世纪商务英语阅读教程（专业篇Ⅰ）

Product & Pricing ( )Ⅱ

Unit 8Unit 8

Lead-in

To further understand product and pricing, we study branding and

packaging. Correct pricing objectives and policies can make the

company management more efficient. The international competition

is getting fiercer and fiercer. The equal value exchange principle

makes the pricing tactics of enterprises face a lot of new difficult

problems.

After studying this unit, you will be able to:

◇ Understand what branding and packaging are.

◇ Discuss the information of pricing objectives, policies and strategies.

◇ Explain relations between product and pricing.

Text A Branding and Packaging

1. Definition of branding

2. Origin of Branding

3. Meaning of a Brand

4. Relation between commodity and brand

5. Relation between branding and the trademark /brand

6. Explanation of “R” and “TM”

7. Structure of Branding

8. Comparison between branding and the trademark

9. Description of Branding

10. Classification of Branding

11. Packaging

Definition of branding Branding is what people think of when they hear or see your

company’s name with the set of characteristics that a consumer

uses to identify your product or services.

Branding and Packaging

Origin of Branding

brandr (ancient Norwegian) → branding=brand (English)

Branding and Packaging

Meaning of a Brand

Branding and Packaging

the dog tag about the livestock → a commodity identification sign

Relation between commodity and brand

100 commodities = 100 brands

Branding and Packaging

Branding and Packaging

Relation between branding and the trademark /brand

branding ≠ the trademark /brand

Branding and Packaging

Explanation of “R” and “TM”"R" = registered trademark

“TM” = an unregistered trademark

Branding and Packaging

Structure of Brandingbrand name

+

brand sign

+

brand role

+

trademark

=

branding

Branding and Packaging

Comparison between branding and the trademark

Branding: a marketing concept

The trademark: a law concept

Branding and Packaging

Description of Branding

Branding

image with the quality and characteristics of the product or service

Branding and Packaging

Classification of Brandingfamous branding

excellent branding

outstanding branding

good branding

strong branding

top branding

☆☆☆☆☆

☆

Branding and Packaging

Packaging It is used to attract customers’ attention. ☆

It includes the designing and production of a container or wrapper. ☆

It can also be used for promoting the brand image and distinguishing

products.

☆

Branding and Packaging

Packaging

branding

→packaging

←

end

consumer

Branding and Packaging

Packaging3 general parts:

inner packaging (direct product container)

middle-level packaging (outside protection)

outer packaging (transporting package)

Branding and Packaging

PackagingIt is a kind of culture, and even more a kind of product image.

Good packaging can embody the product style and value

sufficiently.

☆☆

1. Function of pricing

2. 2 kinds of pricing objectives

3. Enterprises’ operating objectives

4. 4 Pricing Policies

5. Volume objectives

6. 3 Factors of Pricing

7. Significance of Pricing

Text B What is Pricing

What is Pricing

Function of pricing Pricing decides the price that will be good to both the customers

and the exporter.

☆

Pricing should reflect both the specific marketing objectives and th

e broader company objectives.

☆

What is Pricing

2 kinds of pricing objectives

long-term objectives (concerned with profit and market share)☆

short-term objectives (including sales volume) ☆

What is Pricing

Enterprises’ operating objectives

Enterprises’ operating objectives meet market needs and regard

enterprises’ profits as the foundation.

What is Pricing

4 Pricing Policies “Skim the Cream” Pricing:

selling at a high price to those who are willing to pay before the

producer aims at more price-sensitive consumers

☆

Skimming Pricing Policy:

setting prices of products relatively high compared to those of similar pro

ducts and then gradually lowering prices to get the maximum profit from

each level of customers

☆

What is Pricing

4 Pricing Policies Penetration Pricing Policy:

setting prices of products relatively low to secure wide market

acceptance that will allow the company to later raise its prices

☆

Predatory Pricing:

illegal practice of setting unreasonably low prices to force competitors

out of business

☆

What is Pricing

Volume objectives

sales maximization

+

market-share goals

What is Pricing

3 Factors of Pricingconsumers’ demand

contribution margin

market competition

☆☆☆

What is Pricing

Significance of PricingSelling a product at a moderate price is vital to a company.

1. Function of Pricing

2. 7 common pricing techniques

4. 3 objectives of pricing

5. 6 factors of export pricing

3. Disadvantage of low price strategy

6. Explanation of CIFC5%

Text C Pricing Strategies

Pricing StrategiesFunction of Pricing

Pricing is the competition method directly influencing an enterprise's

profit.

Pricing Strategies

7 common pricing techniques7 common pricing techniques:

Evaluating product features and customer benefits;

Marking up your cost of production;

Undercutting competitors' prices;

Asking key customers;

Getting feedback from salespeople;

Considering typical customers' "disposable income“;

Soliciting advice from consultants or business associates.

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Pricing StrategiesDisadvantage of low price

strategyLess or no profits to sellers;

Suspicious of the quality of the product to customers.

☆☆

Pricing Strategies

3 objectives of pricingProfit-oriented Objective

Sale-oriented Objective

Follow-the-leader Objective

☆☆☆

Pricing Strategies

Profit-oriented ObjectiveTo set a specific target return rate;

Striving for maximum profit;

Charging the highest possible price to earn as much as possible.

△△△

Pricing StrategiesSales-oriented Objective

sales volume/market share

maintaining a certain portion of a market

increasing their market share

△△△

Pricing Strategies

Follow-the-leader ObjectiveIt concentrates efforts on other promotional tools such as 

advertising, packaging, etc. 

△

Pricing Strategies6 factors of export pricing

6 factors of export pricing:

unit cost of the product

profit

agent's commission abroad

cost of packing

ocean freight

other costs

☆☆☆☆☆☆

Pricing StrategiesExplanation of CIFC5%

CIFC5%:

Cost+ Insurance+ Freight+ Commission 5 percent