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gabonesedestructionDéveloppement de logiciels

17 févr. 2014 (il y a 3 années et 5 mois)

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E
-
MARKETING
5/E

JUDY
STRAUSS AND
RAYMOND FROST


Chapter 11: Price: The Online Value


©2009 Pearson Education,
Inc. Publishing as Prentice
Hall

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Chapter 11 Objectives


After reading Chapter 11, you will be able to:


Identify the main fixed and dynamic pricing strategies
used for selling online.


Discuss the buyer’s view of pricing online in relation to
real costs and buyer control.


Highlight the seller’s view of pricing online in relation to
internal and external factors.


Outline the arguments for and against the Net as an
efficient market.


Describe several types of online payment systems and
their benefits.


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©2009 Pearson Education, Inc.
Publishing as Prentice Hall

The VideoEgg Story


The video and rich media advertising company
was founded in 2004 by 3 Yale graduate
students.


VideoEgg delivers ads to social networking
sites, video sites, and gaming applications.


VideoEgg created AdFrames, which allow
video viewers to roll over and watch ad
-
sponsored content.



©2009 Pearson Education, Inc.
Publishing as Prentice Hall

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The VideoEgg Story, cont.


Online advertising is bought and sold on a
CPM (cost per 1,000 impressions) or pay
-
per
-
click model (PPC).


In contrast, VideoEgg charges advertisers
based on user engagement (roll over action)
with the ad.


VideoEgg’s innovative pricing scheme is $0.75
per roll over, which it splits 60/40% with the
site owner.


©2009 Pearson Education, Inc.
Publishing as Prentice Hall

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©2009 Pearson Education, Inc.
Publishing as Prentice Hall


Price is the sum of all values that buyers
exchange for the benefits of a good or service.


Throughout history, prices were negotiated;
fixed price policies are a modern idea.


The Internet is taking us back to an era of
dynamic pricing
--
varying prices for individual
customers.


The internet also allows for
price
transparency
--
both buyers and sellers can
view
competitive

prices online.


The Internet Changes Pricing
Strategies

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Pricing Strategies

©2009 Pearson Education, Inc.
Publishing as Prentice Hall

6

©2009 Pearson Education, Inc.
Publishing as Prentice Hall

Buyer & Seller Perspectives: Buyer
View


The meaning of price depends on the
viewpoint of the buyer and the seller.


An agreement to a
fair price
must be reached or
no sales will occur.


Value = Benefits


Cost


Buyer’s costs may include money, time,
energy, and psychic costs.


The
wide price difference; the inclusion and non
-
inclusion of tax; supplier rating/reliability; number
of reviewers etc.


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©2009 Pearson Education, Inc.
Publishing as Prentice Hall

Buyer & Seller Perspectives: Buyer
View


But they often enjoy many online cost savings:


The Net is convenient and fast.


Research, shop, get entertained 24/7; on a range of appliances.
Ordered items received quickly.


Asynchronous communication anytime anyplace


Self
-
service saves time.


Look at choices, track order, pay bills, etc without having to wait
for company staff/rep.


One
-
stop shopping and integration save time.


Automobile companies in Malaysia; AutoMall Online USA


Customised info by search engine companies


Automation saves energy.


Tracking previous purchases; sites visited; passwords store.

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©2009 Pearson Education, Inc.
Publishing as Prentice Hall


The shift in power from seller to buyer affects
pricing strategies.


In the B2B market, buyers bid for excess inventory.


In the B2G market, government buyers request
proposals for materials and labor.


Buyers set prices and sellers decide whether
to accept the prices in a
reverse auction.


Buyer power online is also based on the huge
quantity of information and products available
on the Web.


Risk


“ the winner’s curse”

Buyer Control

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©2009 Pearson Education, Inc.
Publishing as Prentice Hall

Buyer & Seller Perspectives: Seller
View


Price is the amount of money received from the buyer.


The seller’s perspective includes internal and external
factors, identified via SWOT analysis.


Internal factors include pricing objectives, marketing mix
strategy, and information technology


External factors include market structure and
competition


Pricing objectives
may be:


profit oriented


profit
maximisation
; breakeven.


market oriented


customer buildup


competition oriented.


