strategies（营销原理） ppt课件.pptVIP

Chapter 13Pricing Strategies Chapter 13 Skip: Robinson-Patman Act (p. 372-373) Unfair-Practices Acts (p. 378) PRICE VS NONPRICE COMPETITION Price Competition Price Competition –price as low as possible and accompanied by a minimum of services (compete on price). Value pricing - aims to improve a product’s value which is the ratio of its benefits to its price and related costs. Improve value by : 1. offers products with lower prices but the same or added benefits at the same time seeks way to reduce expenses so profits do not suffer; 2.?offers a much better product with a higher price than competing entries PRICE VS NONPRICE COMPETITION Nonprice Competition – sellers will not compete on price (maintain price) but the sellers will compete on product, distribution, and promotion. Based on this competition, the demand curve is shifted to the right. Advantages of Nonprice Competition 1. Increase in sales with no decrease in selling price 2. Companies have more control whereas customers are more loyal. Firms employing nonprice competition should: 1. Build strong brand equity 2. Develop unique product or create attractive promotional programs e.g., 50% discount 3. Emphasize the variety and quality of the services offered to customers. Market-Entry Pricing Strategies Market-Skimming Pricing- setting high price for a new product Market-skimming pricing is appropriate when: Your new product has distinctive features strongly desired by consumers. Demand is inelastic. Your new product cannot be copied easily. Market-Entry Pricing Strategies Advantages of Skimming Pricing 1. High profit margin so RD costs are quickly recovered. 2. High prices can suggest high product quality. 3. High price will limit demand to levels that do not exceed the firm’s production capacities. 4. Greater flexibility --- firms can easily lower the price later Market-Entry Pricing Strategies Market-Penetration Pricing - setting relatively low initial price for a new product. Mar