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DigitalImagePowerPointtopany:Chapter6
Understandingcostsanddevelopingpricingstrategy
Learningobjectives6.1Describethefoundationsofpricingstrategy6.2Formulatepricingobjectives6.3Formulatepricingstrategiesandpolicies6.4Defineanddistinguishdifferenttypesofcosts6.5Describethesignificanceofrevenuemanagementforservicefirms6.6Understandhowtocommunicateandimplementservicepricingstrategies
CourtesyiSelectTheservicesiSelectallowcustomerstomakeaninformedchoicebasedonvariousconsiderations
TheroleofpriceinmarketingstrategyThefunctionalrole:tohelpgeneratesales,revenue,cashflowandprofitsThestrategicrole:tosymbolisequalityandvalueoffered,tohelppositionanddifferentiateaservice,tomanagedemand,topre-emptcompetitorsandtomaximisefinancialperformance
Cost-basedpricingCostpluspricing?isa?cost-basedmethodforsettingthe?prices?ofgoodsandservices.Underthisapproach;addtogetherthedirectmaterialcost,directlabour?cost,andoverhead?costs?foraproduct,andaddtoitamark-uppercentage(tocreateaprofitmargin)inordertoderivethe?priceoftheproduct.*Cost-basedpricinginvolvescalculatingthecostoftheproduct,andthenaddingapercentagemark-uptodetermineprice.Cost-pluspricingActivity-basedcostingActivity-basedcostingCostsaretracedtoactivitiesandthenthesecostsaretraced,inasecondstage,totheproductsthatusetheactivities.
Understandingvaluefromthecustomer’sperspective1.Valueislowprice.2.ValueiswhateverIwantinaproduct.3.ValueisthequalityIgetforthepriceIpay.ValueiswhatIgetforwhatIgive.AdifferentpricingapproachshouldbeusedforeachoneofthedefinitionsZeithmal,V.A.(1988)“ConsumerPerceptionsofPrice,Quality,andValue:AMeans-EndModelandSynthesis”.JournalofMarketing,52,2-21.
?AnaBlazicNumeroussportspackagesareavailabletoFoxtelcustomersPricingbasedoncusto
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