DEVELOPING PRICING STATEGIES AND PROGRAMS

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

1. Understanding Pricing

1.1. Pricing in a Digital World

1.2. A Changing Pricing Environment

1.2.1.  Bartering

1.2.2.  Renting

1.3. How Companies Price

1.4. Customer Physhology and Pricing

1.4.1.  Preference prices

1.4.2.  Price-quality inferences

1.4.3.  Price endings

2. Setting The Price

2.1. Step 1: Selecting The Pricing Objective

2.1.1.  Survival

2.1.2.  Maximum current profit

2.1.3.  Maximum market share

2.1.4.  Maximum market skimming

2.1.5.  Product-quality leadership

2.1.6.  Other objectives

2.2. Step 2: Determining Demand

2.2.1.  Price sensitivity

2.2.2.  Estimating demand curves

2.2.2.1. • Surveys

2.2.2.2. • Price experiments

2.2.2.3. • Statistical analysis

2.2.3.  Price elasticity of demand

2.3. Step 3: Estimating Costs

2.3.1.  Types of costs and levels of production

2.3.2.  Accumulated production

2.3.3.  Target costing

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

2.4.1.  Value-priced competitors

2.5. Step 5: Selecting a Pricing Method

2.5.1.  Markup pricing

2.5.2.  Target-return pricing

2.5.3.  Perceived-value pricing

2.5.4.  Value pricing

2.5.5.  EDLP

2.5.6.  Going-rate pricing

2.5.7.  Auction-type pricing

2.5.7.1. • English auctions (ascending bids)

2.5.7.2. • Dutch auctions (descending bids)

2.5.7.3. • Sealed-bid auctions

2.6. Step 6: Selecting The Final Price

2.6.1.  Impact of other marketing activities

2.6.2.  Company pricing policies

2.6.3.  Gain-and-risk-sharing pricing

2.6.4.  Impact of price on other parties

3. Adapting The Price

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

3.1.1.  Barter

3.1.2.  Compensation deal

3.1.3.  Buyback arrangement

3.1.4.  Offset

3.2. Price Discounts and Allowances

3.3. Promotional Pricing

3.3.1.  Loss-leader pricing

3.3.2.  Special event pricing

3.3.3.  Special customer pricing

3.3.4.  Cash rebates

3.3.5.  Low-interest financing

3.3.6.  Longer payment terms

3.3.7.  Warranties and service contracts

3.3.8.  Psychological discounting

3.4. Differentiated Pricing

3.4.1.  Customer-segment pricing

3.4.2.  Product-form pricing

3.4.3.  Image pricing

3.4.4.  Channel pricing

3.4.5.  Location pricing

3.4.6.  Time pricing

4. Initiating and Responding to Price Changes

4.1. Initiating Price Cuts

4.1.1.  Low-quality trap

4.1.2.  Fragile-market-share trap

4.1.3.  Shallow-pockets trap

4.1.4.  Price-war trap

4.2. Intiating Price Increases

4.2.1.  Delayed quotation pricing

4.2.2.  Escalator clauses

4.2.3.  Unbundling

4.2.4.  Reduction of discounts

4.3. Anticipating Competitives Responses

4.4. Responding to Competitors’ Price Changes