1. 4. Pricing B 4 / 1 BUSINESS ECONOMICS 5 / 6
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2. 4.0 OVERVIEW B 4 / 2 4.1 ADDED-VALUE AND PRICING page B 4 / 3
4.2 DETERMINING FACTORS FOR PRICING page B 4 / 4
4.3 PRICING METHODS page B 4 / 7
4.4 PRICING STRATEGIES page B 4 / 9
4.5 EXERCISES page B 4 / 12
4.6 VOCABULARY page B 4 / 16
Copyright Mark Van Couwenberghe,

3. 4.1 ADDED-VALUE AND PRICING
B 4 / 3
4.1 ADDED-VALUE AND PRICING
minus =
ADDED-VALUE
COMPANIES WANT TO ……………….. ADDED-VALUE TO ……………….. PROFIT
COMPANIES MUST ……………….. TURNOVER AND ……………….. COSTS
PRICING AND COST CONTROL (see next chapter)
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4. 4.2 DETERMINING FACTORS FOR PRICING
B 4 / 4
4.2 DETERMINING FACTORS FOR PRICING
Frank is thinking of setting a price for his new “bio bite”, a sandwich stuffed with fresh vegetables and biological cheese and ham
What are the factors he may be considering when setting the price?
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5. B 4 / 5 Internal factors: External factors: Company targets:
Marketing mix:
Costs:
External factors:
Type of market:
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6. B 4 / 6 Demand: Competition: Government:
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7. B 4 / 7
4.3 PRICING METHODS
Frank is thinking of setting a price for his new “bio bite”, a sandwich stuffed with fresh vegetables and biological cheese and ham
What are the pricing methods he may use?
Copyright Mark Van Couwenberghe,

8. B 4 / 8 Pricing method based on costs on demand on competition Method
Cost plus pricing
Target pricing
Example
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9. B 4 / 9
4.3 PRICING STRATEGIES
Frank is thinking of setting a price for his new “bio bite”, a sandwich stuffed with fresh vegetables and biological cheese and ham
What are the pricing strategies he may use?
Copyright Mark Van Couwenberghe,

10. B 4 / 10 Pricing strategy Penetration price Premium price
Psychological price
Strategy
Example
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11. B 4 / 11 Pricing strategy Price discount Price discrimination
Price differentiation
Strategy
Example
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12. B 4 / 12
4.4 EXERCISES
1) Analyze
all factors determining the pricing of Ryanair
the pricing strategies of Ryanair
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Couwenberghe,

13. B 4 / 13 2) Analyze all factors determining the pricing of Apple
the pricing strategies of Apple
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Couwenberghe,

14. B 4 / 14 3) Analyze all factors determining the pricing of Carrefour
the pricing strategies of Carrefour
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Couwenberghe,

15. B 4 / 15 4) Analyze all factors determining the pricing of NMBS
the pricing strategies of NMBS
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Couwenberghe,

16. B 4 / 16
4.5 VOCABULARY EN NL
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17. B 4 / 17 EN NL
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18. B 4 / 18 EN NL
Copyright Mark Van Couwenberghe,