internal factors affecting pricing
•Download as PPTX, PDF•
3 likes•2,828 views
Internal factors that affect pricing decisions include marketing objectives, marketing mix strategy, costs of production, organizational considerations, and the product life cycle stage. Pricing must be coordinated with other elements of the marketing mix like product, promotion, and distribution. Management must also consider costs of production, who sets prices within the organization, and how pricing strategies vary depending on whether a product is in the introduction, growth, maturity, or decline stage of its life cycle.
Report
Share
Report
Share
Recommended
Pricing Strategy ppt
What is Pricing Strategy and what are the objectives and factors affecting the Pricing Strategy.
There are Certain types of Pricing Strategies as well. Each and every strategy has its own affect on the product and services offered by an organization.
PPT on pricing strategies
The document discusses various pricing strategies that can be used including penetration pricing, market skimming, value pricing, loss leader pricing, psychological pricing, price leadership, tender pricing, price discrimination, predatory pricing, absorption cost pricing, marginal cost pricing, contribution pricing, target pricing, and cost-plus pricing. It provides examples and explanations of when each strategy may be suitable.
Meaning and objectives of pricing
The document discusses the meaning and objectives of pricing. It states that price is an element of marketing that generates revenue, and is the easiest element to adjust compared to other factors like product features or communications. Price also communicates the intended value positioning of a brand. The document then discusses consumer psychology and pricing, noting that consumers have lower and upper price thresholds and reference prices. It outlines three basic issues in pricing: reference prices, price-quality inferences, and price endings. The document concludes by describing the six step process of setting prices, which includes determining objectives, demand, costs, competitors, selecting a pricing method, and the final price.
Pricing strategies
Short presentation on different pricing strategies. Formulas for break even and margin calculation. Pros and cons of different pricing strategies.
Price strategy
This document discusses various pricing strategies and policies that companies use to price their products and services. It begins by defining pricing and explaining factors that affect pricing decisions like costs, competition, and company objectives. It then outlines several common pricing strategies such as penetration pricing, skimming pricing, competition pricing, bundle pricing, psychological pricing, and premium pricing. For each strategy, it provides a brief definition and example to illustrate how that strategy can be implemented. The document provides an in-depth overview of different approaches to setting prices.
Pricing strategies
This document discusses various pricing strategies that companies can employ. It begins by defining pricing and pricing strategies. The objectives of pricing strategies are then outlined, including earning profits, increasing sales volume, maintaining a competitive edge, and creating a good company image. Several specific pricing strategies are then described in detail: penetration pricing, price skimming, competitive pricing, product line pricing, psychological pricing, premium pricing, optional pricing, bundle pricing, cost-based pricing, and cost-plus pricing. For each strategy, the document provides 1-3 points about how the strategy works and its objectives.
Promotion mix
This document provides an overview of promotion mix strategies. It defines promotion as communicating with customers to inform them about a product and persuade them to purchase it. The document then discusses various promotion techniques including advertising, sales promotion, personal selling, publicity, direct marketing, and public relations. It provides details on each technique, such as the objectives and examples. The factors that influence a company's promotion mix are also reviewed.
Pricing methods..
Cost-based pricing methods include mark-up pricing, absorption cost pricing, target rate of return pricing, and marginal cost pricing. Demand-based pricing methods are determined by what the traffic can bear, skimming pricing, and penetration pricing. Other pricing methods include competition-oriented pricing, product line pricing, tender pricing, affordability-based pricing, and differentiated pricing. Pricing strategies must be appropriate for achieving the desired objectives of the firm.
Recommended
Pricing Strategy ppt
What is Pricing Strategy and what are the objectives and factors affecting the Pricing Strategy.
There are Certain types of Pricing Strategies as well. Each and every strategy has its own affect on the product and services offered by an organization.
PPT on pricing strategies
The document discusses various pricing strategies that can be used including penetration pricing, market skimming, value pricing, loss leader pricing, psychological pricing, price leadership, tender pricing, price discrimination, predatory pricing, absorption cost pricing, marginal cost pricing, contribution pricing, target pricing, and cost-plus pricing. It provides examples and explanations of when each strategy may be suitable.
Meaning and objectives of pricing
The document discusses the meaning and objectives of pricing. It states that price is an element of marketing that generates revenue, and is the easiest element to adjust compared to other factors like product features or communications. Price also communicates the intended value positioning of a brand. The document then discusses consumer psychology and pricing, noting that consumers have lower and upper price thresholds and reference prices. It outlines three basic issues in pricing: reference prices, price-quality inferences, and price endings. The document concludes by describing the six step process of setting prices, which includes determining objectives, demand, costs, competitors, selecting a pricing method, and the final price.
Pricing strategies
Short presentation on different pricing strategies. Formulas for break even and margin calculation. Pros and cons of different pricing strategies.
Price strategy
This document discusses various pricing strategies and policies that companies use to price their products and services. It begins by defining pricing and explaining factors that affect pricing decisions like costs, competition, and company objectives. It then outlines several common pricing strategies such as penetration pricing, skimming pricing, competition pricing, bundle pricing, psychological pricing, and premium pricing. For each strategy, it provides a brief definition and example to illustrate how that strategy can be implemented. The document provides an in-depth overview of different approaches to setting prices.
Pricing strategies
This document discusses various pricing strategies that companies can employ. It begins by defining pricing and pricing strategies. The objectives of pricing strategies are then outlined, including earning profits, increasing sales volume, maintaining a competitive edge, and creating a good company image. Several specific pricing strategies are then described in detail: penetration pricing, price skimming, competitive pricing, product line pricing, psychological pricing, premium pricing, optional pricing, bundle pricing, cost-based pricing, and cost-plus pricing. For each strategy, the document provides 1-3 points about how the strategy works and its objectives.
