1. Price is determined by what customers are willing to exchange to obtain a product, which may include money, goods, services or other valuable considerations.
2. Setting price involves estimating demand, determining costs, and selecting an appropriate price point based on objectives and constraints. Key factors include demand elasticity, competitors' prices, and customers' perceived value.
3. Pricing strategies can be based on costs, demand factors, or competitors, and involve techniques like cost-plus pricing, value-based pricing, price bundling or discounts. Psychological pricing tactics also influence customers' perceptions of quality and value.
New-Product Pricing Strategies
Product Mix Pricing Strategies
Price Adjustment Strategies
Price Changes
Market-skimming pricing is a strategy with high initial prices to “skim” revenue layers from the market
Product quality and image must support the price
Buyers must want the product at the price
Costs of producing the product in small volume should not cancel the advantage of higher prices
Competitors should not be able to enter the market easily
Market-penetration pricing sets a low initial price in order to penetrate the market quickly and deeply to attract a large number of buyers quickly to gain market share
Price-sensitive market
Inverse relationship of production and distribution cost to sales growth
Low prices must keep competition out of the market
New-Product Pricing Strategies
Product Mix Pricing Strategies
Price Adjustment Strategies
Price Changes
Market-skimming pricing is a strategy with high initial prices to “skim” revenue layers from the market
Product quality and image must support the price
Buyers must want the product at the price
Costs of producing the product in small volume should not cancel the advantage of higher prices
Competitors should not be able to enter the market easily
Market-penetration pricing sets a low initial price in order to penetrate the market quickly and deeply to attract a large number of buyers quickly to gain market share
Price-sensitive market
Inverse relationship of production and distribution cost to sales growth
Low prices must keep competition out of the market
What is Pricing Strategy and what are the objectives and factors affecting the Pricing Strategy.
There are Certain types of Pricing Strategies as well. Each and every strategy has its own affect on the product and services offered by an organization.
pricing involves the customer demand schedule, the cost function, and competitors’ prices. The question is how should a company integrate cost-, demand-, and competition-based pricing considerations? In setting a price the firm, for example Kodak, will have to consider the following cost-, demand-, and competition-based pricing decisions:
Push Strategy
Creating the network of resellers, agents, brokers, representatives
You can use the Push Strategy in the following cases:
1. Your product is popular and does not involve deep customization
2. You are new to the market
3. You have a tainted reputation and you can "borrow" mediator’s reputation
4. You're not going to stay long in this market and the release of this product is temporary
Be careful!
1. Advertising your product, in same time you advertise Reseller
2. There are the costs associated with sales, within a developed system of discounts for resellers, various contests, loyalty programs, providing them with various promotional materials, training, sales and so on.
3. Nothing keeps the reseller to break the contract with you
4. It is difficult to control and predict sales. Small businesses always have a certain dependence on distributers which are always pursuing their own interests
5. The breach of contract with a key agent can almost completely block the flow of new customers. This is a fairly common situation where the agent is "big", and you are "small"
Pull Strategy
Selling by yourself
PROS:
1. To release services or products under its own brand
2. To position your product as an element of prestige and service for the elite
3. By investing money in product advertising, in same time you will be supporting your brand
4. To get better control over sales and more stable ROI
cons:
1. The implementation of this strategy requires a financial and time costs
2. Your business is highly dependent on your reputation
Be Smart, do not share your profits with resellers
Sell on glabex.com - Save your time and money
Glabex.com is a unique platform, which helps you to sell your product by yourself, reach enormous number of customers, build your brand and create a reputation
What is Pricing Strategy and what are the objectives and factors affecting the Pricing Strategy.
There are Certain types of Pricing Strategies as well. Each and every strategy has its own affect on the product and services offered by an organization.
pricing involves the customer demand schedule, the cost function, and competitors’ prices. The question is how should a company integrate cost-, demand-, and competition-based pricing considerations? In setting a price the firm, for example Kodak, will have to consider the following cost-, demand-, and competition-based pricing decisions:
Push Strategy
Creating the network of resellers, agents, brokers, representatives
You can use the Push Strategy in the following cases:
1. Your product is popular and does not involve deep customization
2. You are new to the market
3. You have a tainted reputation and you can "borrow" mediator’s reputation
4. You're not going to stay long in this market and the release of this product is temporary
Be careful!
