2 Market-Based Pricing and Pricing Strategies Chapter EightMarket-Based Pricing Vs. Cost-Based PricingPricing Strategies and the Product Life CyclePricing MetricsPrice ElasticityCross Price Elasticity
3 Market-Based Pricing What is Market-Based Pricing? What is necessary for firms to engage in Market-Based Pricing?Competitor IntelligenceCustomer Intelligence
4 Market-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?
5 Product Life Cycle Pricing Strategies Plus-One PricingStrategic Acct. PricingSegment PricingMarket DemandPerceived Value PricingValue-In-Use PricingSkim PricingTime
7 Cost-Based Pricing Strategies Floor PricingCost-Plus PricingPenetration PricingLow-Cost Leader PricingCompetitive Bid PricingHarvest PricingAt what stages in the PLC should these strategies be employed?
10 Pricing 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
11 Forces that Shape Price Elasticity Ease of Customer SwitchingProduct DifferentiationCost of Switching SuppliersCustomer LoyaltyEase of Switching IndexSupply/Demand ConditionsSupply ConditionsDemand ConditionsSubstitutesSupply/Demand Index
14 Takeaways/Review Importance of Market- Based Pricing Market-Based Pricing StrategiesCost-Based Pricing StrategiesProduct Life Cycle and Pricing StrategiesPricing MetricsPrice ElasticityForces, Estimation, and Performance
15 Marketing Performance Tools Sales and Profit Impact of Price Elasticity and Price Change
16 Marketing Performance Tools Sales and Profit Impact of Price Change with Product Substitutes
17 Marketing Performance Tools Sales and Profit Impact of Price Change with Product Substitutes
18 Marketing Performance Tools Sales and Profit Impact of Price Change with Complimentary Products
19 Marketing Performance Tools Sales and Profit Impact of Price Change with Complimentary Products