CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2...

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CHAPTER Day 19 BUS 222

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Transcript of CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2...

Page 1: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

CHAPTER

Day 19

BUS 222

Page 2: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

Agenda

• Questions?• Assignment 5 graded

– 5 A’s, 6 B’s, 4 C’s and 2 F’s

• Assignment 6 Posted– Due April 19 @ 9:30 AM

• Quiz 4 Corrected – 6 A’s,5 B’s, 4 C’s, 1 D And 1 F – 3 more quizes

• Discuss pricing Concepts for Establishing Value

Page 3: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

5 Week Countdown

• April 12– Chap 14

• April 16– Chap 15– Quiz 5 (13 & 14)

• April 19– Assignment 6 Due– Chap 15

• April 23– Chap 16

• April 26– Quiz 6 (15 & 16)– Chap 17

• April 30– Chap 18

• May 3– Scholars Symposium

• May 7– Chap 19– Assignment 7 Due

• May 10– Quiz 7 (17, 18 & 19)

• May 14 @ 8 AM– Market Plan Presentations

• May 16 @ 3 PM– Complete Marketing Plans Due

Page 4: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

CHAPTER

PRICING CONCEPTS FOR ESTABLISHING VALUE

13

McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

Page 5: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

LEARNING OBJECTIVES

Pricing Concepts for Establishing Value

LO1 List the four pricing orientations.LO2 Explain the relationship between

price and quantity sold.LO3 Explain price elasticity.LO4 Describe how to calculate a

product’s break-even point.LO5 Indicate the four types of price

competitive levels.

Page 6: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

Which is the best Wine?

$40

$70 $22

Page 7: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

Price and Value

What’s the most you will pay for a nice hotel?

©Uden Graham/Redlink/Corbis

Page 8: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

Price

Page 9: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

Bottled vs. Tap Water

Page 10: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

Price is a Signal

http://www.PriceGrabber.com

Website

©Brand X Pictures/PunchStock

Page 11: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

The Role of Price in the Marketing Mix

Price is the only marketing mix element that generates revenue

Price is the only marketing mix element that generates revenue

Price is usually ranked as one of the most important factors in purchase decisions

Price is usually ranked as one of the most important factors in purchase decisions

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Page 12: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

The 5 C’s of Pricing

Page 13: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

1st C: Company Objectives

Page 14: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

Profit Orientation

Page 15: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

Sales Orientation

Page 16: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

Competitor Orientation

• Competitive parity• Status quo pricing• Value is not part of this pricing strategy

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Page 17: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

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Focus on customer expectations by matching prices to customer expectations

Focus on customer expectations by matching prices to customer expectations

Customer Orientation

C Borland/PhotoLink/Getty Images Don Farrall/Getty Images

Page 18: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

What are they trying to accomplish with this ad?

http://www.zipcar.com/

Page 19: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

2nd C: Customers

Page 20: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

Demand Curves and Pricing

Knowing demand curve enables to see

relationship between price and demand

Photo by Simon Frederick/Getty Images

Page 21: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

Name the price?

$89.95

$199.95

$399.95

$799.95

$1795.95

$3795.95

http://www.woodlandcreekfurniture.com/graphics/SB04032.pdf

Page 22: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

Demand Curves

Page 23: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

Price Elasticity of Demand

©PhotoLink/Getty Images

Page 24: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

Price Elasticity of Demand

©Dennis MacDonald/PhotoEdit, Inc. ©Bill Aron/PhotoEdit, Inc.