1. Advertising your product, in same time you advertise Reseller
2. There are the costs associated with sales, within a developed system of discounts for resellers, various contests, loyalty programs, providing them with various promotional materials, training, sales and so on.
3. Nothing keeps the reseller to break the contract with you
4. It is difficult to control and predict sales. Small businesses always have a certain dependence on distributers which are always pursuing their own interests
5. The breach of contract with a key agent can almost completely block the flow of new customers. This is a fairly common situation where the agent is "big", and you are "small"
Pull Strategy
Selling by yourself
PROS:
1. To release services or products under its own brand
2. To position your product as an element of prestige and service for the elite
3. By investing money in product advertising, in same time you will be supporting your brand
4. To get better control over sales and more stable ROI
cons:
1. The implementation of this strategy requires a financial and time costs
2. Your business is highly dependent on your reputation
Be Smart, do not share your profits with resellers
Sell on glabex.com - Save your time and money
Glabex.com is a unique platform, which helps you to sell your product by yourself, reach enormous number of customers, build your brand and create a reputation
Pricing Understanding and Capturing Customer Value - MarketingFaHaD .H. NooR
outline
What Is a Price?
Customer Perceptions of Value
Company and Product Costs
Other Internal and External Considerations Affecting Price Decisions
Customer Value-based pricing uses the buyers’ perceptions of value, not the sellers’ cost, as the key to pricing. Price is considered before the marketing program is set.
Value-based pricing is customer driven
Cost-based pricing is product driven
Automobile Management System Project Report.pdfKamal Acharya
The proposed project is developed to manage the automobile in the automobile dealer company. The main module in this project is login, automobile management, customer management, sales, complaints and reports. The first module is the login. The automobile showroom owner should login to the project for usage. The username and password are verified and if it is correct, next form opens. If the username and password are not correct, it shows the error message.
When a customer search for a automobile, if the automobile is available, they will be taken to a page that shows the details of the automobile including automobile name, automobile ID, quantity, price etc. “Automobile Management System” is useful for maintaining automobiles, customers effectively and hence helps for establishing good relation between customer and automobile organization. It contains various customized modules for effectively maintaining automobiles and stock information accurately and safely.
When the automobile is sold to the customer, stock will be reduced automatically. When a new purchase is made, stock will be increased automatically. While selecting automobiles for sale, the proposed software will automatically check for total number of available stock of that particular item, if the total stock of that particular item is less than 5, software will notify the user to purchase the particular item.
Also when the user tries to sale items which are not in stock, the system will prompt the user that the stock is not enough. Customers of this system can search for a automobile; can purchase a automobile easily by selecting fast. On the other hand the stock of automobiles can be maintained perfectly by the automobile shop manager overcoming the drawbacks of existing system.
Top 13 Famous Civil Engineering Scientistgettygaming1
List of Best Scientist Who Gives Big Contribution in Civil Engineering Filed, in this we provide how they Contribute in Civil Engineering filed, For Data Collection civilthings.com helps us a lot.
Courier management system project report.pdfKamal Acharya
It is now-a-days very important for the people to send or receive articles like imported furniture, electronic items, gifts, business goods and the like. People depend vastly on different transport systems which mostly use the manual way of receiving and delivering the articles. There is no way to track the articles till they are received and there is no way to let the customer know what happened in transit, once he booked some articles. In such a situation, we need a system which completely computerizes the cargo activities including time to time tracking of the articles sent. This need is fulfilled by Courier Management System software which is online software for the cargo management people that enables them to receive the goods from a source and send them to a required destination and track their status from time to time.
Water scarcity is the lack of fresh water resources to meet the standard water demand. There are two type of water scarcity. One is physical. The other is economic water scarcity.
Online resume builder management system project report.pdfKamal Acharya
This project aims at the Introduction to app Service Management.
This software is designed keeping in mind the user’s efficiency & ease of handling and maintenance , as and secured system over centralized data handling and providing with the features to get the complete study and control over the business.
The report depicts the basics logic used for software development long with the Activity diagrams so that logics may be apprehended without difficulty.
For detailed information, screen layouts, provided along with this report can be viewed.
Although this report is prepared with considering the results required these may be across since the project is subjected to future enhancements as per the need of organizations.
About
Indigenized remote control interface card suitable for MAFI system CCR equipment. Compatible for IDM8000 CCR. Backplane mounted serial and TCP/Ethernet communication module for CCR remote access. IDM 8000 CCR remote control on serial and TCP protocol.
