ALREADY DISCUSSED IN SLIDES

2. PRICING
STRATEGIES

3.  Company charge
different prices from
different buyers
 Same product is sold
 Benificial for small
business
organisations
where non-
standardised
products are sold.
A.PRICE VARIATION POLICIES

4.  Also called one price policy
 Same price is charged from different buyers
 Prices vary from class to class than customer
to customer
 The greatest satisfaction is that there is
no cause for heart burning among
buyers

5. 3.Single pricing policy
 All the buyers are
charged similar price
irrespective of their
class ,size or the
conditions of
purchase
 No scope of
bargaining
 Not favourable for
quantity buyers as
they feel that

6. B.GEOGRAPHIC PRICE
POLICIES
 A.
EX-FACTORY PRICING
FREIGHT +CARTAGE
CHARGES ARE BORN BY
BUYER
F.O.R
(FREE ON RAIL)
BUYER MEET COST FROM
RAILWAY STATION TO POINT
OF DESTINATION

7. B. UNIFORM DELIVERED PRICE POLICY :
Goods are sold at uniform prices
irrespective of their location and
distance.

8. Prices quoted are
different from
different zones
rather than single
price all over the
country

9. 1.DISCOUNTS
Reduction to a basic price ofgoods or services
A.Trade discount
Trade discounts, also called functional discounts,
are payments to distribution channel members for
performing some function.
Manufacturer
Wholesaler
T.D=30%
Retailer
T.D=20%

10.  QUANTITY DISCOUNT :
ON THE BASIS OF
QUANTITY BOUGHT
 CASH DISCOUNT:
TO THOSE WHO
CLEAR THEIR BILLS

11. 2. REBATES
A rebate is an amount paid by way of reduction, return, or refund on what
has already been paid or contributed
3.PREMIUMS
There are occasions where the actual price paid will be higher than quoted price.
Eg . original price= 20,ooo
+ warrantee on picture tube= 1000
+ extra after sale services 500
21500
- 5% discount 1075
20425

12. PRICING
STRATEGIES

13. Price skimming AND
penetration is
a pricing strategy in which a
marketer sets a relatively
high price for a product or
service at first, then lowers the
price over time and vice versa .

15. F. COMPETITION PRICING
• Setting the price of a product
or service based on what the
competition is charging.

17. Bundle Pricing is a form of promotional price adjustment that offers discounted
pricing when customers purchase several products at the same time.

18.  Businesses that sell
computer hardware
often use bundle pricing
to sell software that
may not have sold
otherwise. The
customer thinks their
getting a package deal
and will end up paying
more money then
they actually planned.

19.  Odd/Even Pricing Is when a
business uses odd/even pricing
technique to make their
customers think they are getting a
bargain.
 Studies show that when the prices
are different, like $197 triggers in our
brain as cheaper.
For example, Walmart might have
the brand new plasma screen TV and
you think it’s a bargain because it is
set at $797, but if it was set at $800
you might not even think of buying it.

20. Price liningi
Products or services within a
specific group are set at
different price points.
 The higher the price, the
higher the perceived quality to the
consumer, and it also helps to lead
people to the price range they can
afford.

21. Cheap products are not taken
seriously by some buyers unless
they are priced at a particular level
PRESTIGE PRICING

22.  For example, if you saw a shirt at a showroom and you
saw the same shirt at local market, you would most likely
buy it from showroom because you believe its better
quality because of the higher price ;when in reality they
are the same shirt.

23. Promotional Pricing Is a policy that involves reducing
the price of a product or service to attract customers
PROMOTIONAL PRICING

24. Multiple-Unit Pricings
used to set a single price
for two or more of the
same product.
It is used to convince the
customer that they are
getting a benefit by
purchasing more than one
product at a good price.
MULTIPLE –UNIT
PRICING
For example, one two liter of Pepsi might be $1.80,while you can
purchase five two liter bottles for $5. It makes the customer want to buy
5 instead of only 1.