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市场营销课件Masters Lec 5 Range Planning Product Selection
Pricing Strategies – 3 broad approaches (Lovelock et al, 2009) Cost-Based Pricing Set prices relative to financial costs (problem: defining costs) Activity-Based Costing Pricing implications of cost analysis Value-Based Pricing Relate price to value perceived by customer Competition-Based Pricing Monitor competitors’ pricing strategy (especially if service lacks differentiation) Who is the price leader - does one company set the pace? Pricing StrategiesUnderstandable, Measurable, Achievable Retailer objectives: Maximise short-term long-term profits Increase annual profits Company growth Consolidation of market share Maintenance of price leadership Continued support of consumers Maintenance of Company image Dissuading new competitors from entering the market NB – read up on pricing using marketing texts such as Pricing Strategies A mixed approach is usually adopted by most retailers - dependant on: Individual product categories Company strategy Product and market conditions Buyers make ‘objective judgements’ with each pricing decision Average margins must be met and monitored to ensure overall profitability Retailers can influence price and margin mixes - they have much less control over demand and, in turn, the sales mix achieved Gabor, A. ‘Pricing in Theory Practice’ “But if you have a good product, don’t spoil it by trying to sell it too cheaply. In other words, give the consumer the price which he wants and remember that it is not necessarily the cheapest price which will give him the greatest satisfaction” What does Gabor mean by this? Discuss. Recommended reading There are a number of good papers published in this area. Here are some to start you off: Burt, S. 2000. The Strategic Role of Retail Brands in British Grocery Retailing. European Journal of Marketing. 34:8. 875-890. Fairhurst, A.E. Fiorito, S.S. 1990. Retail Buyers’ Decision-making Process: An Investigation of Contributing Variables. International Review of Retail, Distribution
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