Managing The Costs Of Adoption
| The strategy defines the social
market mix for each target segment. Each substrategy will be
explained in relation to how it will respond to the
opportunities, threats and key issues that the plan identified
earlier. (Kotler and Roberto p. 278) |
"The
real price of everything...is the toil and trouble of
acquiring it." --- Adam Smith
|
Managing the Monetary Costs of
Adoption
The Marketing Functions of Pricing
 |
Exercise
Price/Cost |
Why
do Kotler and Roberto label this chapter
"Costs" instead of "Pricing" as you
would find in a traditional Marketing text? |
|
Setting the Objectives of Pricing
| Maximize Profits |
 |
| Recover Costs |
 |
| Maximize Number of
Target-Adopters |
 |
| Increase Social Equity
|
|
| De-market |
 |
Method of Price Setting
| Need
to Consider |
| Costs |
| Competitors'
Prices |
Adopters'
Price Sensitivity
| Unique-Value |
| Substitute-Awareness |
| Difficulty-Comparison |
| Total-Expenditure |
| End-Benefit |
| Shared-Cost |
| Sunk-Investment |
| Price-Quality |
| Inventory |
|
|
|
Exercise
Price Sensitivity |
Which
if any of these price sensitivities apply to the
target-adopters of your social product? |
|
Managing the Non-Monetary Costs of
Adoption
Time
Costs 
| Can be lessened
by: |
| Embedding |
| Anchoring |
|
Perceived
Risks
 Type
of Risk |
Recommended
Action |
| Psychological |
Deliver psychological
rewards |
| Social |
Get endorsements from
credible sources |
| Usage |
Reassure adopter or
give free trial |
| Physical |
Solicit seal of
approval from authoritative institution |
|
|
Difficulty of Adoption
