This is a presentation based on the text book 'Marketing Management' by Philip Kotler. It describes about developing pricing strategies and programs.

1. How should a company adapt prices to
meet varying circumstances and
opportunities?

2. Companies do not set a single price but
rather develop a pricing structure

3. Structure reflects the variations in
• Geographical demand and costs
• Market-segment requirements
• Purchase timings
• Order levels
• Delivery frequency
• Service contracts, etc.

4. Pricing for rural markets
• No compromise on quality
• Lesser quantity
• ‘Coinage’ pricing

5. Geographical Pricing
4 important price adapting strategies:
Barter, Compensation deal, Buyback arrangement, Offset, Countertrade, etc.

6. Price discounts and allowances
Discount, Quantity discount, Functional discount, Seasonal discount, Allowance

7. Risks of discounting
• Discounting may become the norm
• Undermining the value perceptions of
offerings
• Self-destruction by always being on sale
• Losing long-run profits

8. Promotional Pricing

9. Types
• Loss-leader pricing
• Special event pricing (Diwali, Christmas
offers)
• Psychological discounting
• Longer payment terms (Low EMI auto’s)
• Special customer pricing (Platinum Debit
Card)
• Cash rebates
• Warranties and service contracts

10. Differentiated Pricing
The three degrees of price discrimination

11. Elements
• Customer-segment pricing
• Product-form pricing
• Image pricing
• Channel pricing
• Location pricing
• Time pricing
Beware of legal issues!!

12. Recap-Price adapting strategies
• Geographical pricing (Cash, Countertrade)
• Price discounts and allowances
• Promotional pricing
• Differentiated pricing

13. References and Credits
• Marketing management – Philip Kotler
• https://www.flickr.com/search/?text=adapting
• http://digital-photography-school.com/wp-
content/uploads/2014/02/paper-and-pen.jpg
• https://ncpedwin.files.wordpress.com/2011/03
/spry_sachet.jpg
• http://www.slb.com/contact_us/~/media/Imag
es/contact/contact_sales_map2_updated.ash
x?w=433&h=240&as=1

14. Disclaimer
Created by Mohith Reddy, IIT Madras
during an internship by Prof. Sameer
Mathur, IIM Lucknow.
www.IIMInternship.com