Promotion mix
This document provides an overview of promotion mix strategies. It defines promotion as communicating with customers to inform them about a product and persuade them to purchase it. The document then discusses various promotion techniques including advertising, sales promotion, personal selling, publicity, direct marketing, and public relations. It provides details on each technique, such as the objectives and examples. The factors that influence a company's promotion mix are also reviewed.
Pricing methods..
Cost-based pricing methods include mark-up pricing, absorption cost pricing, target rate of return pricing, and marginal cost pricing. Demand-based pricing methods are determined by what the traffic can bear, skimming pricing, and penetration pricing. Other pricing methods include competition-oriented pricing, product line pricing, tender pricing, affordability-based pricing, and differentiated pricing. Pricing strategies must be appropriate for achieving the desired objectives of the firm.
Pricing Products: Pricing Considerations and Approaches
The document discusses various considerations and approaches for setting prices. It identifies internal factors like costs, organizational structure, and marketing objectives, and external factors like demand, competitors' prices, and the economic environment. It contrasts three general pricing approaches: cost-based pricing which adds a markup to costs; value-based pricing which considers customers' perceived value; and competition-based pricing which sets prices relative to competitors.
Marketing - Pricing
The document discusses pricing strategies, methods, and tactics. It provides an overview of how economists, accountants, customers, and marketers view price. Key factors that affect price are discussed such as costs, competition, demand, and objectives. Common pricing methods include market-based pricing using customer value and competitors' prices, and cost-based pricing using full costs, markups, and contributions. Pricing strategies aim to achieve objectives over the medium-long term and include skimming, penetration, leadership, and discrimination. Tactics are short term and include loss leaders, wars, and promotions. Demand elasticity measures responsiveness to price changes.
Pricing Method and Pricing Strategies
Pricing is the method used by producers to determine the value of goods and services. There are various pricing strategies that can be used including penetration pricing, which sets low initial prices to gain market share, and premium pricing, which positions products as exclusive through higher prices. The document also outlines other strategies such as competition pricing, product line pricing, and bundle pricing.
Pricing product-pricing-strategies
The document discusses various pricing strategies used by companies. It describes strategies for pricing new products, such as market skimming pricing and market penetration pricing. It also discusses strategies for pricing multiple products, adjusting prices based on customers or locations, using promotions, and setting international prices. The goal is to maximize profits by understanding how to effectively set and adjust prices.
RK PPT ON MANAGEMENT: MARKETING MIX DECISIONS
IT EXPLAINS THE MARKETING MIX DECISIONS WITH PRODUCT DECISIONS INCLUDES PRODUCT LINE, WIDTH, DEPTH ETC
Pricing Ppt
Price is a key element of the marketing mix that generates revenue. It communicates the value of a product and is determined based on customer perceived value and costs. When setting prices, companies analyze factors like demand, costs, competition and select objectives like profit maximization. Appropriate pricing requires estimating demand curves and price elasticity to understand customer sensitivity.
Nature and scope of marketing
Marketing is defined as the process of exploring, creating, and delivering value to satisfy customer needs for profit. It identifies unfulfilled customer needs and desires. Marketing incorporates activities from product development to distribution and involves studying customer behavior to create and maintain relationships. It is both a science, by following principles to study markets, and an art that anticipates human needs. Marketing encompasses economic, managerial, and social functions to efficiently exchange goods and services between producers and consumers.
Pricing Policy in Marketing
Pricing is one of the most important elements of the marketing mix, as it is the only mix, which generates a turnover for the organization.
Pricing Methods and Price adaption strategies
This document discusses various pricing methods and strategies for price adaptation. It describes markup pricing, target-return pricing, perceived-value pricing, value pricing, going-rate pricing, and auction-type pricing. It also covers price adaptation strategies like geographical pricing, discounts/allowances, promotional pricing, and differentiated pricing. The document is a presentation that was created to discuss pricing methods and price adaptation strategies with key details about calculating prices using different approaches.
Customer profitability analysis crm ppt
1) A customer profitability analysis evaluates the costs and revenues assigned to segments of a company's customer base. It focuses on determining which customers are profitable versus unprofitable.
2) The general approach involves segmenting customers, calculating the revenue and costs attributable to each segment using activity-based costing, and then analyzing the profitable versus unprofitable segments.
3) A case study showed an insurance company used customer profitability analysis to identify that recently retired customers were unprofitable for a certain policy, so it adjusted agent commissions to discourage selling to that segment.
product mix and product lines
This document discusses product mix and product lines. It defines a product mix as the set of all products offered for sale and explains how analyzing product mix dimensions can help businesses expand. It also discusses how product line analysis can help companies develop platforms to meet customer needs while lowering production costs. Key aspects of product line analysis are product length lines, which are influenced by company objectives, and product mix pricing, which involves finding a price mix that maximizes total profits.
Pricing strategies in marketing
Survival
Maximum current profit
Maximum market share
Maximum market skimming
Product-quality leadership
PRICING DECISION
This document summarizes a group presentation on pricing decisions. It discusses various pricing concepts including defining pricing, factors that influence pricing like costs, competition and demand, and different pricing methods. Specifically, it outlines cost-based pricing methods like cost-plus pricing and break-even analysis. It also discusses using demand estimates to conduct flexible break-even analysis to determine the price that maximizes profits by considering different sales volume scenarios. In conclusion, integrating sales estimates into break-even analysis provides a more realistic way for companies to evaluate pricing alternatives and select the optimal price.
Pricing policies
This document discusses pricing concepts including price, pricing objectives, factors affecting pricing decisions, determining demand, methods of pricing, and pricing strategies. It defines price and lists common pricing objectives like profit maximization, sales growth, and competition. It outlines internal factors like marketing objectives and external factors like costs that influence pricing decisions. It describes methods for determining demand and different approaches to setting prices including cost-based pricing, competition-based pricing, and various pricing strategies.
