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The Macro Environment – Six Forces in the Environment of...
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    • I: Marketing and the marketing process
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      • The Marketing Process
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        • Market Targeting
        • Differentiation and Positioning
          • Differentiation
          • Positioning
      • The Marketing Mix – The 4 Ps
      • Marketing Instruments
      • Portfolio Analysis: Boston Matrix
      • Portfolio Planning: Growth and Downsizing
      • SWOT Analysis
      • Definition of Product and Service
    • II: Understanding the marketplace
      • The Macro Environment
      • The Buyer Black Box – Buyer’s Characteristics
      • The Buyer Decision Process
      • B2B Market Characteristics
      • Customer Lifetime Value
      • Customer Relationship Groups
    • III: Designing a marketing strategy
      • How to create a Marketing Plan – 8 Steps
      • The Consumer Product
        • Three Levels of Product
        • 4 Types of Consumer Products
        • Different Types of Consumer Products
      • Product Line and Product Mix Decisions
        • Individual Product Decisions
        • Product Line Decisions
        • Product Mix Decisions
      • New Product Development (NPD)
        • The New Product Development Process
        • New Product Development Strategies
      • Pricing Strategies
        • What is a Price?
        • 3 Major Pricing Strategies
          • Customer Value-based Pricing
          • Cost-based Pricing
        • Additional Pricing Considerations
          • New Product Pricing
          • Product Mix Pricing Strategies
          • Price Adjustment Strategies
          • Initiating price changes
      • Product Life Cycle (PLC)
        • Product Life Cycle Stages (PLC)
        • Product Life Cycle Strategies
      • Branding Decisions
      • Characteristics of Services
    • Interesting
      • New View on Marketing
      • Next-Gen Marketing Tool: Virtual Reality
      • Advertising Evolution
      • The 5 Don’ts of Presentations
      • Successful Mobile Marketing
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      • How to write a good Marketing Plan
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consumer surplus

    Role of Economic Value in Pricing – Value-based Pricing
    Marketing Explained

    Role of Economic Value in Pricing – Value-based Pricing

    by Maximilian Claessens 25th June 2018
    written by Maximilian Claessens

    The term value commonly refers to the overall satisfaction that a customer derives from using a product or service. Economists call this use value—the utility gained from the use of a product. To give an example, on a hot summer day at the beach, the use value of a cold drink is quite high for most people, perhaps $10 for a cold soda. But few people would actually pay that price. So knowing use value is of little help to a drink vendor. Therefore, it is important to understand the role of economic value in pricing decisions. How can you accurately set prices based on the value that products or services generate for consumers? In the following, we will closely investigate the role of economic value in pricing.

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    25th June 2018
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  • 1

    The Macro Environment – Six Forces in the Environment of a Business

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    The New Product Development Process (NPD) – Obtain new Products

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    4 Types of Consumer Products and Marketing Considerations – Convenience, Shopping, Speciality and Unsought Products

  • Three Levels of Product – Core Value, Actual Product, Augmented Product

  • Characteristics of Services: What is a Service – And what makes it so special?

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