DEVELOPING PRICING STATEGIES AND PROGRAMS

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DEVELOPING PRICING STATEGIES AND PROGRAMS by Mind Map: DEVELOPING PRICING STATEGIES AND PROGRAMS

1. Adapting The Price

1.1. Geographical Pricing (cash, countertrade, and barter)

1.1.1.  Barter

1.1.2.  Compensation deal

1.1.3.  Buyback arrangement

1.1.4.  Offset

1.2. Price Discounts and Allowances

1.3. Promotional Pricing

1.3.1.  Loss-leader pricing

1.3.2.  Special event pricing

1.3.3.  Special customer pricing

1.3.4.  Cash rebates

1.3.5.  Low-interest financing

1.3.6.  Longer payment terms

1.3.7.  Warranties and service contracts

1.3.8.  Psychological discounting

1.4. Differentiated Pricing

1.4.1.  Customer-segment pricing

1.4.2.  Product-form pricing

1.4.3.  Image pricing

1.4.4.  Channel pricing

1.4.5.  Location pricing

1.4.6.  Time pricing

2. Initiating and Responding to Price Changes

2.1. Initiating Price Cuts

2.1.1.  Low-quality trap

2.1.2.  Fragile-market-share trap

2.1.3.  Shallow-pockets trap

2.1.4.  Price-war trap

2.2. Intiating Price Increases

2.2.1.  Delayed quotation pricing

2.2.2.  Escalator clauses

2.2.3.  Unbundling

2.2.4.  Reduction of discounts

2.3. Anticipating Competitives Responses

2.4. Responding to Competitors’ Price Changes

3. Understanding Pricing

3.1. Pricing in a Digital World

3.2. A Changing Pricing Environment

3.2.1.  Bartering

3.2.2.  Renting

3.3. How Companies Price

3.4. Customer Physhology and Pricing

3.4.1.  Preference prices

3.4.2.  Price-quality inferences

3.4.3.  Price endings

4. Setting The Price

4.1. Step 1: Selecting The Pricing Objective

4.1.1.  Survival

4.1.2.  Maximum current profit

4.1.3.  Maximum market share

4.1.4.  Maximum market skimming

4.1.5.  Product-quality leadership

4.1.6.  Other objectives

4.2. Step 2: Determining Demand

4.2.1.  Price sensitivity

4.2.2.  Estimating demand curves

4.2.2.1. • Surveys

4.2.2.2. • Price experiments

4.2.2.3. • Statistical analysis

4.2.3.  Price elasticity of demand

4.3. Step 3: Estimating Costs

4.3.1.  Types of costs and levels of production

4.3.2.  Accumulated production

4.3.3.  Target costing

4.4. Step 4: Analyzing Competitors’ costs, prices, and offers

4.4.1.  Value-priced competitors

4.5. Step 5: Selecting a Pricing Method

4.5.1.  Markup pricing

4.5.2.  Target-return pricing

4.5.3.  Perceived-value pricing

4.5.4.  Value pricing

4.5.5.  EDLP

4.5.6.  Going-rate pricing

4.5.7.  Auction-type pricing

4.5.7.1. • English auctions (ascending bids)

4.5.7.2. • Dutch auctions (descending bids)

4.5.7.3. • Sealed-bid auctions

4.6. Step 6: Selecting The Final Price

4.6.1.  Impact of other marketing activities

4.6.2.  Company pricing policies

4.6.3.  Gain-and-risk-sharing pricing

4.6.4.  Impact of price on other parties