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

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

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

5.  Competition:  R ivalry  Goals  Increasing profits

6.  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

7.  Premium pricing  Discount pricing  Parity pricing  Product line pricing

9. 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

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

12.  lasting distinctiveness  low cross elasticity and  perishable distinctiveness

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

15.  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

17.  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.

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

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

20.  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.

21.  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.

22. http://theorybiz.com/the-strategy-and-tactics-of- pricing/competition/1794-how-should-you-react.html (McConnell-Brue, 2002, p. 43.7-43.8). Marketing Institute of Singapore. Pricing Strategies for the Asia pacific. Retrieved from http://www.apmf.org.sg/Lt9-- PricingStragsforASPAC.PPT)http://www.apmf.org.sg/Lt9-- 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.

23.  TEST TIME…  ALL THE BEST!

24.  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