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Lamb Hair McDaniel Kapoor Klaise Appleby

MKTG, Canadian Edition

Your Product or Service Offering

Part 6 Pricing Decisions Worksheet


COSTS OF MARKETING PLAN
Identify costs associated with each of the following elements of the plan:

Feature

Cost

Product manufacture
Marketing research
Competitive intelligence
Packaging
Intermediaries
Distribution network
On-line promotion
Off-line promotion
Promotional tools design
Promotional tools production
Media costs
Sales force compensation
Domain name registration
ISP contract
Web site development design
Web site hosting
Web-site content creation
Other
Total

Part 6 Marketing Plan Worksheet: Pricing Decisions


Copyright 2010 by Nelson Education Ltd.

Lamb Hair McDaniel Kapoor Klaise Appleby


MKTG, Canadian Edition

Your Product or Service Offering

Calculate break-even point for selling:

Break even = $
Can you sell enough to cover costs?

Yes

No

STRATEGY
Circle strategy you are most likely to use:

Penetration

Skimming

Status-quo

Where is your product in the PLC?

Introductory

Growth

Maturity

Decline

How will this affect your pricing strategy?

Part 6 Marketing Plan Worksheet: Pricing Decisions


Copyright 2010 by Nelson Education Ltd.

Lamb Hair McDaniel Kapoor Klaise Appleby


MKTG, Canadian Edition

Your Product or Service Offering

ELASTICITY
Calculate demand elasticity in off-line world:

Demand elasticity =
List tactics to soften price sensitivity in on-line world:
1.
2.
3.
4.
5.
6.

POLICIES
On-line pricing policies:

Off-line pricing policies:

Part 6 Marketing Plan Worksheet: Pricing Decisions


Copyright 2010 by Nelson Education Ltd.

Lamb Hair McDaniel Kapoor Klaise Appleby


MKTG, Canadian Edition

Your Product or Service Offering

Justify any differences:

PRICE COMPARISON
Compare your price to your competitors. Who is higher?
Competitor

Price

Your Price

1.
2.
3.
4.
5.
6.
7.
8.

If serious price differences describe how you will communicate your differential
advantage:

Part 6 Marketing Plan Worksheet: Pricing Decisions


Copyright 2010 by Nelson Education Ltd.

Lamb Hair McDaniel Kapoor Klaise Appleby


MKTG, Canadian Edition

Your Product or Service Offering

DISCOUNTS
Circle discounts you will offer to on-line customers:

Quantity

Cash

Seasonal

Promotional Rebates

Functional

Circle discounts you will offer to off-line customers:

Quantity
Seasonal

Cash
Promotional Rebates

Functional

Account for any differences in discounts allowed to two customer groups:

GEOGRAPHIC
Customers will pay shipping?

Yes

No

All customers pay same shipping?

Yes

No

Customers pay shipping based on distance?

Yes

No

Rationale:

Part 6 Marketing Plan Worksheet: Pricing Decisions


Copyright 2010 by Nelson Education Ltd.

Lamb Hair McDaniel Kapoor Klaise Appleby


MKTG, Canadian Edition

Your Product or Service Offering

SPECIAL PRICING TACTICS


Circle special pricing tactics you will use:

Single-price

Flexible price

Service pricing

Price lining

Leader pricing

Odd-even

Bundling

Two-part

If bundling to be used, list products to be bundled:


Bundled package

Component 1

Component 2

Component 3

Package 1
Package 2
Package 3
Package 4
Package 5

Penalty charged for violation of product/service terms?

Yes

No

Will penalty apply for on-line customers?

Yes

No

Will penalty apply for off-line customers?

Yes

No

How much will the penalty be?

Part 6 Marketing Plan Worksheet: Pricing Decisions


Copyright 2010 by Nelson Education Ltd.

Lamb Hair McDaniel Kapoor Klaise Appleby


MKTG, Canadian Edition

Your Product or Service Offering

Identify environmental factors affecting pricing:

Pricing strategy during inflation:

Pricing strategy during recession:

Part 6 Marketing Plan Worksheet: Pricing Decisions


Copyright 2010 by Nelson Education Ltd.