How much are you willing to pay?.    Price is defined as the value placed on the goods or services being exchanged PRICE:

Slides:



Advertisements
Similar presentations
Sports & Entertainment Marketing Pricing. Welcome to: The Price is Right!
Advertisements

Price The charge the product is sold to the consumer at.
Determining the correct price
1.Determine pricing objectives 2.Study costs 3.Estimate consumer demand 4.Study the competitions prices 5.Decide on a pricing strategy 6.Set price.
Developing a foundational knowledge of PRICING to understand its role in marketing Unit 4 Objective 4.07.
2.2 Using the Marketing Mix - Price
Market-Based Management, 4th edition
Pricing Strategy 8 C H A P T E R.
Chapter 30 – Pricing Strategies
PRICE. Yes, But What Does It Cost? Price is the value that customers give up or exchange to obtain a desired product Payment may be in the form of money,
1)Info about the IPAD 2)How the price of the IPAD is determined 3)Associated products 4)How recent developments would affect marketing and pricing decisions.
Review of Microeconomics: Demand, Supply and Prices 1. Write answers to the following without looking them up or asking anyone else. 2. Correct or add.
MANAGEMENT OF MARKETING PRICING STRATEGIES. LEARNING INTENTIONS/SUCCESS CRITERIA LEARNING INTENTIONS: I understand the role of PRICING as part of the.
Theory on Pricing Strategy
Pricing Strategies. Over the last couple periods we have come to the conclusion that: – Marketers must consult with production in order to set a minimum.
Cross Price Elasticity of Demand IB Economics. Cross Price Elasticity of Demand (PED x,y ) Cross price elasticity (PED x,y ) measures the responsiveness.
Pricing Strategies Matrix. Pricing – International Pricing Setting prices in international markets can be a challenge. Companies must consider: economic.
The Marketing Mix Price
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.
DETERMINANTS OF SUPPLY AND DEMAND. Factors that change the quantity demanded or supplied.
Marketing in Today’s World
Sports and Entertainment Marketing Pricing. How much would you pay for tickets to see your favorite football team or musician? Businesses struggle with.
9.01 Explain factors that affect pricing.
©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition 12-0 Chapter 12 Pricing the Product.
Chapter 8 Pricing Strategy and Management
Copyright 2006 – Biz/ed Pricing Strategies.
3.3.2 PRICE. Central Question How do you decide on your selling price?
  Fixed and variable costs  Competition  Company objectives  Proposed positioning strategies  Target group and willingness to pay Factors that.
Supply & Demand. Market Economy In a market economy goods and services are made available through supply and demand Consumers decide what is supplied.
Chapter 32: Using the Marketing Mix Pricing. Pricing Strategies Price Skimming – high price is set to yield a high profit margin, usually during the introduction.
Pricing: Understanding and Capturing Customer Value
Market and Market Identification Try to memorize the terms in this section, because you will use them throughout your study of marketing! The first important.
IB Business Management 4.5 Price. Learning Outcomes To understand, apply and be able to select the most appropriate of the following pricing strategies:
Developing Pricing Strategies Lecture 15. Price Price is the art of communicating the value of a product or service at a particular point of time “Don’t.
Gaming for You By Ryan Winston. Gaming For You: The Beginning Our company is called Gaming For You and it is a console that is far greater than Playstation.
Supply and Demand Business Economics. Demand  A range of Prices and Quantities  Price is termed Demand Price  the maximum price that buyers are willing.
Competition based pricing strategies
12-1 Pricing: Where psychology meets economics Tonight’s GOALS: you could explain how to: Use behavioral research to set an initial price for a new product.
Price Price determinations in free markets supply and demand pricing strategies.
Journal Question What are the 4 P’s of marketing and how can a business control each one? Give an example.
Economics of SERM Sports and Entertainment Marketing.
Competition based pricing strategies Price leadership Few substitutes, in the eye of the customer Competitors follow the leader by establishing their prices.
Intro Growth Maturity Decline DOLLARSDOLLARS TIME Sales Introduction Profit Companies Focus is on Promotion and Production. Product Awareness #1 concern.
Demand A Schedule Showing the Consumers are Willing and Able to Purchase At a Specified Set of Prices During A Specified Period of Time Amounts of a Good.
Product Life Cycle Introduction GrowthMaturity Decline Product introduced into the market. Product is enjoying success. Much of the target market knows.
2.17 Pricing Marketing and the Competitive Environment Using the Marketing Mix: Pricing “Price is what you pay. Value is what you get.” Warren Buffett.
Starter - Product pricing Who do you think sets the prices for these good? Which are high prices and which are low?
Budgets and Businesses Workshop. Budget: is a plan that shows income, spending and saving. Income: Spending: Saving:
Marketing I Curriculum Guide. Pricing Standard 4.
Pricing Strategies Aimed at achieving long term profit growth.
Progression Diploma Marketing: 4P’s – Price. Pricing Considerations Pricing Decision Customers & Consumers Demand & Price Elasticity Competitors Channels.
BMI3C Chapter 7 Pricing. All businesses use the same factors to establish prices What are the key factors in determining prices of products / services?
A2 - Elasticity. Economic concept of demand An increase in price will cause a decrease in demand This assumes that the only two variables are price and.
Sports and Entertainment Marketing.  Businesses struggle with this same questions everyday.  “How much will someone pay for ______?”
5 Steps to Graphing Heaven Step 1- Draw the starting S and D Graph D S 0 Price (P) Quantity (Q) P0P0 Q0Q0 A. Draw the axes B. Label the axes C. Draw the.
3.4 – Using the marketing mix: Price
D. MARKETING A SMALL BUSINESS
Chapter 8 Pricing Decisions
The Marketing Mix Pricing.
Determinants of Supply and Demand
Supply and Demand Chapter 1.4.
3.4 – Using the marketing mix: Price
التسويق المصرفي ..محاضرة رقم 21
Supply and Demand.
Buying Brainstorm!.
4.07 Develop a foundational knowledge of PRICING to understand its role in marketing.
2. SUPPLY, DEMAND AND PRICE
Supply and Demand.
Demand Prices within our economy are set by supply and demand.
Presentation transcript:

