Chapter 10 marketing 💵💲💲

Amount being charged for a product /service ; sum of the values the costumers exchange for the benifits of product/service. Price is the only marketing mix tools that gets revenue. And most flexible because it changes quickly.

1) costumer value - based pricing

2) cost based pricing

3)competition based pricing

COSTUMER VALUE BASED PRICING: setting prices based on buyers perception of values NOT on the cost.



1) Assess costumer value perception
2) Set price based on perceived value
3)determine costs that can happen
4)design a product to deliver desired value at a target price


Cost based pricing: setting prices based on the costs of producing, distributing and selling the product. (Cost based pricing is product driven)

Product then cost then price then combine

If costumer perceived price > value consumers will not buy.
If price < cost then no profit
The "right" pricing Stratgey is one that delivers BOTH value to costumer and profit to the company .

Value based pricing ......And it's normally difficult to measure value because it's subjective.

Setting prices based on competitors strategies , prices, costs and market offerings. In assessing the competitors pricing strategies. The company should ask several questions. FIRST how does the company's market offering compare with the competitors offering in terms of costumer value?
SECOND, how strong are the competitors and what are their pricing strategies?

Repetition in production lower costs enhances efficiency and the average cost drops with accumulated production experience