1. Marketing
11.5

2. Pricing
The price of the product can have major influence on its appeal and weather or no customers think it is good value for the money.

3. Setting Pricing Policy
1. Selecting the pricing
objective
2. Determining demand
3. Estimating costs
4. Analyzing competitors’
costs, prices, and offers
5. Selecting a pricing
method
6. Selecting final price

4. Factors Influencing Price
The type of the product
The cost of producing a unit
The ability of customers to pay
The demand for the product
The sensitivity of demand to price changes
Competitors
Pricing points
The firms objectives
Stage of the product life cycle

5. Pricing Strategies for New Products
Penetration Pricing
Price Skimming
Competitive Pricing
Price taking

6. Market-penetration pricing
Setting a low price for a new product in order to attract a large number of buyers and a large market share.
Something like Vivo, Oppo and Lenovo are using this strategy to try to take market share away from Samsung and Apple

7. Price Skimming
Setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price: the company makes fewer but more profitable sales.

8. Competitive Pricing
Competitive Pricing' Setting the price of a product or service based on what the competition is charging. Competitive pricing is used more often by businesses selling similar products, since services can vary from business to business while the attributes of a product remain similar.

9. Price Taking
Price takers are firms that accept the price which dominates the market.
Example: a small independent electrical retailer may have to accept the price set my the major seller.
Small independent stores are usually price takers because they do not have the power to negotiate better prices.

10. Homework Questions #6-#7 Page 130 Case Studies
Fastjet
Vertu Ti
Crocs
Smoothies
Due Monday December 14th
Chapters 9,10 and will all BE ON THE FINAL