Marketing Management

Provide the value:

Pricing management

Eka Ardianto ekaardianto@pmbs.ac.id

Value creation process

Choose and create the value
Customer segmentation Market Selection/ focus Differentiation Value Positioning Branding

Provide the value

Product Development Pricing

Communicate the value

Distributing Advertising Sales promotion Sales force

The Four P Components of the Marketing Mix

Perceived quality

Customer value =
Perceived risk

Monroe, 1990

Setting Pricing Management

Selecting The Pricing Objective Determining Demand

Estimating Costs
Analyzing Competitors Costs, Price, Offers

Selecting Pricing Method

Selecting The Final Price Adapting The Price

Setting Pricing Management

Selecting The Pricing Objective
Survival Profit Market Share Market Skimming Product-Quality

Determining Demand

Estimating Costs
Analyzing Competitors Costs, Price, Offers

Selecting Pricing Method

Selecting The Final Price Adapting The Price

Setting Pricing Management

Selecting The Pricing Objective Determining Demand
Price Sensitivity Price Elasticity Demand Curve

Estimating Costs
Analyzing Competitors Costs, Price, Offers

Selecting Pricing Method

Selecting The Final Price Adapting The Price

Setting Pricing Management

Selecting The Pricing Objective Determining Demand

Types of Costs and Levels of Production Accumulated Production Target Costing

Estimating Costs
Analyzing Competitors Costs, Price, Offers

Selecting Pricing Method

Selecting The Final Price Adapting The Price

Setting Pricing Management

Selecting The Pricing Objective Determining Demand

Estimating Costs
Analyzing Competitors Costs, Price, Offers
Possible reactions

Selecting Pricing Method

Selecting The Final Price Adapting The Price

Setting Pricing Management

Selecting The Pricing Objective Determining Demand
Markup Pricing Target-Return Pricing Perceived-Value Pricing Value Pricing Going-Rate Pricing Auction-Type Pricing

Estimating Costs
Analyzing Competitors Costs, Price, Offers

Selecting Pricing Method

Selecting The Final Price Adapting The Price

Perceived value pricing

Value-based pricing strategy

Perceived price High
Premium strategy

Med
High value strategy
perceived quality perceived risk

Low
Super value strategy
perceived quality perceived risk

High
Perceived product quality

perceived quality perceived risk

Over charging strategy

Mid value strategy

perceived quality perceived risk

Good value strategy

perceived quality perceived risk

Med

perceived quality perceived risk

Low

Rip-off strategy
perceived quality perceived risk

False economy strategy

perceived quality perceived risk

Economy strategy
perceived quality perceived risk

Setting Pricing Management

Selecting The Pricing Objective Determining Demand

Estimating Costs
Analyzing Competitors Costs, Price, Offers

Selecting Pricing Method

Selecting The Final Price
Impact of other mkt. activities Company pricing policies Gain-and- risk-sharing Impact of price on other parties

Adapting The Price

Setting Pricing Policy

Selecting The Pricing Objective Determining Demand

Estimating Costs
Analyzing Competitors Costs, Price, Offers

Selecting Pricing Method

Selecting The Final Price
Geographical pricing Price discounts and allowances Promotional pricing Differentiated pricing

Adapting The Price

Value-based pricing strategy

Geographical Pricing Price discounts and allowances Promotional Pricing Differentiated Pricing

Price Ceiling
Competitive prices for comparable products Purchasing Power and Customer's limit of willingness to pay Optimum Price Corridor

Perceived quality

Selecting The Final Price

Adapting The Price

Profit Margin desired by the company

Price Floor (Product costs)

Perceived risk

Consideration : Impact of other marketing activities Company pricing policies Gain-and-risk sharing Impact on other parties

End of slide