How much are you willing to pay?

  Price is defined as the value placed on the goods or services being exchanged PRICE:

  The cost of providing the product or service  The profit that companies hope to make  Demand for the product  Supply of the product  What is the Competition charging? Factors Affecting Pricing

 CD Costs and Profit

 Movie Theatre distribution2.htm

 Popcorn Saves Theatres Profit 85% Cost 15%

 Limited Supply High Demand

 Supply and Demand

 In Line with Competition

  A pricing strategy is defined as:  A plan which determines the best (at the time of making) pricing decision. Pricing Strategy

  Importance of:  Know the market  Elasticity  Keeping an eye on rivals Pricing Strategy

  Estimating Consumer Demand  Consumer Tastes  Consumer Income Knowing the Market

  Is the measure of the responsiveness of demand and supply of a good or service to an increase or decrease in its price. Elasticity

 Competitors  The availability of substitute sports or entertainment product  How easily can we be replaced ?  Accessibility to the consumer

  Three main pricing strategies: 1.Market skimming 2.Penetration pricing 3.Competitive pricing Pricing Strategies

 Think! Pair! Share!  In pairs, brainstorm what you think each pricing strategy means.  Come up with examples of sports or entertainment products or companies that use these strategies  Join another pair, and discuss your answers  As a class each group of 4 will present their findings Pricing Strategies

  Setting a very high price for a new product when demand is greater than supply Skimming

  Setting a low price for a new product to attract many customers to try the product and to obtain a large share of the market in a short time  Example: Nintendo consciously chose a penetration strategy when it introduced its GameCube video game console. GameCube was priced at substantially less than Microsoft’s Xbox and Sony’s PlayStation 2 consoles. Penetration

  Products in particular category match or follow the price of their competitors very closely Competitive Pricing