Group members:  Claudino Juaquim  Laimi Jeremia  Victoria Shimweefeleni  Helena Imbili  Ndapandula Efraim

 Competition  Competition-based pricing strategy  Policies in competition based pricing  Price setting process  Steps in pricing procedures  Brand leader responses to price cuts

 Price environment  Reacting to price competition  Market structure & pricing  Non- price competition

 Competition:  R ivalry  Goals  Increasing profits

 Definition  Pricing their products in line with those of the competitors  Checking on prices of competitors before pricing their own  Same price, of slightly below

 Premium pricing  Discount pricing  Parity pricing  Product line pricing

Identify the target market -Market position -price image Determine price elasticity Product life cycle Competitor’s prices Other environmental factors Choose pricing method Conduct periodic review

 Price Environment  Different type of environment:  Market-controlled environment  Company-controlled environment  Government-controlled environment

 lasting distinctiveness  low cross elasticity and  perishable distinctiveness

 Competitor lowers price in homogenous market:  Try augmenting the product  Alternatively, meet the price cut head-on ( Copyright- Marketing institute of Singapore)

 If competitor raises price in non-homogenous market, evaluate:  Reason for price change  If price change is temporary  Effect on your market share & profit  The likely responses from other competitors

 One dominant supplier  determine price without regard for competition  Ability to increase or lower price without worrying about competitors  Price based on quality, demand, market structure etc.

 Few firms  small number of large suppliers.  compete on a non-price basis  Based on variables such as service quality customer relationships or branding.

 large number of buyers and sellers  High competition  Price closely related or similar

 characterised by numerous competitors  Similar but differentiated products e.g restaurant  Price according to design, quality brand image and product features  the existence of intense price competition is evidence of the lack of meaningful product differentiation.

 None-price competition  Company tries to increase market share of its product by:  Not changing the price of the product/service  But, by persuading the target customers of the superiority or advantages associated with it.

pricing/competition/1794-how-should-you-react.html (McConnell-Brue, 2002, p ). Marketing Institute of Singapore. Pricing Strategies for the Asia pacific. Retrieved from PricingStragsforASPAC.PPT) PricingStragsforASPAC.PPT Raju, J. & Zhang, Z.J. (2010) Smart pricing: How Google, Priceline, and leading businesses use pricing innovation for profitability, 1st Edition, New York: Pearson Ed Cram, T. (2005). Smarter pricing: How to capture more value in your market, New York: Pearson Ed.

 TEST TIME…  ALL THE BEST!

 1. Name any 3 steps in setting price  2. Name the 4 policies involved in Competitive Based Pricing  3. How do Marketers price their products in a Monopoly Market?  5. How do Marketers price their products in a Perfect competition?  6. What is meant by Non-price competition?  7. Define Competition and another name for it  8.Define competitive based Pricing