国际商务英语week 7 price.ppt

1、Pricing Concepts,Copyright Houghton Mifflin Company. All rights reserved.,PowerPoint Presentation by Charlie Cook,21,Part SixPricing Decisions,Copyright Houghton Mifflin Company. All rights reserved.,212,Chapter Outline,The Nature of Price Price and Nonprice Competition Analysis of Demand Demand, Co

2、st, and Profit Relationships Factors Affecting Pricing Decisions Pricing for Business Markets,Copyright Houghton Mifflin Company. All rights reserved.,213,The Nature of Price,Price The value exchanged for products in a marketing exchange Terms Used to Describe Price Tuition, premium, fine, fee, fare

3、, toll, rent, commission, dues, deposit, tips, interest, taxes,Copyright Houghton Mifflin Company. All rights reserved.,214,The Nature of Price (contd),The Importance of Price to Marketers It is the most readily changeable characteristic (under favorable circumstances) of a product. It is a key elem

4、ent in the marketing mix because it relates directly to generation of revenues and quantities sold. It is a key component of the profit equation, having strong effect on the firms profitability. It has symbolic value to customersprestige pricing.,Copyright Houghton Mifflin Company. All rights reserv

5、ed.,215,Price and Nonprice Competition,Price Competition Emphasizing price and matching or beating competitors prices An effective strategy in markets with standardized products Lowest-cost competitor (seller) will be most profitable. Allows marketers to respond quickly to competitors Price wars can

6、 weaken competing organizations.,Copyright Houghton Mifflin Company. All rights reserved.,216,Price and Nonprice Competition (contd),Nonprice Competition Emphasizing factors other than price to distinguish a product from competing brands Distinctive product features Service Product quality Promotion

7、 Packaging Advantage is in increasing brands unit sales without changing price. Is effective when a product or services features are difficult to imitate by competitors and customers perceive their value Builds customer loyalty by focusing on nonprice features,Copyright Houghton Mifflin Company. All

8、 rights reserved.,217,Analysis of Demand,The Demand Curve A graph of the quantity of products expected to be sold at various prices Decreases in price create increases in quantities demanded. Increased demand means larger quantities sold at the same price. Prestige items sell best in higher price ra

9、nges.,Copyright Houghton Mifflin Company. All rights reserved.,218,Elasticity of Demand,FIGURE 20.3,Copyright Houghton Mifflin Company. All rights reserved.,219,Types of Costs,Copyright Houghton Mifflin Company. All rights reserved.,2110,Copyright Houghton Mifflin Company. All rights reserved.,2111,

10、Combining the Marginal Cost and Marginal Revenue Concepts for Optimal Profit,FIGURE 20.6,Copyright Houghton Mifflin Company. All rights reserved.,2112,Breakeven Analysis,Breakeven Point The point at which the costs of producing a product equal the revenue made from selling the product The point afte

11、r which profitability begins,Copyright Houghton Mifflin Company. All rights reserved.,2113,FIGURE 20.7,Determining the Breakeven Point,Copyright Houghton Mifflin Company. All rights reserved.,2114,FIGURE 20.8,Factors That Affect Pricing Decisions,Copyright Houghton Mifflin Company. All rights reserv

12、ed.,2115,Factors Affecting Pricing Decisions,Organizational and Marketing Objectives Prices should be set that are consistent with the organizations goals and mission. Prices must be compatible with marketing objectives (e.g., setting premium prices to enhance a products quality image). Types of Pri

13、cing Objectives Setting prices low to increase market share Using temporary price reductions to gain market share Lowering prices to raise cash quickly,Copyright Houghton Mifflin Company. All rights reserved.,2116,Factors Affecting Pricing Decisions (contd),Costs Set a floor priceproducts must be so

14、ld above their costs if the firm is to remain in business. Reducing costs increases productivity and profitability. Using labor-saving technologies Focusing on quality Establishing efficient manufacturing processes Other Marketing Mix Variables Price/quality image of the product or brand Selective o

15、r intensive product distribution Product pricing used as a promotional tool,Copyright Houghton Mifflin Company. All rights reserved.,2117,Factors Affecting Pricing Decisions (contd),Channel Member Expectations To make a profit at least equivalent to the potential profit from handling a competitors b

16、rand To earn a profit commiserate with the effort and resources the channel member expends on the product To receive discounts for volume purchases and prompt payment To be supported by the producer with training, advertising, sales promotion, and return policies,Copyright Houghton Mifflin Company.

