Marketing_L7
.pdf
Academic year 2013-2014
Marke&ng
Lecture 7
Yana Shigina
Marke&ng department NRU HSE
Content for today
• Pricing Understanding
Pricing Understanding
and Capturing Customer Value
• What Is a Price?
• Major Pricing Strategies
• Other Internal and External Considera&ons
A ec&ng Price Decisions
What Is a Price?
The amount of money charged for a product or service; the sum of the values that customers exchange for the benefits of having or using the product or service.
No maMer what the state of the economy, companies should sell value, not price.
“Instead of running away from pricing, savvy marketers are embracing it.”
Major Pricing Strategies
Major pricing strategies: 1.Customer value-based pricing 2.Cost - based pricing 3.CompeIIon -based pricing
Customer Value-Based Pricing
SeTng price based on buyers’ percep&ons of value rather than on the seller’s cost.
Perceived value: A Steinway piano—any Steinway piano—costs a lot. But to those who own one, a Steinway is a great value.
“A Steinway takes you places you’ve never
been.”
Value-Based Pricing Versus Cost-Based Pricing