Marketing

1. MPC AUTONOMOUS COLLEGE BARIPADA
DEPARTMENT OF MBA
PRESENTATION
ON
PRESENTED BY
SUDIPTA KUMAR PATRA
ROLL NO 16
SUBMITTED TO
MR ZAHIR HUSSAIN
PRICING

2. CONTENTS
PRICE
PRICING
PRICING OBJECTIVES
FACTORS AFFECTING PRICING
METHODS OF PRICING
PRICING STRATEGIES
CONCLUSION

3. PRICE
PRICE IS THE EXCHANGE VALUE OF
GOODS AND SERVICES IN TERMS OF
MONEY

4. PRICING
 IT IS THE PROCESS
OF SETTING/DECIDING
THE PRICE OF A
PRODUCT
 IT IS A MANAGERIAL
TASK

5. PRICINGOBJECTIVE
PROFIT MAXIMISATION
MARKET SHARE GROWTH
PRODUCT QUALITY LEADERSHIP
FACING COMPETITIVE SITUATION
ACHIEVING TARGET RETURN
SURVIVAL
PRICE STABILITY
MARGIN
ABILITY TO PAY

6. FACTORSAFFECTINGPRICING
INTERNAL FACTORS
ORGANISATIONAL FACTORS
MARKETING MIX
PRODUCT COST
PRODUCT LIFE CYCLE
PRICING OBJECTIVES
FUNCTIONAL POSITION
EXTERNAL FACTORS
COMPETITION
PRODUCT DEMAND
ECONOMIC CONDITION
GOVERNMENT CONTROL

7. CONSUMERPSYCHOLOGY&PRICING
 PRICE – QUALITY INFLUENCE
 PRICE CLUES

8. METHODSOFPRICING
DEMAND ORIENTED PRICING
COST ORIENTED PRICING
COMPETITION ORIENTED PRICING
VALUE BASED PRICING

9. DEMANDORIENTEDPRICING
DEMAND ORIENTED PRICING AS THE NAME
SUGGESTS USES THE CUSTOMER DEMAND TO SET UP
PRICE IN THE MARKET
A HIGH PRICE IS CHARGED WHEN THE DEMAND IS
HIGH AND A LOW PRICE IS CHARGED WHEN THE
DEMAND IS LOW

10. THE FACTORS RESPONSIBLE FOR DEMAND
BASED PRICING ARE:
COST OF PRODUCTION
QUALITY
MARKET CONDITION
COMPETITION
PERFECT COMPETITION
MONOPOLY
OLIGOPOLY
MONOPOLISTIC

11. COSTORIENTEDPRICING
THIS METHOD OF PRICING DEPENDS
UPPON THE PRICING OBJECTIVES AND
POLICIES OF THE FIRM
THERE ARE TWO METHODS IN THIS
CATEGORY
COST PLUS PRICING
BREAK EVEN ANALYSIS

12. COSTPLUSPRICING
IT IS THE MOST COMMON PRICING METHOD USED
BY THE BUSINESS ENTERPRISES
UNDER THIS METHOD COST OF PRODUCT AND
MARGIN OF PROFIT IS ADDED TO DETERMINE THE
PRICE
SELLING PRICE=UNIT TOTAL COST+DESIRED UNIT
PROFIT

13. BREAKEVENANALYSIS
BREAK EVEN ANALYSIS IS THE MOST
SOPHISTICATED PRICING TECHNIQUE WHICH
TAKES INTO CONSIDERATION AT BOTH FIXED
COST AND VARIABLE COST

14. BREAKEVENPOINT
IT REPRESENT THE VOLUME OF
PRODUCTION AT WHICH THERE NO
PROFIT OR NO LOSS

15. COMPETITIONORIENTEDPRICING
THIS POLICY IS USED WHEN THE MARKET
IS HIGHLY COMPETITIVE AND THE
PRODUCT IS NOT DIFFERENTIATED EASILY

16. VALUEBASEDPRICING
UNDER THIS CATEGORY PRICE IS DETERMINED BY
BUYER’S PERCEPTION OF VALUE RATHER THAN
THE SELLER’S COST
CUSTOMER VALUE PRICE COST PRODUCT

17. PRICINGSTRATEGIES
PENETRATION PRICING
PSYCHOLOGICAL PRICING
PRESTIGE PRICING
LEADER PRICING
GEOGRAPHICAL PRICING
DUAL OR DISCREMINATORY PRICING
PREMIUM PRICING
COMPETITIVE PRICING
SKIMMING THE CREAM PRICING

18. PENETRATIONPRICING
PRICING ARE FIXED BELOW THE COMPETITIVE
LEVEL TO OBTAIN A LARGER SHARE OF THE
MARKET TO DEVELOP POPULARITY OF THE
BRAND

19. PSYCHOLOGICALPRICING
PRICES ARE FIXED ON THE BASIS OF PSYCHOLOGICAL
INFLUENCE OF THE CONSUMERS

20. PRESTIGEPRICING
THE PRACTICE OF GIVING A HIGH PRICE TO CONVEY
THE IDEA THAT IT MUST BE OF HIGH QUALITY OR
STATUS

21. LEADERPRICING
FIRM MAY CUT PRICES TEMPORARILY ON A FEW ITEMS
IN ORDER TO ATTRACT CUSTOMER

22. GEOGRAPHICALPRICING
HERE THE DISTANCE BETWEEN THE SELLER AND THE
BUYER IS CONSIDERED

23. DUALORDISCREMINATORYPRICING
SOME ENTERPRISES FOLLOW THE POLICY OF
CHARGING DIFFERENT PRICES FROM DIFFERENT
CUSTOMER ACCORDING TO THEIR ABILITY TO PAY

24. PREMIUMPRICING
 IT INVOLVES TACTCALLY PRICING THAT A
COMPANY’S PRODUCT HIGHER THAN THE IMMEDIATE
COMPETITION
 IT IS A MIXTURE OF WHAT TRAFFIC WILL BEAR AND
THE VALUE FOR MONEY

25. COMPETITIONPRICING
THE MANUFACTURER OF A NEW PRODUCT OR
SERVICES MAY DECIDE TO FIXED THE PRICE AT THE
COMPETITIVE LEVEL

26. SKIMMINGTHECREAMPRICING
UNDER THIS HIGHER PRICES ARE CHARGED DURING
THE INITIAL STAGES OF THE INTRODUCTION OF A
NEW PRODUCT OR SERVICES

27. CONCLUSION
PRICING GENERATES BOTH REVENUE AND PROFIT
THE CORRECT PRICE IS VITAL TO THE SUCCESS OF THE
BUSINESS
PRICING CAN IMPACT THE BRAND IMAGE OF A
COMPANY
THE MARKETER SHOULD HAVE THE UNDERSTANDING
OF VARIOUS PRICING TECNIQUE