17、All rights reserved.,2118,Factors Affecting Pricing Decisions (contd),Customers Interpretation and Response What meaning does the products price have to the customer? Does the customer respond to the price by moving closer to or farther away from making a purchase? Internal reference price A price d

18、eveloped in the buyers mind through experience with the product External reference price A comparison price provided by others,Copyright Houghton Mifflin Company. All rights reserved.,2119,Factors Affecting Pricing Decisions (contd),Buyers responses to price Value consciousness Concern about price a

19、nd quality Price consciousness Striving to pay low prices Prestige sensitivity Being drawn to products that signify prominence and status,Copyright Houghton Mifflin Company. All rights reserved.,2120,Factors Affecting Pricing Decisions (contd),Competition Pricing to match competitors prices Judging

20、competitors responses to adjusting prices Changes in an industrys market structure cause and create pricing opportunities. Legal and Regulatory Issues Price controls intended to curb inflation Controls that set/regulate prices for specific products Regulations and laws to prohibit price fixing, and

21、deceptive and discriminatory pricing,Copyright Houghton Mifflin Company. All rights reserved.,2121,Price Discounting,Trade (Functional) Discounts A reduction off the list price given by a producer to an intermediary for performing for performing certain functions Quantity Discounts Deductions from l

22、ist price for purchasing large quantities Cumulative Discounts Quantity discounts aggregated over a stated period Noncumulative Discounts One-time reductions in price based on specific factors,Copyright Houghton Mifflin Company. All rights reserved.,2122,Price Discounting (contd),Cash Discount A pri

23、ce reduction given to buyers for prompt payment or cash payment Seasonal Discount A price reduction given to buyers for purchasing goods or services out of season Allowance A concession in price to achieve a desired goal,Copyright Houghton Mifflin Company. All rights reserved.,2123,Copyright Houghto

24、n Mifflin Company. All rights reserved.,2124,Pricing for Business Markets,Geographic Pricing Reductions for transportation costs and other costs related to the physical distance between buyer and seller,Copyright Houghton Mifflin Company. All rights reserved.,2125,Pricing for Business Markets (contd

25、),Transfer Pricing The price of products that one organizational unit charges when selling to another unit in the same organization Actual full cost All fixed and variable costs divided by the number of units produced Cost plus investment Full cost plus internal cost of assets used in production,Cop

26、yright Houghton Mifflin Company. All rights reserved.,2126,Pricing for Business Markets (contd),Transfer Pricing (contd) Market-based pricing Market price less marketing and selling costs,Copyright Houghton Mifflin Company. All rights reserved.,2127,Translation,一手资料 客户价值 换季打折 竞争对手分析 战略经营单位 现金牛类业务 非价

27、格竞争 销售渠道 单一价格政策 经济技术环境,个人销售 团购 中间商 目标市场 促销 市场计划 微观市场 营销组合 市场战略 市场份额 竞争优势,Copyright Houghton Mifflin Company. All rights reserved.,2128,Translation,Primary data Customer Value Seasonal discounts Competitor analysis Strategic business unit (SBU) Cash cow Non-price competition Distribution channel One-

28、price policy Economic and technological environment,一手资料 客户价值 换季打折 竞争对手分析 战略经营单位 现金牛类业务 非价格竞争 销售渠道 单一价格政策 经济技术环境,Copyright Houghton Mifflin Company. All rights reserved.,2129,Translation,Personal selling Group purchase Middle person Target market Sales promotion Marketing plan Micro-marketing Market

