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Break-even Analysis Skimming Pricing Setting an intentionally high price relative to the prices of competing products. Helps marketers set a price that distinguishes a firm’s high-end product from those of competitors. Penetration Pricing Setting a low price as a major marketing weapon. Often used with new products. Everyday Low Pricing and Discount Pricing Maintaining continuous low prices. Discount pricing - attracting customers by dropping prices for a set period of time. Competitive Pricing Reducing the emphasis on price competition by matching other firms’ prices. Concentrating marketing efforts on the product, distribution, and promotional elements of the marketing mix. Alternative Pricing Objectives Price-Quality Relationships Consumers’ perceptions of quality closely tied to price. High price = prestige and higher quality. Low price = less prestige and lower quality. Odd Pricing Setting prices in uneven amounts or amounts that sound less than they really are. Example: $1.99 or $299. Consumer Perceptions of Price Promotion and Pricing Strategies Chapter 14 Discuss how integrated marketing communications relates to a firm’s overall promotion strategy. Explain promotional mix and outline the objectives of promotion. Summarize the different types of advertising and advertising media. Outline the roles of sales promotion, personal selling, and public relations. Describe pushing and pulling promotional strategies. Outline the different types of pricing strategies. Discuss how firms set prices in the marketplace, and describe the four alternative pricing strategies. Discuss consumer perceptions of price. Learning Goals 1 2 3 4 5 6 7 8 Promotion is the function of informing, persuading, and influencing a purchase decision. Integrated marketing communications (IMC) is the coordination of all promotional activities—media advertising, direct mail, personal selling, sales promotion, and public relations—to produce a unified customer-focused messag
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