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Ebook Principles of marketing (global edition): Part 2

(BQ) Part 2 book "Principles of marketing" has contents: Retailing and wholesaling, advertising and public relations, personal selling and sales promotion, creating competitive advantage, the global marketplace, the global marketplace; direct and online marketing - building direct customer relationships,.and other contents. | Find more at www.downloadslide.com Part 1: Defining Marketing and the Marketing Process (Chapters 1–2) Part 2: Understanding the Marketplace and Consumers (Chapters 3–6) Part 3: Designing a Customer-Driven Strategy and Mix (Chapters 7–17) Part 4: Extending Marketing (Chapters 18–20) 10 Pricing Understanding and Capturing Customer Value Chapter Preview We now look at the second major marketing mix tool— pricing. If effective product development, promotion, and distribution sow the seeds of business success, effective pricing is the harvest. Firms successful at creating customer value with the other marketing mix activities must still capture some of this value in the prices they earn. In this chapter, we discuss the importance of pricing, dig into three major pricing strategies, and look at internal and external considerations that affect pricing decisions. In the next chapter, we examine some additional pricing considerations and approaches. For openers, let’s examine an interesting strategic pricing story. Air Arabia introduced a new way of doing business to the airline industry in the Middle East when it was established in 2003. Keeping costs down by cutting expensive overheads allowed fare prices to be set much lower than competitors without sacrificing operational excellence, and opened the possibility of air travel up to a whole new market segment. Air Arabia: Customer-Value-Based Pricing ack in October 2003, new airline Air Arabia started money and safe, reliable operation. Through its value propoits operations to introduce a new concept to the air sition and commitment, “Be Smart, Pay less, Fly more,” Air transportation industry in the Middle East and North Arabia set itself apart from its competitors in the Middle East Africa region—“Pay Less, Fly More”—operating as one of the world’s leading budget airlines in terms of profit with two leased A320 aircraft flying to only five destinations. margin, innovation, reputation, and operational excellence. Air