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Seller View, cont.


Marketing mix


must be integrated and
consistent, whether online or offline.



The Internet is only one sales channel and
must be used in concert with other marketing
mix elements.


Information technology


Can be expensive but if done well can lead to better
operation and efficiency



can place both upward and downward pressure on
prices.


©2009 Pearson Education, Inc.
Publishing as Prentice Hall

11

©2009 Pearson Education, Inc.
Publishing as Prentice Hall

The Internet Puts Upward Pressure on
Prices


Online customer service is an expensive
competitive necessity


online assistance, e
-
mail replies.


Distribution and shipping costs


individual
packaging adds to cost.


Affiliate programs add commission costs.


Site development and maintenance


hardware, software, connection costs.


Customer acquisition costs (CAC).


The average CAC for early online retailing was
$82.

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Customer Acquisition Cost


Customer
Acqusition

Cost Calculator



New customers per month

200



Website Development Costs

$ 10,000



Estimated life of the website (months)

24



Monthly Promotion Costs

$ 2,000



Monthly Maintenance Costs

$ 250



Your customer acquisition costs are $13.33 per customer.


Which is:



Website Development Costs / Expected Life of website) + Monthly
Promotion Costs + Monthly Maintenance Costs New customers



= ($10,000.00/24) + $2,000.00 + $250.00 / 200 = $13.33

©

13

©2009 Pearson Education, Inc.
Publishing as Prentice Hall


Firms can save money by using internet
technology for internal processes.


Self
-
service order processing.


Just
-
in
-
time inventory


sometimes no inventory at all.


Overhead


no rental of selling spaces and
associated staffing; if at all in cheaper places


Customer service


customers help themselves.


Printing and mailing


no mailing or distribution
needed.


Digital product distribution


true for limited products
such as software and music..

The Internet Puts Downward Pressure
on Prices

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©2009 Pearson Education, Inc.
Publishing as Prentice Hall


Market structure and market efficiency affect
pricing strategy.


The
seller’s ability to set prices
varies by market type
as identified by economists:


Pure competition.


Monopolistic competition.


Oligopolistic competition.


Pure monopoly.


If price transparency results in a completely
efficient market, sellers will have no control over
online prices.

External Factors Affect Online Pricing

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©2009 Pearson Education, Inc.
Publishing as Prentice Hall

16

©2009 Pearson Education, Inc.
Publishing as Prentice Hall

Efficient Markets


A market is efficient when customers have equal
access to information about products, prices,
and distribution.


In an efficient market, one would expect to find:


Lower prices.


High price elasticity.


Frequent price changes.


Smaller price changes.


Narrow price dispersion between highest and lowest
price for a product.

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©2009 Pearson Education, Inc.
Publishing as Prentice Hall

Efficient Markets Mean Loss of Pricing
Control

Pure monopoly


Oligopolistic competition


Monopolistic competition


Pure competition

Government control

Market control

Area of
control
for

e
-
marketing pricing strategy

Efficient market

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©2009 Pearson Education, Inc. Publishing as
Prentice Hall


External market factors place downward pressure on
prices and contribute to efficiency
.


Shopping agents
such as
PriceScan
, Travelocity.


High price elasticity


variability of purchase behavior with changes in
price.


Reverse auctions


forces sellers to compete against one another .


Tax
-
free zones


still have a moratorium on internet taxes.


Venture capital availability


longterm

view prevailing thus no pressure
for immediate profitability.


Competition



fierce and highly visible; some sacrificing immediate profit
for brand equity and market share.


Frequent price changes


many reasons
e.g

role of shopping agents,
need for new customers, incremental volume discounts.


Smaller price change increments


ranking by shopping agents, easy to
change prices online, presence of price
-
sensitive customers.

Is the Net an Efficient Market?

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©2009 Pearson Education, Inc.
Publishing as Prentice Hall


The internet does not act like an efficient
market regarding narrow price dispersion.


In two studies, greater price spread was found for
online purchases than for offline purchases.


Dispersion of prices exceed 30% in some cases.


