Topik 4

Pricing Methods and Strategies

  1. The importance of the Pricing Decision
    1. The Conventional Marketing Accounting Link
    2. The influence on price
  2. Pricing Methods
    1. Cost plus pricing
    2. Target pricing
    3. Competitive based pricing
    4. Customer (value) based pricing
  3. Pricing strategies
    1. Skimming (short term profit maximisation) (CVP)
    2. Penetration (Shor term: Low price Market penetration)
    3. Product line pricing
    4. Variable pricing
    5. Odd Pricing
    6. Prestige pricing
    7. Pricing cutting
    8. Harvesting
    9. Financial implication of pricing strategies
  4. Risk averse pricing strategies
    1. “Cost oriented” risk averse pricing strategies
      1. Adoption of “delayed quotation pricing”
      2. Elimination of low margin products and customers
      3. Adoption of “escalator” clauses
    2. “Selling related” risk averse pricing strategies
      1. Unbundling of service
      2. Reduce cash and quantity discounts
      3. Elimination of price “shading”