Aompdition based paoing

3etta Ttees bae d on Compe titorns s tton tefes

0st aices, and manee+
offering9
ExkTnal tondideathin s affee -tna
Cetondb Other Itennnl and

Prtie e deeisien

Stmteg Obje eives and Miv

tal Martet)
Ove tall
Ove
artget Cattrg: start with an ideal ee l
na priee based

On oonsumert vale aonsde rta ttons and hen taregets 0ost

that e ptioe is met,
w
ensune

hat

Onganisafforal onsideructfo s
who should set prices

who an iHuerce pt iees

The Nax uet and te demand

undersfand that
pefone setting prtides he manettrgs must
e relattonhip between pniee and demand fc fts pro duots

derent of
triein n tupes

Purt e ompe tton:

n d a the matket
onssts oman br and se llers
trtading fn a un fam commod

ne buyet/ sellec has mueh effeet-on mankef pn'e e

meh tfm n manuen

cellercs oo not pend
strtaea
 Moropoli'stid QompåRon
o t paices
staHen ths
than
trmole rtan
buger and sclea
overt

ingle market ptie

eeas dan d:kenentid 4her ofkrg to bujers

snngle: 3athuo Madonald

Oligepolis hie. Cempettion

onld a few, lamye seler
aleret &, rtesponsi t com petro
7 Aach gelleni's
prticing stantegíes ard marueH moreg
t

e t i s Arl s ToYot A, DMN,

Nenepoly
dominuhd b o setler

a 2oveAn n n t p r i a u
.

Paièing JIffeas eahce5 ,

Price Elestei Den-unt

and othe extanal o ky
Athea Tonom
ratt
ond tens hiaton, latn eg+
200 ormic
taie protit
R e c e l e n s resprou to pr
Glu yetme a
Socetal oonstdetodion,
oeinl
Chapte rn 11

Ne Pto duef Rricing Strotegies

Market
Market
Bimmig ftieaig: strateay sets hgh intal paices

from the mavnet

Hoskm eveue tayers
Produet nualt and mane. must sPPort the Prce
Buyets must want pto duo4 at he prttee

MArket
Marrhet Penetratin Paieina involves seting a low prie e

torca n e prroduat i orderr to attteacb a larye numben

ot uyes a n d

larte martked hame.

Produe Nfx Preing strmtepies

Pcoduet ne prtieing: takes n to acdo unt e cos+ diterences
between prrodue +s in t h e r austomer evaluation S of

heirt features and dompe t4org prue es

E Kv D Ag Drtands 00d Apde prco dua t

OPtianal pro duct prie iA taheg (nto nsidera acaoun

OPhonal acceesSort po dactS along e main

prcodacA.

Apple ainpod, frishe. u ota nal loemake n

 hor
of Prtodeu0ds
pt Rroduot pnic in seto cees
mugt he use d alon wrth mofn prod

inpersne hu
the bla des
e fe atorts arte

eprnsive. And blades 'arte dustomes in d ea

a SSo
a+could oly + in t l offened rao
Ama2on lindle > £boolus ptice s l b e Dools
TB needs o be purtehase d fo read. (et t a
nmple. Gilete To
-P odue Preeing sets a
ptige -tr by podots
ONderc to maue T ain
ptodu0+s paiee morte m peid,n
Produot Bundle rticing:
.

eomne s Sarto
sAart prto
Pito duat
deats ot
oit
a daee
rte d prtic e

cvce Adusttnt 9trrateies

1) Dhscount and
1) Dscount andAlowange Mioina. Heduces Prttces to ewartd
easfemet rtespen stS uoh as malina olume
payir col o gstameiona Purtehaseg
prcomoti the ptadual,
prtodual.
Eranle ' occouning
Semented kie ng: volves getina
ptodef-ort sertvice
SeFtVIC
at two ot mone
priees, ohen e t
ditferrena ptcr s
no t
not ses On erene es in costs
xmple sdnee ve nsors iuskaashas / OdC
Odc.
 d7Herrert sustomes Pj drfkeneni
luskomert Segment paieig Pnde tot se senvrce
of Produot
7Prto
Podot -

toam pareing -2 enen Versien

Prted difk rerd1
Locati ha_td eiein Stneet Yeadoa amm)

