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MindMap Gallery e-commerce pricing strategy
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e-commerce pricing strategy
E-commerce pricing strategy mind map. This map organizes the factors that affect pricing, how to change prices, pricing procedures and methods, SKU planning, and basic pricing strategies. Everyone is welcome to learn.
Edited at 2023-02-15 13:47:34- bacteria
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e-commerce pricing strategy
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- Outline
e-commerce pricing strategy
Factors affecting pricing
Pricing target
Maintain survival (low price) - transaction price of event items
Maximize current profit (high price) - seasonal sales price of profit money
Maximize market share (high cost performance) - seasonal sales price of traffic models
Product quality optimization (high quality, high price) - sales price for advanced customer needs
marketing cost
fixed costs
Office and warehouse rental
Employee salaries and year-end bonuses
Product photography costs
Water, electricity and other expenses
Fixed asset investment
Incoming logistics cost
Variable costs
employee performance bonus
Product accessories and packaging
Marketing and promotion expenses
return cost
transaction fee
Logistics costs
Irregular promotional fees
Marginal cost - refers to the increase in total cost (purchasing cost) brought by each unit of newly produced products (or purchased products)
Opportunity cost - refers to the maximum value of giving up something else in order to obtain something (activity cost)
Unit cost - refers to the average cost of producing a unit of product
Total cost - refers to the total expenditure incurred by an enterprise to produce a certain product or provide a certain service.
Market demand
Market demand is the upper limit of pricing
The impact of price elasticity of demand on pricing
Elastic demand - suitable for appropriate price reductions to expand sales
Inelastic demand - suitable for stabilizing prices or appropriately raising prices
competitive situation
Competitors’ products and prices affect pricing
Generally speaking, the more competitors, the lower the price.
Changes in product prices and influencing factors
lowest price (cost limit)
Product price (constrained by market competition)
Maximum price (demand limit, price policy)
How to change price
Enterprise price reduction and price increase
Two basic forms of market competition
price competition
non-price competition
The main methods of price reduction and price increase
Take the initiative to lower prices
Price remains unchanged, additional services added
No change in price, improved product performance
Increase discount ratio
Price remains unchanged, gifts are given
Directly lower the price
Offer price proactively
Raise prices by disclosing true costs
Increase price by delivering quality
Increase prices by increasing portion sizes
Increase prices with freebies
Direct price increase
Customer reaction to corporate price changes
Price cuts in the eyes of customers
The style is old and has shortcomings
Financial difficulties will continue to fall
Corporate promotion or clearance
Price increase in the eyes of customers
Limited quantity, tight demand
Businesses earn better profits
Improved quality, increased value
Competitors' reaction to corporate price changes
Key Ways to Understand Competitor Reactions
Key assumptions for predicting competitor reactions
Firm's reaction to competitors' price changes
Business reactions in different market environments
In the market for homogeneous products, if competitors lower prices, companies must lower prices accordingly.
In heterogeneous product markets, companies have more options for responding to competitors' price changes.
Market leaders' reaction
Firm's reaction to competitors' price changes
The stage of the product life cycle and its importance in the company's product portfolio
Competitors’ intentions and resources
Market sensitivity to price and value
How costs and expenses change with changes in production and sales
Pricing procedures and methods
pricing process
Select pricing target
Forecasting price elasticity of demand
Estimate cost
Analyze competitors
Choose pricing method
Determine the final price
Basic methods of pricing
cost oriented pricing
cost plus pricing
Product price = average unit (1 cost markup rate)
target pricing
Set prices based on estimated sales and volume
marginal cost pricing
price war
demand-based pricing
cognitive value pricing
Set prices based on market positioning
Reverse pricing method (channel payment)
customer demand price
middleman price
Enterprise pricing
demand differential pricing
differential pricing
Competition Oriented Pricing
Market-following pricing
bid pricing method
SKU planning
Imaginary enemy strategy
Find an imaginary competitor for each item to operate accordingly.
The imaginary enemy of each single product changes according to changes in marketing status.
Traffic model
Taobao category
Mall category
Search traffic model
Activity money
Promotional items
Regular customer activities
SNS activity model
Profit money
Distribution money
Channel money
Direct sales
Basic pricing strategy
discount pricing strategy
Cash Discount
quantity discount
Feature discount
Seasonal discounts
price discount
Regional pricing strategy
Designated regional marketing discount pricing
psychological pricing strategies
prestige pricing
mantissa pricing
Solicitation pricing
differential pricing strategy
customer differential pricing
Product form differential pricing
Differential pricing of product parts
Sales time differential pricing
New product pricing strategy
Pay-as-you-go pricing
Sales price is relatively high
Demand elasticity is relatively small
Unit cost has little to do with sales volume
Have technology patents
penetration pricing
Price is low
High elasticity of demand
Unit cost is highly correlated with sales volume
easy to copy
Product portfolio pricing strategy
Product category pricing
Select product pricing
Supplement Pricing
segment pricing
By-product pricing
Product range pricing