Presentation on theme: "Market-Based Pricing and Pricing Strategies Chapter Eight M arket-Based Management, 4 th edition."— Presentation transcript:
Market-Based Pricing and Pricing Strategies Chapter Eight M arket-Based Management, 4 th edition
8-2 Market-Based Pricing and Pricing Strategies Chapter Eight Market-Based Pricing Vs. Cost-Based Pricing Pricing Strategies and the Product Life Cycle Pricing Metrics Price Elasticity Cross Price Elasticity
8-3 Market-Based Pricing What is Market-Based Pricing? What is necessary for firms to engage in Market-Based Pricing? –Competitor Intelligence –Customer Intelligence
8-4 Market-Based Pricing Strategies 1.Skim Pricing 2.Value In-Use Pricing 3.Perceived Value Pricing 4.Segment Pricing 5.Strategic Account Pricing 6.Plus-One Pricing At what stages in the product life cycle (PLC) should these strategies be employed?
8-5 Strategic Acct. Pricing Value-In-Use Pricing Product Life Cycle Pricing Strategies Market Demand Time Skim Pricing Perceived Value Pricing Segment Pricing Plus-One Pricing
8-6 Cost-Based Pricing What is Cost-Based Pricing?
8-7 Cost-Based Pricing Strategies 1.Floor Pricing 2.Cost-Plus Pricing 3.Penetration Pricing 4.Low-Cost Leader Pricing 5.Competitive Bid Pricing 6.Harvest Pricing At what stages in the PLC should these strategies be employed?