T m e hased ptuci > seasonmnth, hourt

fort Scqmeated Prieing to be efkeetive

Nanuet must be semen tble

7gmenth ts must show dfknen dentees demand

Gosh oF segment amount' aaro exted He extrta ryvenu

tust be leg

Pscholaical frieing:
3Bha Qonsiderts the psjaho logj of

Pnices not simfJ He eaonom ie S. Te paiee. s used to

sad 9omehing aboud the pstodugd.

onple YSL. tucei, Chanr

Referrenee prt'ee: arte
paices t e brens gann thein
wnd and re fer
mndand to wkea the loo at
aiuen ptoduot,
a

APromotional rticing temporatilg Pricir prodae

be low He lGt prtrce, and Some timS even belo cost
to incteas shot+ - rtun sdles

Rample spsales Summert sdles, yeat. en sa le

At y n ale, .blaak Re friday les.
 5 eograph'oal Peieing: s d fot c«stomers ndtcsrent
dYfesrent
partts of He gaunty o r t h ew o t d .

fog onigin paieing_

Uniamed- del'oered pieing.
2one prmeig

nsagPont pr.èing
Freight-
absapton Ptieing prtiein
ogin Cfree. en oartd) Pricina i4la
Strtateg in wh.th Toods arte
qonraphital prè
places treé on, Hoartd o Oamn
eustmed pays the
J6tianhin fnaig trom H toafory to th

UAmed Divened pric in aom par akartys.ftc saam prieek

aartgesfhc
plus freight *all
custod«s Priec
egond less of, fhei' lootn
one Paieing. aompanj stts ap twoo
two.onmote,,
more, ,tor
tor
nsumecs wihn. kne
ULene
aiven &one
am prtee
Doin-point prieina:.means fhata setergehe*s
aien a
a
based poin t" and
oertgesall ostomer
he treigk o t ttom
that c o te
austrg
haa/bhalaC Justd ompanfes
 fteht absorpon ptiem:
-

t eler obgotbs all o

partt of t u reight ohortyes to orden
9e desinet
pusiresS

byna mio Ricing : ivowes adjustn prices dontinuely to

meet
meet ahoanactet istes and needs oF ndidaal custom
nnd tuations

4Intert noatíorelPrisiny sets pruces ina gpehe

9Pea h e
Courir boxd
on man froors.

conomi oon ditons

ompetitive taaffons
leos and rteguladons .

7Whole salira and tetail sttm.

Price oaryes
Prieing nany S
Tntn
Pa'oe Cut occunes due t
xeessve daPaa
INrteasednmatue+ shar e

Puc.e incrteaSC oco uts

Oost ntlation

Incsteast demand

ne of S4ppl
uge Reaaton taPreiny an
PraeeInertease s Prce ts
h Ne w mode (s 7ll be

Qom vreee No de ls ane not se lt2n

ue
dun ti+y issue

hapter 12

Seehy Chain and4he

Supply Na lue delsen Netwuret
Upstteam pottfners, art tit ms thod
supplraw matenn ls,
Componerk partts, jtonmatin, nandes, nd ex perise
nee ded to
Qreate a pro duot o setvde.

Downgtiteam paretnens: inslude

the martuetn chonneb
Ort dis tri bation
channels hot aeool tocwartd
towartd
sto ner, ina ludinz relen
and rt. wholesotle
Supply ohaa *make and sell yrew natud ec 4u
re s rtaw mate rials", prto diie4¥e înpecrs and
Capac
Derand ehain;*erse ond epond Wew sheas
t h a planning tatts with t needs of tartco4fom
 ValaeValue Delveny Nefruort k com postd db the
cupany
safers tbutonsand uHimae, dustom-en s who
othet t
Prttren
eoh
caoh othert
improve t penttmanee ot Ahe ratine
sittm

