Lecture Basic Marketing: A global-managerial approach: Chapter 18 - William D. Perreault, E. Jerome McCarthy

eference
18­11

For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill


Full-Line Pricing

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18­12

MarketMarket- or
or Firm
Firm
Oriented?
Oriented?

Complementary
Complementary
Pricing?
Pricing?

Product-Bundling
Product-Bundling
Pricing?

Pricing?

For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill


Bid and Negotiated Pricing
Bid pricing means offering a 
specific price for each 
possible job.  Determining 
costs is a complicated 
process.

Negotiated pricing involves 
setting a price as the result 
of a bargaining process 
between the buyer and 
seller.
18­13

For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill


Key Terms

Markup
Markup (percent)

Markup Chain
Stockturn Rate
Average-Cost Pricing
Total Fixed Cost
Total Variable Cost
Total Cost
Average Cost
Average Fixed Cost
Average Variable Cost
Experience Curve
Pricing
Target Return Pricing
Long-Run Target
Return Pricing
18­14

Break-Even Analysis
Break-Even Point (BEP)
Fixed-Cost (FC)
Contribution per Unit
Marginal Analysis
Marginal Revenue
Marginal Cost
Rule for Maximizing
Profit
Marginal Profit
Price Leader
Value in Use Pricing
Reference Price
Leader Pricing

Bait Pricing

Psychological
Pricing
Odd-Even Pricing
Price Lining
Demand-Backward
Pricing
Prestige Pricing
Full-Line Pricing
Complementary
Product Pricing
Product-Bundle
Pricing
Bid Pricing
Negotiated Price

For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill