1. ASM DEGREE & PG
COLLEGE
FOR WOMEN
POWER POINT PRESENTAION
ON
CONCEPT PRODUCT AND PRICE DECISION
SUB : MARKETING MANAGEMENT
PRESENT ED
BY
Y REETHU SREE
M.COM (G ) 2 SEM
H.NO:22010C0001
2. Price: Concept and Definition
Price has multiple interpretations and definitions
one of it that encompasses the concept of price
is as follows:
“Price is amount of money charged for a product or
service. It is the sum of all the values that consumers
give up in order to gain the benefits of having or
using a product or service”
“Price is the value placed on what is exchanged.
Something of value is exchanged for satisfaction and
utility, includes tangible (functional) and intangible
(prestige) factors.”
PRIC PRICIN ROLE AND
3. Price: Concept and Definition
As a concept
“Price is that which is given up in an exchange to acquire
a product and service”
“It is the only element of a generic marketing that relates
to revenue all other parameters relate to costs”
Total Revenue = Price *
Quantity Profits = Total
Revenue - Total Cost
PRIC PRICIN ROLE AND
4. Pricing: Price Setting; 6 Step Process
Six step process in
Pricing
1
• Selecting the price
objective
2
• Determining
demand
3
• Estimating
costs
4
• Analyzing Competitors' Costs, Prices,
and Offers
5
• Selecting a pricing
method
6
• Selecting the Final
Price
PRIC PRICIN ROLE AND
5. Pricing
Pricing is the process whereby a business sets the
price at which it will sell its products and services, and
may be part of the business's marketing plan.
A firm sets a price for the first time when
•It develops a new product
•Introduces regular product into a new
distribution channel or geographical area
PRIC PRICIN ROLE AND
6. Pricing
A company must set its price in relation to the value
delivered and perceived by the customer
High
er
Pric
e
Lower
Perceiv
ed
value
Compa
ny
misses
potenti
al
profit
PRIC PRICIN ROLE AND
7. Price: Price Setting
These are price setting methods considering the motive of
the company
“cost-based” is product driven; a summation of costs
(Soaps, Daily Bread) “Value-based” is customer perception
driven (Mobile Phones, Apparel)
PRIC PRICIN ROLE AND
8. Low Price product-
positioned as
affordable smart
phone
High Price Positioned as a
Luxury Car
Low Price
product
High Price
product
PRIC PRICIN ROLE AND
9. • Substitution for advertising and sales
promotion
• Incentive to channel members
Marketing Program Considerations
Compa
ny
Wholesa
ler (
INR 15)
Retail
er
(INR
18)
Custom
er
(INR
20)
PRIC PRICIN ROLE AND
