1. UNIT 8 PRICING Copyright  2010 Qinghua University Press
PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

2. AFTER LEARNING THIS UNIT
YOU SHOULD BE ABLE TO:
1.Explain what price is and how to adjust a price
2.Describe the ways of pricing a product
3.Know what to consider when pricing a product
4.Explain the calculation of a product cost
Copyright  2010 Qinghua University Press
PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

3. Warm-up 1. What do the following words have in common?
Fare, dues, tuition,
interest, rent, and fee
Copyright  2010 Qinghua University Press
PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

4. 2. As a student, you are price sensitive
2. As a student, you are price sensitive. Where in your city do you normally go to buy clothes and where do you not go? Why?
Copyright  2010 Qinghua University Press
PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

5. 3. Usually clothes sold by department stores are more expensive than those by small clothing stores. What do you think make the goods sold by department stores more expensive?
Copyright  2010 Qinghua University Press
PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

6. I. What is price? Definition:
Price is that which is given up in an exchange to acquire goods or service. Price is typically the money exchanged for the goods or service.
Copyright  2010 Qinghua University Press
PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

7. PROFIT The Importance of Price to Marketing Managers
Copyright  2010 Qinghua University Press
PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

8. Ⅱ.How to price a product? Cost Pricing Cost-Plus Pricing
Markup Pricing
Cost Pricing Cost-Plus Pricing
Breakeven Pricing
Backward Pricing
Market Pricing Psychological Pricing
Price Lining
Competitive Pricing
Bid Pricing
Copyright  2010 Qinghua University Press
PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

9. COST PRICING variable cost fixed cost average variable cost
average total cost
Copyright  2010 Qinghua University Press
PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

10. Markup Pricing Cost-Plus Pricing Breakeven Pricing
Copyright  2010 Qinghua University Press
PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

11. Psychological Pricing Price Lining
2. MARKET PRICING
Backward Pricing
Psychological Pricing
Price Lining
Copyright  2010 Qinghua University Press
PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

12. 3. COMPETITIVE PRICING 4. BID PRICING
Copyright  2010 Qinghua University Press
PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

13. Discussion:
1. Men’s shirts can be priced from tens to hundreds even thousands of RMB. What do you think makes the price differ so much?
2. If you are going to run a bakery near a school, how will you price your products?
Copyright  2010 Qinghua University Press
PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

14. What to consider when pricing a product?
What are you selling?
Who is your target market?
What is your competitor doing?
What is your business’ perceived value among customers?
How should your salespeople close a deal?
Copyright  2010 Qinghua University Press
PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

15. How to adjust a price Markdowns Loss leaders Sales promotions
Bundle pricing
Dynamic pricing
Copyright  2010 Qinghua University Press
PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun