Pricing(英文版)(共20頁).ppt

1、PricingTopics: Determinants of Pricing Strategy Cost Issues Competition Issues Customer Value and Pricing The Pricing Plan using Marketing-orientated pricing. Hansen (A) casePositive direction Dr Martens will remain a brand true to its heritage and deliver footwear of the highest quality. The offsho

2、re strategy is the first step in moving the company and the brand forward in a positive direction. Paul Gates, general secretary of KFAT, said: It may be cheaper in China, but this is an issue of added value and quality. It does not matter if the boots are cheap if nobody is going to buy them (becau

3、se of their poorer quality). Dr Martens moves to ChinaThe makers of Dr Martens boots have announced the company is moving production to China with the loss of more than 1,000 jobs. A spokesman for the company said the decision was made because it was far cheaper to produce footwear in China. It plan

4、s to cease all production in the UK, but will continue to employ a number of office and design staff. Pricing methodsCostCompetitionMarketingPricingmethodsCeiling and Floor of Price Pricings Black Box Low PriceNo Possible Profit at thisPriceHigh PriceNo PossibleDemand at this PriceCOMPETITORPRICESCO

5、STSUSPsDIFFERENTIATIONQ2Q1P2P1PriceQuantityThe demand curveDoes the Demand Curve Always look like this?What of Luxury Goods so called Giffen goodsWhat may cause an inelastic market/demand curve?LossesBreak even pointFixed costsTotal revenueTotal variable costsTotal costProfitsUnits of ProductionMone

6、y () Determining the break even point4Cost-oriented Pricing Direct Costs (per unit)2Fixed Costs 200,000Expected Sales 100,000Costs per UnitDirect Costs 2Fixed Costs (200K/100K) 2Full Costs 4Price (costs + mark-up)4.4 Costs are taken into account only when they are directly attributable to the produc

7、tion of a particular product. Fixed costs or overheads are not included in the marginal cost.Marginal cost for the example given:Fixed Costs200,000Expected Sales 100,000Marginal Cost2Full Cost PricingDirect (Marginal) Cost PricingEvaluating Cost-Plus PricingnBenefits Cost-plus is easy and quick to e

8、valuate. It is perceived by firms to be inexpensive. It might be required or desired by customers.Evaluating Cost-Plus PricingnDisadvantages Often delegated to inappropriate management levels. In the initial calculations, there are obvious difficulties in allocating appropriate figures for contribut

9、ion to fixed costs. Such calculations are meaningless if estimated volume levels are greatly above/below actual levels achieved. No consideration of competitive prices or response. Does not systematically evaluate demand. Logically corrupt. Uses estimate of volume to calculate price. In competitive

10、markets price determines volume. Opportunities to charge a higher price may be missed.Competitor-oriented Pricing Going-rate Pricing:With no product differentiation producers are forced to accept the going rate. In reality there is almost no situation in which no differentiation occurs.Competitive b

11、idding: The supplier will price according to a specification drawn up by the purchaser. Usually the supplier will choose the lowest (most competitive) price tendered.Statistical modelling has resulted in the following basis for calculating expected profits.Expected profit = Profit X Probability of w

12、inningPricing Plans Premise:Experience of pricing decisions in a range of companies suggests that the biggest gains are likely to result not from additional knowledge or insights concerning specific aspects of pricing, but from a more consistent and rational application of what is already known. Mor

13、e specifically, there is a need to ensure that the decisions that are taken concerning the many different aspects of a companys price structure form part of a coherent plan.Marketing-orientated pricingEffect on distributors/retailersNegotiating marginsCostsPolitical factorsProduct line pricingCompet

14、itionPrice-quality relationshipsExplicabilityMarketing strategyValue to customerMarketing-orientedpricing PLANEVC Analysis120000120000300005000030000EVC =9000010000020000EVC =8000040000 Added ValueLife Cycle Cost Purchase PriceStart-up CostsPost-Purchase CostsReference ProductNew Product XNew Produc

15、t YNine Marketing-Mix Strategies on Price/Quality1. Premium strategy2. High-value strategy 3. Superb-value strategyHighMediumLowProduct Quality4. Overcharging strategy7. Rip-off strategy5. Average strategy8. False economy strategy 6. Good value strategy 9. Economic strategyHighMediumLowPriceRevenueT

16、ime0Introduction stageGrowth stageMaturity stageDecline stageThe Product Life CycleNew product launch strategyRapidskimmingHighSlowskimmingRapidpenetrationSlowpenetrationPriceLowPromotionHighLowWhen To Use a Penetration or a Skimming Strategy for Pricing New ProductsLevel of Desirein MarketDistincti

17、veness from Competitive ProductsImportance of Price to MarketEase of Duplicating ProductReturn on Investment ObjectiveDimensionSkimmingStrategyPenetrationStrategyHighLowSimilarImportantEasyGradualFastNot EasyNot ImportantDistinctiveSource: Hise, R, Gillett, P and Ryans, J, (1979), Basic Marketing Co

18、ncepts and Decisions, Winthrop Publishers, Cambridge, Massachusetts, p 450.Initiating Price Changes Increases Cuts Circumstances Value greater Value less than price than price Rising costs Excess supply Excess demand Build objective Harvest objective Price war unlikely Pre-empt competitive entry Ini

19、tiating Price Changes Increases Cuts Tactics Price jump Price fall Staged price increases Staged price reductions Escalator clauses Fighter brands Price unbundling Price bundling Lower discounts Higher discounts Initiating Price Changes Increases Cuts Estimating Strategic objectives Competitor Self-

20、interest Reaction Competitive situation Past experience Reacting to Competitors Price Changes Increases Cuts When To Rising costs Falling costs Follow Excess demand Excess supply Price insensitive customers Price sensitive customers Price rise compatible with brand image Price fall compatible with brand image Harvest or hold objective Build or hold objective Reacting to Competitors Price Changes Increases Cuts When To Stable or falling costs R