文档介绍：Pricing
Topics:
Determinants of Pricing Strategy
Cost petition Issues
Customer Value and Pricing
The Pricing Plan using Marketing-orientated pricing.
Hansen (A) case
'Positive direction'
"Dr Martens will remain a brand true to its heritage and deliver footwear of the highest quality.
"The offshore strategy is the first step in moving pany and the brand forward in a positive direction."
Paul Gates, general secretary of KFAT, said: "It may be cheaper in China, but this is an issue of added value and quality.
"It does not matter if the boots are cheap if nobody is going to buy them (because of their poorer quality)."
Dr Martens moves to China
The makers of Dr Martens boots have announced pany is moving production to China with the loss of more than 1,000 jobs.
A spokesman for pany said the decision was made because it was far cheaper to produce footwear in China. It plans to cease all production in the UK, but will continue to employ a number of office and design staff.
Pricing methods
Cost
Competition
Marketing
Pricing methods
Ceiling and Floor of Price – Pricing’s ‘Black Box’
Low Price
No Possible
Profit at this
Price
High Price
No Possible
Demand at
this Price
COMPETITOR PRICES
COSTS
USP’s
DIFFERENTIATION
Q2
Q1
P2
P1
Price
Quantity
The demand curve
Does the Demand Curve Always look like this??
What of Luxury Goods – so called ‘Giffen’ goods
What may cause an ‘inelastic’ market/demand curve?
Losses
Break even point
Fixed costs
Total revenue
Total variable costs
Total cost
Profits
Units of Production
Money (£)
Determining the break even point
4
Cost-oriented Pricing
Direct Costs (per unit) £2
Fixed Costs £200,000
Expected Sales 100,000
Costs per Unit
Direct Costs £2
Fixed Costs (200K/100K) £2
Full Costs £4
Mark-up (10%) £
Price (costs + mark-up) £
Costs are taken into account only when they are directly attributable to the production of a particular product. Fixed costs or overheads are not included in the margina