A company can adapt prices to varying circumstances and opportunities using several strategies: 1. Geographical pricing sets different prices for customers in different locations. 2. Countertrade allows buyers to pay with goods instead of or along with money through arrangements like barter, compensation deals, buybacks, and offsets. 3. Price discounts and allowances adjust list prices downwards for factors like early payment, volume purchases, and off-season buying. 4. Promotional pricing uses techniques like loss leaders, special events, psychological discounting, rebates, financing options, and warranties to stimulate sales. 5. Differentiated pricing tailors the basic price based on customer segments, product forms, locations, times,

1. How should a company adapt prices
to meet varying circumstances and
opportunities?

2. By,
Anurag Kar
B.Tech. Student
Department of E and ECE
IIT Kharagpur
Based on Chapter 3: Developing Pricing
Strategies and Programs
Of
Marketing Management: A South Asian
Perspective
By Kotler, Keller, Koshy and Jha

3. Geographical Pricing

4. In Geographical Pricing,
the company decides how to price
its products to different
customers in different locations
and countries.

5. Countertrade
A practice in which buyers offer
other items in payment instead
of or along with money.

6. Forms of
Countertrade
Barter
Goods are exchanged directly
with no money and no third
party involvement.

7. Forms of
Countertrade
Compensation
Deal
Some percentage of the
payment is done in cash and the
rest in products.

8. Forms of
Countertrade
Buyback
Arrangement
Seller accepts as partial payment
products manufactured with the
supplied equipment (a plant or
technology).

9. Forms of
CountertradeOffset
Seller receives full payment in
cash but agrees to spend a
substantial amount in that
country in a time period.

10. Forms of
Countertrade
Barter
Compensation
Deal
Buyback
Arrangement
Offset

11. Price Discounts and
Allowances

12. Companies adjust their list price and give
discounts and allowances for…
1. Early Payment
2. Volume Purchases
3. Off Season Buying

13. Price
Discounts
And
Allowances
Discount
Quantity
Discount
Functional
Discount
Seasonal
Discount
Allowance

14. Discounts should be used sparingly, because
excessive discounts undermine the value
perceptions of the product and give an impression
that the company’s price list is ‘soft’.

15. Promotional Pricing

16. T y p e s o f P r o m o t i o n a l
P r i c i n g
Loss-Leader
Pricing
Special Event
Pricing
Psychological
Discounting
Low-Interest
Financing
Cash RebatesLonger Payment
Terms
Special Customer
Pricing
Warranties And
Service Contracts

17. Loss-Leader Pricing
Dropping the prices on well - known
brands by supermarkets to simulate
additional store traffic.

18. Special Event Pricing
Establishing special prices in certain
seasons or festivals to draw more
customers.
Eg. Special offers during Diwali.

19. Special Customer Pricing
Offering special prices exclusively to
certain customers.
Eg. The SBI Platinum Credit Card

20. Cash Rebates
Offering a cash refund (rebate) to
encourage purchase of products within a
specified time period.

21. Low - Interest Financing
Offering low interest financing instead
of cutting prices.
Eg. Automakers have used no interest
financing to attract customers.

22. Longer Payment Terms
Offering longer payment terms on loans
so that the monthly payments are
lowered.

23. Warranties and Service
Contracts
Adding a free or low cost warranty or
service contract to promote sales.

24. Psychological Discounting
Setting an artificially high price and then
offering the product at substantial
savings.

25. Differentiated Pricing

26. Differentiated Pricing is the practice of
adjusting the basic price to accommodate
differences in customers, products,
locations, and so on.

27. PRICE DISCRIMINATION
is when a company sells a product or
service at two or more prices that do not
reflect a proportional difference in costs.

28. T y p e s o f P r i c e
D i s c r i m i n a t i o n
Customer segment
Pricing
Product Form
Pricing
Time
Pricing
Channel
Pricing
Image PricingLocation Pricing

29. Customer Pricing
Different customers pay different prices
for the same product or service.

30. Product – form Pricing
Different versions of the same product
are priced differently but not
proportional to their costs.

31. Image Pricing
Pricing the same product at two
different levels based on image
differences.

32. Channel Pricing
Different pricing based on through which
channel the product is bought.

33. Location Pricing
Different prices at different locations
even though the cost of offering it is the
same everywhere.

34. Time Pricing
Prices which vary by season, day or hour.
Eg. Happy hours in restaurants.

35. Recap

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www.theguardian.com
Fonts Sourced from:
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Based on “Marketing Management: A South Asian Perspective”
By Kohler, Kelter, Koshy and Jha
Credits