MKT 201 Chapter 13

CHAPTER 13

Pricing Management

OVERVIEW:

In this chapter, we describe the six-stage price-setting process:
1) Developing pricing objectives;
2) Assessing the target market’s evaluation of price and its ability to purchase;
3) Evaluating competitors’ prices;
4) Selecting a basis for pricing;
5) Selecting a pricing strategy; and
6) Determining a specific price.
We point out that marketers do not always take all of these steps. Rather, these steps should be viewed as guidelines that provide a logical sequence for establishing prices. In some situations, some stages should be included in the price setting process, while in others, some of these stages may not be required.

OBJECTIVES:

1.Understand the six major stages of the process used to establish prices.

2.Know the issues that are related to developing pricing objectives.

3.Understand the importance of identifying the target market’s evaluation of price.

4.Describe how marketers analyze competitive prices.

5.Be familiar with the bases used for setting prices.

6.Explain the different types of pricing strategies.

7.Understand how a final, specific price is determined.

Class Prep:

Read Chapter 13