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  • Marketing Management: Pricing Strategy

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    Sadia Brishty
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    This lecture discusses pricing strategies and methods. It explains that pricing involves determining the perceived value of a product to customers and setting a price that matches the organization's objectives while ensuring viability. Some key points covered include setting pricing objectives like profit maximization; determining demand through price elasticity; selecting pricing methods such as perceived-value or target-return pricing; and understanding customers' willingness to pay.

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    Lecture 06_Pricing

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    This lecture discusses pricing strategies and methods. It explains that pricing involves determining the perceived value of a product to customers and setting a price that matches the organization's objectives while ensuring viability. Some key points covered include setting pricing objectives like profit maximization; determining demand through price elasticity; selecting pricing methods such as perceived-value or target-return pricing; and understanding customers' willingness to pay.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    5 views10 pages

    Marketing Management: Pricing Strategy

    Uploaded by

    Sadia Brishty
    This lecture discusses pricing strategies and methods. It explains that pricing involves determining the perceived value of a product to customers and setting a price that matches the organization's objectives while ensuring viability. Some key points covered include setting pricing objectives like profit maximization; determining demand through price elasticity; selecting pricing methods such as perceived-value or target-return pricing; and understanding customers' willingness to pay.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 10

    LECTURE 6

    MARKETING MANAGEMENT
    Pricing Strategy

    Instructor: Syed Ibrahim Saajid


    Pricing is the science of finding out the perceived value of a product in the
    customers’ mind and then fixing a point which matches with the organization’s
    strategy and ensures business viability.

    Subjective Objective
    Setting the Price

    Setting the Pricing Objective

    Determining Demand

    Estimating Cost

    Analyzing Competitors’ Pricing

    Selecting a Pricing Method

    Selecting the Final Price


    Pricing Objective

    Survival

    Maximize
    Other
    Current
    Objectives
    Profit

    Maximize Maximize
    Market Market
    Skimming Share

    Product
    Quality
    Leadership
    Determining Demand

    Price Elasticity of Demand= % change in


    quantity demanded / % change in price
    Selecting a Pricing Method

    Markup Pricing

    Target-Return Pricing

    Perceived-Value Pricing

    Value Pricing

    Going-Rate Pricing

    Auction Pricing
    Perceived Value Pricing

    Psychological Pricing Segmented Pricing Premium Pricing


    Promotional Pricing

    Special
    customer Cash rebates
    pricing

    Loss-leader Special event


    pricing pricing

    Financing Psychological
    support Discounting
    Willingness to Pay
    Willingness to pay (WTP) is the maximum price at or below which a
    consumer will definitely buy one unit of a product. Some researchers,
    however, conceptualize WTP as a range.

    Understanding customers’ willingness to pay (WTP) is the key to pricing

    Class Exercise
    Thank you!

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