Page 25: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

Factors Influencing Price Elasticity of Demand

Wal-Mart Commercial

Page 26: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

Substitution Effect

• Meet Pete, college student on a budget:

• Old Spice Sport Deodorant user

• At the store he notices that Old Spice is more expensive

• Pete decides to give another brand a try and save money

BananaStock/JupiterImages

Page 27: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

Cross-Price Elasticity

• Meet Kendra, self-supporting college student:

• Buys a new printer on sale for a great price

• Learns it requires special ink cartridges that cost more than the printer

Getty Images/Digital Vision

Page 28: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

3rd C: Costs

• Variable Costs– Vary with production volume

• Fixed Costs– Unaffected by production

volume

• Total Cost– Sum of variable and fixed

costs

Michael Rosenfeld/Stone/Getty Images

Page 29: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

Break Even Analysis and Decision Making

BE Chart.xlsx

Page 30: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

Break Even AnalysisTotal Variable Cost = Variable Cost per unit X Quantity

Total Cost = Fixed Cost + Total Variable CostTotal Revenue = Price X Quantity

Fixed CostsContribution per unit

Break-Even Point (units) =

Example: Fixed Cost = 100, Variable Cost = 2, Unit Price = 7

Contribution per unit = Unit Price – Variable Cost = 7 – 2 = 5

Break even Point = 100 / 5 = 20

Total revenue = 20 * 7 = 140 BE Chart.xlsx

Page 31: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

4th C: Competition

Subway Commercial

Page 32: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

Wal-Mart vs. Target

Page 33: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

5th C: Channel Members

• Manufacturers, wholesalers and retailers can have different perspectives on pricing strategies

• Manufactures must protect against gray market transactions

Page 34: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

Check Yourself

1. What are the five Cs of pricing?

2. Identify the four types of company objectives.

3. What is the difference between elastic versus inelastic demand?

4. How does one calculate the break-even point in units?

Page 35: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

Macro Influences on Pricing

• The Internet• Increased price

sensitivity• Growth of online

auctions

Ryan McVay/Getty Images

Page 36: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

Economic Factors

Page 37: CHAPTER Day 19 BUS 222. Agenda Questions? Assignment 5 graded – 5 A’s, 6 B’s, 4 C’s and 2 F’s Assignment 6 Posted – Due April 19 @ 9:30 AM Quiz 4 Corrected.

1. How have the Internet and economic factors affected the way people react to prices?

Check Yourself


Copyright 2005 Prentice Hall1 Bus 411 DAY 11. Copyright 2005 Prentice Hall Ch 7-2 Agenda Assignment #3 corrected 3 A’s, 2 B’s, 1 C, 2 F’s and 1 non-submits.

Copyright 2005 Prentice Hall1 Bus 411 DAY 11. Copyright 2005 Prentice Hall Ch 7-2 Agenda Assignment #3 corrected 3 A’s, 2 B’s, 1 C, 2 F’s and 1 non-submits.

MR. B’S FRIED CHICKEN

MR. B’S FRIED CHICKEN

COS 125 DAY 20. Agenda Assignment 5 corrected 3 A’s, 4 B’s, 1 D and 1 F’s 4 late turn-ins @ -20 points per day Time of submission is the later of the.

COS 125 DAY 20. Agenda Assignment 5 corrected 3 A’s, 4 B’s, 1 D and 1 F’s 4 late turn-ins @ -20 points per day Time of submission is the later of the.

Four F’s - downsk1pbl.files.wordpress.com  · Web viewFour F’s . The four F’s of assertive communication are Facts, Feelings, Future and Feedback. Following these four f’s

Four F’s - downsk1pbl.files.wordpress.com  · Web viewFour F’s . The four F’s of assertive communication are Facts, Feelings, Future and Feedback. Following these four f’s

CHAPTER Day 21 BUS 222. Agenda Questions? Assignment 6 Corrected – 6 A’s, 3 B’s, 3 C’s, 1 MIA Assignment 7 Posted – Marketing Assignment 7.pdf Marketing.

CHAPTER Day 21 BUS 222. Agenda Questions? Assignment 6 Corrected – 6 A’s, 3 B’s, 3 C’s, 1 MIA Assignment 7 Posted – Marketing Assignment 7.pdf Marketing.

For F’s Sake finance, facilities, fundraising and forms.

For F’s Sake finance, facilities, fundraising and forms.

