Price Skimming Often in Technology market Early adopters

Slides:



Advertisements
Similar presentations
PRICE Price is only one of the factors that affects a buyer’s purchasing decision. It is an important indicator of quality and image and provides customers.
Advertisements

Price The charge the product is sold to the consumer at.
Copyright © Houghton Mifflin Company. All rights reserved. 13 | 1 Pricing …the amount of money a seller is willing to accept in exchange for a product.
Pricing Products: Pricing Strategies
Chapter 30 – Pricing Strategies
MANAGEMENT OF MARKETING PRICING STRATEGIES. LEARNING INTENTIONS/SUCCESS CRITERIA LEARNING INTENTIONS: I understand the role of PRICING as part of the.
KEY TERMS UNIT 5 (PRICING) Marketing. BETWEEN THE MINIMUM A COMPANY CAN CHARGE TO COVER COSTS AND THE MAXIMUM CUSTOMER IS WILLING TO PAY. Price Range.
Using the marketing mix: pricing LO: To understand the difference between the various pricing strategies and pricing tactics.
Pricing Strategies Matrix. Pricing – International Pricing Setting prices in international markets can be a challenge. Companies must consider: economic.
Pricing Strategies Part 1: The Matrix. Consumer Demand Consumer demand always sets the price: if the consumer feels the price is too expensive, they may.
Jeopardy Pricing Policies Pricing Strategies BEPLaws Pricing Mix Q $100 Q $200 Q $300 Q $400 Q $500 Q $100 Q $200 Q $300 Q $400 Q $500 Final Jeopardy.
Pricing Strategies Chapter 26. Cost-Oriented Pricing  Markup Pricing – difference between cost and price  Cost-Plus Pricing – costs and expenses, plus.
Pricing Strategies Chapter 26. Cost-Oriented Pricing  Markup Pricing – difference between cost and price  Cost-Plus Pricing – costs and expenses, plus.
Writing A Business Plan. Lesson Goals: Entrepreneurs will learn: –The reasons for preparing a business plan –The components of a business plan –The format.
Profit Margins and Competition in Fashion Industry.
McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
  Fixed and variable costs  Competition  Company objectives  Proposed positioning strategies  Target group and willingness to pay Factors that.
Marketing Mix Test This test consists of 10 questions designed to test your understanding of methods of the marketing mix The links provide you with a.
McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Chapter 16 Pricing of Services Three Key Ways Service Prices are Different for.
The Industry, the Company and its Products
CHAPTER 19 - Pricing Strategies. PRICING STRATEGIES 1. SKIMMING –involves use of relatively high price compared to competitor prices ie. New drug. 2.
Competition based pricing strategies Price leadership Few substitutes, in the eye of the customer Competitors follow the leader by establishing their prices.
“Price” Marketing Tool Pricing Strategies Calculate Price Discounts & Allowances Unit 5.
Starter - Product pricing Who do you think sets the prices for these good? Which are high prices and which are low?
Using the marketing mix: pricing LO: To understand the difference between the various pricing strategies and pricing tactics.
Chapter 14. How companies price Pricing specialist Feedback from product specialist Final pricing by finance and marketing.
Lesson 1 - Pricing VIRTUAL BUSINESS - RETAILING. What is Pricing? The method followed by a business to determine the selling price for its product or.
What should Apple do to sustain its position? Lari Pelanne, Aleksi Halttunen, Ali, Stheffany Godoy.
4.2 d price 4.4 in IB BM syllabus. Price If markets set price and costs determine profit, then what is the price we put on the product? As a business.
Marketing II / Session Martin Samek
Price.
D. MARKETING A SMALL BUSINESS
Chapter 11 Pricing Strategies
Objective 3.03C Employ Pricing Strategies to Determine Prices
The Marketing Mix Pricing.
GCSE Business Studies Unit 1 Starting a Business
Price in Businesses By: Nicolas Torrico, Lucero Contreras, Jorge Garcia, and Francis Canelas.
Intro to Marketing Quiz Objectives
Marketing Mix Unit 4.5 PRICE.
Price is the same thing as cost
Remember to try and vary your answers – not all answers can end in “that will increase sales revenue and improve profits” FIRST YOU MUST check exactly.
Pricing Strategies.
What to charge customers?
Starter Question for discussion - What tools do businesses use to help convince potential customers to purchase their product?
Various pricing methods. INTRODUCTION The companies resolve pricing issue by selecting a pricing method that incorporates costs,competition and demand.
What is the best price for my product?
What is the best price for my product?
What is Price? What is Unit Comparison? (Give an example)
Chapter Nine: Pricing Strategies
3.2.1 Design and research development
Pricing Methods and Strategies
Chapter 14 Pricing Strategies and Tactics
Chapter 11 Pricing Strategies.
Decision Theory.
3.4 – Using the marketing mix: Price
Prepared by: Avinash Ramsubhag
التسويق المصرفي ..محاضرة رقم 21
Targeting Strategies Defining an entire market for a product as the target market Designing a single marketing mix for the total market FIGURE 7.2 Copyright.
The Marketing Mix: Price
Pricing Mix Strategies
4 P’s - Price.
How much will I charge for MILK?
Pricing Methods and Strategies
Chapter Eleven Pricing Strategies.
Build or Maintain Image Increase Sales/Volume
Pricing Strategies CHAPTER 10.
Price The main pricing strategies are Competitive pricing
4. Pricing B 4 / 1 BUSINESS ECONOMICS 5 / 6
4 P’s - Price.
Session 8: PRICING AND CREDIT STRATEGIES
Presentation transcript:

Price Skimming Often in Technology market Early adopters Over time change to become more competitive

Price Skimming Adv Dis High profit margins . Apple quarterly results: $18bn profit (£11.8bn) - biggest ever by a public company $142bn (£93bn) net cash reserves 74.5m number of iPhones sold 39.9% profit per product Flexibility to lower the price as part of an extension strategy in the future Reduce the size of your market regarding as some may be unable to afford the higher price. The quality of product must be reflected in the premium price

Price Penetration

Price Penetration Adv Dis

Competitive Pricing

Competitive Pricing Adv Dis

Loss Leader

Loss Leader Adv Dis

Cost Plus Pricing

Cost Plus Pricing Adv Dis