MARKETING MANAGEMENT-PRICING STRATEGIES(LINDA SUSAN JOSEPH ,MACFAST)
Pricing strategies-LINDA SUSAN JOSEPHS3 MBAMACFAST COLLEGE,THIRUVALLA.
Module II -Contents• Introduction• Objectives of pricing• Factors affecting pricing• Cost as a determinant of price• Estimating cost• Pricing policy & setting pricing policy Pricing policies• Cost - Based Pricing• Buyer- Based Pricing• Competition-Based• Pricing Strategies for new products• Product Mix Pricing strategies• Price adjustment strategies• Geographical pricing• CoNClusiON
PrICiNg is….All around us• Airline, taxi ,train fare.• Rent.• Your tuition fee.• …. And your other utilities….
Price –brings revenue• Only element in marketing mix that brings in revenue…..others will bring cost.PRICE BRINGS OUT – value positioning of the product.High price+Low val=Co. misses
Value so important?? Low CompanyHigh misses perceiveprice potential d value profits Company Low Low fails to harvestprice value potential profits
Price fixing Company sets price on the basis ofvalue delivered and perceived by customers.Minimize Optimize MaximizeCosts + Margins = PRICE VALUE
In short…… “ A price is not merely a function of costsand margins BUT………it is an expression of VALUE ” The key to drive value is to offer relevant and distinctive product differentiation “ Tomorrow’s winner companies willbe those who offer distinct products at low market prices”
One final word…. To you….“ A product is not a product unless it sells…. Otherwise, it’s just a museum piece…” Ted Levitt