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picture1_Marketing Ppt 67395 | Ferrell Mktstrat6e Ppt Ch08


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File: Marketing Ppt 67395 | Ferrell Mktstrat6e Ppt Ch08
pricing strategy is a key factor in producing revenue for the firm is the easiest of all marketing variables to change is an important consideration in competitive intelligence is considered ...

icon picture PPTX Filetype Power Point PPTX | Posted on 28 Aug 2022 | 3 years ago
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                  Pricing Strategy
                  Is a key factor in producing revenue for the 
                     firm
                  Is the easiest of all marketing variables to 
                     change
                  Is an important consideration in competitive 
                     intelligence
                  Is considered to be the only real means of 
                     differentiation in highly commoditized markets
                                                                                                             2
                  © 2014 Cengage Learning.  All Rights Reserved.  May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in 
                  part.
                  Key Issues in Pricing Strategy
                  The Firm’s Cost Structure
                  Perceived Value
                  The Price/Revenue Relationship
                  Pricing Objectives
                  Price Elasticity
                                                                                                             3
                  © 2014 Cengage Learning.  All Rights Reserved.  May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in 
                  part.
                  The Firm’s Cost Structure
                  Breakeven in Units
                                                   Total Fixed Costs
                                   Unit Price  -  Unit Variable Costs
                  Selling Price
                                                  Average Unit Cost
                                    1  -  Markup Percent (decimal)
                                                                                                             4
                  © 2014 Cengage Learning.  All Rights Reserved.  May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in 
                  part.
                  Perceived Value
                  Value is a customer’s subjective evaluation of 
                     benefits relative to costs to determine the 
                     worth of a firm’s product offering relative to 
                     other product offerings.
                      Benefits – everything the customer obtains from the 
                        offering
                      Costs – everything the customer must give up
                  Value is intricately tied to every element in the 
                     marketing program.
                                                                                                             5
                  © 2014 Cengage Learning.  All Rights Reserved.  May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in 
                  part.
                  The Price/Revenue Relationship
                  Myth #1 – When business is good, a price cut will 
                     capture greater market share.
                  Myth #2 – When business is bad, a price cut will 
                     stimulate sales.
                  Price cutting is generally not in the best interests 
                     of the firm unless sales volume will increase.
                  A better strategy is to build value into the 
                     product offering at the same (or even a higher) 
                     price.
                                                                                                             6
                  © 2014 Cengage Learning.  All Rights Reserved.  May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in 
                  part.
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...Pricing strategy is a key factor in producing revenue for the firm easiest of all marketing variables to change an important consideration competitive intelligence considered be only real means differentiation highly commoditized markets cengage learning rights reserved may not scanned copied or duplicated posted publicly accessible website whole part issues s cost structure perceived value price relationship objectives elasticity breakeven units total fixed costs unit variable selling average markup percent decimal customer subjective evaluation benefits relative determine worth product offering other offerings everything obtains from must give up intricately tied every element program myth when business good cut will capture greater market share bad stimulate sales cutting generally best interests unless volume increase better build into at same even higher...

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