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“Pricing” academic course Spring 2013 ----------------------------------------------------------------------------------------------------------------------------Dr. Dinara Bobusheva IAAU Date: Lecture Feb 5,13 Feb 5,13 Tue Tue FIN-4 (A) FIN-4 (B) Class time: 09.00 a.m. – 11.20 a.m. Ibid. CR # 109 Ibid.
Lecture 1. Syllabus Review. Academic course overview. Section I. The Theoretical fundamentals of Pricing in a market economy: Functioning, and comparative efficiency of the Pricing system in conditions of the Pure Competition, and Pure Monopoly. Practical Module 1. Comparative analysis of Prices and Outputs as a result of Pure Competition, and Pure Monopoly. Basic Models of the Markets can be presented as follows: (1) Market of Pure Competition Features: Presence of many firms, but none of which can render a considerable influence on level of the current prices, because of each of them holds a small market share, Uniformity and interchangeability of the competing products/services, and Lack of the Price restrictions. Pricing strategy: The role of marketing researches, Pricing Policy, actions for sale stimulation, is insignificant; therefore the prices are formed under the influence of a supply and demand. 1.1. Strategy of “Accidental Prices Reduction” is known as an establishment of the greatest possible price, which then slowly decreases to level of the market; for this period, the firm manages to sell a quantity of the goods, thereby, having increased the income. (2) Market of Pure Monopoly Pricing strategies: The given set of typical strategies are developing by a principle of the Price Discrimination, including: Differentiation on groups of buyers, Differentiation by a variant of the products or services, and Differentiation on territory. 2.1. Strategy of Plural Prices - as a result of the analysis of Demand Curves, a monopolist sets as much as possible high price for each group of consumers. 2.2. Strategy of Market Segmentation is determined as
Lecture 1. Syllabus Review. Academic course overview. Section I. The Theoretical fundamentals of Pricing in a market economy: Functioning, and comparative efficiency of the Pricing system in conditions of the Pure Competition, and Pure Monopoly. Practical Module 1. Comparative analysis of Prices and Outputs as a result of Pure Competition, and Pure Monopoly. Basic Models of the Markets can be presented as follows: (1) Market of Pure Competition Features: Presence of many firms, but none of which can render a considerable influence on level of the current prices, because of each of them holds a small market share, Uniformity and interchangeability of the competing products/services, and Lack of the Price restrictions. Pricing strategy: The role of marketing researches, Pricing Policy, actions for sale stimulation, is insignificant; therefore the prices are formed under the influence of a supply and demand. 1.1. Strategy of “Accidental Prices Reduction” is known as an establishment of the greatest possible price, which then slowly decreases to level of the market; for this period, the firm manages to sell a quantity of the goods, thereby, having increased the income. (2) Market of Pure Monopoly Pricing strategies: The given set of typical strategies are developing by a principle of the Price Discrimination, including: Differentiation on groups of buyers, Differentiation by a variant of the products or services, and Differentiation on territory. 2.1. Strategy of Plural Prices - as a result of the analysis of Demand Curves, a monopolist sets as much as possible high price for each group of consumers. 2.2. Strategy of Market Segmentation is determined as