Market Cmnnel (D?stni butvn ghepne)s a setof indepencht

Eganitathns d etP male a produe yt setve arailablk
Tor use ort acnsampton bte aonsumer ort
business bupL
Example Netflix, TBox in es ualmart Amaton.com.
Hew han nel Memmbe rs Add Valu e

Trtanstoum the aesortmtnt at

pavduats into aasontments
wwnted by aengumens
Drr idge he majot , plaoe and
thoet pogg s9un gaps
Pogessun gaPs
9qpatn Ht good and 9et vice fon uSesTS
fron usets

Manutaetunet Qus tomert

D r butor
Nanuheturten
Cactoner

Manutetuner|

Nambr oaontaofs A t t ibu toq

 martlet intnthmoti'm
Jnterimatien>qarterra
Prto
and dihuting
meton > persasve Gommu narien onhout ofkr
Contonoty fimd aommuncehi auyers
Natah shaping md fHing thas to aryer nee d

Negatrahon
Phseal dstriberhi n tras Porntiry ane storinn Jovds
inare ing fhd fumeshelp hiym flraneiny to bug e A
Ristnldy puthing t produc+i ofshelas mthroyín
1 aK male profit /nod.

Nambere of ohannel Lesels

rtodnce Prcodveea
Raod a o e

uhleslea
Retaile
Congumdrt Retaile
Congunneit

Oonsumert marthehng hnnnels

Prt eeet|
Prtoduect| Pco a e er

FTMantoneturt ert 5s
Heprtesendat
beinesS
0istadtop oineS

DseiSS| s1nesS
customert
 A H insltaten f abannel 1s
a
oonneo ted b e dsal f1o,
yfnysieal 4bw of pnluets
flow ot ownemship
Paytnt fioco
Tafon mathon fiou
- Promoton few

CAANNEL tHANTOA
MarkehoM CkannelS eonssts f frms, that have partntned
He oomon good wh eek member pladin ga Spedin e d role
Cha ninel Confiet efers to disagnee ment
amon
channel mtmg
veaols roles and re ands
Hortítortal
7 ertal Conttie

Vertthcnl Hanue k'r

Sygemn
Canseadine dstrtr buten System congis+ o one orn
One o men¬
mor¬

trdeperdeet pcoucens ukelesaler S and rtefailens, ecah

peiness scelirg to axim
separaf
TS, Own
prohts, pert haps, eytn at
ttezpense oE proi+ terr s s t m as
cwhole
Prto cuo eT Pto deert

wwlecaer whlesulu Retailen

Retader
QonS
ConSunt
COnven tsnonl Marluhiny Venteo
Nartke tiny
 nnt
leaderrship
Veatica Hartlketing stems peode han
teailt rs
and and
Coms of prcoduce rs hole. saleta
Chi ns a ti hed stBem

Corportot matke hng sttm

onnu afual
Adni? stenad
Combnt Sucaessi
Con potctt venthcn naruetng 9ysttm
of produation and dtriuho undec simle onfesh
sfages
Contractu el yechcal Manketira 9ptm, corsis ts, oh nsepndn
leee ptodetion and dstn;hien who Join foethe
hrough ontrots.
.

frandie Frtanehise Orgunitatiio

a donttaetual yertico mariketinn ssttm i ' which
ahannel membed calle d fronnohisor, lias seveta |1
a

tages in tte
ptoduatioo- dis tnibution prdd ess
Example Ma donald

An admnis trtatd Vert 4iel MarTehna j9tm 5

NMS t h coot díntes sudoes9t. staiges t prtodnethon
nd dtbation thtugh t t site and Powert donk

o ftu partties.
 HORTPON TAL Martuelin
ystrm: s a
oanne
hch
ekch tuo at n
dompani e3 at onc
leve join f onellea
mntlehg oPorfunity
Mu Hahanne l dsttibron ystm
hich
Arte yst ems in
a
single thirtm t s MP two at morte manur 4ing
hannels to eadh One o
mone d ustomen seg ments

