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1
DEVELOPING PRICING STRATEGIES AND
PROGRAMS
MM KuiAteneo Graduate School of Business
Top 10 Concepts
Visual Edition
Outline: Pricing…
1. Must be integral in marketing mix (why?)
2. Involves both buyers and sellers (how?)
3. Changing / Dynamic (how?)4. Derived from company’s objectives
(what?) 5. Should consider competitors (why?)
6. Employs several methods (what?)
7. Isn’t just about “lowest price” (why?)
8. Differentiation responds to differing needs (how?)
9. Can be boosted by advertising (how?)
10.Must be increased carefully (how?)
Outline: Pricing…
Price
Concept 1:
Pricing is an integral part of the marketing mix
Price
Concept 2:
Buyers are not just “price takers”, understand Consumer Pricing Psychology
Consumer Pricing
Psychology
Price
Concept 3:
Pricing is dynamic and must always respond to the times
Consumer Pricing
PsychologyCompany
Competitor
Dynamic
Price
Concept 4:
A clear objective is essential for pricing decisions
Consumer Pricing
PsychologyCompany
Competitor
Dynamic
Objective
Price
Concept 5:
Base your price on your competitors’, and anticipate a response
Consumer Pricing
PsychologyCompany
Competitor
Dynamic
Objective
Competitor response
Price
Concept 6:
Employ differing methods
Consumer Pricing
PsychologyCompany
Competitor
Dynamic
Objective
Competitor response
Differing methods
Price
Concept 7:
Pricing is not always about “lowest price”
Consumer Pricing
PsychologyCompany
Competitor
Dynamic
Objective
Competitor response
Differing methods
Sale away profits and
clients
Price
Concept 8:
Price differentiation is a useful tool
Consumer Pricing
PsychologyCompany
Competitor
Dynamic
Objective
Competitor response
Differing methods
Sale away profits and
clients
Differentiate
Price
Concept 9:
Advertising allows a product to boost its price
Consumer Pricing
PsychologyCompany
Competitor
Dynamic
Objective
Competitor response
Differing methods
Sale away profits and
clients
Differentiate
Ads
Price
Concept 10:
Price increases must not alienate customers
Consumer Pricing
PsychologyCompany
Competitor
Dynamic
Objective
Competitor response
Differing methods
Sale away profits and
clients
Differentiate
Ads
Increase price
carefully!
Summary: Pricing…
1. Signals a brand’s position in the market
2. Is also dictated by the buyers
3. Is changing / dynamic
4. Is easier with a clear objective
5. Influences competitors
6. Employs several methods
7. Should not be all about “lowest price”
8. Differentiation responds to differing client needs
9. Can be boosted by advertising
10.Must be increased without offending customers
Summary: Pricing…
My Conclusion: Pricing should be the foremost concern, as it:• reflects a product’s position
• influences buyer choices
• initiates responses from competitors, and
• Impacts bottom-line income
17
DEVELOPING PRICING STRATEGIES AND
PROGRAMS
MM KuiAteneo Graduate School of Business
Top 10 Concepts
Visual Edition
