1 / 9

Price

Price. The charge the product is sold to the consumer at. Price. The price of a product will affect the sales and the perceptions of the consumer High price high quality. What factors do business need to consider when setting the price?. Costs of making the product/service

isi
Download Presentation

Price

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. Price The charge the product is sold to the consumer at

  2. Price • The price of a product will affect the sales and the perceptions of the consumer • High price high quality

  3. What factors do business need to consider when setting the price? • Costs of making the product/service • Desired return or profit from the product • Price charged by competitors • “novelty” value or kudos of the product • Any government policies or constraints

  4. Long-Term Pricing Strategies • Low Pricing Strategy • Market Pricing Strategy • High Pricing Strategy

  5. Short-Term Pricing Tactics • These are used by business to gain a competitive edge at various stages in the life of the product.

  6. Short-Term Pricing Tactics • Skimming – high price to begin with • Penetration Pricing – extremely low price set to begin with • Destroyer Pricing – price set very low for a time • Promotional Pricing – prices lowered for a short time • Demand-Oriented Pricing – different prices at different times

  7. Short-term pricing • These tactics may be used at various times during the life of the product. • They provide the business with the opportunity to modify the price element of the marketing mix. • They are regarded as tactical decisions as they have short-term impact.

  8. Short-term pricing tactics may be adopted once the business has identified the long-term strategy. • The short-term tactics complement the long-term strategy.

  9. Make sure you can: • Describe long term pricing strategies • Describe and give examples of short-term pricing tactics • Explain that short term tactics complement long term strategy

More Related