Prto ducetS

Digtrhr

Dealeas |
Qetasa
CosaAT|
Consumt ousiness
Sennad 2 usinees6 egmen2
Senment

Look at boe s l s

hangi hannel Ongandta

bex-Din termedition the eudtig out of maTLehias
hanne fatenme diarits by produce ns He
oa
dpaemr
of eel ers by nfw krr e d in ti'es,

E On1M nmanukrg(nefa
 valuatg channea (ferenntine

Oanel Design Deois'o ns

Jaenti64in Majorz AIten nat NS

A)Totnsive í s tni butron

x Oordy 4 footh paste

Ealus in
Ex- Ax ung Automobile k Paestge aloth29
33eleetive Distbution
T e l e g i n and ho qPpVnee

Menheftig Lonishes SuPply..haia Manage nand

Natune Impurttane e u martrt lothes
Marthetn Loniss involvesplaarin fmtemeating
and
dortto tlina t Phys'aal fo of
rtelatd itunmat+ian ftam oods, sert viee an

f agnsumpton net
poiks of
otint eoints
Qonsume
rteuie ments o a
PrCot
 Taround
(oitie oi'os

Suppie ReetrM
1 1
Reens legistics Stenrrt

Sapply ohain Managemeat involes na neging «p9ieam

ane
and downstream u ed e d ftows of metarials , final
oodS and elattd intunmaton ameng 3¢p* Cs oom P
Heellers and Hml aon sume rs
hoal ct matue logiohes should be to
prtoide a
testrgetd
Tevel of austomtt sert vie e at ta ees dos

Majo LonisHes FunationS

r a re porutetii nn
Cate he usin
Inen tn Nanyemen 7Logishes intn mathen
eueyement

Tteg reate d Logshes Manar)enan* te tecognhe

h a pae viddra austott sertvice and trinmina dtnibu
dosts
doss eaAr tamuson L t r nal and ex
ard cxdemmald,
dernai

Retatling: ineludes all te afrtres Y'nvoled fa selfn

on sestv ides drectly to fn CongudTS Fva
Poduats
non buslnes use. Nan ngttutions
pertsono
toaturre is1 wkolegaders aad rteferleaS do tat'n
nen
mos rear li fs don bb Retar leS
 aMe
Maon Storte rte ta'l t Pes

Spealit Btorre
Oeparttmen+ 9torte

Sapernmarke+
Cony inience Store

Ds coun toae
Superr Stone

aoftvihes nvo ved io

i'nvolved

Woltsaling naludes all t e

ans senvices to fhose
oe buina
buja+em

sefl goods Fem S

bestness u. engaaed
fr e sale
or
for ane aa led
a c t i t es
primanil in cuholesaling
mostty ttom todueer
cwholesa leas. tohole salecs bu

setl mootl to rtetailers, ndustrial congunins

and
and

salers. ot
and other
whole AS tesut+ man

h nahor's laregest most lm portan 4 whole salon

or unnown to fnal aonSuners
a tagdd
 The Prometier Mix t h peaitic blend of
prro motien
too)
cerpory uses persla sive doamanic-t Qustomt
atut and build custemer relationship..

" : s any paid fvam of ron persenal Pesento Hon

and
Prtemotn of anyT'oless, o d s or set vicesS b
an
odentied sponsoa,
7rond aast Onlie out daort
Nobil

Sales Prtomohiens: s a
horettertm incent to
reoura e pr ot sale ot a
produet ort

7 Disoourts
Dem instraton,
Dpls
Peresonn se llira is
e per sonal inter.aotion by the tinns
Sales aee frr th
Ppos o ena cus tomens,
making sales, and baldina austemer me lHonship.

Pable Relotion ovolves uild teations wth

ool
aompors yatioag publies M obfanina tauourtabl c.
Pwblied ui ld uP a
goed detpotett ímog ard
hondln on hendn
o t untavourtable
Stone S and
eve
 o. .
eat
Diteot D4Nanue ting
avolves engaqirg
and
And indidual eonsum
cuith aaretully targe ted
an immediatr
to both obtain
ommunihes
CastomT fasthngcustomr
-oustomt relottoaship
rtelotnshi

Hesponse and bur ld-

Com munieathon
Integentd Narrkeiiy
dmmunicatinS mode l
T ne matue tng

lonsums aan*3
Marheti 3trategses are aha
aka^'^)
Advances
in daft»l teahnology.

