Pricing 
       Strategies
         Chapter 11
             Price Defined
    The amount of money charged for a 
     product or service that consumers 
     exchange for the benefits of having 
     or using the product or service.
      Most flexible element in marketing mix 
      Major impact on store/product/service 
       image
           What else is price?
     Value                      Other 
       Product power             Terms:
        to stimulate                Rent
        exchange                    Fee
     Barter
                                    Donation
       Money-less 
                                    Toll
        exchange                    Honorariu
                                    m
                                    Tuition
      Price as a Marketing Mix 
                variable
    Price Competition versus Nonprice 
               Competition
       John Deere uses nonprice competition by 
        emphasizing quality and workmanship
         The Fundamentals of 
               Pricing Strategy
     1.  Set pricing objectives
     2.  Establish importance to target 
         market                                       d
     3.  Understand demand                     s
     4.  Understand costs
     5.  Determine strategy