MARKETING AN INTRODUCTION

Armstrong/Kotler

Global Edition

Pricing
Understanding and Capturing
Customer Value
Copyright 2011 Pearson Education

Chapter Outline

What is a Price?
Customer Perceptions of Value
Company and Product Costs
Other Internal and External
Considerations Affecting Price Decisions
New-Product Pricing
Product Mix Pricing
Price-Adjustment Strategies
Price Changes
9- 2

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What is Price?
Price is the amount of money
charged for a product or service,
or the sum of the values that
customers exchange for the
benefits of having or using the
product or service.

9 -3
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Major Pricing Strategies

9- 4
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Customer Value-Based
Pricing

9- 5
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Discussion Question
What are the
challenges to
a marketer
who uses
value-based
pricing?
9- 6
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Cost-Based Pricing

9 -7
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Breakeven Pricing

9- 8
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Types of Costs

9 -9
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Discussion Question
Consider the
lunch you
purchased today.
To the restaurant,
what were
variable and
fixed costs for
your meal?
9- 10
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Value-Based versus Cost-Based

Pricing

9 - 11
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Internal and External

Considerations Affecting Price
Decision

9 - 12
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Pricing in Different Types of

Markets

9 - 13
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Analyzing the Price-Demand

Relationship - Demand Curve
Price elasticity
the change
in demand
with the
change in
price:
Elastic
Inelastic
9- 14
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Discussion Question
What
products have
inelastic
demand?
Elastic?
9- 15
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New-Product Pricing

9 - 16
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PRODUCT MIX PRICING

9 - 17
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PRICE ADJUSTMENTS

9 - 18
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Initiating Price Changes

9- 19
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Responding to Price
Changes

9 - 20
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PUBLIC POLICY AND

PRICING

9- 21
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Pricing within Channel

Levels

9- 22
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Pricing across Channel

Levels

9- 23
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