PRICING Pricing in general‚ and price promotions in particular‚ have always been an important marketing instrument in retailing and‚ up to the present‚ price has played a very important role in retail marketing. However‚ it is precisely this focus on price reductions‚ often based more on belief and intuition on the part of the retailer than on facts and knowledge about its effects‚ that makes pricing a field of considerable strategic importance today. Methods of Price Setting There are
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Product Promotion ‘Marketing Mix’ 4Ps of Marketing Place Price PRODUCT STRATEGIES Branding strategies Be the best quick service restaurant experience. McDonald’s mission By providing quality‚ service‚ cleanliness and value that make every customer in every restourant SMILE. McDonald’s changed from time to time for keeping up itself with changing time and demand. It is not only change its look and attire for re-building its brand with a new get up‚ but also come out with new products and
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Do you believe Walmart is engaging in predatory pricing with its $4 generic drug program? Why or why not? "Predatory pricing is the practice of charging a very low price for a product with the intent of driving competitors out of business or out of a market. Once competitors have been driven out‚ the firm raises its prices. This practice is illegal under the Sherman Act and the Federal Trade Commission Act. To prove predatory pricing‚ the Justice Department must show that the predator—the
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Company’s Location 6 v. Types of consumer buying decision & consumer involvement 7 B. Product Concept 8-9 i. Product decision 8 ii. Developing & managing product 8 iii. Type of consumer product 9 C. Pricing 10-14 i. Pricing objective 10 ii. Pricing Strategies 11 iii. Pricing Tactics 11-14 D. Channel Structure 15-16 i. Type of Marketing Channel 15 ii. Levels of distribution intensity 15 iii. Retailing 16 iv. Types of stores 16 v. Non store Retailing 16 TABLE OF
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in Practice. Capital Ideas. University of Chicago‚ Booth School of Business. Retrieved 2009‚ March 11 from http://www.chicagobooth.edu/capideas/may07/5.aspx. Lucas‚ Mike (1999‚ June). The Pricing Decision: Economists Versus Accountants. Management Accounting‚ 77(66)‚ 34-35. McKinney‚ Robert A. (2008). Pricing to Maximize Total Profits: Gross Profit Margin vs. Net Profit. Retrieved 2009‚ March 11 from http://www.robert-mckinney.com/Documents/Pricing_To_Maximize_Total_Profit.pdf. Shmanske‚ S. (Winter
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Marketing Mix Used by Big Bazaar 1.) Pricing: - The pricing objective is to gain the “Maximum Market Share”. Pricing at Big Bazaar is based on the following techniques: a.) Value Pricing (EDLP- Every Day Low Pricing): - Big Bazaar promises consumers the lowest available price without coupon clipping‚ waiting for promotions‚ or comparison shopping. b.) Promotional Pricing: - Big Bazaar offers financing at low interest rate. The concept of psychological discounting (Rs.49‚ Rs.99‚ Rs.199
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substantially. This is an example of ________ Value added pricing Azure Air‚ an airline company‚ offers attractive prices to customers with tighter budgets. A no-frills airline‚ it charges for all other additional services‚ such as baggage handling and in-flight refreshments. Which of the following best describes Azure Air’s pricing method? Good value pricing Markup pricing is popular because when all firms in the industry use this pricing method‚ prices tend to be similar‚ so price competition is
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Price skimming is a pricing strategy in which a marketer sets a relatively high price for a product or service at first‚ then lowers the price over time. It is a temporal version of price discrimination/yield management. It allows the firm to recover its sunk costs quickly before competition steps in and lowers the market price. Price skimming is sometimes referred to as riding down the demand curve. The objective of a price skimming strategy is to capture the consumer surplus. If this is done successfully
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Rich Manufacturing Saint Leo University MBA 540 Sep 8‚ 2011 Why do many firms use cost-plus pricing for supply contracts? Firms use cost-plus pricing in order to cover their operating costs. Cost-plus means they can increase the price to their customers with whom they have contracts when the operating costs rise. Operating costs can rise for many reasons and cost-plus pricing allows firms the flexibility to manage operating costs. This flexibility is often needed when the price
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major influences on pricing decisions Customer Demand: the demands of customers are of paramount importance in all phases of business operations‚ from the design of a product to the setting of its price. Product-design issues and pricing considerations are interrelated‚ so they must be examined simultaneously. For example‚ for a higher quality product; you need higher quality materials which will affect a higher cost and needs more time and this will lead to a higher pricing on a product. Also
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