Market segmentation
Market segmentation involves dividing a heterogeneous market into homogeneous subgroups. It is based on the recognition that markets contain different customer groups with distinct needs, characteristics and behaviors. The key objectives of market segmentation are to identify specific customer segments, understand their unique needs and develop tailored marketing strategies for each segment. Common approaches to segmentation include mass marketing, product differentiation and target marketing. Markets can be segmented based on geographic, demographic, psychographic and behavioral factors. The main benefits of effective segmentation include better understanding customer needs, more efficient resource allocation and increased sales and profits.
International marketing pricing
This document discusses various factors that influence international pricing strategies and decisions. It outlines analytical dimensions like production costs, exchange rates, and competition that managers consider. It also presents different pricing objectives such as market penetration or market skimming. The document then examines pricing policies like uniform pricing or market-by-market pricing. Finally, it analyzes environmental influences and provides alternatives for global pricing approaches.
Channels of distribution
This document provides an overview of channels of distribution from a presentation on sales and advertising management. It defines channels of distribution as the ways that goods and services are distributed from manufacturers to consumers. The document outlines various definitions of channels of distribution from different authors. It discusses the characteristics and elements of channels of distribution, including that they are routes that goods and services flow through composed of intermediaries like wholesalers and retailers. The document also covers the functions of channels of distribution, factors that determine choice of channels, and factors relating to products, companies, markets, middlemen, and the environment that influence channel selection.
Pricing policies & strategies
This document discusses various pricing policies, objectives, factors, and strategies. It begins by defining pricing and pricing policy. It then discusses pricing objectives such as profit maximization, satisfactory profits, and market share. It also covers factors that influence pricing like costs, competition, and customer willingness to pay. Finally, it outlines and describes various common pricing strategies such as penetration pricing, skimming pricing, competitive pricing, discount pricing, and bundle pricing.
Pricing Policies and Strategies
Pricing is an important element of marketing that can be changed quickly. Price expresses the value of a product based on its perceived benefits and costs. Pricing objectives may include survival, maximum profit, market share, or product leadership. Factors affecting pricing include costs, competition, company objectives, positioning, target customers, and willingness to pay. Pricing policies guide how prices are set, while strategies include penetration pricing, skimming, competition matching, bundling, premium pricing, and discounts. Setting price involves selecting objectives, estimating demand and costs, analyzing competitors, choosing a pricing method, and determining the final price.
Pricing by Philiph Kotler
Pricing by Philiph Kotler chapter 10, if u need any type of slide just message me,plz follow me for latest update.
Just "Follow Me"
Factors affecting price decisions
1) Internal factors like marketing objectives, costs, and organizational considerations influence pricing decisions. Marketing objectives can include maximizing profits, market share, or market skimming depending on a product's life cycle stage. Costs include fixed, variable, and achieving break-even points. Organizations must decide who sets prices.
2) External factors also affect pricing including market dynamics, competition, and other environmental influences. The nature of demand depends on market structure - whether perfect competition, monopolistic, oligopolistic, or monopoly. Companies must consider competitors' costs, prices, and potential reactions. Other factors are quality relationships, product lines, regulations, and distributor impacts.
3) Pricing decisions balance internal objectives
Econ 101 group ppt
This document discusses global warming and its effects on polar bears, penguins, and the North and South Poles. It also mentions the Kyoto Protocol and climate change. The rest of the document focuses on diesel fuel in Bangladesh, including the price of diesel over the years, its top uses by sector, its inelastic demand, factors that determine its elasticity, what cross elasticity is, and how diesel's cross elasticity would be affected by changes in the price of substitutes like CNG. The document was prepared by three students and thanked their lecturer for English 102.
More Related Content
What's hot
Pricing Products: Pricing Considerations and Approaches
The document discusses various considerations and approaches for setting prices. It identifies internal factors like costs, organizational structure, and marketing objectives, and external factors like demand, competitors' prices, and the economic environment. It contrasts three general pricing approaches: cost-based pricing which adds a markup to costs; value-based pricing which considers customers' perceived value; and competition-based pricing which sets prices relative to competitors.
Marketing - Pricing
The document discusses pricing strategies, methods, and tactics. It provides an overview of how economists, accountants, customers, and marketers view price. Key factors that affect price are discussed such as costs, competition, demand, and objectives. Common pricing methods include market-based pricing using customer value and competitors' prices, and cost-based pricing using full costs, markups, and contributions. Pricing strategies aim to achieve objectives over the medium-long term and include skimming, penetration, leadership, and discrimination. Tactics are short term and include loss leaders, wars, and promotions. Demand elasticity measures responsiveness to price changes.
Pricing Method and Pricing Strategies
Pricing is the method used by producers to determine the value of goods and services. There are various pricing strategies that can be used including penetration pricing, which sets low initial prices to gain market share, and premium pricing, which positions products as exclusive through higher prices. The document also outlines other strategies such as competition pricing, product line pricing, and bundle pricing.
Pricing product-pricing-strategies
The document discusses various pricing strategies used by companies. It describes strategies for pricing new products, such as market skimming pricing and market penetration pricing. It also discusses strategies for pricing multiple products, adjusting prices based on customers or locations, using promotions, and setting international prices. The goal is to maximize profits by understanding how to effectively set and adjust prices.
RK PPT ON MANAGEMENT: MARKETING MIX DECISIONS
IT EXPLAINS THE MARKETING MIX DECISIONS WITH PRODUCT DECISIONS INCLUDES PRODUCT LINE, WIDTH, DEPTH ETC
Pricing Ppt
Price is a key element of the marketing mix that generates revenue. It communicates the value of a product and is determined based on customer perceived value and costs. When setting prices, companies analyze factors like demand, costs, competition and select objectives like profit maximization. Appropriate pricing requires estimating demand curves and price elasticity to understand customer sensitivity.