Sntegatkd martlefg aom municohjn nvolwes

volves
aartetall
cartefully
fodegcatng and 0oertd inetin tie ompangs man
Comnuniaatons ahannels t delivea a aleast Oonsistena

and
ond
ompeftnmessage abou he onganitaHon
fts Prtodcts

Personal
Sellirg
Adventi Conssten c leat
and competlina
Compand ard brthnd Pab lic
RetooG
mesco)

Stes Dtee

pTomoton and

datal

wmetiaA
 Sleps n Developim fec e nrue tiry ommu
Nare ti omm ninatin
Tdenthy he
Tangrt audie nee

De terrm ine tle comm unicshom

objctie
Des'an te messag

Ckose he me dia to
Send messone

Seleot me ssant
Sourtpe
And aollecf feedboek
1

Tlen+kyir the famget+ Naruet

what w be said 4his haily ettees
How
a0 mmaníetor's deais
when
whert e u

Cho

2 Delertmiain a te ommunicaton Objee tives

Awartentss knusledae LTingaefemeanvietin

Rartchese
uyert Readiness Stages
P
 Opnon leaders are peoplewhose
people o pinonc ane
somght byotks

ub martket nvlves tivati opinion leaderes and

+m to sprrend Pafprrmoton about a produc or

ac+4 Qommu n í t eS
t oftters Ptein
setvic e

uneaton. ehanne ls arte

eda that me

Non pert >ona comm

dontaa+ ort feed baîu,

whout perrsonal
carnr
Catr mmessa9es
essages
and
afmospheres
meda,
mojoru

Sourroe
53elee 4ing HasHassage
kou
ho
e rtqe + audienee
t targ*+ audience
messages impaet
depends on
o n

The

views com munica

fort

Athe letes
debrrites
Entere foainerns

Heal+
nte r
proider
oi d es
s

r o f e soionals!

involyes He ommunicnton

6 Collecting feed baek

tartge
tartgek audie nee
audienae
he efec on

undenstårdfng
Hin trom con tent
'behowoun resu

meagurin
 udge Mix
Sein T Totnl Prtemotiomal

set he total Premotno Bedge+

affrdabie me thod
Perna ertay e o f sles hod
dom pe tih»e Prity o d
objeoff. aad tasu naftod

Shpir the Ovetall Promoiton Mix

T Natune oF Each Pro moton tool

Adverttising: ean aeaeh messages of gedgtaphion ily d'spems

a and it
Day ercs a to paiae dost per ex pos ure

ena ble s R selercto rtepe amessage mand t i .

7Percsona selling: s ft mot efeetive method at oetrthi,

skages ob tte birg process, parteu lartly n buildin
bud e t ' pretenenee s donviettn odtions and de velopnfnn
aus tomt telahenshp.

Bols Prtamatio n ineludees Coupons, contests, dentsofF

that, atteraeAaonsumer ottention

del and prte miumg
and effrr strony neentives to purtakase

ver belfeynde fonm of

Rablic ReCation3 a

featun es
hat inelud es hew torteeS
mofion
Prto
9ponsoskip 9 and esents.
 Direot bital Harketig: dn imnediat., custon'ed
ond tTefve pcomotonal tool that fncludes dneo+
nal atatog s telephont menhe tirg. onlfa. mob'it
ard otial-media,

Prra motn Hix 94Ttegi s

martue Hra
Prto deatrt Reelerts martueting notivhes
s ( pecsona' ~etirg
Stre thon Perso nal se (lrg advertt.
t r t a d e prto
mo sales Prtomotm
frto dueet Rehaile
CyholeSala
Consume|

Pnsh 3trtate

Demene Demand
Retailer
Pnadue ert ConsumA
c olesale
Prtodue er martet'ng Strotez*es ((Ad, 9ales po

Pall 3trtnfe a