Page 185 - DMGT408DMGT203_Marketing Management

Marketing Management/Essentials of Marketing Harvinder Singh, Lovely Professional University

Notes Unit 8: Pricing: Understanding and
Capturing Customer Value

CONTENTS

Objectives
Introduction
8.1 Price Setting
8.1.1 Price Competition
8.1.2 Non-price Competition

8.2 Pricing Objectives
8.3 Factors Affecting Pricing Decisions
8.4 Pricing Strategies
8.4.1 New Product Pricing
8.4.2 Price Adaptation
8.4.3 Psychological Pricing

8.4.4 Promotional Pricing
8.5 Selection of Pricing Methods
8.5.1 Cost-based Pricing
8.5.2 Competition-based Pricing

8.5.3 Demand-based Pricing
8.5.4 Perceived-value Pricing
8.5.5 Product Range Pricing
8.5.6 Two-part Pricing
8.5.7 Bid Pricing
8.6 Summary

8.7 Keywords
8.8 Review Questions
8.9 Further Readings

Objectives

After studying this unit, you will be able to:
Realise the relevance of ‘price’ as an integral part of marketing mix

State the objectives of pricing
Identify the factors influencing pricing decisions
Discuss the various pricing strategies
Explain the pricing methods used by various companies

178 LOVELY PROFESSIONAL UNIVERSITY