Pertemuan Kedelapanbelas
Pricing Strategy
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Uses of Price in Positioning
Strategy
• Signal to buyer, the price is visible to the
buyer and provides a basis of comparison
between brands.
• Instrument of competition, price offers a
way to attack competitors, or to position a
firm away from direct competition.
• Improving financial performance
• Marketing mix considerations
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Pricing Strategy for New and
Existing Products
• Set pricing objectives:
– Gaining market position
– Achieve financial performance
– Product positioning
– Stimulate demand
– Influence competition
• Analyze the pricing situation:
– Product market responsiveness to price:
3
Analyze Pricing Situation
• Following questions must be answered:
– How large is the product market in terms of buying potential?
– What are the market segments and what market target strategy
is to be used?
– How sensitive is demand in the segment to changes in price?
– What are the estimated sales at different price levels?
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Price elasticity
Non price factors
Cost analysis
Competitor analysis
Legal and ethical considerations
4
Select pricing strategy
• Select pricing strategy:
– How much flexibility exits?
– Price positioning and visibility
– Pricing strategy:
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High-active strategy
High-passive strategy
Low-active strategy
Low-passive strategy
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Determine Price and Policies
– Cost-oriented approaches
– Competition-oriented approaches
– Demand-oriented approaches
• Pricing policy:
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Pricing structure
Price segmentation
Distribution channel pricing
Price flexibility
Product life cycle pricing
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Conclusions
• Pricing strategy for new and existing
products includes:
– Setting pricing objective, analyzing the pricing
situation, selecting the pricing strategy and
determining prices and policies.
• The choice of a pricing strategy includes
consideration of price positioning and
visibility.
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