Presentation on Pricing Strategy

Setting prices . Price perceptions 2. when there is a perceived added value = Stronger brands € Aspects of pricing Strategy : 1.€ Revenue generating element from of the mix € Its belongs in the performance CBBE model € Consumers willing to pay price premiums .

value and quality they received ‡ perception of value received < cost to the company .‡ Consumers rank brand according to prices ‡ Price Bands = range of acceptable prices ‡ price product meaning .

Sell the right product and the right better meet consumer needs .

ss s at val t c st r lac s y r ra . L k f r variati i ass ssi g c st rs val 3.1. M it r ric s at a tra sacti l v l ss s c st r ti al r s s 7. 8. si r c tit rs r acti s 6. I 5. alys if t r t r s ar rt t c st . ss s c st rs ric s sitivity tify a ti al rici g str ct r 4.

and convenience Product costs Outsourcing .Value pricing Product design and delivery Innovations . Cost reductions can t sacrifice quality Product prices Understand what consumers are willing to pay. product reformulation . if there are premiums and then adjust it for cost and competition . factory improvement . material substitution . improvements . technology.

Everyday low pricing EDLP) Everyday base prices Discount and promotions over time Builds brand loyalty and awareness Incentives to consumers to buy Consistent low prices on major items will bring consumers back to buy .

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