34332 pricing module_8

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What is Price? ,[object Object],[object Object],[object Object],[object Object]

Procedure for Establishing Initial Prices ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

1. PRICING OF NEW PRODUCTS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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2. PRODUCT MIX PRICING STRATEGIES ,[object Object],[object Object],[object Object],[object Object]

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3. PRICE ADJUSTMENT STRATEGIES ,[object Object],[object Object],[object Object],[object Object],[object Object]

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4. INITIATING PRICE CHANGE ,[object Object],[object Object],[object Object],[object Object]

Important Terms ,[object Object],[object Object],[object Object]

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Retail Pricing Perspective

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Product line,Product MIX,Product line pricing, Product line pricing refers to the practice of reviewing and setting prices for multiple products in coordination with one another.) It is the process that retailers use to separate goods into various cost categories creating different quality levels in the minds of their customers. Product line pricing is more effective when there are ample price gaps between each category so that the consumer is well informed of the quality differentials. Pricing different products within the same product range at different price points. The greater the features and the benefit obtained the greater the consumer will pay. This form of price discrimination assists the company in maximizing turnover and profits. Ex: Samsung offering different smart phones with different features at different prices. This strategy is used for setting the price for entire product line. In many companies now days develop product line instead of a single product so product line pricing is setting the price on the basis of cost difference between different products in a product line. Marketer also keeps in mind the customer evolution of different features and also competitive prices.

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IN THIS SUMMARY The Price Advantage, written by Walter Baker, Michael Marn, and Craig Zawada, outlines how to initiate and maintain appropriate pricing in order to effectively increase profits. By taking advantage of minor price increases, a company can significantly increase its profits. The authors not only demonstrate how to accomplish successful pricing but also explain how to avoid common pricing mistakes, such as emotional price wars or missed opportunities in postmerger or lifecycle pricing. The marketplace rewards businesses with superior products and services. The price advantage creates pride within a company because its customers knowingly pay more for services and products they believe are superior and worth the cost. Taking responsibility for price management is essential in today’s market due to downward pressures on price levels. Otherwise, percentage points of price and opportunities for profit can slip away. SUBSCRIBE TODAY http://www.bizsum.com/summaries/price-advantage

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