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Intro to Marketing

Intro to Marketing. Mr. Bernstein Pricing Strategy, Glencoe pp 526-581 November 25-26 , 2013. Intro to Marketing Mr. Bernstein. Factors Affecting Price ( pp 526-536) Costs – Fixed or Variable Supply and Demand Consumer Perceptions Competition What are your objectives ?

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Intro to Marketing

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  1. Intro to Marketing Mr. Bernstein Pricing Strategy, Glencoe pp 526-581 November 25-26, 2013

  2. Intro to MarketingMr. Bernstein Factors Affecting Price (pp 526-536) Costs – Fixed or Variable Supply and Demand Consumer Perceptions Competition What are your objectives? Return on Investment Gaining Market Share Cash Flow / Survival Legal / Ethical Issues

  3. Intro to MarketingMr. Bernstein Pricing Strategy Approaches (pp 544-551) Cost-Based Pricing Cost plus markup Demand-Based Pricing “What the market will bear” Competition-Based Pricing “Price Takers” Flexible or One-Price Policy What causes pricing strategy to change over time?

  4. Intro to MarketingMr. Bernstein Pricing Techniques (pp 552-559) Psychological pricing: Prestige pricing Odd/even pricing Price lining Promotional pricing Multiple Unit discounts Bundle pricing

  5. Intro to MarketingMr. Bernstein How often should pricing be revised? Elastic demand – revise often Do you compete primarily on price, service or quality?

  6. Intro to MarketingMr. Bernstein Analyzing Pricing (pp 566-581) Break-even Analysis: Number of units that must be sold to cover fixed costs Fixed Costs / (Unit Selling Price – Variable Costs) = Break-Even Point

  7. Intro to MarketingMr. Bernstein Analyzing Pricing Markup: Amount added to the cost of an item Cost + Markup = Price Markup / Cost = Percentage Markup AKA “Gross Margin”; doesn’t include overhead costs

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