Nature and scope of marketing
Marketing is defined as the process of exploring, creating, and delivering value to satisfy customer needs for profit. It identifies unfulfilled customer needs and desires. Marketing incorporates activities from product development to distribution and involves studying customer behavior to create and maintain relationships. It is both a science, by following principles to study markets, and an art that anticipates human needs. Marketing encompasses economic, managerial, and social functions to efficiently exchange goods and services between producers and consumers.
Pricing Policy in Marketing
Pricing is one of the most important elements of the marketing mix, as it is the only mix, which generates a turnover for the organization.
Pricing Methods and Price adaption strategies
This document discusses various pricing methods and strategies for price adaptation. It describes markup pricing, target-return pricing, perceived-value pricing, value pricing, going-rate pricing, and auction-type pricing. It also covers price adaptation strategies like geographical pricing, discounts/allowances, promotional pricing, and differentiated pricing. The document is a presentation that was created to discuss pricing methods and price adaptation strategies with key details about calculating prices using different approaches.
Customer profitability analysis crm ppt
1) A customer profitability analysis evaluates the costs and revenues assigned to segments of a company's customer base. It focuses on determining which customers are profitable versus unprofitable.
2) The general approach involves segmenting customers, calculating the revenue and costs attributable to each segment using activity-based costing, and then analyzing the profitable versus unprofitable segments.
3) A case study showed an insurance company used customer profitability analysis to identify that recently retired customers were unprofitable for a certain policy, so it adjusted agent commissions to discourage selling to that segment.
product mix and product lines
This document discusses product mix and product lines. It defines a product mix as the set of all products offered for sale and explains how analyzing product mix dimensions can help businesses expand. It also discusses how product line analysis can help companies develop platforms to meet customer needs while lowering production costs. Key aspects of product line analysis are product length lines, which are influenced by company objectives, and product mix pricing, which involves finding a price mix that maximizes total profits.
Pricing strategies in marketing
Survival
Maximum current profit
Maximum market share
Maximum market skimming
Product-quality leadership
PRICING DECISION
This document summarizes a group presentation on pricing decisions. It discusses various pricing concepts including defining pricing, factors that influence pricing like costs, competition and demand, and different pricing methods. Specifically, it outlines cost-based pricing methods like cost-plus pricing and break-even analysis. It also discusses using demand estimates to conduct flexible break-even analysis to determine the price that maximizes profits by considering different sales volume scenarios. In conclusion, integrating sales estimates into break-even analysis provides a more realistic way for companies to evaluate pricing alternatives and select the optimal price.
Pricing policies
This document discusses pricing concepts including price, pricing objectives, factors affecting pricing decisions, determining demand, methods of pricing, and pricing strategies. It defines price and lists common pricing objectives like profit maximization, sales growth, and competition. It outlines internal factors like marketing objectives and external factors like costs that influence pricing decisions. It describes methods for determining demand and different approaches to setting prices including cost-based pricing, competition-based pricing, and various pricing strategies.
Market segmentation
Market segmentation involves dividing a heterogeneous market into homogeneous subgroups. It is based on the recognition that markets contain different customer groups with distinct needs, characteristics and behaviors. The key objectives of market segmentation are to identify specific customer segments, understand their unique needs and develop tailored marketing strategies for each segment. Common approaches to segmentation include mass marketing, product differentiation and target marketing. Markets can be segmented based on geographic, demographic, psychographic and behavioral factors. The main benefits of effective segmentation include better understanding customer needs, more efficient resource allocation and increased sales and profits.
International marketing pricing
This document discusses various factors that influence international pricing strategies and decisions. It outlines analytical dimensions like production costs, exchange rates, and competition that managers consider. It also presents different pricing objectives such as market penetration or market skimming. The document then examines pricing policies like uniform pricing or market-by-market pricing. Finally, it analyzes environmental influences and provides alternatives for global pricing approaches.
Channels of distribution
This document provides an overview of channels of distribution from a presentation on sales and advertising management. It defines channels of distribution as the ways that goods and services are distributed from manufacturers to consumers. The document outlines various definitions of channels of distribution from different authors. It discusses the characteristics and elements of channels of distribution, including that they are routes that goods and services flow through composed of intermediaries like wholesalers and retailers. The document also covers the functions of channels of distribution, factors that determine choice of channels, and factors relating to products, companies, markets, middlemen, and the environment that influence channel selection.
Pricing policies & strategies
This document discusses various pricing policies, objectives, factors, and strategies. It begins by defining pricing and pricing policy. It then discusses pricing objectives such as profit maximization, satisfactory profits, and market share. It also covers factors that influence pricing like costs, competition, and customer willingness to pay. Finally, it outlines and describes various common pricing strategies such as penetration pricing, skimming pricing, competitive pricing, discount pricing, and bundle pricing.
Pricing Policies and Strategies
Pricing is an important element of marketing that can be changed quickly. Price expresses the value of a product based on its perceived benefits and costs. Pricing objectives may include survival, maximum profit, market share, or product leadership. Factors affecting pricing include costs, competition, company objectives, positioning, target customers, and willingness to pay. Pricing policies guide how prices are set, while strategies include penetration pricing, skimming, competition matching, bundling, premium pricing, and discounts. Setting price involves selecting objectives, estimating demand and costs, analyzing competitors, choosing a pricing method, and determining the final price.
Pricing by Philiph Kotler
Pricing by Philiph Kotler chapter 10, if u need any type of slide just message me,plz follow me for latest update.
