MKTG 101 Chapter Notes - Chapter 9: Price Ceiling, Price Floor
Document Summary
3 pricing strategies: customer value based pricing, competition based pricing first asses customer needs and value perceptions sets target price based on customer perception of value, more and more companies are using good value pricing offering just the right combo of quality and good service at a fair price setting price based on buyers" perceptions of value rather than on the seller"s cost. Steps: price is considered before the marketing program is set: assess customer needs and value perceptions, set target price to match customer perceived value, determine costs that can be incurred, design product to deliver desired value at target price, cost based pricing product driven sets a price that covers costs + target profit.
