How much will I charge for MILK? Eagle Challenge Introduction Word of the Day Will be GRADED today New WOD starts 10/24 Pricing How much will I charge for MILK? Weebly KOSSA Standard OE6: Compare various pricing strategies and explain the goals of pricing

  Worksheet   KOSSA Standard OE6: Compare various pricing strategies and explain the goals of pricing

Pricing Concepts The three basic pricing concepts involving cost, demand, and competition The concepts of pricing forward vs. pricing backward The idea of one-price policy vs. a flexible-price policy The two polar pricing policies for introducing a new product

Pricing Concepts Why It's Important After deciding on pricing goals, marketers must establish pricing strategies that are compatible with the rest of the marketing mix. Another term for Marketing Mix? KOSSA Standard OE6: Compare various pricing strategies and explain the goals of pricing

Vocab for Today markup cost-plus pricing one-price policy flexible-price policy KOSSA Standard OE6: Compare various pricing strategies and explain the goals of pricing

Basic Pricing Concepts There are three basic pricing concepts that you will want to consider in determining the price for any given product: cost-oriented pricing demand-oriented pricing competition-oriented pricing KOSSA Standard OE6: Compare various pricing strategies and explain the goals of pricing

Pricing Concepts Cost-Oriented Pricing In cost-oriented pricing, marketers first calculate the costs of acquiring or making a product and their expenses of doing business; then they add their projected profit margin to these figures to arrive at a price. Two common methods are: markup pricing cost-plus pricing KOSSA Standard OE6: Compare various pricing strategies and explain the goals of pricing

Pricing Concepts Cost-Oriented Pricing Markup pricing is used primarily by wholesalers and retailers who are involved in acquiring goods for resale. The markup must cover the business’s expenses. Price = cost + markup (as percentage) Cost-plus pricing is used by manufacturers and service companies. Price = all costs + all expenses (fixed and variable) + desired profit KOSSA Standard OE6: Compare various pricing strategies and explain the goals of pricing

Pricing Concepts Demand-Oriented Pricing Marketers who use demand-oriented pricing attempt to determine what consumers are willing to pay for given goods and services. Demand-oriented pricing is effective when: there are few substitutes for an item there is demand inelasticity KOSSA Standard OE6: Compare various pricing strategies and explain the goals of pricing

Pricing Concepts Competition-Oriented Pricing Marketers who study their competitors to determine the prices of their products are using competition-oriented pricing. These marketers may elect to take one of three actions: price above the competition price below the competition price in line with the competition (going-rate pricing) Tender Pricing KOSSA Standard OE6: Compare various pricing strategies and explain the goals of pricing

Pricing Concepts Pricing Policies A basic pricing decision every business must make is to choose between a one-price policy and a flexible-price policy. A one-price policy is one in which all customers are charged the same price for the goods and services offered for sale. A flexible-price policy permits customers to bargain for merchandise. KOSSA Standard OE6: Compare various pricing strategies and explain the goals of pricing