Value pricing, Marketing Management

Value  Pricing  :  Value  pricing  is  a  modern  innovative  and  individual method of pricing. Value pricing rests on the principle that the reason of pricing is not to recover costs, but to just capture the value of the product retained by the customer. Analysis will willingly show that the following scenario is possible with the cost value price chain.

Value > Price > Costs Price > Value > Costs Price > Costs > Value Price > Value > Costs

Under Scenario following are the issue:

A.   Marketer recovers costs through cost, but not succeeds to recover the value of his product.

B.   He recovers his costs along the value.

C.   The value that he passes on to the customer is yet lesser.

D.   He matches the value and price and wins customer loyalty and since the value created is larger than his costs, he ensures his profits.

Posted Date: 10/15/2012 4:33:27 AM | Location : United States







Related Discussions:- Value pricing, Assignment Help, Ask Question on Value pricing, Get Answer, Expert's Help, Value pricing Discussions

Write discussion on Value pricing
Your posts are moderated
Related Questions
A Supervising Officer of a large Ministry made the following statement: "To be successful in business, all you need is a Customer. You don't need any of those tight little acad

Tender Pricing : Business firms are frequently required to fix the prices of their products on a tender basis. It is more applicable to industrial products and products purchase

Question 1: Altering consumer attitudes is a key strategy consideration for most marketers because consumers' attitudes towards a product will influence their buying behavior


Question: (a) You have been requested by your CEO to organize a news conference. Show how you would organize same. (b) If you expect to have success issuing news releases

Question: ‘The basic differences between goods and services offer the biggest challenges to Service marketers'. With reference to services you are familiar with, discuss th

The Eighteenth Amendment to the U.S. Constitution is the only amendment that has been repealed. This amendment established A. federal income tax. B. prohibition of alcohol.

What is advertising in functions facilitating exchange? Advertising: Advertising has become a significant function of marketing into the competitive world. This helps to s

Message Control Control over the message is essential to ensure that intended message is transmitted to and received by the target audience. Moreover, this message should be c

Question 1: Critically determine the different ways in which competitor advantage may be obtained by any firm of your choice. Question 2: You work as Marketing Communic