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 respond to a
competitor’s price change

2. Analyze product’s role
• Importance in company’s portfolio
• Competitors intention
• Market’s price
• Quality sensitivity

3. Homogenous Product Market
Enhancing the augmented product
Or
Slashing the price to meet competitor’s

4. In nonhomogeneous product markets, the following four questions
need to be addressed.
Why did competitor change the price?
• To steal the market
• To utilize capacity
• To meet inflation

5. Is the change temporary of
permanent?

6. What if company doesn’t respond?

7. What are others likely responses to
every reaction?

8. Short Response Time
Better to anticipate changes
and prepare contingent
responses

9. Recap-Questions
• Why did the competitor change price?
• Is the change permanent or temporary?
• What happens if company doesn’t
respond?
• What are others responses likely to be to
each reaction?

10. References and Credits
• Marketing Management – Philip Kotler
• http://www.wsnewspublishers.com/wp-
content/uploads/2015/05/Why.jpg
• https://nbry.files.wordpress.com/2011/09/niche-
market.jpg
• http://moms4mom.in/wp-
content/uploads/2015/03/others.jpg
• http://www.bigisthenewsmall.com/wp-
content/uploads/2014/05/no-response.jpg
• http://blogs.ft.com/nick-butler/files/2014/11/Crude-
oil-Brent-price-timeline.png

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