Presentation on theme: "Presented by Whitney Chadwick, Chris Holle, Erin Howard, & Brittanie Turner."— Presentation transcript:
Presented by Whitney Chadwick, Chris Holle, Erin Howard, & Brittanie Turner
Agenda Chapter Ten Overview What is Price? Major Pricing Strategies Market Strategies The Market & Demand Introduce Practicum Product Explain Relationship Between Product Prices and Outlets Display Demand Curve Per Outlet Reflect and Summarize
What is Price? Price is the amount of money charged for a product or service. It is the value the consumers exchange in the benefits of having or using a product or service.
Major Pricing Strategies Types of Cost Fixed: cost that do not vary with production or sales levels Variable: cost that differs depending the level of production Total: the sum of fixed and variable costs at any given level of production
Market Strategies Target Costing: pricing that starts with an ideal selling price, than determine costs that will ensure that the price is met
The Market & Demand Different Types of Markets Pure Competition Monopolistic Competition Oligopolistic Competition Pure Monopoly Demand/Price Curve Price Elasticity of Demand
Grocery: Save Mart Value-Added Pricing Differentiation Strong value retail environment Customer-centric ○ “Shoppers are looking for value, not just a bargain”
Drug Store: Walgreens Competition-Based Pricing Competitive Differentiation ○ Store location is used as an competitive edge “competitive prices [are used] to determine which products need to be low price leaders in which stores, and increasing prices on other items where they have room to do so.”
Convenience Store: 7-Eleven Value-Added Pricing 7-Eleven Marketing Strategy Be the first to have great new items Get the best products in the category Be the only retailer to carry certain products “People on the go need a one-stop shop to quickly buy everyday products”
Pricing Strategy Chart
Reflections We learned that price is very crucial to the success of any business. It can be a great tool of the marketing mix if used efficiently. Price is very flexible and the only part of the marketing mix that generates revenue. Through analysis, we came to the conclusion Gatorade price maximization is stable throughout each outlet. Questions?
Citations 7-Eleven. (2014). Legendary products, leading margins. Retrieved from Grocery Headquarters. (2012). Shining bright in the golden state. Retrieved from 2012/02/shining-bright-in-the-golden-state/ Hamstra, M. (n.d.). Save Mart revamps corporate structure. Retrieved from files/2014/08/SN-profile-SaveMart-changes.pdf Huber, M., Diers, D., & Gulisano, A. (2013). Hangout haven. Retrieved from school-case-study-on-7-eleven/1/ html Kotler, P. & Armstrong, G. (2014). Principles of marketing. Upper Saddle River, New Jersey:Pearson. Strategic Pricing Solutions. (2013). Walgreens pricing: differentiation is smart. Retrieved from walgreens-pricing-differentiation-smart/