1 / 14

BUILDING THE PRICE FOUNDATION

BUILDING THE PRICE FOUNDATION. C HAPTER 13. NATURE AND IMPORTANCE OF PRICE. What is a Price? Barter Price as an Indicator of Value Value-pricing Price in the Marketing Mix Profit Equation. The price of four different purchases. Steps in setting price.

amina
Download Presentation

BUILDING THE PRICE FOUNDATION

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. BUILDING THE PRICE FOUNDATION CHAPTER 13

  2. NATURE AND IMPORTANCE OF PRICE • What is a Price? • Barter • Price as an Indicator of Value • Value-pricing • Price in the Marketing Mix • Profit Equation

  3. The price of four different purchases

  4. Steps in setting price

  5. STEP 1: IDENTIFY PRICING CONSTRAINTS AND OBJECTIVES • Identifying Pricing Constraints • Demand for the Product Class, Product, and Brand • Newness of the Product: Stage in the Product Life Cycle • Single Product versus a Product Line • Cost of Producing and Marketing the Product • Cost of Changing Prices and Time Period They Apply • Types of Competitive Markets • Pure monopoly, Oligopoly, Monopolistic competition, Pure competition • Competitors Prices

  6. Pricing, product, and advertising strategies available to firms in four types of . . . markets

  7. STEP 1: IDENTIFY PRICING CONSTRAINTS AND OBJECTIVES • Identifying Pricing Objectives • Profit • Sales • Market Share • Unit Volume • Survival • Social Responsibility

  8. Where each dollar of your movie ticket goes

  9. Illustrative demand curves for Newsweek magazine

  10. STEP 2: ESTIMATE DEMAND AND SERVICE • Fundamentals of Estimating Revenue • Total revenue • Average revenue • Marginal revenue • Demand Curves and Revenue • Price Elasticity of Demand • Price Elasticity for Brands and Product Classes

  11. Fundamental revenue concepts

  12. STEP 3: DETERMINE COST, VOLUME, AND PROFIT RELATIONSHIPS • The Importance of Controlling Costs • Total cost • Fixed cost • Variable cost • Break-Even Analysis • Break-even point

  13. Calculating a break-even point

  14. Break-even analysis chart

More Related