9. General Pricing Approaches Figure 10-5 Product Cost Price Value Customers Cost-based Pricing Customers Value Price Cost Product Value-based Pricing

13. Cost-Based Pricing Approaches Figure 10-4

18. Has competitor cut price? Will lower price negatively affect our market share & profits? Can/should effective action be taken? Hold current price; continue to monitor competitor’s price Reduce price Raise perceived quality Improve quality & increase price Launch low-price “ fighting brand” Yes No No No Responding to Competitor’s Price Changes Yes Yes Figure 10-6

34. Campaign evaluation Communication impact Sales impact Message decisions Message strategy Message execution Budget decisions Affordable approach Percent of sales Competitive parity Objective and task Objectives setting Communication objectives Sales objectives Media decisions Reach, frequency, impact Major media types Specific media vehicles Media timing Major Advertising Decisions Figure 13-3

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