《市场营销专业英语教程》（第15版）课件2019营销英语chapter11

《市场营销专业英语教程》(第15版)（专门用途英语系列教材）Chapter11PricingStrategy2Contents:DemandInfluencesonPricingDecisionsSupplyInfluencesonPricingDecisionsEnvironmentalInfluencesonPricingDecisionsAGeneralPricingModel3Pre-readingquestions:Canthefirmssetpricesoftheirgoodsarbitrarily?Howdothefirmsworkouttheprices?Whatfactorsdoyouthinkcouldinfluencetheprices?4Lead-inIfconsumersororganizationalbuyersperceiveapricetobetoohigh,theymaypurchasecompetitivebrandsorsubstituteproducts,leadingtoalossofsalesandprofitsforthefirm.Ifthepriceistoolow,salesmightincrease,butprofitabilitymaysuffer.Thus,pricingdecisionsmustbegivencarefulconsideration.Thischapterdiscussesdemand,supply,andenvironmentalinfluencesthataffectpricingdecisionsandemphasizesthatallthreemustbeconsideredforeffectivepricing.5Demandinfluencesonpricingdecisionsconcernprimarilythenatureofthetargetmarketandexpectedreactionsofconsumerstoagivenpriceorchangeinprice.threeprimaryconsiderations:demographicfactorspsychologicalfactorspriceelasticity1.DemandInfluencesonPricingDecisions

6Demographicfactorsincludethefollowing:1. Numberofpotentialbuyers.2. Locationofpotentialbuyers.3. Positionofpotentialbuyers(organizationalbuyersorfinalconsumers).4. Expectedconsumptionratesofpotentialbuyers.5. Economicstrengthofpotentialbuyers.1.DemandInfluencesonPricingDecisions

7threetypesofpsychologicalpricingstrategies：

prestigepricing,ahighpriceischargedtocreateasignalthattheproductisexceptionallyfine.oddpricing/odd-evenpricing,pricesaresetafewdollarsorafewcentsbelowaroundnumber.bundlepricing,severalproductsaresoldtogetheratasinglepriceto­suggestagoodvalue.1.DemandInfluencesonPricingDecisions

8Psychologicalfactorsincludethefollowing:1. Willpotentialbuyersusepriceasanindicatorofproductquality?2. Willpotentialbuyersbefavorablyattractedbyoddpricing(e.g.99¢,$3,999)?3. Willpotentialbuyersperceivethepriceastoohighrelativetotheservicetheproductgivesthemorrelativetocompetition?

1.DemandInfluencesonPricingDecisions

9PriceElasticityisameasureofconsumers’pricesensitivity,whichisestimatedbydividingrelativechangesinthequantitysoldbytherelativechangesinprice:1.DemandInfluencesonPricingDecisions

10supplyinfluencesonpricingdecisionscanbediscussedintermsofthreebasicfactors：objectivescostsnatureoftheproduct2.SupplyInfluencesonPricingDecisions

11Pricingobjectivesshouldbederivedfromoverallmarketingobjectives,whichinturnshouldbederivedfromcorporateobjectives.themostcommonpricingobjectivesare:

1. pricingtoachieveatargetreturnoninvestment.2. stabilizationofpriceandmargin.3. pricingtoachieveatargetmarketshare.4. pricingtomeetorpreventcompetition.2.SupplyInfluencesonPricingDecisions12CostConsiderationsinPricingCost-orientedpricingisthemostcommonapproachinpractice,andthereareatleastthreebasicvariations:markuppricing,cost-pluspricing,andrate-of-returnpricing.2.SupplyInfluencesonPricingDecisions

13Markuppricingiscommonlyusedinretailing:Apercentageisaddedtotheretailer’sinvoicepricetodeterminethefinalsellingprice.cost-pluspricing,thecostsofproducingaproductorcompletingaprojectaretotaledandaprofitamountorpercentageisaddedon.Cost-pluspricingismostoftenusedtodescribethepricingofjobsthatarenonroutineanddifficultto“cost”inadvance.2.SupplyInfluencesonPricingDecisions14Rate-of-returnortargetpricingiscommonlyusedbymanufacturers.Withthismethod,priceisdeterminedbyaddingadesiredrateofreturnoninvestmenttototalcosts.2.SupplyInfluencesonPricingDecisions15ProductConsiderationsinPricingAlthoughnumerousproductcharacteristicscanaffectpricing,threeofthemostimportantare:(1)perishability(2)distinctiveness(3)stageintheproductlifecycle.2.SupplyInfluencesonPricingDecisions16(1)PerishabilitySomeproducts,suchasfreshmeat,bakerygoods,andsomerawmaterialsarephysicallyperishableandmustbepricedtosellbeforetheyspoil.

