Marketing 3343 Six Steps In Pricing Strategy Process
The Six Steps in Pricing Strategy Process
1) Identify Pricing Objectives & Constraints 2) Estimate Demand & Revenue 3) Determine Cost, Volume, & Profit Relationships 4) Select an Approximate Price Level 5) Set List or Quoted Price 6) Make Special Adjustments to list or quoted price
Third Step
Determine Cost, Volume, & Profit Relationships
Estimate Demand & Revenue
Determining how much demand there will be for the product, also the estimated amount of revenue that will be generated.
Make Special Adjustments to List or Quoted Price
Discounts, Allowances, Geographical Adjustments
Second Step
Estimate Demand & Revenue
Determine Cost, Volume, and Profit Relationships
Figuring out what the firms fixed costs, variable costs, and quantities producted.
First Step
Identify Pricing Objectives & Constraints
Sixth Step
Make Special Adjustments to list or Quoted Price
Set List or Quoted Price
One Price or flexible price. Company, customer, and competitive effects. Incremental Costs & Revenue
Fourth Step
Select an Approximate Price Level
Fifth Step
Set List or Quoted Price
Identify Pricing Objectives & Constraints
Specifying the role of price in an organization's marketing and strategic plans. Long term, short term ect. Constraints are factors that limit the range of prices a firm can set.
Select an Approximate Price Level
Using the Demand, Cost, Profit, or Competition oriented approaches to determine price.