Session 12 Pricing Considerations and Approaches

Time required: 2 hours
Objectives & Requirements
　　Understand
　　• internal and external factors that influence the company's pricing decision
　　• three general pricing approaches
Essential Concepts
　　• the experience curve
　　• monopolistic competition
　　• demand curve
　　• price elasticity of demand
　　• fixed costs
　　• variable costs
　　• the cost-based approach
　　• breakeven analysis
　　• the buyer-based approach
　　• the competition-based approach
Text Chapter and Supplementary Materials
　　Chapter 10，Kotler & Armstrong, Principles of Marketing 9th ed.
　　References at the end of the chapter, and in the Course Syllabus
Exercises and Discussion
　　Marketing Applications: Question 1 (a – d)
　　Issues for Discussion:
　　1. Does “value” mean the same thing as “low price”? How do these concepts differ?
　　2. Pick up two competing brands from a familiar product category (e.g. air conditioner) - one low priced and the other high priced. Which, if either, offers the greatest value?
　　3. Discuss the typical pricing objectives outlined in the chapter. Which of these objectives do you believe: (a) is the most commonly used; (b) is the most difficult to achieve; and (c) has the greatest potential for long-term growth of the organization? Explain.
Case Analysis：
　　《凯塞布罗啤酒市场开发》（《当代营销学案例集》）

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