One possible reason
-

Price dispersion may occur
because many buyers do not know about or use
shopping agents.


Is the Net an Inefficient Market?

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Is the Net an Inefficient Market?
cont.


Price dispersion may also relate to other issues:


Brand strength


varies from company to company.


Online pricing


fixed, dynamic or auction.


Delivery options


time and place.


Time
-
sensitive shoppers


reluctant to spend time
to seek best deal.


Differentiation



a result of strong branding.


Switching costs


loses familiarity, thus willing to
pay a little more.


Second
-
generation shopping agents
-

uses ranking.


In summary, the internet
is not

an efficient
market.

©

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Payment Options


Electronic money(e
-
money or digital cash) uses the
internet and computers to exchange payments
electronically.
Touch & Go
?


Other off
-
line e
-
money payment systems include:


Smart chips.


Payment by cell phone.


More options in payment methods attracts more
customers


Additional costs to customers.


PayPal has become the industry standard with over 84
million accounts worldwide.


©2009 Pearson Education, Inc.
Publishing as Prentice Hall

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PayPal Account Options


Exhibit 11.6

©2009 Pearson Education, Inc.
Publishing as Prentice Hall

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©2009 Pearson Education, Inc.
Publishing as Prentice Hall


Price setting has become an art as much as a
science.


How marketers apply pricing strategy is as
important as how much they charge.


Marketers can employ all traditional pricing
strategies to the online environment.

Pricing Strategies

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Fixed Pricing


Fixed pricing (menu pricing) is when everyone
pays the same price.


Even with quantity discounts


Two common fixed pricing strategies are:


Price leadership


the lowest price.


Company need to be most cost efficient


Normally the largest producer as has the advantage of
economy of scale


Promotional pricing.


To encourage first or repeat purchase


Limited time period


Can be highly targeted through e
-
mails


©2009 Pearson Education, Inc. Publishing as Prentice Hall

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©2009 Pearson Education, Inc.
Publishing as Prentice Hall

Dynamic Pricing


Dynamic pricing is the strategy of offering different
prices to different customers.


Firms use dynamic pricing strategy to optimize inventory
management and to segment customers.


Airlines have long used dynamic pricing to price air
travel


depending on the season; group travel.


Quick changes can be done on
webpages

to announce
new prices.


There are 2 types of dynamic pricing:


Segmented pricing


set by seller


Price negotiation


usually initiated by the buyer.

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©2009 Pearson Education, Inc.
Publishing as Prentice Hall


Pricing levels are set based on order size,
timing, demand, supply, or other factors.


Segmented pricing is becoming more common
as firms collect more behavioral information.


Segmented pricing can be effective when:


The market is segmentable.


Pricing reflects value perceptions of the segment.


Segments exhibit different demand behavior.


The firm must be careful not to upset
customers.

Segmented Pricing

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©2009 Pearson Education, Inc.
Publishing as Prentice Hall


Geographic segment pricing


Pricing differs by geographic area.


May vary by country.


May reflect higher costs of transportation, tariffs,
margins, etc.


Value segment pricing


Recognition that not all customers provide equal
value to the firm.


Pareto principle: 80% of a firm’s business comes
from the top 20% of customers.


Segmented Pricing, cont.

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©2009 Pearson Education, Inc.
Publishing as Prentice Hall

Customer Value Segments

High














Low



A+



A



B



C

Customers Grouped by Value

Customer value to
the seller

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The target is to move as many customers

as possible to the A+ category and keeping the A+

customers as long as possible

©2009 Pearson Education, Inc.
Publishing as Prentice Hall

Negotiated Pricing and Auctions


Through negotiation, the price is set more than
once in a back
-
and
-
forth discussion.


Online auctions such as eBay utilize
negotiated pricing.


In the C2C market, consumers enjoy the sport
and community while others are just looking for a
good deal.


B2B auctions are an effective way to unload
surplus inventory.

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Renting Software


Software companies sometimes decide to rent
rather than sell software to customers.


Renting software is analogous to leasing cars.


Salesforce.com rents a leading CRM software
system.

©2009 Pearson Education, Inc.
Publishing as Prentice Hall

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