• Remote control: Parallel or serial interface.
• Compatible with MAFI CCR system.
• Compatible with IDM8000 CCR.
• Compatible with Backplane mount serial communication.
• Compatible with commercial and Defence aviation CCR system.
• Remote control system for accessing CCR and allied system over serial or TCP.
• Indigenized local Support/presence in India.
• Easy in configuration using DIP switches.
Technical Specifications
Indigenized remote control interface card suitable for MAFI system CCR equipment. Compatible for IDM8000 CCR. Backplane mounted serial and TCP/Ethernet communication module for CCR remote access. IDM 8000 CCR remote control on serial and TCP protocol.
Key Features
Indigenized remote control interface card suitable for MAFI system CCR equipment. Compatible for IDM8000 CCR. Backplane mounted serial and TCP/Ethernet communication module for CCR remote access. IDM 8000 CCR remote control on serial and TCP protocol.
• Remote control: Parallel or serial interface
• Compatible with MAFI CCR system
• Copatiable with IDM8000 CCR
• Compatible with Backplane mount serial communication.
• Compatible with commercial and Defence aviation CCR system.
• Remote control system for accessing CCR and allied system over serial or TCP.
• Indigenized local Support/presence in India.
Application
• Remote control: Parallel or serial interface.
• Compatible with MAFI CCR system.
• Compatible with IDM8000 CCR.
• Compatible with Backplane mount serial communication.
• Compatible with commercial and Defence aviation CCR system.
• Remote control system for accessing CCR and allied system over serial or TCP.
• Indigenized local Support/presence in India.
• Easy in configuration using DIP switches.
Overview of the fundamental roles in Hydropower generation and the components involved in wider Electrical Engineering.
This paper presents the design and construction of hydroelectric dams from the hydrologist’s survey of the valley before construction, all aspects and involved disciplines, fluid dynamics, structural engineering, generation and mains frequency regulation to the very transmission of power through the network in the United Kingdom.
Author: Robbie Edward Sayers
Collaborators and co editors: Charlie Sims and Connor Healey.
(C) 2024 Robbie E. Sayers
A case study of cinema management system project report..pdfKamal Acharya
A computer reservation system or central reservation system is a computerized system used to store and retrieve information and conduct transactions related to air travel, hotels, car rental, or activities. These systems typically allow users to book hotel rooms, rental cars, airline tickets as well as activities and tours. They also provide access to railway reservations and bus reservations in some markets, although these are not always integrated with the main system. For these systems to be accessible on mobile phones and computers outside the premises of the airport, cinema, train station or stadiums, they need to be on the internet or a network.
This project focuses on the design and implementation of a web based cinema management system for the allocation of seat tickets online. The system would feature the registration of users, use of serial numbers and pins gotten from scratch cards sold and a printed slip. The system would have a store of all the seats and automate the generation of fresh serial numbers and pins.
Natalia Rutkowska - BIM School Course in Krakówbim.edu.pl
Teaching effects after 128 hours of Building Information Modeling course in Cracow, Poland. Natalia works in Revit, Navisworks and Dynamo for BIM Coordination position. More https://bim.edu.pl or https://bimedu.eu
This document is by explosives industry in which document discussed manufacturing process and flow charts details by nitric acid and sulfuric acid and tetra benzene and step by step details of explosive industry explosives industry is produced raw materials and manufacture it by manufacturing process
Toll tax management system project report..pdfKamal Acharya
Toll Tax Management System is a web based application that can provide all the information related to toll plazas and the passenger checks in and pays the amount, then he/she will be provided by a receipt. With this receipt he/she can leave the toll booth without waiting for any verification call.
The information would also cover registration of staff, toll plaza collection, toll plaza collection entry for vehicles, date wise report entry, Vehicle passes and passes reports b/w dates.
Industrial Training at Shahjalal Fertilizer Company Limited (SFCL)MdTanvirMahtab2
This presentation is about the working procedure of Shahjalal Fertilizer Company Limited (SFCL). A Govt. owned Company of Bangladesh Chemical Industries Corporation under Ministry of Industries.
2. • Price is the value that customers give up
or exchange to obtain a desired product
• Payment may be in the form of money,
goods, services, favors, votes or
anything else that has value to the other
party.