3 B’s B4 Me

3 B’s B4 Me

Copyright 2005 Prentice Hall1 Bus 411 Day 5. Copyright 2005 Prentice Hall Ch 3 -2 Agenda Assignment # 1 Corrected 4 A’s, 4 B’s, 1 C and 1 F’s (non-submit)

Copyright 2005 Prentice Hall1 Bus 411 Day 5. Copyright 2005 Prentice Hall Ch 3 -2 Agenda Assignment # 1 Corrected 4 A’s, 4 B’s, 1 C and 1 F’s (non-submit)

ELC 200 Day 10. Agenda Questions? Assignment 2 Corrected 11 A’s, 2 B’s Assignment 3 is Due Assignment 4 will be posted soon Quiz 2 on March 7 Chap.

ELC 200 Day 10. Agenda Questions? Assignment 2 Corrected 11 A’s, 2 B’s Assignment 3 is Due Assignment 4 will be posted soon Quiz 2 on March 7 Chap.

ELC 200 Day 23. Agenda Questions from last Class? Assignment 5 corrected 3 A’s, 2 B’s, 1 C, 3 D, 4 F’s Most D’s and F’s are due to lateness Better.

ELC 200 Day 23. Agenda Questions from last Class? Assignment 5 corrected 3 A’s, 2 B’s, 1 C, 3 D, 4 F’s Most D’s and F’s are due to lateness Better.

F & B’s Daycare

F & B’s Daycare

COS 413 Day 17. Agenda Quiz 2 corrected –2 A’s, 6 B’s & 1 C Assignment 5 corrected –5 B’s, 2 C’s, 1 non-submit & 1 corrupt file that I cannot read Lab.

COS 413 Day 17. Agenda Quiz 2 corrected –2 A’s, 6 B’s & 1 C Assignment 5 corrected –5 B’s, 2 C’s, 1 non-submit & 1 corrupt file that I cannot read Lab.

COS 125 DAY 15. Agenda Assignment 4 Posted Corrected –4 A’s, 3 B’s, 2 C’s and 1 MIA Assignment 5 posted –Due April 4 Left to do –4 Assignments (9 total)

COS 125 DAY 15. Agenda Assignment 4 Posted Corrected –4 A’s, 3 B’s, 2 C’s and 1 MIA Assignment 5 posted –Due April 4 Left to do –4 Assignments (9 total)

COS 125 Day 17. Agenda Assignment #4 Corrected – 4 A’s, 5 B’s, 3 C’s, and 3 non-submits Assignment #5 Due Exam #3 Corrected – 5 A’s, 5 B’s, 2 C’s, 2 D’s.

COS 125 Day 17. Agenda Assignment #4 Corrected – 4 A’s, 5 B’s, 3 C’s, and 3 non-submits Assignment #5 Due Exam #3 Corrected – 5 A’s, 5 B’s, 2 C’s, 2 D’s.

ELC 200 Day 12. Agenda Questions? Assignment 3 corrected 6 A’s, 2 B’s, 3 C’s. 1 D and 2 non-submits Assignment 4 is posted Due March 7 @ 9:30 AM

ELC 200 Day 12. Agenda Questions? Assignment 3 corrected 6 A’s, 2 B’s, 3 C’s. 1 D and 2 non-submits Assignment 4 is posted Due March 7 @ 9:30 AM

Alcohol and Other Drug Use. Percentage of High School Students Who Ever Drank Alcohol,* by Type of Grades Earned (Mostly A’s, B’s, C’s or D’s/F’s), 2009**

Alcohol and Other Drug Use. Percentage of High School Students Who Ever Drank Alcohol,* by Type of Grades Earned (Mostly A’s, B’s, C’s or D’s/F’s), 2009**

B’S Creations

B’S Creations

Big B’s Burger Pound

Big B’s Burger Pound

COS 125 DAY 25. Agenda Assignment #7 Graded 2 A’s, 3 B’s, 2 C’s, 1 D, 2 F’s (late) and 5 non-submit Assignment # 8 Due Today Assignment #9 is posted.

COS 125 DAY 25. Agenda Assignment #7 Graded 2 A’s, 3 B’s, 2 C’s, 1 D, 2 F’s (late) and 5 non-submit Assignment # 8 Due Today Assignment #9 is posted.

Jay B’S Design Services

Jay B’S Design Services