Presentation on theme: "Market-Based Management, 4th edition"— Presentation transcript:
1Market-Based Management, 4th edition Market-Based Pricing and Pricing StrategiesChapter Eight
2Market-Based Pricing and Pricing Strategies Chapter EightMarket-Based Pricing Vs. Cost-Based PricingPricing Strategies and the Product Life CyclePricing MetricsPrice ElasticityCross Price Elasticity
3Market-Based Pricing What is Market-Based Pricing? What is necessary for firms to engage in Market-Based Pricing?Competitor IntelligenceCustomer Intelligence
4Market-Based Pricing Strategies Skim PricingValue In-Use PricingPerceived Value PricingSegment PricingStrategic Account PricingPlus-One PricingAt what stages in the product life cycle (PLC) should these strategies be employed?
5Product Life Cycle Pricing Strategies Plus-One PricingStrategic Acct. PricingSegment PricingMarket DemandPerceived Value PricingValue-In-Use PricingSkim PricingTime
7Cost-Based Pricing Strategies Floor PricingCost-Plus PricingPenetration PricingLow-Cost Leader PricingCompetitive Bid PricingHarvest PricingAt what stages in the PLC should these strategies be employed?
10Pricing Metrics Total Contribution Price and Break-Even Volume Total Contribution = Volume (units) X Margin (per unit)Price and Break-Even VolumeBreak-Even Volume = Fixed Expenses/Margin per UnitPrice and Break-Even Market ShareBreak-Even Market Share = Break-Even Volume/Market Demand
11Forces that Shape Price Elasticity Ease of Customer SwitchingProduct DifferentiationCost of Switching SuppliersCustomer LoyaltyEase of Switching IndexSupply/Demand ConditionsSupply ConditionsDemand ConditionsSubstitutesSupply/Demand Index
14Takeaways/Review Importance of Market- Based Pricing Market-Based Pricing StrategiesCost-Based Pricing StrategiesProduct Life Cycle and Pricing StrategiesPricing MetricsPrice ElasticityForces, Estimation, and Performance
15Marketing Performance Tools Sales and Profit Impact of Price Elasticity and Price Change
16Marketing Performance Tools Sales and Profit Impact of Price Change with Product Substitutes
17Marketing Performance Tools Sales and Profit Impact of Price Change with Product Substitutes
18Marketing Performance Tools Sales and Profit Impact of Price Change with Complimentary Products
19Marketing Performance Tools Sales and Profit Impact of Price Change with Complimentary Products