Presentation is loading. Please wait.

Presentation is loading. Please wait.

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Similar presentations


Presentation on theme: "McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved."— Presentation transcript:

1

2 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

3 One of the Most Difficult Decisions in Marketing $

4 Product Place Promotion Price.

5

6 Price must be a reflection of value Product Price

7 Price must be a reflection of value Product Price

8 Price must be a reflection of value Product Price

9 Price must be a reflection of value Product Price

10 Price must be a reflection of value Product Price

11 Price must be a reflection of value Product Price...

12 Value Value is the ratio of perceived benefits to price; or Value = (Perceived benefits divided by Price)

13 Value Value is the ratio of perceived benefits to price; or Value = (Perceived benefits divided by Price) Benefits = a dollar and some change worth of value

14 Value Value is the ratio of perceived benefits to price; or Value = (Perceived benefits divided by Price) Benefits = a dollar and some change worth of value = good value..

15 Value Value is the ratio of perceived benefits to price; or Value = (Perceived benefits divided by Price) Product Price.

16 Value Value is the ratio of perceived benefits to price; or Value = (Perceived benefits divided by Price) Product Price.

17 Value Value is the ratio of perceived benefits to price; or Value = (Perceived benefits divided by Price) Product Price.

18 Price must be a reflection of value Product Price

19 Profit Equation Profit = Total Revenue- Total Cost. Value = what I perceive to be the worth of the product when I compare it to substitutes..

20 Profit Equation Profit = Total Revenue- Total Cost.20 per glass.30 per glass You will need to manually advance to the next slide.

21 Profit Equation Profit = (Unit Price × Quantity Sold) – (Fixed Cost – Variable Cost) You will need to manually advance to the next slide

22 Profit Equation Total Revenue x Quantity Sold Unit Price 70 glasses = $35 Profit = (Unit Price × Quantity Sold) – Fixed Cost – Variable Cost You will need to manually advance to the next slide.

23 Profit Equation Profit = (Unit Price × Quantity Sold) – Fixed Cost – Variable Cost.50 x 70 glasses = $35 Total Revenue Fixed cost = $5Variable cost =.20 per sale. You will need to manually advance to the next slide.

24 Profit Equation Profit = (Unit Price × Quantity Sold) – Fixed Cost – Variable Cost.50 x 70 glasses = $35 Total Revenue Fixed cost = $5Variable cost =.20 per sale You will need to manually advance to the next slide

25 Profit Equation Profit = (Unit Price × Quantity Sold) – Fixed Cost – Variable Cost.50 x 70 glasses = $35 Total Revenue Fixed cost = $5Variable cost = $14 You will need to manually advance to the next slide

26 Profit Equation Profit = (Unit Price × Quantity Sold) – Fixed Cost – Variable Cost Profit = (.50 x 70) – You will need to manually advance to the next slide

27 Profit Equation Profit = (Unit Price × Quantity Sold) – Fixed Cost – Variable Cost Profit = 35 – = 16 You will need to manually advance to the next slide

28 Profit Equation Profit = (Unit Price × Quantity Sold) – Fixed Cost – Variable Cost Profit = 35 – = 16 Profit = (P × Q) – [FC + (UVC × Q)] Price Quantity Fixed Cost Unit variable cost Quantity (.50 X 70) [5 + (.20 X 70)] = 16 - You will need to manually advance to the next slide

29 General Pricing Approaches

30 End of Part One. Go to Part Two.


Download ppt "McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved."

Similar presentations


Ads by Google