tailieunhanh - Basic Marketing: A Global−Managerial Approach Chapter 17

Chapter 17. Pricing Objectives and Policies. When You Finish This Chapter, You Should: 1. Understand how pricing objectives should guide strategy planning for pricing decisions. 2. Understand choices the marketing manager must make about price flexibility. | 17. Pricing Objectives and I Text Policies Perreault-McCarthy Basic Marketing A Global-Managerial Approach 14 e The McGraw-Hill Companies 2002 1 When You Finish This Chapter You Should 1. Understand how pricing objectives should guide strategy planning for pricing decisions. 2. Understand choices the marketing manager must make about price flexibility. 3. Know what a marketing manager should consider when setting the price level for a product in the early stages of the product life cycle. 4. Understand the many possible variations of a price structure including discounts allowances and who pays transportation costs. 5. Understand the value pricing concept and its role in obtaining a competitive advantage and offering target customers superior value. 6. Understand the legality of price level and price flexibility policies. 7. Understand the important new terms shown in red . Chapter Seventeen Pricing Objectives and Policies For years the Chevy Suburban utility vehicle was a low-price no-frills work truck targeted at commercial users. Then changes in the marketing environment presented a new opportunity. To turn the opportunity into profits marketing managers planned a new strategy for the Suburban and new price policies were a crucial aspect of the strategy. In the early 1990s luxury car sales to the high-income babyboomer crowd were growing fast. BMW Lexus and Mercedes sedans seemed to be the ultimate yuppie status symbol and the leaders in customer satisfaction. Yet sales of luxury sedans slowed as affluent consumers looked for other ways to meet their needs. One clear sign of this shift was the growth in demand for fancy utility vehicles like the Jeep Grand Cherokee. As consumer preferences changed marketing managers for the Chevy Suburban changed their strategy. They turned the Suburban into an upscale utility vehicle targeted at price produc place promotion Perreault-McCarthy Basic I 17. Pricing Objectives and I Text Marketing A Policies Global-Managerial .