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Czarina Abigail D.

Fortun
BSAT-III
MKTG PRESENTATION
Other Internal and External
Considerations Affecting Price Decisions
Internal Factors

• Overall Marketing Strategy, Objectives , and Mix


• Organizational Considerations
• Marketing Strategy - is a long term, forward-looking approach to
planning with the fundamental goal achieving a sustainable
copetitive advantage.
• Marketing Objectives - group of goals set by a business when
promoting its products or services to potential consumers that
should be achieved within a given time frame.
• Marketing Mix – a combination of factors that can be controlled by
a company to influence consumers to purchase its products.
Organizational Considerations
• Who?
• Small Companies – top management rather than marketing or sales
departments
• Large Companies – divisional or product line managers
• Industrial Markets – salespeople may be allowed to negotiate with customers
within certain price range, and they often have pricing departments to set the
best prices or help others in setting them

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External Factors

• The Market and Demand


• Other Environmental Factors
The Market and Demand
Pricing in different types of Markets

• Pure Competition – consists of many buyers and sellers trading in a uniform


commodity
• Monopolistic Competition – consists of many buyers and sellers who trade
over a range of prices rather than a single market price.
• Oligopolistic Competition – consists of few sellers who are highly sensitive
to each other’s pricing and marketing strategies.
• Pure Monopoly – consists of one seller.
Analyzing the Price-Demand Relatioship

• Demand and Price are Inversely related

Price Demand
Price Elasticity of Demand
measures how responsive demand is to changes in a price of a given good.
More precisely, it is the percent change in quantity demanded relative to a one
percent change in price, holding all else constant (ceteris paribus).
Demand Curve
The Economy
• Economic Factors:
• Boom or Recession
• Inflation
• They Affect:
• Consumer Spending
• Consumer Perceptions (Price, Value)
Other External Factors

• Resellers
• Government
• Social Concerns
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