3. Opportunity Costs
• The value of something that is given up to
obtain something else also affects the “price”
of a decision
• Example: the cost of going to college is
charged in tuition and fees but also includes
the opportunity cost of what a student cannot
earn by working instead
4. The Importance of Pricing Decisions
• Price is the only P which represents
revenue rather than an expense
• Pricing and the Marketing Mix
– Price and Place
– Price and Product
– Price and Promotion
5. The price of four different purchasesThe price of four different purchases
6. Identify objectives & constraints
Estimate demand & revenue
Determine cost, volume and profit
Set an approximate price level
Set List or Quoted price
Make adjustments to list price
Steps in setting priceSteps in setting price
7. Identifying Pricing constraints
– Demand for the Product Class, Product, and Brand
– Newness of the Product: Stage in the Product Life
Cycle
– Single Product versus a Product Line
– Cost of Producing and Marketing the Product
– Cost of Changing Prices & Time Period They Apply
– Types of Competitive Markets - Competitors’ Prices
9. Estimating Demand
• Demand refers to customers’ desire for products
– How much of a product do consumers want?
– How will this change as the price goes up or down?
• Identify demand for an entire product category in
markets the company serves
• Predict what the company’s market share is likely
to be
10. The Price Elasticity of Demand
• How sensitive are customers to changes in
the price of a product?
• Price elasticity of demand is a measure of
the sensitivity of customers to changes in
price.
• Price elasticity of demand = Percentage
change in quantity demanded / Percentage
change in price
11. Demand Curves
• Shows the quantity of a product that
customers will buy in a market during a
period of time at various prices if all other
factors remain the same
• Vertical axis represents the different prices
a firm might charge
• Horizontal axis shows the number of units
13. Influences on Price Elasticity of Demand
• Availability of substitute goods or services
– If a product has a close substitute, its demand will be elastic
• Time period
– The longer the time period, the greater the likelihood that
demand will be more elastic
• Income effect
– Change in income affects demand for a product even if its
price remains the same
• normal goods, luxury goods, inferior goods
15. Types of Costs - 1
• Variable costs - per-unit costs of production
that will fluctuate depending on how many
units or individual products a firm produces
• Fixed costs - do not vary with the number of
units produced. Costs remain the same
regardless of amount produced
16. Types of Costs - 2
• Average fixed cost is the fixed cost per unit
produced (total fixed costs / number of units
produced)
• Total costs = variable costs plus fixed costs
17. Break-Even Analysis
• Technique used to examine the relationship
between cost and price and to determine what
sales volume must be reached at a given price
before the company will completely cover its
total costs and past which it will begin making a
profit
• All costs are covered but there isn’t a penny left
over
19. Marginal Analysis
• Provides a way for marketers to look at cost and
demand at the same time
• Examines the relationship of marginal cost to
marginal revenue
– marginal cost is the increase in total costs from producing
one additional unit of a product
– marginal revenue is the increase in total income or revenue
that results from selling one additional unit of a product
21. Pricing Strategies Based on Cost
• Advantages
– Simple to calculate
– Relatively risk free
• Disadvantages
– Fail to consider several
factors
• target market
• demand
• competition
• product life cycle
• product’s image
– Difficult to accurately
estimate costs
22. Cost-Plus Pricing
• Most common cost-based approach
• Marketer figures all costs for the product and
then adds desired profit per unit
• Straight markup pricing is the most frequently
used type of cost-plus pricing
– price is calculated by adding a pre-determined
percentage to the cost
23. Steps in Cost-Plus Pricing
• Estimate unit cost
• Calculate markup
– Markup on cost
– Markup on selling price - markup percentage is the
seller’s gross margin
• gross margin is the difference between the cost to the
wholesaler or retailer and the price needed to cover
overhead and profit
24. Cost Plus Pricing Excerpt
• Fixed costs = $2,000,000
• Number of jeans produced = 400,000
• Fixed costs per unit = $5
• Variable costs per unit = $15
• Markup as % of costs = 25%
• Markup on cost
– Price = total cost + (total cost * markup percentage)
– Price = $20 + ($20 * .25) = $20 + $5 = $25
26. Price Floor Pricing
• Method for calculating price that considers both costs
and what can be done to assure that a plant can operate
at capacity
• Typically used when market conditions make it
impossible for a firm to sell enough
• If the price-floor price can be set above the variable
