1 / 8

Pricing

Pricing. Chapter 19. Pricing. Price Barter Price equation. What is Value?. Value= Perceived benefits/cost Value-pricing Do higher prices= Better products? Profit= Total Revenue- Total Cost. Pricing Process. Step 1: Identify Pricing Constraints. Pricing Constraints Demand Newness

thane
Download Presentation

Pricing

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. Pricing Chapter 19

  2. Pricing • Price • Barter • Price equation

  3. What is Value? • Value= Perceived benefits/cost • Value-pricing • Do higher prices= Better products? • Profit= Total Revenue- Total Cost

  4. Pricing Process

  5. Step 1: Identify Pricing Constraints • Pricing Constraints • Demand • Newness • Single product v. Product Line • Production and Promotion Costs • Costs of Changing Prices • Type of Competitive Markets • Competitors’ Prices

  6. Step 1: Pricing Objectives • Profit • Sales • Market Share • Unit Volume • Survival • Social Responsibility

  7. Step 2: Estimate Demand and Revenue • Demand • Demand factors • Estimating Revenue • Total Revenue • Average Revenue • Marginal Revenue • Price Elasticity

  8. Step 3: Determine Cost, Value, and Profit Relations • Costs • Total cost • Fixed cost • Variable Cost • Marginal Cost • Break-even Analysis

More Related