already discussed

1. PRICING
PRESENTED TO:
PRESENTATION BY:
Ms.Sanjna Walia Sukhwinder
Kaur(3004)
Jaspreet
Kaur(3020)

2. The Amount of
money charged for
a Product or
Service,or the Sum
of the values the
Consumers
Exchange for the
benefits of having
or using the
Product or Service.

3. Pricing is the art of translating into
quantitative terms the value of the
product or a unit of a service to customers
at a point of time. It is the important
element of marketing mix. It is the
function of determining the product or
service in monetary terms by the
marketing manager before it is offered to
the target consumers for sale.

4. Pricing is a managerial task that involves:
 Establishing pricing objectives
 Identifying factors governing price
 Ascertaining their significance
 Determining the product value in
monetary terms
 Formulation of price policies and
strategies
 Implementing them and controlling them
for best results.

5. Pricing should take into
account the following two
factors into account:
 INTERNAL FACTORS
 EXTERNAL FACTORS
PRICING FACTORS

6. o Those factors which are within the
control of the organisation.
o Internal factors can strongly affect how
well a company meets its objectives,
and they might be seen as strengths if
they have favorable impact on
a business .
o Product costs, marketing objectives,
marketing strategy etc
FFGDFVGHNGHINTERNAL FACTORS

7.  Those factors that are not within the control
of the organisation.
 Various external factors can impact
the ability of a business
or investment to achieve its goals.
MARKET
DEMAND
COMPETITION
COMPETITORS
STRATEGY
PRICE

8. 1. Organisational
factors
It refer to the
internal
arrangement and
machenism for
decision making
and its
implementation.
Internal factors

9.  Pricing decisions are dealt at two levels:
Top level
Lower level
Top executives deal with the overall
pricing strategy and determine the
Basic price range for the product
whereas Lower level deal with the
Actual pricing.

11. CONTD..
Price Is an important
element of marketing
mix but other elements
also cannot be neglected.
 Change in one may
have an effect on other,
so it should be taken as a
total marketing
strategy.
Example:

12. 3. PRODUCT DIFFERENTIATION
 It mean the ability of a
manufacturer to make
the product different
from the competitor’s
product.
 In consumer goods it
can be seen by way of
packing design, colour,
shape,theme, or brand
name.
 EXAMPLES:

13. ITC Company has
launched noodles brand
SUNFEAST YIPPEE in
the market in 2010
It has now become a huge
market of worth Rs.1200
PRODUCT
ATTRIBUTES:
o Wheat is key ingredient
o No lumping even 30 mins
after cooking

14. 4.Product Costs
Price is not only determined by Costs
only but:
PRICE
COST PROFIT

15. FIXED COSTS
THOSE COSTS THAT DONOT
CHANGE WITH PRODUCTION
OR SALES. E.g: CO’ PAYS-
SALARY TO WORKERS, RENT,
BILLS.
VARIABLE
COSTS
THESE VARY WITH
THE LEVEL OF
PRODUCTION.
E.g..PACKAGING,..RAW
MATERIAL
COMPANY WILL to
CHARGE A PRICE
THAT WILL COVER
TOTAL PRODUCTION
COSTS

16. CONTD…..
It is the demand and
competition that
determine price.It is
the market that sets the
price and not the
product costs.
Aim of every
concern is to cover all
costs and to earn
maximum Surplus.

17. INTRODUCTION
STAGE
MARKET PENETRATION
POLICY IS FOLLOWED
TO BUILD GOODWILL OF
THE FIRM.
PRICES ARE LEAST
IN THIS.
GROWTH STAGE
PRICES ARE RAISED TO
THE EXTENT
TOLERATED BY
CUSTOMERS.

18. MATURITY STAGE
PRICES ARE
RAISED BY
SKIMMING
POLICY .
DECLINING
STAGE
PRICES ARE
REDUCED TO
MAINTAIN
DEMAND.

19. 6.Pricing
Objectives
A price policy is the means to achieve the price
goals set. Nature of Pricing policy is set by the
objectives to be achieved and set by the Top
Management Authorities.
 Pricing Objectives are made for:
FRAMING
POLICIES
OBJECTIVES

20. CONTD…
 Some objectives are:
TARGET RATE OF RETURN
INCREAI
MAINTAINING
POSITION
INCREASE
MARKET
SHARE
MEETING
COMPETITION
PROFIT
MAXIMISATIO

21.  If the firm has a longer
chain of distribution , the
product price of a
product is bound to be
higher than in case of a
smaller channel.
EXAMPLE:
MANUFACTURER
WHOLESELLER
RETAILER
CUSTOMER

22. 1. Product
demand
Demand has a Tremendous
effect on price , pricing
policy and strategy.
Demand can have two
relations with price:
Demand
Price
Demand can have inverse
relation with price.
When Prices
Demand
EXTERNAL FACTORS

23. 2.Competition
•To be succesful in market ,the
firm should know its competitors
and compare its products with
competitors products , prices ,
promotions .
•The company is supposed to
know :
Who are its competitors?
What are their
objectives?
What are their strategies?
What are their strengths
and weaknesses?
EXAMPLE:

24. 3. Economic Conditions
It means when:
There is NO
INFLATION
NORMALPRICES
Example: