Proc 5830
PROC 5830 –Mid Term-Exam
1) Define the five key elements of a pricing strategy.
Value Creation- Value for customers is a critical task for marketers, especially when developing
new products and or a service. Marketers explore ways to distinguish themselves, in the eyes of
the customer, from others in the marketplace designing strategy, recognizing new product
opportunities. As a customer looking in the customer value is what they get (benefits) relative
to what they have to give up costs or sacrifices.
Price & Offer Structure- A price structure is a segment set at various stages for pricing to
maximize revenue to companies while offering various pricing to customers with different wants
and needs. This structure is to retain and attract new customers by offering prices the believes
they can afford to the needs of the services wanted.
Price & Value Communication- A price is placed on all products and communicated to
customers expressing the importance of obtaining this product via comparison and or need
because of the ever changing world. The marketer wants to put heavy emphasis on the value and
need of the product trying to hit home with the customer without bringing up the price unless it
beneficial.
Pricing Policy- Marketers procedures used to set prices with the intent to gain customers trust that the price before them is a good price in which they are willing to pay for a product. The company must optimize the possibility too make a profit by examining what is being offered throughout the market keeping in mind the customer’s specific needs by reviewing the market segments, the products availability and what competition is out in the market for same or similar product. Price Setting- Marketers set and maintain specified prices on typically competing products by either impeding on the competition by offering same or like product at a cheaper cost with the hope to gain more
1) Define the five key elements of a pricing strategy.
Value Creation- Value for customers is a critical task for marketers, especially when developing
new products and or a service. Marketers explore ways to distinguish themselves, in the eyes of
the customer, from others in the marketplace designing strategy, recognizing new product
opportunities. As a customer looking in the customer value is what they get (benefits) relative
to what they have to give up costs or sacrifices.
Price & Offer Structure- A price structure is a segment set at various stages for pricing to
maximize revenue to companies while offering various pricing to customers with different wants
and needs. This structure is to retain and attract new customers by offering prices the believes
they can afford to the needs of the services wanted.
Price & Value Communication- A price is placed on all products and communicated to
customers expressing the importance of obtaining this product via comparison and or need
because of the ever changing world. The marketer wants to put heavy emphasis on the value and
need of the product trying to hit home with the customer without bringing up the price unless it
beneficial.
Pricing Policy- Marketers procedures used to set prices with the intent to gain customers trust that the price before them is a good price in which they are willing to pay for a product. The company must optimize the possibility too make a profit by examining what is being offered throughout the market keeping in mind the customer’s specific needs by reviewing the market segments, the products availability and what competition is out in the market for same or similar product. Price Setting- Marketers set and maintain specified prices on typically competing products by either impeding on the competition by offering same or like product at a cheaper cost with the hope to gain more