Presented by Khoa Nguyễn Story of the day Topic Outline Price Definition – antidumping Pricing Methods – equilibrium point Pricing Considerations New Product Price Strategies Product Mix Price Strategies Price Definition What is price? • the sum of all the values that consumers give up in order to gain the benefits of having or using a product or service Pricing in Marketing 4.0 Pricing in Marketing 4.0 Get instant price comparisons from thousands of vendors Check prices at the point of purchase Name their price and have it met Get products free Synonyms for Price • • • • • • • Tuition Fee Fare Rate Toll Premium Rent • • • • • • • Special assessment Bribe Dues Salary Commission Wage Tax Common Pricing Mistakes • Determine costs and take traditional industry margins • Failure to revise price to capitalize on market changes • Setting price independently of the rest of the marketing mix • Failure to vary price by product item, market segment, distribution channels, and purchase occasion Pricing Methods Pricing considerations ECONOMIC CONDITIONS • Recession • Inflation New Product Pricing Strategies SKIM PENETRATE New Product strategies MarketSkimming Pricing Market-Penetration Pricing strategy Product Mix Pricing Strategies Product mix pricing strategies Product line pricing Optional product pricing By-product pricing Captive product pricing Product bundle pricing Product mix pricing strategies Product line pricing Optional product pricing By-product pricing Captive product pricing Product bundle pricing Product mix pricing strategies Product line pricing Optional product pricing By-product pricing Captive product pricing Product bundle pricing Product mix pricing strategies Product line pricing Optional product pricing By-product pricing Captive product pricing Product bundle pricing HP InkCartridge Printer Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall Product mix pricing strategies Product line pricing How to turn trash into cash? E.g Heineken Vietnam Optional product pricing By-product pricing Captive product pricing Product bundle pricing Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall Product mix pricing strategies Product line pricing Optional product pricing By-product pricing Captive product pricing Product bundle pricing Combo Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall Other pricing strategies ❑ Discount (giảm giá) • Cash discount • Quantity discount • Functional discount • Seasonal discount ❑ Allowances (chiết khấu) ❑ Psychological pricing – neuromarketing • Reference pricing ❑ Segmented pricing – different prices for different segment, not based on the costs ❑ Promotional pricing ❑ Geographical pricing program ❑ Basing-point pricing ❑ Internet pricing (dynamic pricing) strategy) Key lesson References BRASSINGTON, F and PETTITT, S (2012) Essentials of Marketing 3rd Ed Harlow: Pearson KOTLER, P and ARMSTRONG, G (2013) Principles of Marketing London: Prentice Hall