Price Decisions in the Marketing Mix - Revision history

Dirkjan at 20:01, 27 August 2020

2020-08-27T20:01:47Z

Dirkjan: Replaced content with "Price Decisions in the Marketing Mix Category:mbi Category:Term"

2020-08-27T19:20:43Z

Replaced content with "Price Decisions in the Marketing Mix Category:mbi Category:Term"

Dirkjan: Created page with "Some examples of pricing decisions to be made include: * Pricing strategy (skim, penetration, etc.) * Suggested retail price * Volume discounts and wholesale pricing * Cash an..."

2020-08-25T08:05:52Z

Created page with "Some examples of pricing decisions to be made include: * Pricing strategy (skim, penetration, etc.) * Suggested retail price * Volume discounts and wholesale pricing * Cash an..."

New page

Some examples of pricing decisions to be made include:
* Pricing strategy (skim, penetration, etc.)
* Suggested retail price
* Volume discounts and wholesale pricing
* Cash and early payment discounts
* Seasonal pricing
* Bundling
* Price flexibility
* Price discrimination

<html><img src = ""/static/files/MBI/Module%206/pricingrange.PNG" width="600"/></html>

Frequent mistakes are determining prices [[Mark-up pricing|Mark-up pricing]] and [[Competitive match pricing|Competitive match pricing]].

Which price maximizes long-term profits?
* Customer perceived benefits and price elasticity
* Competition (now and later)
* Business model
* Psychological effect
* Segmentation and positioning

Value creation per unit looks like this:
<html>
<img src="/static/files/MBI/Module%206/ValueCreation.PNG" width=400>
</html>

Tests to determine price elasticity:
{| class="wikitable"
!Method
!Advantages
!Disadvantages
|-
|Price experiments
|* Fast * Low risk * Many variants can be tested
|* External validity (transfer?) * Internal validity (too strong simplification
|-
|Classic market tests
|* Realistics * Allows for good predictions
|* Reaction to heterogeneous prices? * Positioning jeopardized? * High cost / time
|-
|Tests over the internet
|* Realistic * Very fast * Limited cost and time
|* Reaction to heterogenous prices? * "Unfair"? (Amazon) * Long range effects? * Not suitable for all distribution channel
|-
|}Part of [[Marketing mix (Four P's of marketing)|Marketing mix (Four P's of marketing)]]
[[Category:mbi]]

[[Category:Term]]

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-Price Decisions in the Marketing Mix
+Some examples of pricing decisions to be made include:
 [[Category:mbi]]
 [[Category:Term]]