Just "Follow Me"
What's hot (20)
Pricing Products: Pricing Considerations and Approaches
Pricing Products: Pricing Considerations and Approaches
Viewers also liked
Factors affecting price decisions
1) Internal factors like marketing objectives, costs, and organizational considerations influence pricing decisions. Marketing objectives can include maximizing profits, market share, or market skimming depending on a product's life cycle stage. Costs include fixed, variable, and achieving break-even points. Organizations must decide who sets prices.
2) External factors also affect pricing including market dynamics, competition, and other environmental influences. The nature of demand depends on market structure - whether perfect competition, monopolistic, oligopolistic, or monopoly. Companies must consider competitors' costs, prices, and potential reactions. Other factors are quality relationships, product lines, regulations, and distributor impacts.
3) Pricing decisions balance internal objectives
Econ 101 group ppt
This document discusses global warming and its effects on polar bears, penguins, and the North and South Poles. It also mentions the Kyoto Protocol and climate change. The rest of the document focuses on diesel fuel in Bangladesh, including the price of diesel over the years, its top uses by sector, its inelastic demand, factors that determine its elasticity, what cross elasticity is, and how diesel's cross elasticity would be affected by changes in the price of substitutes like CNG. The document was prepared by three students and thanked their lecturer for English 102.
Kaushik mishra ppt
This document discusses how Hindi films have portrayed issues related to human rights over time to raise awareness among the public in India. It analyzes films from different eras - before independence, during independence, and after independence - that highlighted topics like farmers' exploitation, untouchability, women's conditions, and communal peace. While Indian films have covered human rights issues to some extent, the document argues they have been slow compared to Western films and can do more to clearly convey that certain rights like freedom and equality are part of human rights. Overall, Hindi films have played an important role in educating people about human rights, even if there is still room for improvement.
Pricce Adjustment strategies Presentation
This document discusses various price adjustment strategies used by companies. It describes different types of discounts and allowances given to customers including cash discounts, quantity discounts, and promotional allowances. It also discusses segment pricing where different prices are charged to different customer segments based on factors like customer type, product form, location, or time. Other strategies covered include psychological pricing, promotional pricing, value pricing, and geographic pricing for domestic and international markets.
factors affecting Pricing
The document outlines several key factors that affect pricing decisions, including marketing objectives, competition, costs, and product characteristics. It also discusses different pricing methods such as cost-based pricing, market-oriented pricing, and competitive bidding. When introducing new products, the document notes that companies may use price skimming or penetration pricing strategies. It finally covers various pricing policies including discounts, transfer pricing, geographic pricing, and leasing options.
Price adjustment strategies
The document discusses six price adjustment strategies used by organizations: 1) discount and allowance pricing which includes cash, quantity, functional, and seasonal discounts, 2) segmented pricing which segments customers and products, 3) psychological pricing which uses specific price points like $9.99 to influence customer purchasing, 4) promotional pricing which lowers prices temporarily to attract customers, 5) geographical pricing which charges different prices in different locations, and 6) international pricing which sets prices based on economic, competitive and regulatory factors in different countries.
Factors affecting pricing
Fixed and variable costs, competition, opportunity cost, demand, and supply all affect pricing. Direct competition refers to businesses selling similar products, while indirect competition sells dissimilar products. Price competition uses price to attract customers, while non-price competition uses other factors. Demand depends on factors like utility, price, advertising, fashion, and consumer needs/wants. Supply is affected by costs of production, price, demand, profit goals, competition, and technology. Elasticity of demand, economic conditions, regulations, distribution channels, and company objectives also impact price.
Factors Affecting Price
The document describes different types of market structures: perfect competition where many buyers and sellers transact standardized products at a single market price; monopoly where a single seller dominates the market and can set a profit-maximizing price; monopolistic competition where many firms offer similar but differentiated products giving them some monopolistic power; and oligopoly where a small number of large firms control the market and can influence prices. It also mentions factors like costs of production, customer demand in response to price, distribution costs, and existing market competition that influence business pricing and promotion decisions.
Scopes of international marketing
This document discusses key concepts in international marketing. It begins by outlining learning objectives and definitions. It then discusses the scope of international marketing tasks and cultural obstacles like self-reference criterion and ethnocentrism. The document outlines stages of international marketing involvement from infrequent to global marketing. It also differentiates orientations like viewing international markets as ancillary versus a global orientation.
Pricing policies and strategies examples
Christian Laroche discussed various pricing policies including flexible price policy, one price policy, prestige pricing, odd/even pricing, price lining, promotional pricing, multiple-unit pricing, and bundle pricing. As an example of flexible price policy, cars can be bought at negotiated contracts where colors like red may cost $500 more. One price policy sets the same price for all customers like a bottle of Sprite. Prestige pricing fosters a higher image where cheap products aren't taken seriously unless priced at a level, like perceiving a shirt from Nordstrom as better quality due to its higher price.
Marketing Mix - Price
The document discusses various aspects of pricing strategy and methods. It defines pricing strategy as a plan for setting prices that considers factors like costs, competition, and demand. Some key determinants in setting prices are organizational objectives, costs, competition, and buyers' perceptions. Common pricing methods include cost-based pricing, demand-based pricing, and competition-based pricing. A company's pricing policy guides its overall pricing approach and specific pricing methods are then used to set prices regularly.
Viewers also liked (11)
Similar to internal factors affecting pricing
Sunayana Shakya,BBA ,Dezyne E'cole College
This document provides an overview of pricing strategy concepts through several chapters. It begins with an introduction to pricing and objectives. Chapter 1 defines pricing and discusses pricing objectives such as profit-related, sales-related, competition-related, and customer-related. Chapter 2 examines internal and external factors that influence pricing decisions. Chapter 3 outlines various pricing approaches and policies including cost-based, value-based, competition-based, and product-line pricing. Chapter 4 defines pricing strategy and discusses strategies such as penetration pricing, economy pricing, price skimming, and product-mix pricing. The document also includes a case study and conclusion.
