HELLO!

I am Tran Tri Dung

Founder & CEO Công ty Cổ phần WMS
Giảng viên Chuyên ngành Marketing, Đại học Hoa Sen

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 10.
Pricing:
Understanding and
Capturing Customer
Value

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 Contents

▸ What Is a Price?
▸ Customer Perceptions of Value
▸ Company and Product Costs
▸ Other Internal and External Considerations
Affecting Price Decisions

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 What Is a Price?

▸ Price is the amount of money charged

for a product or service. It is the sum of
all the values that consumers give up
in order to gain the benefits of having or
using a product or service.

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 Major Pricing Strategies

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 Value-based pricing

▸ Uses the buyers’ perceptions of value,

not the sellers cost, as the key to
pricing. Price is considered before the
marketing program is set.

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 Value-based pricing

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 Value-based pricing

Good-value pricing

Value-added pricing

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 Cost-based pricing

▸ Involves setting prices based on the costs for

producing, distributing, and selling the product
plus a fair rate of return for its effort and risk
Price = Avg. Cost/(1 – a%)
(Price = Avg. Cost + a%*Price)
a%: profit rate base on revenue (or price)

Benefits Disadvantages

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 Types of Costs

Fixed Variable Total

costs costs costs

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 Cost-plus pricing

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 Costs at Different Levels of
Production

Cost per Unit at Different Levels of Production per Period

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 Costs as a Function of
Production Experience

Experience or
learning curve
The drop in the
average per-unit
production cost that
comes with
accumulated
production
experience Costs as a Function of Production Experience

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 Considerations in Setting Price

Marketing- The market

Competition
mix and demand

Economic Competitor
conditions strategy

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 The Market and Demand

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 The Market and Demand

▸ Price elasticity of demand illustrates the response

of demand to a change in price

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 THANKS!
Any questions?
You can find me at https://trantridung.vn/

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