Elements of the MarketingMix

1
Elements of the Marketing-Mix
Element - 3 Pricing
2
Strategy Planning for Price
3
Objectives Should Guide Strategy Planning for
Price
4
Price vs. Cost over PLC
Product Introduction
Product Death
5
Skimming vs. Penetration
6
Other Price-Level Policies (Introductory Pricing)
7
Discount Policies Reductions from List Prices
Seasonal
Quantity
From List Price
Cash
Trade
8
Allowance Policies Off List Prices
Stocking
Advertising
CommonTypes ofAllowances
Push Money
Allowances are given to Channel Members, NOT to
consumers
9
List Price May Depend on Geographic Pricing
Policies
Zone
F.O.B.
CommonGeographicPolicies
Uniform Delivered
10
Legality of Pricing Policies
Dumping
Unfair Trade Practice Acts
KeyIssues
Phony List Prices
11
Price Discrimination
Like Grade Quality
Robinson-Patman Act
KeyIssues
Cost Differences
Meeting Competition
12
So How do you set the price?

• Markup Pricing
• Target Pricing
• Economic Cost Analysis (MCMR)

13
Some Firms Just Use Markups
14
Some Firms Add a Target Return to Cost
Target Return Pricing