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Chapter 10;Road Map: Previewing the Concepts;Factors Affecting Price Decisions (Fig. 10-1) ;Marketing
Objectives;Four Seasons Hotel; Price;Types of Cost Factors that Affect Pricing Decisions ;
Market and
Demand
;
Pure Competition
Many Buyers and Sellers
Who Have Little
Effect on the Price
;Demand Curve (Fig. 10-2);Price Elasticity of Demand;Major Considerations in Setting Price (Fig. 10-3);Cost-Based Pricing;Breakeven Analysis or Target Profit Pricing (Fig. 10-4);Cost-Based Versus Value-Based Pricing (Fig. 10-5);After examining Figure 10-5, compare and contrast cost-based pricing and value-based pricing.
What are situations that favor each pricing method?; Methods for Setting Prices
;New-Product Pricing Strategies;New-Product Pricing Strategies;Form students into groups of three to five. Which pricing strategy--market skimming or market penetration--does each of the following companies use?
McDonald’s,
Sony (television and other home electronics),
Bic Corporation (pens, lighters, shavers, and related products), and
IBM (personal computers).
;Product Mix-Pricing Strategies:Product Line Pricing;Product Mix-Pricing Strategies;Product Mix-Pricing Strategies;Discount and Allowance Pricing;Segmented Pricing;Psychological Pricing;Temporarily Pricing Products Below List Price Through:
;Pricing products for customers
located in different parts of
the country or world.
i.e. FOB-Origin, Uniform-
Delivered, Zone, Basing-
Point, Freight-Absorption.
Adjusting prices for customers
in different counties.
Price Depends on Costs,
Consumers, Economic
Conditions, Competitive
Situations, Other Factors.
;
; Being Replaced by Newer Models;Assessing/Responding to Competitor’s Price Changes (Fig. 10-6);Public Policy Issues in Pricing (Fig. 10-7);Rest Stop: Reviewing the Concepts
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