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Pricing Decisions

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Pricing Decisions

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Pricing Decisions

  1. 1. Pricing Decisions Prepared & presented by: Ms. Himani R.
  2. 2. Meaning • Price = Amount of money charged for a product or service • Price is the sum of value that customer exchanges for the benefits • Pricing includes all that the firm is offering along with the product 2Prepared by: Ms. Himani R.
  3. 3. Pricing includes… 3Prepared by: Ms. Himani R.
  4. 4. Objectives of pricing • Pricing for a target return. (ROI) • Pricing for market penetration. • Pricing for market skimming. • Discriminatory pricing • Stabilizing pricing. 4Prepared by: Ms. Himani R.
  5. 5. Factors influencing pricing Internal Factors External Factors Cost Competition Company objectives Consumers Image of the firm Government control Product life cycle Economic conditions Credit period offered Channel intermediaries Promotional activity 5Prepared by: Ms. Himani R.
  6. 6. Methods of Pricing • The cost-based approach – Cost-Plus Pricing – Break-Even Analysis and Target-Profit Pricing • The Buyer-based approach – Perceive-Value Pricing • The Competition based approach – Going-Rate Pricing – Sealed-Bid Pricing 6Prepared by: Ms. Himani R.
  7. 7. Advertising • Advertising is any paid form of non- personal communication of ideas, goods or services by business firms identified in services by business firms and identified in the advertising message intended to lead to a sale immediately or eventually. -AMA 7Prepared by: Ms. Himani R.
  8. 8. Continued • Advertisements are messages paid for by those who send them and are intended to inform or influence people who receive them. -Advertising Association of the UK • "Advertising is the non-personal communication of information usually paid for and usually persuasive in nature about products, services or ideas by identified sponsors through the various media." 8Prepared by: Ms. Himani R.
  9. 9. Characteristics • Paid communication • Payment made by the advertiser to the media owner • Non-personal salesmanship • Ability to expose large group of prospects • With low cost per prospect 9Prepared by: Ms. Himani R.
  10. 10. Newspapers 10Prepared by: Ms. Himani R.
  11. 11. Magazines 11Prepared by: Ms. Himani R.
  12. 12. Yellow Pages 12Prepared by: Ms. Himani R.
  13. 13. Radio 13Prepared by: Ms. Himani R.
  14. 14. Television 14Prepared by: Ms. Himani R.
  15. 15. Direct Mail 15Prepared by: Ms. Himani R.
  16. 16. Telemarketing 16Prepared by: Ms. Himani R.
  17. 17. Other mediums of Advertising • Bill boards & Hoardings • Social Media • Paid Search • Flash Mobs 17Prepared by: Ms. Himani R.

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