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Pricing & Distributing Strategies W. Rofianto
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Pricing & Distributing Strategiesproduct or service, or the sum of the values that customers exchange for the benefits of having or using the product or service. Major Pricing Strategies.

Feb 29, 2020

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Page 1: Pricing & Distributing Strategiesproduct or service, or the sum of the values that customers exchange for the benefits of having or using the product or service. Major Pricing Strategies.

Pricing & Distributing Strategies

W. Rofianto

Page 2: Pricing & Distributing Strategiesproduct or service, or the sum of the values that customers exchange for the benefits of having or using the product or service. Major Pricing Strategies.

What is Marketing?

Marketing is the activity, set of institutions, and processes for

creating, communicating, delivering, and exchanging

offerings that have value for customers, clients, partners,

and society at large.

(American Marketing Association’s official definition of marketing,

Approved July 2013)

Marketing Defined Revisited

Page 3: Pricing & Distributing Strategiesproduct or service, or the sum of the values that customers exchange for the benefits of having or using the product or service. Major Pricing Strategies.

What Is a Price?

The amount of money charged for a

product or service, or the sum of the

values that customers exchange for

the benefits of having or using the

product or service

Page 4: Pricing & Distributing Strategiesproduct or service, or the sum of the values that customers exchange for the benefits of having or using the product or service. Major Pricing Strategies.

Major Pricing Strategies

Page 5: Pricing & Distributing Strategiesproduct or service, or the sum of the values that customers exchange for the benefits of having or using the product or service. Major Pricing Strategies.

Cost-Based Pricing

Page 6: Pricing & Distributing Strategiesproduct or service, or the sum of the values that customers exchange for the benefits of having or using the product or service. Major Pricing Strategies.

Competition-Based Pricing

no matter what price they charge—low or high— companies need to

offer great value for the money

▪ Under pure competition, the market consists of

many buyers and sellers trading in a uniform

commodity, sellers in these markets do not spend

much time on marketing strategy

▪ Under monopolistic competition, the market

consists of many buyers and sellers trading over a

range of prices rather than a single market price.

Sellers try to develop differentiated offers

▪ Under oligopolistic competition, the market

consists of only a few large sellers, price becomes

a major competitive tool

▪ In a pure monopoly, the market is dominated by

one seller, Pricing is handled differently in each

case.

Page 7: Pricing & Distributing Strategiesproduct or service, or the sum of the values that customers exchange for the benefits of having or using the product or service. Major Pricing Strategies.

Value-Based Pricing

Page 8: Pricing & Distributing Strategiesproduct or service, or the sum of the values that customers exchange for the benefits of having or using the product or service. Major Pricing Strategies.

Value-Based Pricing

Page 9: Pricing & Distributing Strategiesproduct or service, or the sum of the values that customers exchange for the benefits of having or using the product or service. Major Pricing Strategies.

New Product Pricing Strategies

Page 10: Pricing & Distributing Strategiesproduct or service, or the sum of the values that customers exchange for the benefits of having or using the product or service. Major Pricing Strategies.

Product Mix Pricing Strategies

Page 11: Pricing & Distributing Strategiesproduct or service, or the sum of the values that customers exchange for the benefits of having or using the product or service. Major Pricing Strategies.

Price Adjustment Strategies

Page 12: Pricing & Distributing Strategiesproduct or service, or the sum of the values that customers exchange for the benefits of having or using the product or service. Major Pricing Strategies.

Price Changes

Initiating Price Cuts – excess capacity, strong price competition,

weakened economy

Initiating Price Increases – inflation, cannot supply all that its customers

need

Responding to

Competitor

Price Changes

Page 13: Pricing & Distributing Strategiesproduct or service, or the sum of the values that customers exchange for the benefits of having or using the product or service. Major Pricing Strategies.

Public Policy Issues in Pricing

Page 14: Pricing & Distributing Strategiesproduct or service, or the sum of the values that customers exchange for the benefits of having or using the product or service. Major Pricing Strategies.

Marketing Channels

Delivering Customer Value

W. Rofianto

Page 15: Pricing & Distributing Strategiesproduct or service, or the sum of the values that customers exchange for the benefits of having or using the product or service. Major Pricing Strategies.

Value Delivery Network

Page 16: Pricing & Distributing Strategiesproduct or service, or the sum of the values that customers exchange for the benefits of having or using the product or service. Major Pricing Strategies.

Marketing Logistics and Supply Chain Management

Page 17: Pricing & Distributing Strategiesproduct or service, or the sum of the values that customers exchange for the benefits of having or using the product or service. Major Pricing Strategies.

Marketing channel

| Information | Promotion | Contact | Matching | Negotiation |

|Physical distribution | Financing | Risk taking |

Page 18: Pricing & Distributing Strategiesproduct or service, or the sum of the values that customers exchange for the benefits of having or using the product or service. Major Pricing Strategies.

Channel Levels

Page 19: Pricing & Distributing Strategiesproduct or service, or the sum of the values that customers exchange for the benefits of having or using the product or service. Major Pricing Strategies.

Channel conflict

Horizontal conflict occurs among

firms at the same level of the

channel.

Vertical conflict, conflict between

different levels of the same

channel, is even more common.

Page 20: Pricing & Distributing Strategiesproduct or service, or the sum of the values that customers exchange for the benefits of having or using the product or service. Major Pricing Strategies.

Vertical Marketing Systems

Page 21: Pricing & Distributing Strategiesproduct or service, or the sum of the values that customers exchange for the benefits of having or using the product or service. Major Pricing Strategies.

Horizontal Marketing Systems

Page 22: Pricing & Distributing Strategiesproduct or service, or the sum of the values that customers exchange for the benefits of having or using the product or service. Major Pricing Strategies.

Multichannel Distribution Systems

Page 23: Pricing & Distributing Strategiesproduct or service, or the sum of the values that customers exchange for the benefits of having or using the product or service. Major Pricing Strategies.

Retailing

https://www.youtube.com/watch?v=I7KaS45qD4k

Page 24: Pricing & Distributing Strategiesproduct or service, or the sum of the values that customers exchange for the benefits of having or using the product or service. Major Pricing Strategies.

Changing Channel Organization

Page 25: Pricing & Distributing Strategiesproduct or service, or the sum of the values that customers exchange for the benefits of having or using the product or service. Major Pricing Strategies.

Retailer Marketing Strategies

Page 26: Pricing & Distributing Strategiesproduct or service, or the sum of the values that customers exchange for the benefits of having or using the product or service. Major Pricing Strategies.

Retailing Trends and Developments