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File: Strategy Slides 79294 | Chap011
chapter 11 pricing strategy strategic role of price analyzing the pricing situation selecting the pricing strategy determining specific prices and policies mcgraw hill irwin copyright 2009 by the mcgraw hill ...

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                                      CHAPTER 11
                           PRICING STRATEGY
              Strategic Role of Price
              Analyzing the Pricing Situation
              Selecting the Pricing Strategy
              Determining Specific Prices and Policies
         McGraw-Hill/Irwin                                         Copyright © 2009 by The McGraw-Hill Companies, 
                                           Inc. All rights reserved.
   Pricing Decisions are Creating Major Challenges 
                   for Many Companies
   Examples Include:
   
       Threats to major airlines by discount 
   carriers.
   
       Pressures on drug companies to reduce 
   prices.
   
       Intense price competition on supermarket 
   chains by Wal-Mart and Costco.
   
       Aggressive discounting by U.S. automobile 
   producers to retain market share.
   
       Threats to strong brands by counterfeit 
   products.
                                                          11-3
          STRATEGIC ROLE OF PRICE
    …requires that we put pricing at the beginning 
    of the process.  For example, a multi-part 
    marketing strategy usually is required in value-
    based pricing.  Airlines’ complicated service 
    packages with arcane restrictions, and their 
    multiple channels of distribution must support 
    pricing that reflects different values of the 
    service to different segments.  Without such a 
    strategy, airlines would capture a much smaller 
    portion of the value they have the potential to 
    create.  
    T. Nagle, Marketing News, 11/9/98, 4.                 11-4
               Price in the  Positioning Strategy
                                      Target
                                    market and
                                    objectives
                               Positioning Strategy
             Product                                        Value-Chain
             strategy                                        strategy
                                     Pricing
                                     strategy
                                    Promotion
                                     strategy
                                                                          11-5
                 Pricing Situations
        New product pricing
        Life cycle pricing
        Changing positioning strategy 
        Countering competitive 
         threats
                                                          11-6
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...Chapter pricing strategy strategic role of price analyzing the situation selecting determining specific prices and policies mcgraw hill irwin copyright by companies inc all rights reserved decisions are creating major challenges for many examples include threats to airlines discount carriers pressures on drug reduce intense competition supermarket chains wal mart costco aggressive discounting u s automobile producers retain market share strong brands counterfeit products requires that we put at beginning process example a multi part marketing usually is required in value based complicated service packages with arcane restrictions their multiple channels distribution must support reflects different values segments without such would capture much smaller portion they have potential create t nagle news positioning target objectives product chain promotion situations new life cycle changing countering competitive...

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