesand PoliciesWhen you finish this chapter, you should17-2Chapter 17 Objectives 1. Understand how pricing objectives should guide strategy planning for pricing decisions. 2. Understand choices the marketing manager must make about price flexibility.3. Know what a marketing manager should consider when setting the price level for a product in the early stages of the product life cycle.4. Understand the many possible variations of a price structure including discounts, allowances, and who pays transportation costs.5. Understand the value pricing concept and its role in obtaining a competitive advantage and offering target customers superior value.6. Understand the legality of price level and price flexibility policies. 7. Understand the important new terms.Strategy Planning for PriceExhibit 17-1PricingobjectivesTargetMarketPricePromotionPlaceProductGeographicterm —who paystransportationand howDiscounts andallowances—to whom andwhenPrice levelsover productlife cyclePriceflexibility17-3Pricing ObjectivesExhibit 17-417-4Dollar or UnitSales GrowthGrowth in Market ShareTargetReturnMaximizeProfitsMeetingCompetitionNonpriceCompetitionPricingObjectivesSalesOrientedProfitOrientedStatus QuoOrientedPrice Flexibility PoliciesOne-price policy The same price to all customers who purchase products under essentially the same conditions and quantitiesExchange rate changes may make this difficult in international markets Flexible pricing (e.g., in channels, business markets, expensive consumer shopping products)Issues:Use is increasing because of impact of information technology, customer databases, scanners, etc.Selling costs may be higher if prices are negotiated“Signals” to competitors Customer dissatisfaction may be a problem “Gray channels” and cross-shipping17-5Exhibit 17-5A17-6Price Level Policies“Skim the cream” pricing involves selling at a high price to those who are willing to pay before aiming at more price-sensitive consumers.PriceQuantityInitialskimmingpriceSecondpriceFinalpriceSkimming PricingSell at highprice beforereducing tonext price leveland repeatPriceQuantityPenetration PricingWholemarket pricePenetration pricing involves selling the whole market at one low price.Exhibit 17-5B17-7Price Level PoliciesTradeQuantitySeasonalDiscountPricingSaleCash17-8Discount PricingAllowancesCommon KindsofAllowancesAdvertisingAllowancePush MoneyAllowanceTrade-InAllowanceStockingAllowance17-9Geographic Pricing PoliciesCommon GeographicPricingPoliciesF.O.B.UniformDeliveredFreightAbsorptionZone17-1017-11Value PricingFits with StrategyPlanningTarget Market andCompetitionFocus on CustomerRequirements????????????????????$Discounts Quantity Cumulative Noncumulative SeasonalNetCash Discounts 2/10 Net 30Trade (Functional) DiscountsSale PriceEveryday Low PricingAllowances Advertising Stocking Push Money Trade-inCouponsPriceTarget Return ObjectiveProfit Maximization ObjectiveSales-Oriented ObjectiveStatus Quo ObjectivesNonprice CompetitionAdministered PriceOne-Price PolicyFlexible-Price PolicySkimming Price PolicyPenetration Pricing PolicyIntroductory Price DealingBasic List PricesRebatesF.O.B.Zone PricingUniform DeliveredFreight AbsorptionValue Pricing Unfair Trade Practices ActDumpingPhony List PricesWheeler Lea ActPrice FixingRobinson-Patman ActPrice Discrimination17-12Key Terms