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1.1 LEARNING OBJECTIVES
LO 10-1 Understand the integral role of price as a core component of value.
LO 10-2 Explore different pricing objectives and related strategies.
LO 10-3 Identify pricing tactics.
LO 10-4 Describe approaches to setting the exact price.
LO 10-5 Determine discounts and allowances to offer to channel members.
LO 10-6 Understand how to execute price changes.
LO 10-7 Examine legal considerations in pricing
1.2 Chapter Outline
I. PRICE IS A CORE COMPONENT OF VALUE
II. ESTABLISH PRICING OBJECTIVES AND RELATED
STRATEGIES
A Penetration Pricing
B Price Skimming
Profit Maximization and Target ROI
Competitor-Based Pricing
Stability Pricing
Value Pricing
Product Line Pricing
Captive Pricing
Price Bundling
Reference Pricing
Prestige Pricing
Odd/Even Pricing
One-Price Strategy and Variable Pricing
Everyday Low Pricing (EDLP) and High/Low Pricing
Auction Pricing
III. SET THE EXACT PRICE
Cost-Plus Pricing/Markup on Cost
Markup on Sales Price
Average-Cost Pricing
Target Return Pricing
IV. DETERMINE CHANNEL DISCOUNTS AND
ALLOWANCES
Cash Discounts
Trade Discounts
Quantity Discounts
Seasonal Discounts
Promotional Allowances
Geographic Aspects of Pricing
FOB Pricing
Uniform Delivered Pricing
Zone Pricing
V. EXECUTE PRICE CHANGES
VI. UNDERSTAND LEGAL CONSIDERATIONS IN
PRICING
Price Fixing
Price Discrimination
Deceptive Pricing
Predatory Pricing
Fair Trade and Minimum Markup Laws
VII. SUMMARY
