Chapter Learning Objectives
1.	Identify the external and internal factors that affect a firm's pricing decision.
2.	Describe the majors pricing strategies used for new and existing products.
3.	Understand the pros and cons of price versus non-price strategies.

I. The nature of price

A. Price:

 

B. Why is price so important?

II. How are prices set?

III. Internal Influences Price

A. Costs

 

1. Cost-oriented objective.

2. Survival

B. Marketing Objectives

 

1. Competitive pricing objective:

 

2. Sales-base objective

 

 

3. Market-share objective

 

4. Product-quality leadership

 

 

5. Status quo

IV. External Influences on Pricing

A. Competitive Environment

 

 

 

B. Demand Elasticity:

V. Selection of a pricing policy

A. New-Product Pricing Strategies

 

1. Price skimming:

 

2. Penetration pricing:

 

B. Psychological pricing:

1. Odd-even pricing

2. Prestige pricing:

 

C. Product Mix Strategies:

1. Price lining

 

2. Product Bundle Pricing:

VI. Price versus non-price competition

Schedule

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