Notes On Pricing

CHAPTER 10 PRICING What is harm? * The amount of money ae sum upd for a harvest-home/service, or the sum of the re measures that customers exchange for the benefits having or development the return or service *Smart managers treat fasten as a key strategic tool for creating and capturing customer value. MAJOR PRICING STRATEGIES What are they: node-establish determine, damage-based Pricing, and Competition based- determine (A) Customer care for Based Pricing * curingting determine on buyers perceptions of value quite an than on the sellers hail *value based determine means that marketer cannot project a product and market program then qualify the damage. Price is considered along with opposite marketing mix forward marketing program is set analyze this pricing schema to court based pricing: Cost based Pricing (1)Design a product (2) Determine product be (3) Set monetary value based on cost (4) influence buyers of products val ue Value Based Pricing (1) go over customer needs and value perceptions (2) Set tar find oneself price to match customer perceived value (3) Determine cost that can be incurred (4) Design product to deliver covet value at target price Sub-topics: - Good value pricing = declareing just the right combination of feeling and dandy service at a fair price (e.g.

unremarkably involve introducing less expensive items, like Mcd offer value meals) - Value added pricing = attaching value added features and services to word form a companys offers and charging higher price. E.g instead of baleful price Apple price its iphone higher than competitors to ! differentiate and show superiority. Higher price better gauge (B) Cost- Based Pricing => Setting prices based on the cost for producing, distributing, and selling the product plus a fair rate of return for drive and risk Types of cost -> FC= do not vary, VC= vary directly with level of production, TC= sum of FC & ampere; VC Cost- Plus Pricing (or Markup Pricing) * Adding a standard markup to the...If you want to get a full essay, baffle it on our website: OrderCustomPaper.com

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