PRICING-STRATEGY.pptxxxxxxxxxxxxxxxxxxxx
This document discusses various pricing strategies that companies can employ:
1. Penetration pricing sets prices artificially low to gain market share, then prices are increased once market share is achieved. Price skimming charges high initial prices for products with substantial advantages.
2. Competitive pricing matches competitors' prices to avoid trial and error. Product line pricing reflects quality differences between a company's product range. Psychological pricing uses odd prices like $1.99 to increase demand.
3. Premium pricing charges high prices for unique brands to signal quality. Optional pricing sells accessories at higher prices. Bundle pricing offers package deals at lower combined prices to increase profits. Cost-based pricing adds a markup percentage to manufacturing costs
Lecture 9 pricing considerations and approaches
Learning the basics about pricing products and how it affects the purchasing behavior of consumer and business buyer marketing.
Chapter 7 Product Pricing (Tourism and Hospitality Marketing)
The document discusses various considerations and factors involved in formulating pricing policies for products. It outlines internal factors like costs, marketing objectives, and organizational structure, as well as external factors like competition, market demand, and government policies. It also describes different pricing strategies such as competition-based pricing, cost-plus pricing, penetration pricing, and value-based pricing.
Pricing Pdf
Internal and external factors affect pricing decisions. Internally, companies consider objectives, costs, and organizational structure. Externally, they analyze the market, demand, competition, and economic conditions. Cost-based pricing sets prices as a markup over costs using methods like cost-plus or markup pricing. Demand and competition-based pricing adjust prices based on those factors. Break-even pricing calculates the price needed to cover fixed and variable costs at different production volumes. Pricing objectives include maximizing profits in the long or short run as well as gaining market share, sales, or returns.
Unit-V; Pricing (Pharma Marketing Management).pptx
Students will get the knowledge of the following-
meaning of the pricing, its importance, objectives, methods of pricing, factors affecting the price of products, An overview of DPCO (Drug Price Control Order) and NPPA (National Pharmaceutical Pricing Authority)
Pricing strategies
Pricing is a key element of the marketing mix as it is the only factor that generates revenue. There are various pricing strategies a company can adopt depending on its objectives, such as penetration pricing to increase market share or skimming pricing to extract higher initial profits. Pricing must support the other elements of the marketing mix while also reflecting supply and demand, and should take into account factors like costs, competition, and customer willingness to pay. Common pricing objectives for companies include maximizing profits, gaining market share, meeting competitors' prices, and ensuring the survival of the business.
Guidelines pricing
These guidelines provide principles and best practices for effective pricing decisions. Managers should 1) focus on specific market segments to gain advantage, 2) set prices early in product development to identify unprofitable ideas, and 3) make pricing decisions in the context of an overall marketing strategy oriented toward profits rather than just market share or volume. A pricing strategy audit should assess consistency with objectives, customer value perceptions, relevant costs, price decision characteristics, and legal implications.
7 Pricing Strategy.docx
Pricing is a complex part of marketing that requires consideration of many factors. There are seven stages involved in setting prices, including analyzing costs, competitors' prices, and customer perceptions of value. Nestle uses multiple pricing strategies, primarily pricing based on value, analyzing customer behavior to maximize profits while keeping customers loyal to their brands. Setting the right price is important to business success by charging what customers are willing to pay to maximize sales and profits.
Price & pricing factors
This document discusses various pricing strategies and methods. It covers:
1. Defining price and the factors that affect pricing like costs, demand, competition.
2. Different cost-based pricing methods like cost-plus and target return on investment.
3. Value-based methods like perceived value and customer value pricing.
4. Competition-based methods like going-rate, pricing above/below competitors.
5. Other strategies like price lining, product life cycle pricing, and responding to price changes.
pricing strategies of I-Emap
The document discusses various pricing strategies and approaches. It defines price and pricing, and lists factors that influence pricing decisions such as objectives, costs, competitors' prices, and consumer perceptions. It then describes several pricing methods including cost-plus pricing, break-even analysis, target profit pricing, going-rate pricing, and sealed-bid pricing. It also discusses buyer-based pricing where value instead of costs determines price. Finally, it provides examples of three specific pricing strategies: price penetration, price skimming, and the loss leader approach.
Production Startegy.pptx
This document outlines various production strategies that can be employed by businesses, including differentiation, cost leadership, and market segmentation strategies. It also discusses focusing on priorities like price, quality, and delivery. Specific strategies covered are differentiation through superior features, cost leadership through large scale production, market segmentation targeting different customer types, price/cost strategies for homogeneous goods, quality strategies through innovation, delivery strategies emphasizing timeliness, product mix flexibility, service strategies, and eco-friendly strategies.
Pricing Strategies - Marketing Strategy
Subject - Marketing Strategy
Semester III (03), part of Masters in Management Studies (MMS), University of Mumbai
Price setting
This document discusses price setting strategies for companies. It outlines different types of price competition, such as price-based versus non-price based competition. It also describes different pricing objectives like profit, return on investment, market share, and product quality. Finally, it provides an overview of the typical price setting procedure which involves developing objectives, determining demand, estimating costs, examining competitors, and selecting a pricing strategy.
Various Pricing Strategies
This document discusses pricing policy and strategies. It begins by stating that price is an important element of the marketing mix that can be changed quickly. It then defines pricing and value from the customer's perspective. The document goes on to list factors that influence pricing like costs, competition, and customer willingness to pay. It also outlines different pricing objectives and 12 common pricing strategies such as penetration pricing, skimming pricing, and bundle pricing. Finally, it concludes with the steps to set a pricing policy which are to select objectives, determine demand, estimate costs, analyze competitors, select a pricing method, and set the final price.
