Developing Pricing Strategies and Programs

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[pic] 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. 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. [pic] Pricing decisions are clearly complex and difficult. Holistic marketers must take into account many factors in making pricing decision—the company, customers, competition, and marketing environment. Pricing decisions must be consistent with the firm’s marketing strategy and its target markets and brand positionings. . UNDERSTANDING PRICING

[pic] Price is not just a number on a tag or an item.
A) Throughout most of history prices were set by negotiation between buyers and sellers. B) Setting one price for all buyers is a relatively modern idea. C) Today the Internet is partially reversing the fixed pricing trend. D) Traditionally, price has operated as the major determinant of buyer choice. E) Price remains one of the most important elements determining market share and profitability. How Companies Price

[pic] Companies do their pricing in a variety of ways.
A) In small companies, prices are often set by the boss. B) In large companies, pricing is handled by division and product-line managers. C) In large companies, top management sets general pricing objectives, policies, and often approves the prices proposed by lower levels of management. D) In industries where pricing is a key factor, companies will often establish a pricing department to set or assist others in determining appropriate prices. E) Many companies do not handle pricing well.

F) Others use price as a key strategic tool.
1) There are customized prices and offerings based on segment value and costs. G)Effectively designing and implementing pricing strategies requires a thorough...
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