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Lecture Marketing management: Chapter 14 - Phillip Kotler, Kevin Lane Keller

Chapter 14 - Developing pricing strategies and programs. In this chapter, we will address the following questions: How do consumers process and evaluate prices? How should a company set prices initially for products or services? How should a company adapt prices to meet varying circumstances and opportunities? When should a company initiate a price change? How should a company respond to a competitor’s price change? | Kotler • Keller Phillip Kevin Lane Marketing Management • 14e Developing Pricing Strategies and Programs Chapter 14 Discussion Questions How do consumers process and evaluate prices? How should a company set prices initially for products or services? How should a company adapt prices to meet varying circumstances and opportunities? When should a company initiate a price change? How should a company respond to a competitor’s price change? Marketing Mix Promotion Place Revenue Producer Cost Cost Cost Price is the only one of the 4 P’s that produces revenue, all over elements produce costs. Price is also the easiest element of the marketing mix to adjust, and communicates the intended value of the offering. Pricing Bargaining $31.50 $33.50 Holistic marketers take into account the company, their customers, the competition, and the marketing environment in determine prices. Pricing decisions must be consistent with the firm’s marketing strategy and its target market and . | Kotler • Keller Phillip Kevin Lane Marketing Management • 14e Developing Pricing Strategies and Programs Chapter 14 Discussion Questions How do consumers process and evaluate prices? How should a company set prices initially for products or services? How should a company adapt prices to meet varying circumstances and opportunities? When should a company initiate a price change? How should a company respond to a competitor’s price change? Marketing Mix Promotion Place Revenue Producer Cost Cost Cost Price is the only one of the 4 P’s that produces revenue, all over elements produce costs. Price is also the easiest element of the marketing mix to adjust, and communicates the intended value of the offering. Pricing Bargaining $31.50 $33.50 Holistic marketers take into account the company, their customers, the competition, and the marketing environment in determine prices. Pricing decisions must be consistent with the firm’s marketing strategy and its target market and brand positioning's. Pricing takes many forms and performs many functions. Rent, tuition, fares, fees, rates, tolls, retainers, wages, and commissions are all the price people pay for some good or service. Price also has many components. Prices can be altered through rebates and incentives, and payment can be made with more than cash, such as through the use of frequent flyer miles. Changing Price Environment Instant Price Comparisons I’ll pay $235.00 Name Your Own Price Get Products Free Buyers Instant price comparisons: mySimon.com. PriceSCAN.com, Intelligent shopping agents (“bots”). Name your own price: Priceline.com. Free products: Open Source, the free software movement. $29.99 $19.99 $24.99 Changing Price Environment Sellers Monitor Customers Selective Pricing Negotiate Prices How Companies Price Pricing Department Small Business Owner Product-line Managers (w/guidance) Effectively designing and implementing pricing strategies requires a thorough understanding of .