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One of the Most Difficult Decisions in Marketing \$

Product Place Promotion Price.

Price must be a reflection of value Product Price

Price must be a reflection of value Product Price

Price must be a reflection of value Product Price

Price must be a reflection of value Product Price

Price must be a reflection of value Product Price

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

Value Value is the ratio of perceived benefits to price; or Value = (Perceived benefits divided by Price). 12-11

Value Value is the ratio of perceived benefits to price; or Value = (Perceived benefits divided by Price). 12-12 Benefits = a dollar and some change worth of value

Value Value is the ratio of perceived benefits to price; or Value = (Perceived benefits divided by Price). 12-13 Benefits = a dollar and some change worth of value = good value..

Value Value is the ratio of perceived benefits to price; or Value = (Perceived benefits divided by Price). 12-14. Product Price.

Value Value is the ratio of perceived benefits to price; or Value = (Perceived benefits divided by Price). 12-15. Product Price.

Value Value is the ratio of perceived benefits to price; or Value = (Perceived benefits divided by Price). 12-16. Product Price.

Price must be a reflection of value Product Price

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

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

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

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.

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.

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

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

Profit Equation Profit = (Unit Price × Quantity Sold) – Fixed Cost – Variable Cost Profit = (.50 x 70) – 5 - 14 You will need to manually advance to the next slide

Profit Equation Profit = (Unit Price × Quantity Sold) – Fixed Cost – Variable Cost Profit = 35 – 5 - 14 = 16 You will need to manually advance to the next slide

Profit Equation Profit = (Unit Price × Quantity Sold) – Fixed Cost – Variable Cost Profit = 35 – 5 - 14 = 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

General Pricing Approaches

End of Part One. Go to Part Two.