29、ing mix Marketing strategy Market share Competitive advantage,个人销售 团购 中间商 目标市场 促销 市场计划 微观市场 营销组合 市场战略 市场份额 竞争优势,Copyright Houghton Mifflin Company. All rights reserved.,2130,After reviewing this chapter you should:,Understand the nature and importance of price. Be aware of the characteristics of pri

30、ce and nonprice competition. Be familiar with demand curves and the price elasticity of demand. Be aware of the relationships among demand, costs, and profits. Be able to describe the key factors that may influence marketers pricing decisions. Have considered the issues affecting the pricing of prod

31、ucts for organizational markets.,Chapter 21Supplemental Slides,Copyright Houghton Mifflin Company. All rights reserved.,2031,Copyright Houghton Mifflin Company. All rights reserved.,2132,Key Terms and Concepts,The following slides (a listing of terms and concepts) are intended for use at the instruc

32、tors discretion. To rearrange the slide order or alter the content of the presentation select “Slide Sorter” under View on the main menu. left click on an individual slide to select it; hold and drag the slide to a new position in the slide show. To delete an individual slide, click on the slide to

33、select, and press the Delete key. Select “Normal” under View on the main menu to return to normal view.,Copyright Houghton Mifflin Company. All rights reserved.,2133,Important Terms,Price The value exchanged for products in a marketing exchange Barter The trading of products; the oldest form of exch

34、ange Price Competition Emphasizing price and matching or beating competitors prices Nonprice Competition Emphasizing factors other than price to distinguish a product from competing brands,Copyright Houghton Mifflin Company. All rights reserved.,2134,Important Terms,The Demand Curve A graph of the q

35、uantity of products expected to be sold at various prices Price Elasticity A measure of the sensitivity of demand to changes in pricethe greater the change in demand for a specific change in price, the more elastic demand is Marginal Analysis Examines what happens to a firms costs and revenues when

36、product changes by one unit,Copyright Houghton Mifflin Company. All rights reserved.,2135,Important Terms,Marginal Revenue The change in total revenue resulting from the sale of an additional unit of product Fixed Costs Costs that do not vary with changes in the units produced or sold Average Fixed

37、Cost The fixed cost per unit produced Variable Costs Costs that vary directly with changes in the number of units produced or sold,Copyright Houghton Mifflin Company. All rights reserved.,2136,Important Terms,Average Variable Cost The variable cost per unit produced Total Cost The sum of average fix

38、ed and average variable costs times the quantity produced Average Total Cost The sum of the average fixed cost and the average variable cost Marginal Cost The extra cost a firm incurs by producing one more unit of a product,Copyright Houghton Mifflin Company. All rights reserved.,2137,Important Term

39、s,Breakeven Point The point at which the costs of producing a product equal the revenue made from selling the product Internal Reference Price A price developed in the buyers mind through experience with the product External Reference Price A comparison price provided by others Value Consciousness C

40、oncern about price and quality,Copyright Houghton Mifflin Company. All rights reserved.,2138,Important Terms,Price Consciousness Striving to pay low prices Prestige Sensitivity Being drawn to products that signify prominence and status Trade (Functional) Discounts A reduction off the list price give

41、n by a producer to an intermediary for performing for performing certain functions Quantity Discounts Deductions from list price for purchasing large quantities,Copyright Houghton Mifflin Company. All rights reserved.,2139,Important Terms,Cumulative Discounts Quantity discounts aggregated over a sta

42、ted period Noncumulative Discounts One-time reductions in price based on specific factors Cash Discount A price reduction given to buyers for prompt payment or cash payment Seasonal Discount A price reduction given to buyers for purchasing goods or services out of season,Copyright Houghton Mifflin Company. All rights reserved.,2140,Important Terms,Allowance A concession in pri