session 4 (a) - price [compatibility mode]

7/25/2019 Session 4 (a) - Price [Compatibility Mode]

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PRICE

CONTEXT &

CONCEPTS

PRICE

CONTEXT &

CONCEPTS

SESSIONFOUR (a)SESSIONFOUR (a)MARKETINGMANAGEMENT


2/19

Session Objectives

Define the meaning of price.

Understand the different roles price can play for buyers

and sellers and in different kinds of markets.

Appreciate the nature of the external factors that influence

pricing decisions.

Explore the internal and organisational forces thatinfluence pricing decisions.

Understand the impact of the single European market and

the euro on pricing.


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Factors Influencing Customers Price Assessments

Quality

Priceassessment

Personal

Functional

Operational Financial


4/19

External Influences on Pricing Decision

Demand/

elasticity

Pricingdecision

Channelsof distribution

Customers

Legal/regulatory

Competitors


5/19

The Classic Demand Curve


6/19

The Boomerang Demand Curve


7/19

The Parallel Demand Curve


8/19


9/19

The Elastic Demand Curve


10/19

The Inelastic Demand Curve


11/19


12/19

Factors Influencing Price Sensitivity in B2B Markets

Total expenditure effect End customer sensitivity

Penalty for failure effect Sunk investment effect

Overall saving effect Buyers ability to absorb costs

Contribution to quality effect Buyers ignorance effect

Degree of customisation effect Decision makers motivation effect


13/19

Competitors

Monopoly

Monopolistic

competition

Perfect competition

Oligopoly


14/19

Internal Influences on Pricing Decision

Pricingdecision

Costs

Organisationalobjectives

Marketingobjectives


15/19

Session 4 (a): Key Terms

A _____ is a price which is distinctly higher thanaverage to reflect better product quality, exclusivity orstatus.

_____ is a medium of exchange.


16/19

Session 4 (a) Key Terms

_____ use price as a means of comparing two or moreproducts in order to judge their likely quality or value.

Any difference in the prices charged for the sameproduct to different market segments or in differentgeographic regions is known as a _____.


17/19


The responsiveness of demand to changes in prices isknown as the _____.

The term _____ refers to bargaining between a buyer

and a seller to agree a mutually acceptable price.


18/19


_____ is a customer's judgment of a price in terms ofwhether it is thought to be too high, about right or

extremely good value for money.

The extent to which price is an important criterion in the

customer's decision- making process refers to _____.


19/19

_____ is a customer's assessment of the worth of whatthey are getting in terms of a product's functional or

psychological benefits.

_____ is the analysis of products and processes to see

where the greatest costs are being incurred and where

the greatest value is added.


session 4 (a) - price [compatibility mode]

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