Escolar Documentos
Profissional Documentos
Cultura Documentos
Positioning Objectives
Pricing Decisions
Target
Market
External Factors
Marketing
Objectives
Choose the Price that Produces the Maximum Current Profit, Cash Flow or ROI.
Non-Price Factors
Marketing-Mix Strategy
Distribution
Promotion
Costs that dont vary with sales or production levels. Executive Salaries Rent
Variable Costs
Costs that do vary directly with the level of production. Raw materials
Costs Considerations
Cost Per Unit at Different Levels of Production Per Period
SRAC
LRAC
1,000
2,000
3,000
4,000
Monopolistic Competition
Many Buyers and Sellers Trading Over a Range of Prices.
Oligopolistic Competition
Few Sellers Each Sensitive to Others Pricing/ Marketing Strategies
Pure Monopoly
Single Seller
Demand Curves
A. Inelastic Demand Demand Hardly Changes With a Small Change in Price. Price P2 P1
Q 2 Q1 Quantity Demanded per Period B. Elastic Demand Demand Changes Greatly With a Small Change in Price. P2 P1
Price
Total Revenue
10
20
30
40
50
Value-Based Pricing
Cost-Based Pricing Value-Based Pricing
Product Cost
Customer Value
Price
Value Customers
Price
Cost Product
Competition-Based Pricing
Setting Prices
Going-Rate
Company Sets Prices Based on What Competitors Are Charging.
? Company Sets Prices Based on Think Competitors ? What They Will Charge.
Sealed-Bid