This presentation about pricing strategies will provide you some basic ideas about pricing strategies.

2. Contents
1) Meaning of pricing
2) Forms of price
3) Pricing objectives
4) Discounts
5) Allowances
6) Types of costs
7) Factor affecting pricing

3. Meaning of Pricing
 Act of determining the exchange value between the
purchasing power and utility
 Determine exchange value such as setting the base
price, determining discount and commissions
 Formulating pricing objectives, policies and
strategies

4. Forms of price
Price is the value placed on what is
exchanged.goods,services,ideas,advice,rights etc are exchanged and theier value
are measured by their price.
different exchange terms are used for price exchange transactions such as:
1) interest
2) rent
3) fare
4) tuition
5) premium
6) salary
7) commission
8) toll
9) postage
10) bribe
11) due

5. Pricing objectives
Reflects the overall goals of organization
Affects product, distribution and promotion decisions
Determines he selection of pricing approaches and methods
Pricing objectives are of three categories. They are:
1) Profit oriented objectives
2) Sales oriented objectives
3) Market et oriented objectives

6. Profit oriented objectives
Profit oriented objectives are set in terms of profit maximization
and return on investment.
1) Profit maximization
2) Return on investment

7. Sales oriented objectives
Sales oriented pricing objectives are focused on increasing
market share and sales volume.
 Maintain or expand market share
 Increase sales volume

8. Status quo-oriented objectives
Status quo oriented objectives are targeted at maintaining the
current situation of the organization in the marketing place.
1 Survival
2 Price stabilization
3 Meet competition

9. Importance of pricing
It is performed by all types of organization like profit, on
profit,governmentand non government. its importance is
evaluated from the national and firms perceptive.
A. National perspective
Price is a very important variable in the economy. Price affects
both demand and saving. Price is one of the major activates of
the government in am under developed economy.
1) Demand
2) Savings
3) Factors of production
4) Government activity

10. Firms perspective
 Revenue and profits
 Competition
 Non price competition

11. Discounts
Discounts are financial incentives provided to customers through
price reductions.disconts are usually provided for an early
payment, cash payment, cash purchase, volume purchase and off
season purchase.
 Cash discount
 Quality discount
 Trade discount
 Seasonal discounts

12. Allowances
Allowance are reductions in the list price to achieve a desired
objective. Allowances are of two types. they are:
1 Promotional allowances
2 Trade in allowances

13. Types of cost
The marketing firm needs to understand how the various
costs changes as the volume of production increases and
decreases. they are mainly two types of cost in business
operations
1) Fixed costs
2) Variable costs
3) Total cost

14. Factors affecting pricing
Price determination is affected by several internal and
external factors. internal factors are controllable while
external factors are mostly independent.
 internal factors
Internal factors that affect pricing of a product are as follows:
1) Pricing objectives
2) Marketing mix
3) Structure for pricing
4) Cost

15. External price factors
The external factors are outside the influence of the
marketer and include the following:
1 Market demand
2 Prevailing market price
3 Competition
4 Government control
5 Marketing intermediaries interest
6 Social concerns