tailieunhanh - Marketing management Chapter 14

CHAPTER 14 DEVELOPING PRICING STRATEGIES AND PROGRAMS. Price is the one element of the marketing mix that produces revenue; the other elements produce costs. Prices are perhaps the easiest element of the marketing program to adjust; product features, channels, and even promotion take more time. | MEAN . . . FEWER loads IKI OUST WASHER AND .DRYER . P - I Ja r thtt Nr-ilc l i io 16 prAc jei ij fad tlt tf ihil rn diy daths failKr fra jw wtrih ght pudKt Da i t In the sim ijiut- Gtt exit in th unn rima. Th hiot wiv iM d IhtmWMiQipd. CMnjyoiitti pMriBjetnMnddM. JUST IMAGINE IN THIS CHAPTER WE WILL ADDRESS THE FOLLOWING QUESTIONS 1. How do consumers process and evaluate prices 2. How should a company set prices initialiy forproducts or services 3. How should a company adapt prices to meet varying circumstances and opportunities 4. When should a company initiate a price change 5. How should a company respond to a competitor s price change c CHAPTER 14 DEVELOPING PRICING STRATEGIES AND PROGRAMS Price is the one eJament of the marketing mix that produces revenue the other elements produce costs. Prices are perhaps the easiest element of the marketing program to adjust product features channels and even promotion take more time. Price also communicates to the market the company s intended value positioning of its product or brand. A well-designed and marketed product can command a price premium and reap big profits. Consider Whirlpool. W ashers and dryers traditionally were seen as utilitarian products that could never justify a high price in 2QQ1 Whirlpool introduced the --------J Duet a front-loading washer-dryer combo that retailed at 2 300 nearly four times the price of comparative models. How did Whirlpool do it The Duet was a truly unique offering that promised performance and efficiency without compromise. Its huge capacities could wash and dry big loads yet it used much less water and electricity than competitors. It also washed all types of clothing from silks and lace to sleeping bags and comforters. Duet also could claim an emotional benefit for users bigger loads meant fewer loads and therefore more time and freedom to do other things 1 A prini art lor n e WhiriptKjl Duel a premium-priced washer-dryer combo tliat retails for nearly lour times .