costs, the firm can use the difference to increase profits
or cover fixed costs
27. Pricing Strategies Based on Demand-1
• Demand-based pricing means that the selling
price is based on an estimate of volume or
quantity that a firm can sell in different markets
at different prices
• Demand-backward pricing starts with a
customer-pleasing price and works backward to
costs
28. Pricing Strategies Based on Demand-2
• Chain-Markup Pricing extends demand
backward pricing from end consumer back
to the manufacturer
– Example:
• Price customers are willing to pay = $39.99
• Markup required by retailer = 40%
• Price retailer will pay $39.99 * .60 = $23.99
29. Pricing Strategies Based on Competition
• Competitive parity - price products at near the
competition
• Price leadership - price products based on
prices of industry leaders
• Loss leaders - price products below competition
30. Pricing Strategies Based on Customers’ Needs
• Cost of ownership strategy - price consumers
pay for product, plus the cost of maintaining
and using the product, less any resale value
(e.g., Sanyo batteries)
• Value pricing (EDLP*) - offers a fair value to
consumers (e.g., Kmart’s blue light specials)
** EDLP = everyday low pricing
31. New Product Pricing
• Skimming price - firm charges a high, premium
price for its new product with the intention of
reducing it in future response to market pressures
• Penetration pricing - new product is introduced
at a very low price
• Trial pricing - product carries a low price for a
limited time period
32. Pricing Tactics
• Pricing for Individual Products
– two-part pricing (e.g., country clubs)
– payment pricing (e.g., easy payments for new cars)
• Pricing for Multiple Products
– Price bundling (e.g., monitor, keyboard, CPU in a
computer package)
– Captive pricing (e.g., razors and razor blades)
34. Discounting for Channel Members
• Trade or functional discounts
• Quantity discounts
• Cash discounts
• Seasonal discounts
35. Trade Discounts
• Pricing structure built around list price
– List price, also called suggested retail price, is
the price that the manufacturer sets as the
appropriate price for the end consumer
– Manufacturers offer discounts because channel
members perform selling, credit, storage and
transportation services
36. Pricing with Electronic Commerce
• Dynamic pricing strategies
– price can be adjusted to meet changes in the
marketplace
– online price changes can occur quickly, easily, and
at virtually no cost
• Auctions
– sites offer chance to bid on items
– sites offer reverse-price auctions
37. Price Discrimination
• Means that marketers classify customers based
on some characteristic that indicates what they
are willing or able to pay
• Acceptable when price differences are in
response to
– changes in cost of product
– changes in competitive activity
38. Psychological Issues in Pricing
• Internal Reference Prices - consumers have a set price or
price range in their mind
– If the actual price is higher, consumers will feel the product is
overpriced
– If it is too low below the internal reference price, consumers
may assume its quality is inferior
• Competition as Reference Price - If the price is close, the
assimilation effect will encourage the customer to think
the products are similar enough and choose the lower
priced product
39. Price-Quality Inferences
• If consumers are unable to judge the quality
of a product through examination or prior
experience, they usually will assume that
the higher-priced product is the higher-
quality product
40. Price and Quality
Consumers tend to
associate high prices with
high quality. This Belgian
ad for Chat Noir coffee
tries to suggest otherwise.
It reads, “Quality coffee.
But we’ve really squeezed
the price.”
43. Legal and Ethical Considerations in Pricing
• Deceptive pricing practices
• Price discrimination
44. Deceptive Pricing Practices
• Retailers must not claim prices are lower than
competitors unless it is true
• A going out-of-business sale should be the last sale
before going out of business
• Bait-and-switch - consumers are lured into store for a
very low price, but then the item is not available. A
more expensive product is offered instead
– Trading up is acceptable
45. Price Discrimination
• Means selling the same product to different
wholesalers and retailers at different prices
if practices lessen competition
46. Price Fixing
• Occurs when two or more companies
conspire to keep prices at a certain level
– Horizontal price fixing occurs when competitors
making the same product jointly determine what
price they each will charge
– Vertical price fixing occurs when manufacturers
attempt to force the retailer to charge the suggested
retail price
47. Predatory Pricing
• Means that a company sets a very low price
for the purpose of driving competitors out
of business.
48. Dumping (US)
• Selling in foreign market at or below cost
• Selling in a foreign market more than 5%
below price in home market