How Automation is Driving Efficiency Through the Last Mile of Reporting
PRICING STRATEGIES
1.
2. TEAM MEMBERS
AADHIL AHAMED K
AJINAS K.A
ABDUL BASITH
AJAY N.V
ARUN P.K
AKSHAY
MBA 1ST SEM
PRESIDENCY COLLEGE
BENGALURU
3. PRESENTATION OBJECTIVES
To cover topics like what is price and pricing.
Factors influencing pricing decision
Methods of pricing
4. PRICE
Price may be defined as the value of product
attributes expressed in monetary terms which a
consumer pays or is expected to pay in exchange and
anticipation of the expected or offered utility.
5. PRICING
Pricing is the function of determining product value in
monetary terms by the marketing management of a
company before it is offered to the target consumer
for sale.
8. EXTERNAL FACTORS
Pricing in different types of markets
Consumer perceptions of price and value
Competitors Price and offers
Other external factors like economic position in the
country, resellers reactions and government.
11. COST ORIENTED PRICING METHOD Cont…
This pricing method is the variation of cost plus pricing
wherein the percentage of mark-up is calculated on the
selling price
In this kind of pricing method the firm set the price to
yield a required Rate of Return on Investment (ROI)
from the sale of goods and services
12. MARKET ORIENTED PRICING METHOD
Perceived-Value Pricing.
In this pricing method, the manufacturer decides the price on the basis of
customer’s perception of the goods and services taking into
consideration all the elements such as advertising, promotional tools,
additional benefits, product quality, the channel of distribution, etc.
that influence the customer’s perception.
13. MARKET ORIENTED PRICING METHOD Cont…
Value Pricing
Under this pricing method companies design the low
priced products and maintain the high-quality
offering. Here the prices are not kept low, but the
product is re-engineered to reduce the cost of
production and maintain the quality simultaneously.
15. PENETRATION PRICING
Price set to ‘penetrate the market’.
‘Low’ price to secure high volumes.
Typical in mass market products – chocolate bars,
food stuffs, household goods, etc.
Suitable for products with long anticipated life
cycles.
May be useful if launching into a new market
16. MARKET SKIMMING
In market skimming, goods are sold at higher prices at
the initial stage, so that fewer sales are needed to reach
break even.
Gradually the price is reduced when the competition
starts in the market.
This strategy is based on the notion that at the initial
stage of a product, there is no competition in the market
& so the price of the product can be fixed high.
Selling a product at a high price, sacrificing high sales to
gain a high profit is therefore "skimming" the market.
17. MARKET SKIMMING Cont…
The firm has to incur heavy expenditure on
research, advertisement & sales promotion
program of a new product.
Therefore its necessary on the part of the firm to
keep the price of the product high to recover the
expenditure.
Its commonly used in electronic markets when a
new range, such as Tablet PC’s, are firstly
dispatched into the market at a high price.