Lecture 5 pricing strategies
The document discusses pricing strategies and factors to consider when setting prices. It covers internal factors like costs of production and external factors like competition and economic conditions. The major pricing strategies discussed are customer value-based pricing, cost-based pricing, and competition-based pricing. It also discusses strategies for new products, products within a mix, and adjusting prices for different customers. The objectives of pricing are to ensure business survival, improve profitability, and increase sales and market share.
Price Slides
Price is one of several factors that influence purchasing decisions. It indicates quality and image while providing a measure of value. The importance of price depends on the product. Of the four Ps in marketing (product, place, promotion, price), price is the only one that directly generates revenue. When setting prices, companies consider objectives, costs, competition, consumer perceptions, and legal issues. Long-term strategies include high prices for premium brands, low prices to increase sales volume, and market prices matching competitors. Short-term strategies are used to enter new markets or boost existing sales through promotions.
Presentation(1) the last one.pptx proble
Sure, let's go through the main concepts of financial statements, their advantages and disadvantages, and provide examples and relevant ratio calculations.
Main Financial Statements
1. Income Statement
2. Balance Sheet
3. Cash Flow Statement
4. Statement of Changes in Equity
1. Income Statement
Concept:
• Shows the company's revenues, expenses, and profits or losses over a specific period.
• Key components include revenues, cost of goods sold (COGS), gross profit, operating expenses, operating income, interest, taxes, and net income.
Advantages:
• Provides a clear picture of profitability.
• Helps in assessing operational efficiency.
• Useful for trend analysis over different periods.
Disadvantages:
• Can be manipulated through accounting practices.
• Does not provide a complete financial health picture (e.g., cash flow).
Example:
Sure, let's go through the main concepts of financial statements, their advantages and disadvantages, and provide examples and relevant ratio calculations.
Main Financial Statements
1. Income Statement
2. Balance Sheet
3. Cash Flow Statement
4. Statement of Changes in Equity
1. Income Statement
Concept:
• Shows the company's revenues, expenses, and profits or losses over a specific period.
• Key components include revenues, cost of goods sold (COGS), gross profit, operating expenses, operating income, interest, taxes, and net income.
Advantages:
• Provides a clear picture of profitability.
• Helps in assessing operational efficiency.
• Useful for trend analysis over different periods.
Disadvantages:
• Can be manipulated through accounting practices.
• Does not provide a complete financial health picture (e.g., cash flow).
Example:
Sure, let's go through the main concepts of financial statements, their advantages and disadvantages, and provide examples and relevant ratio calculations.
Main Financial Statements
1. Income Statement
2. Balance Sheet
3. Cash Flow Statement
4. Statement of Changes in Equity
1. Income Statement
Concept:
• Shows the company's revenues, expenses, and profits or losses over a specific period.
• Key components include revenues, cost of goods sold (COGS), gross profit, operating expenses, operating income, interest, taxes, and net income.
Advantages:
• Provides a clear picture of profitability.
• Helps in assessing operational efficiency.
• Useful for trend analysis over different periods.
Disadvantages:
• Can be manipulated through accounting practices.
• Does not provide a complete financial health picture (e.g., cash flow).
Example:
Sure, let's go through the main concepts of financial statements, their advantages and disadvantages, and provide examples and relevant ratio calculations.
Main Financial Statements
1. Income Statement
2. Balance Sheet
3. Cash Flow Statement
4. Statement of Changes in Equity
1. Income Statement
Concept:
• Shows the company's revenues, expenses, and profits or losses over a specific period.
• Key components include revenues, cost of goods sold (COGS), gross profit, op
Similar to internal factors affecting pricing (20)
Chapter 7 Product Pricing (Tourism and Hospitality Marketing)
Chapter 7 Product Pricing (Tourism and Hospitality Marketing)
Unit-V; Pricing (Pharma Marketing Management).pptx
Unit-V; Pricing (Pharma Marketing Management).pptx
Recently uploaded
How to Make a Field Mandatory in Odoo 17
In Odoo, making a field required can be done through both Python code and XML views. When you set the required attribute to True in Python code, it makes the field required across all views where it's used. Conversely, when you set the required attribute in XML views, it makes the field required only in the context of that particular view.
Pengantar Penggunaan Flutter - Dart programming language1.pptx
Pengantar Penggunaan Flutter - Dart programming language1.pptx
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
Physical pharmaceutics notes for B.pharm students
BÀI TẬP BỔ TRỢ TIẾNG ANH LỚP 9 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2024-2025 - ...
BÀI TẬP BỔ TRỢ TIẾNG ANH LỚP 9 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2024-2025 - ...Nguyen Thanh Tu Collection
https://app.box.com/s/tacvl9ekroe9hqupdnjruiypvm9rdaneConstructing Your Course Container for Effective Communication
Communicating effectively and consistently with students can help them feel at ease during their learning experience and provide the instructor with a communication trail to track the course's progress. This workshop will take you through constructing an engaging course container to facilitate effective communication.
Main Java[All of the Base Concepts}.docx
This is part 1 of my Java Learning Journey. This Contains Custom methods, classes, constructors, packages, multithreading , try- catch block, finally block and more.
Advanced Java[Extra Concepts, Not Difficult].docx
This is part 2 of my Java Learning Journey. This contains Hashing, ArrayList, LinkedList, Date and Time Classes, Calendar Class and more.
