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On Desk

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by

Alex Thomas

on 25 July 2014

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Transcript of On Desk

Video
Objectives
New Products
Pricing
Existing Products
Host: Alex Thomas
Guest: Shanntel Vassell
Topic
.
Objectives
Pricing
Social
SOCIAL
SEO
Business Chat
Pricing Strategies for New and Existing Products
Show
PRICING A NEW PRODUCT
major

Pricing Existing Products
#Bizzchat
I am a big fan of your show and I think you are handsome.
#Stephanie
Why does some companies sell a product in a particular area at one price and in another area at a different price?
#Tamonie
Phone Call
Call. 123-CHAT (2428)
Marketer and Product Consultant (SV Marketing Firm)
Caller Online
DEFINE PRICING
OUTLINE THE VARIOUS PRICING FACTORS
EXPLAIN WHAT ARE PRICING STRATEGIES
OUTLINE THE REASON FOR SETTING PRICING STRATEGIES
IDENTIFY AND EXPLAIN WHAT ARE THE VARIOUS PRICING STRATEGIES FOR NEW PRODCTS VS THOSE FOR EXISTING PRODUCTS
What is pricing
Pricing being one of the 4p’s is a fundamental aspect of any business. It is the process of determining what a company will receive in exchange for its product.
Factors such as ; manufacturing cost, market place, competition, market condition, brand, and quality of product affects the pricing process.
Level of competition
Perceived value of price
Product cost development
Economic trend
Level of market demand
Demographic
Class of targeted customers
FACTORS FOR PRICING
Pricing strategy refers to method companies use to price their products or services.
PRICING STRATEGIES
PRICING OBJECTIVES
Profit-oriented: profit maximization, satisfactory profit, target return on investments

Sales-oriented: to get specified share of the market (market share, market maximization)

Status quo-oriented: maintain stable prices/ competitor activity (especially if satisfied with present situation). Existing or meet competitors

Whenever pricing a new product the business must try to satisfy three objectives
theses includes :
Getting the product accepted
Maintaining market share as competition grows
Earning a profit
PRICING A NEW PRODUCT CONT’D
They are three basic strategies that are used when pricing a new product .
These includes:

Market penetration - it should set the price just above total unit cost to develop a wedge in the market and quickly achieve a high volume of sales.


A skimming pricing strategy often is used when a company introduces a new product into market with little or no competition.



Sliding Down the Demand Curve -One variation of the skimming price strategy is called sliding down the demand curve.
PRICING EXISTING PRODUCTS
When pricing an existing product there are many strategies and techniques a business owner can use to enable them to be successful. The various strategies includes:


Odd Pricing- this is a physiological techniques where managers prefer to establish prices that end in odd numbers (5,7,9).
Price Lining -Under this system, the manager stocks merchandise in several different price ranges, or price lines
Leader Pricing- Leader pricing is a technique in which the small retailer marks down the customary price of a popular item in an attempt to attract more customers
.
Suggested Retail Price- Many manufacturers print suggested retail prices on their products or include them on invoices or in wholesales catalogs.
Pricing Existing Products

Opportunistic Pricing. When products or services are in short supply, customers are willing to pay more for products they need.

PRICING EXISTING PRODUCTS CONT’D

Discounts. Many small business owners use discounts or markdowns – reduction from normal list prices – to move stale, outdated, damaged, or slow-moving merchandise.
They are two types of discounts these include seasonal discount and multiple unit pricing.

PRICING EXISTING PRODUCTS CONT’D

A seasonal discount is a price reduction designed to encourage shoppers to purchase
merchandise before an upcoming change of seasons.

Multiple unit pricing is a promotional technique that offers customers discounts if they purchase in quantity

PRICING EXISTING PRODUCTS CONT’D

Geographical Pricing. Small businesses whose pricing decisions are greatly affected by the costs of shipping merchandise to customers across a wide range of geographical regions
frequently employ one of the geographical pricing techniques. There are two types zone pricing and uniform delivery pricing

One type of geographical pricing is zone pricing, in which a small company sells its merchandise at different prices to customers located in different territories.

Another variation of geographic pricing is uniform delivered pricing, a technique in which a firm charges all of its customers the same price regardless of their location,

PRICING EXISTING PRODUCTS CONT’D

http://smallbusiness.chron.com/definition-pricing-strategy-4686.html. 2014
http://www.mckinsey.com/insights/marketing_sales/pricing_new_products 2014

http://www.mytopbusinessideas.com/factors-product-pricing-strategy/

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Reference
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AUDIENCE
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Business Chat
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Full transcript