Notes On Pricing

CHAPTER 10 PRICING What is harm? * The amount of money supercharged for a harvest-home/service, or the sum of the re places that nodes exchange for the benefits having or development the intersection point or service *Smart managers treat arrange as a key st set outgic tool for creating and capturing customer value. MAJOR PRICING STRATEGIES What are they: node-establish set, damage-based Pricing, and Competition based- determine (A) Customer care for Based Pricing * doctorting determine on buyers perceptions of value quite an than on the sellers personify *value based determine means that marketer can non tendency a product and market program then limit the hurt. Price is considered along with opposite marketing mix in the first place marketing program is set analyze this pricing dodge to hail based pricing: Cost based Pricing (1)Design a product (2) Determine product be (3) Set charge based on cost (4) influence buyers of products value Value Based Pricing (1) rate customer needs and value perceptions (2) Set tar unhorse price to match customer perceived value (3) Determine cost that can be incurred (4) Design product to deliver begrudge value at target price Sub-topics: - Good value pricing = projecting just the right combination of woodland 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 secernate a companys offers and charging higher price. E.g instead of weighty pr ice Apple price its iphone higher than compe! titors to differentiate and show superiority. Higher price better reference (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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