Hindi varnamala | hindi alphabet PPT.pdf
हिंदी वर्णमाला पीपीटी, hindi alphabet PPT presentation, hindi varnamala PPT, Hindi Varnamala pdf, हिंदी स्वर, हिंदी व्यंजन, sikhiye hindi varnmala, dr. mulla adam ali, hindi language and literature, hindi alphabet with drawing, hindi alphabet pdf, hindi varnamala for childrens, hindi language, hindi varnamala practice for kids, https://www.drmullaadamali.com
Your Skill Boost Masterclass: Strategies for Effective Upskilling
Your Skill Boost Masterclass: Strategies for Effective UpskillingExcellence Foundation for South Sudan
Strategies for Effective Upskilling is a presentation by Chinwendu Peace in a Your Skill Boost Masterclass organisation by the Excellence Foundation for South Sudan on 08th and 09th June 2024 from 1 PM to 3 PM on each day.The History of Stoke Newington Street Names
Presented at the Stoke Newington Literary Festival on 9th June 2024
www.StokeNewingtonHistory.com
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UP
This Dissertation explores the particular circumstances of Mirzapur, a region located in the
core of India. Mirzapur, with its varied terrains and abundant biodiversity, offers an optimal
environment for investigating the changes in vegetation cover dynamics. Our study utilizes
advanced technologies such as GIS (Geographic Information Systems) and Remote sensing to
analyze the transformations that have taken place over the course of a decade.
The complex relationship between human activities and the environment has been the focus
of extensive research and worry. As the global community grapples with swift urbanization,
population expansion, and economic progress, the effects on natural ecosystems are becoming
more evident. A crucial element of this impact is the alteration of vegetation cover, which plays a
significant role in maintaining the ecological equilibrium of our planet.Land serves as the foundation for all human activities and provides the necessary materials for
these activities. As the most crucial natural resource, its utilization by humans results in different
'Land uses,' which are determined by both human activities and the physical characteristics of the
land.
The utilization of land is impacted by human needs and environmental factors. In countries
like India, rapid population growth and the emphasis on extensive resource exploitation can lead
to significant land degradation, adversely affecting the region's land cover.
Therefore, human intervention has significantly influenced land use patterns over many
centuries, evolving its structure over time and space. In the present era, these changes have
accelerated due to factors such as agriculture and urbanization. Information regarding land use and
cover is essential for various planning and management tasks related to the Earth's surface,
providing crucial environmental data for scientific, resource management, policy purposes, and
diverse human activities.
Accurate understanding of land use and cover is imperative for the development planning
of any area. Consequently, a wide range of professionals, including earth system scientists, land
and water managers, and urban planners, are interested in obtaining data on land use and cover
changes, conversion trends, and other related patterns. The spatial dimensions of land use and
cover support policymakers and scientists in making well-informed decisions, as alterations in
these patterns indicate shifts in economic and social conditions. Monitoring such changes with the
help of Advanced technologies like Remote Sensing and Geographic Information Systems is
crucial for coordinated efforts across different administrative levels. Advanced technologies like
Remote Sensing and Geographic Information Systems
9
Changes in vegetation cover refer to variations in the distribution, composition, and overall
structure of plant communities across different temporal and spatial scales. These changes can
occur natural.
How to Create a More Engaging and Human Online Learning Experience
How to Create a More Engaging and Human Online Learning Experience Wahiba Chair Training & Consulting
Wahiba Chair's Talk at the 2024 Learning Ideas Conference. ANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
it describes the bony anatomy including the femoral head , acetabulum, labrum . also discusses the capsule , ligaments . muscle that act on the hip joint and the range of motion are outlined. factors affecting hip joint stability and weight transmission through the joint are summarized.
Solutons Maths Escape Room Spatial .pptx
Solutions of Puzzles of Mathematics Escape Room Game in Spatial.io
Recently uploaded (20)
Film vocab for eal 3 students: Australia the movie
Film vocab for eal 3 students: Australia the movie
Pengantar Penggunaan Flutter - Dart programming language1.pptx
Pengantar Penggunaan Flutter - Dart programming language1.pptx
Liberal Approach to the Study of Indian Politics.pdf
Liberal Approach to the Study of Indian Politics.pdf
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
BÀI TẬP BỔ TRỢ TIẾNG ANH LỚP 9 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2024-2025 - ...
BÀI TẬP BỔ TRỢ TIẾNG ANH LỚP 9 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2024-2025 - ...
Constructing Your Course Container for Effective Communication
Constructing Your Course Container for Effective Communication
Your Skill Boost Masterclass: Strategies for Effective Upskilling
Your Skill Boost Masterclass: Strategies for Effective Upskilling
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UP
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UP
How to Create a More Engaging and Human Online Learning Experience
How to Create a More Engaging and Human Online Learning Experience
internal factors affecting pricing
- 1. WELCOME
- 2. INTERNAL FACTORS AFFECTING PRICING
- 3. 1. MARKETING OBJECTIVES Before setting a price, the company must decide on its strategy for the product. If the company has selected its target market and positioning carefully, then its marketing mix strategy, including price, will be fairly straightforward.
- 4. 2. MARKETING MIX STRATEGY Price decisions must be coordinated with other variables of the marketing mix like product design promotion and distribution. So many decisions made for any other variable in the marketing mix could affect or influence pricing decisions.
- 5. 3. COST OF THE PRODUCT The company wants to charge a price that both covers all its costs for producing, distributing, and selling the product and delivers a fair rate of return for its effort and risk. A company's costs may be an important element in its pricing strategy.
- 6. 4. ORGANIZATIONAL CONSIDERATIONS Management must decide who within the organization should set prices. Companies handle pricing in a variety of ways. Normally overall pricing strategy is formulated by top level management and actual fixing of prices is done by lower level management
- 7. 5. PRODUCT LIFE CYCLE Price is influenced by the life cycle stage of a product. Price is varied according to the stage in the life cycle. Different pricing strategies are followed during introduction, growth, maturity, and decline stages of the product life cycle.
- 8. THANK YOU