Principles of Marketing
Chapter 10 – Pricing: Understanding and Capturing Customer Value Chapter 12 – Marketing Channels: Delivering Customer Value
Assignment Week 5
Marcela Ramirez Ortiz
Florida National University
Abstract
No matter what the state of the economy, companies should sell value, no price. Firms successful at creating customer value with the other marketing mix activities must capture this value in the prices they earn.
In chapter 10 addresses the importance of pricing, explores three major pricing strategies, and looks at internal and external considerations that affect pricing decisions.
Companies today face a fierce and fast-changing pricing environment. Value-seeking customers have put increased pricing pressure on many companies. Yet, cutting prices is often not the best answer. No matter what the state of the economy, companies should sell value, not price.
In chapter 12 we can clearly see how firm’s deals with distribution.
An individual firm’s success depends not only on how well it performs but also on how well its entire marketing channel competes with competitors’ channels.
To be good at customer relationship management, a company must also be good at partner relationship management.
Name and describe the two types of value-based pricing methods
There are two types of value-based pricing: good-value pricing and value-added pricing. Good-value pricing strategies offer just the right combination of quality and good service at a fair price. In many cases, this has involved introducing less-expensive versions of established, brand name products. In other cases, good-value pricing has involved redesigning existing brands to offer more quality for a given price or the same quality for less. An important type of good-value pricing at the retail level is everyday low pricing (EDLP). EDLP involves charging a constant, everyday low price with few or no temporary price
Assignment Week 5
Marcela Ramirez Ortiz
Florida National University
Abstract
No matter what the state of the economy, companies should sell value, no price. Firms successful at creating customer value with the other marketing mix activities must capture this value in the prices they earn.
In chapter 10 addresses the importance of pricing, explores three major pricing strategies, and looks at internal and external considerations that affect pricing decisions.
Companies today face a fierce and fast-changing pricing environment. Value-seeking customers have put increased pricing pressure on many companies. Yet, cutting prices is often not the best answer. No matter what the state of the economy, companies should sell value, not price.
In chapter 12 we can clearly see how firm’s deals with distribution.
An individual firm’s success depends not only on how well it performs but also on how well its entire marketing channel competes with competitors’ channels.
To be good at customer relationship management, a company must also be good at partner relationship management.
Name and describe the two types of value-based pricing methods
There are two types of value-based pricing: good-value pricing and value-added pricing. Good-value pricing strategies offer just the right combination of quality and good service at a fair price. In many cases, this has involved introducing less-expensive versions of established, brand name products. In other cases, good-value pricing has involved redesigning existing brands to offer more quality for a given price or the same quality for less. An important type of good-value pricing at the retail level is everyday low pricing (EDLP). EDLP involves charging a constant, everyday low price with few or no temporary price
References: Philip Kotler, Gary Armstrong (2012, 2010, 2008 and 206). Principles of Marketing 14th Ed. New Jersey: Prentice Hall.