(2)DistinctivenessMarketerstrytodistinguishtheirproductsfromthoseofcompetitorsandifsuccessful,canoftenchargehigherpricesforthem.2.SupplyInfluencesonPricingDecisions17(3)LifeCycleAskimmingpolicy

isoneinwhichthesellerchargesarelativelyhighpriceonanewproduct.Apenetrationpolicyisoneinwhichthesellerchargesarelativelylowpriceonanewproduct.2.SupplyInfluencesonPricingDecisions18Environmentalinfluencesonpricingincludevariablesthatthemarketingmanagercannotcontrol.ThreeofthemostimportantofthesearetheInternet,competitionandgovernmentregulation.3.EnvironmentalInfluencesonPricingDecisions19TheInternetOneofthebiggestinfluencesonpricingdecisionshasbeenthedevelopmentoftheInternet.TheInternethasmadepricesmucheasierforconsumersandorganizationalbuyerstocompareandhasforcedmarketerstobemuchmoretransparentintheirpricingstrategies.3.EnvironmentalInfluencesonPricingDecisions20Competition

considerationmustbegiventosuchfactorsas:1. Numberofcompetitors.2. Marketshares,growth,andprofitabilityofcompetitors.3. Strengthsandweaknessesofcompetitors.4. Likelyentryofnewfirmsintotheindustry.3.EnvironmentalInfluencesonPricingDecisions21GovernmentRegulations1.Pricefixing

isillegal.Sellersmustnotmakeanyagreementswithcompetitorsordistributorsconcerningthefinalpriceofthegoods.2.Deceptivepricingpracticesareoutlawed.Anexampleofdeceptivepricingwouldbetomarkmerchandisewithanexceptionallyhighpriceandthenclaimthatthelowersellingpriceactuallyusedrepresentsalegitimatepricereduction.3.EnvironmentalInfluencesonPricingDecisions22GovernmentRegulations3.Pricediscrimination(thepracticeofchargingdifferentpricestodifferentbuyersforgoodsoflikegradeandquality)thatlessenscompetitionorisdeemedinjurioustoitisoutlawed4.Predatorypricinginvolveschargingaverylowpriceforaproductwiththeintentofdrivingcompetitorsoutofbusiness.3.EnvironmentalInfluencesonPricingDecisions234.AGeneralPricingModelEffectivepricingdecisionsinvolveconsiderationsofmanyfactors,anddifferentindustriesmayhavedifferentpricingpractices.Figure11.1presentsageneralmodelfordevelopingpricesforproductsandservices.24254.AGeneralPricingModelSetPricingObjectivesGivenaproductorservicedesignedforaspecifictargetmarket,thepricingprocessbeginswithaclearstatementofthepricingobjectives.Theseobjectivesguidethepricingstrategyandshouldbedesignedtosupporttheoverallmarketingstrategy.264.AGeneralPricingModelEvaluateProduct—PriceRelationshipsMarketersneedtoconsiderwhatvaluetheproducthasforcustomersandhowpricewillinfluenceproductpositioning.Researchisneededtoestimatehowmuchofaparticularproductthetargetmarketwillpurchaseatvariouspricelevels--priceelasticity.274.AGeneralPricingModelEstimateCostsandOtherPriceLimitationsIfaproductcannotbeproducedandmarketedatapricetocoveritscostsandprovidereasonableprofitsinthelongrun,thenitshouldnotbeproducedinitsdesignedform.Otherpricelimitationsthatneedtobeconsideredaregovernmentregulationsandthepricesthatcompetitorschargeforsimilarandsubstituteproducts.284.AGeneralPricingModelAnalyzeProfitPotentialAtthisstage,itisimportanttorecognizethatitmaybenecessarytoofferchannelmembersquantitydiscounts,promotionalallowances,and

slottingallowancestoencouragethemtoactivelymarkettheproduct.thesecanincreasesalesbutalsoadd­marketingcost294.AGeneralPricingModelSetInitialPriceStructureThepricestructuretakesintoaccountthepricetovariouschannelmembers,suchaswholesalersandretailers,aswellastherecommendedpricetofinalconsumersororganizationalbuyers.304.AGeneralPricingModelChangePric