A pricing strategy is an approach taken by businesses to decide how much to charge for their goods and services. The interaction between margin, price, and selling level is given specific consideration while pricing products. Therefore, it’s important and complicated to design a proper pricing plan that ensures business success.

1. PRICING
STRATEGY
Presented By : A
HARIKA
Roll No : 03

2. AGENDA
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• Introduction
• What is Price?
• What is Pricing
Strategy
• Pricing Strategy
Objectives
• Decisions in Pricing
Strategy
• Pricing Strategy For
Challenging Economic
Times
• Factors Affecting
Pricing
• Different Types of

3. INTRODUCTION
• A pricing strategy is the process and
methodology used to determine prices for
products and services.
• As we’ll explore in this article, different
pricing strategies work for different
products and business models.
• The right pricing strategy can enable
several things for a business: Convey
value to customers. Attract customers.
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4. The amount of money
expected,required, or given in
payment for something.
What is Price
?

5. WHAT IS PRICING STRATEGY?
• A pricing strategy is an approach taken
by businesses to decide how much to
charge for their goods and services.
• The interaction between margin, price,
and selling level is given specific
consideration while pricing products.
• Therefore, it’s important and complicated
to design a proper pricing plan that
ensures business success.
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Princing Strategy

6. PRICING STRATEGY OBJECTIVES
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 Long Run Profits
 Short Run Profits
 Increase Sales Volume
 Company Growth
 Match Competitors Price
 Create Interest & Ideological Objectives
 Discourage New Entrants
 Survival

7. DECISION PRICING STRATEGY
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 Fixed & Variable Cost
 Comepetition
 Company Objectives
 Proposed Postioning Strategies
 Target Group and Willingness to Pay
 External Market Demand
 Internal Factors ; Product Cost & Objectives of Company

8. PRINCING STRATEGY FOR CHALLENGING ECONOMICS
TIMES
o Princing is a market consideration, not a cost consideration.
o Understand your customers’s primary goals. Be clear on what the
customer wants first,then set princing and bundlings.
o Consider bundling products or services together. Always bundle a
low-and high-valued product or together. This will create higher sales
and greater profitability.
o Understand your value proposition. Have a clear understanding of if
and how your product or service is differentiated from the
competition.
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9. Princing Strategy 06/07/2023 9

10. DIFFERENT PRICING STRATEGIES
 Marketing Skimming
 Value Pricing
 Loss Leader
 Psychological Pricing
 Going Rate (Price Leadership)
 Tender Pricing
 Price Discrimknation
 Penetration Pricing
 Cost Plus Pricing
 Contribution Pricing
 Target Pricing
 Marginal Cost Pricing
 Absorption Cost Pricing
 Destroyer Pricing
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11. Market Skimming
Pricing
• High Price low Volume
• Skim the Profit from the
market
• Suitable for the
products that have short
lilfe cycle or Which will
face competition at
some point in future.
• Examples; Play Station,
Digital Technology &
DVD etc.
Value Pricing
• Based on consumer
Perception.
• Price charged accoding
to the Customers
Preception
• Price set by the
company as per the
perceived value.
• Examples; Status
Products /Exclusive
Products
Loss Leader Pricing
• Goods/services
deliberately sold below
cost to encourage sales
elsewhere
• Purchases of other
items more then covers
‘loss’ on intem slod
• Exmaples; ‘Free’mobile
phone when taking on
contract package
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12. Psychological
Pricing
• Used to play on
consumer perceptions
• Classic example-$9.99
instead of $10.99!
• Links with value pricing-
high value goods priced
according to what
consumers THINK
should be the price
Going Rate Pricing
• In case of price
leader,rivals have
difficulty in competing
on price – too high and
they lose market share ,
too low and the price
leader would match
price and force smaller
rival out of market
• May follow pricing leads
of rivals especially
where those rivals have
a clear dominance of
market share
Tender Pricing
• Many contracts
awarded on a tender
basis
• Firm(or firms) submit
their price for carrying
out the work
• Purchaser then
chooses which
represents best value
• Mostly done in secret
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13. CONCLUSION
It is necessary that the marketing
manager decide the objective of
pricing before actually setting price.
Acording to ecperts, pricing
objectives are the overall goals that
describe the role of price in an
organizations long-range plans. The
objectives help the marketing
manager as guidelines to develop
marketing strategies.
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14. THANK YOU
Pricing Strategy
Presenter Name : A Harika Chowdary
Roll Number : 03
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