Professional Documents
Culture Documents
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Meaning of Price
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Importance of Price
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In the Economy
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Profit Maximization
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Social Pricing
Social Responsibility and Pricing Ethics
High Price
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Excessive Markup
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Deceptive Practices
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Too Few Social Goods
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Too Much Political Power
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Citizen and Public Actions to Regulate Pricing
Grass roots
Movements
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Consumerism
Environmentalism
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Government Actions Toward Socially Responsible Pricing
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.Society
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Company
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Societal
Pricing
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Consumer
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Organizational and marketing objectives
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Marketing Mix Strategy
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Process
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Consumer Perceptions of Price and value
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Pricing in Deferent Types of Market
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Pure Complementation
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Regulated Monopoly
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Nonregulated Monopolies
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Plc
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P2
P3
P1
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P1
Q1
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Q1 Q2
Q3
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Descriptive Models
Optimization Models
Predictive Models
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New- Product Pricing Strategies
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Market Skimming Pricing
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Promotional Price Strategy
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SELECT PRICING OBJECTIVE
Cost - Plus
pricing
Price based on
both demand
and costs
Price Set in
relation to
market alone
Freight Payments
Leader Pricing
Price
Psychological Pricing
Resale Price
Maintenance
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1- Descriptive Vs . Normative Models .
2- Deterministic Vs . Probabilistic or Stochastic Models
Profit Model
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Product Analysis Pricing
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Data
Price $
Units Sold
Revenue $
Costs
Profit $
Profit increase = . $
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3/10 , NET 30
Number of
days from date
of invoice after
which bill is
overdue
Number of days
from date of invoice
in which bill must be
paid to receive cash
discount
Percentage to be
deducted if bill is
paid within
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Demand
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oligopoly
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The Firm has to consider many Factors in setting its
pricing policy .
Target Market Analysis
)(1
)(2
)(3
)(4
)(5
Specific Price
SELECT PRICING OBJECTIVE
:
.
International Involvement
Exporting Intra company Foreign -Market
Pricing
Pricing
Situation
Pricing
First-Time
Pricing
Changing
Pricing
MultipleProduct Pricing
International Pricing Situations
Export Pricing
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Ex-Factory
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Cost Oriented Pricing Strategy
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Competition Oriented Pricing Strategy
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Demand Oriented Pricing Strategy
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Market Skimming Pricing Strategy
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Market Penetration Pricing Strategy
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Pricing Discrimination
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Market Oriented Pricing Strategy
Oligopoly
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Transfer/ Intracorporate Pricing
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. Headquarter
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Transfer pricing , or intracorporate pricing , is the
pricing of sales to members of the corporate family .
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Intra- Country Transfer Price
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Intercountry Transfer Price
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Transfer Price Lower Than Arm's Length Prices
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Transfer Price Higher Than Arm's Length Prices
:
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Transfer Pricing Objectives :
Competitiveness in the international marketplace .
Reduction of taxes and tariffs .
Management of Cash Flows .
Minimization of Foreign exchange risks.
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Transfer Prices can be based on costs or on market
prices or on arm's - length price .
:
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Cost - based Transfer Pricing
. ACS
*
* ) SCS (.
* . MCS
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:
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+ .
+ .
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Market - based Transfer Pricing
.
MPS
.
MMPS
.
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:
* )Negotiated Price Strategy (NPS
.
* ) (CPS
.
Arm's-Length
. Prices
.
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:
) ( Barriers of Trade
Cost Factors
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International
Transfer Price
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- Export Pricing Challenges
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Price
Medium
Low
(3) Super - Value
Strategy
(6)Good-Value
Strategy
(2) High-Value
Strategy
(5)Medium-Value
Strategy
(8) False
(9) Economy
economy Strategy Strategy
High
(1) Premium
Strategy
)(4
Overcharging
Strategy
(7) Rip-off
Strategy
High
Medium
Low
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Transfer Pricing Challenges
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Intrafirm Transactions
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E Pricing
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E Pricing
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. Price robots :
- yahoo.com
- buys.com
- Killo.com
- Altavista.digital.com
) (
. Disintermediation
) (
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- Prices Personalization
Mass Marketing or one to
All Marketing .
Direct Marketing or one to one marketing
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Banners / .
- : Click-Through
.
- : Hits
.
- : Page Impressions
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CPM
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:
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. :
- : Impressions
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. . :
th
kotler
,Marketing
Management
the
Millennium ed . ; N . J . : Prentice
Hall International , Inc ., 2000 .
- William D. Perreault , Jr. and E. Jerome McCarthy ,
Essentials of Marketing : A Global
Managerial Approach , 8th ed .;
N. Y. : McGraw Hill Companies ,
Inc., 2000 .