Beruflich Dokumente
Kultur Dokumente
PIERCY
8/e
McGraw-Hill/Irwin
11-2
Chapter Eleven
Pricing Strategy
and
Management
McGraw-Hill/Irwin
PRICING STRATEGY
AND MANAGEMENT
Strategic Role of
Price
Analyzing the
Pricing Situation
Selecting the
Pricing Strategy
Determining
Specific Prices and
Policies
11-3
11-4
Examples Include:
11-5
STRATEGIC ROLE OF
PRICE
Part of the reason that
pricing is misused and poorly
understood is the common
practice of making it the last
marketing decision. We think
that we must design
products, communications
plans, and a method of
distribution before we have
something to price. We then
use pricing tactically to
capture whatever value we
T.Nagle, Marketing News, 11/9/98, 4.
can.
11-6
Pricing Strategically
requires that we put pricing at
the beginning of the process.
For example, a multi-part
marketing strategy usually is
required in value-based pricing.
Airlines complicated service
packages with arcane
restrictions, and their multiple
channels of distribution must
support pricing that reflects
different values of the service to
different segments. Without
such a strategy, airlines would
capture a much smaller portion
of
the value they have the
T. Nagle, Marketing News, 11/9/98, 4.
potential to create.
11-7
Positioning Strategy
Product
strategy
Value-Chain
strategy
Pricing
strategy
Promotion
strategy
11-8
Pricing Situations
New product
pricing
Positioning
strategy change
Countering
competitive
threats
Role of Price in
Positioning Strategy
Signal
to the
Buyer
Marketing
Program
Consideratio
ns
Instrument
of
Competitio
n
Improving
Financial
Performance
11-9
11-10
Analyze the
Pricing Situation
Select Pricing
Strategy
Determine Specific
Prices and Policies
11-11
Examples of Pricing
Objectives
Achieve financial
performance
Product positioning
Stimulate demand
Influence competition
11-12
ANALYZING THE
PRICING SITUATION
Customer
Price
Sensitivity
Legal and
Ethical
Constraints
Analyzing
the Pricing
Situation
Competitors
Likely
Responses
Product
Costs
11-13
Customer Price
Sensitivity
1. How large is the product-market
in terms of buying potential?
2. What are the market segments
and what market target strategy
is to be used?
3. How sensitive is demand in the
segment(s) to changes in price?
4. How important are nonprice
factors, such as features and
performance?
5. What are the estimated sales at
different price levels?
11-14
Perceived
Value
B
E
C
Inferior Value Zone
Perceived Price
11-15
Guide to Cost
Analysis
Determine cost
structure
Analyze competitive
advantage
D
Estimate the effect
of experience on costs
E
Determine the extent
of control over costs
11-16
Competitor
Analysis
Competitors positioning on a
relative price basis
Competitors probable
responses to alternative price
strategies
11-17
Pricing Pressures in
the Personal
Computer Market
The personal computer market offers an
interesting look at the effects of intense
competition. Dell, Inc. continually looks
to lower its operating expenses in an
effort to pass savings to customers.
The result over time has enabled Dell to
profitably grow at a multiple of the
industry, which has had a negative
effect on companies such as HewlettPackard Co. The pricing pressure on
rivals is one of the reasons that led to
the merger between Compaq Computer
and H-P. The aggressive price
competition resulted in H-Ps PC unit
reporting a loss in 3rd Quarter 2003. A
major competitive hurdle for H-P is
Sources: A Nasty Surprise from HP, Business Week, September 1, 2003; Gary McWilliams
and
Pui-Wing Tam,
Dell Price Cuts Put
a Squeeze on Rival H-P, The
Wall Street Journal, August
Dells
low-cost
direct-sales
business
21, 2003, B1 and B7.
model.
11-18
11-19
SELECTING THE
PRICING STRATEGY
11-20
Determinants of
Pricing Flexibility
Demand
Competiti
on
Demand-Cost
Gap
Costs
Legal and
Ethical
Influences
11-21
How Much
Flexibility Exists?
Price too high;
little or no
demand
Price
Ceiling
Product differentiation
Competitors prices
Prices of substitutes
Product costs
Price Floor
11-22
Price Positioning
Above
Competition
Skim strategy
Neutral strategy
(same as
competition)
Below
Competition
Penetration strategy
11-23
Diplomacy
rather than force
Select
competitive
confrontations
Competitiv
e Pricing
Issues
Target
segments
instead of
volume
Signaling
Source: Thomas T. Nagle, Price Competition, Marketing Management, Vol. 2, No. 1, 38-45.
11-24
Illustrative Price
Strategies
Active
strategy
Lowactive
strategy
Highactive
strategy
Low
relative
price
High
relative
price
Lowpassive
strategy
Highpassive
strategy
Passive
strategy
11-25
DETERMINING
SPECIFIC PRICES
AND POLICIES
Determining Specific
Prices
Policies to Manage
Pricing Strategy
11-26
Pricing in Action
Basis of Determining
Specific Prices
Cost
Demand
Competition
11-27
Establishing Pricing
Policy and Structure
Policy
Discounts, allowances,
returns, and other
operating guidelines
Pricing Structure
Product mix and line
pricing relationships
How individual items in
the line are priced in
relation to one another
11-28
Special Pricing
Situations
Price Segmentation
Value Chain
(Distribution)
Pricing
Channel
Price Flexibility
Product Life Cycle
Pricing
Counterfeit Products