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Chapter Goals

Chapter Goals. Pricing Strategies. Chapter 13. Price competition, value pricing Non-price competition Market entry pricing strategies, market skimming and market penetration Price discounts and allowances Geographic pricing strategies Special pricing situations Legal issues of pricing.

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Chapter Goals

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  1. Chapter Goals Pricing Strategies Chapter 13 • Price competition, value pricing • Non-price competition • Market entry pricing strategies, market skimming and market penetration • Price discounts and allowances • Geographic pricing strategies • Special pricing situations • Legal issues of pricing

  2. Price Determination Process

  3. Competition Low Price Price Value Pricing Stable Price Emphasize other parts of marketing mix Non- Price

  4. Non-Price Competition Shift in Demand Curve for skis • See answers on pages 359 & 360

  5. Market-Entry Strategies Market-Skimming Pricing Set a relatively high price. See when this strategy is Possible: page 361 Market-Penetration Pricing Low initial price See when this strategy is Possible: page 361

  6. Reductions based on size of purchase Deductions based on paying within a specified time Discounts and Allowances Quantity Discounts Trade Discounts Reductions based on buyer performing marketing functions Cash Discounts

  7. Parts of a Cash Discount

  8. Discounts and Allowances E-coupons Rebates Coupons Seasonal Discounts Promotional Allowances See each one explained on pages 364 & 365

  9. Same Price Geographic Pricing Strategies Cost of Freight Point- of- Production FOB FACTORY Uniform Delivery

  10. Geographic Pricing Strategies Zone-Delivered Freight- Absorption

  11. $4.95 Pricing Strategies One- price Flexible- price Price lining Odd price See each one explained on pages 369 & 370

  12. Pricing Strategies Leader pricing Unfair Practices Acts Loss Leader High-Low pricing Everyday low price See each one explained on pages 370 & 371

  13. Pricing Strategies Consumer Goods Pricing Act Resale Price Maintenance Suggested retail price Reactive changes Price Wars Proactive Changes See each one explained on pages 373 & 374

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