The details about market based and competitor based pricing

1. APPA
INSTITUTE OF ENGINEERING & TECHNOLOGY
DEPARTMENT OF MBA
PRESENTATION ON:
MARKET BASED&COMPETITOR BASED PRICING
SUBMITTED TO:
PROF.BASAVARAJ.S.M
SUBMITTED BY:
MAHESH.PATIL

2. WHAT IS MARKET BASED
PRICING...???

3. The process of establishing a price for a
product or service based upon existing
market condition is known as market
based pricing.

4. Market based method
1.Customer perceived value :
- what customer value the product at
-price is set at an estimate of the products
value to customer

5. 2. Psychological price barriers
 Prices are set based upon the psychological
expectation of customers about price.

6. 3. Going rate pricing
 Going rate pricing is a common practice with
homogeneous products with very little variation from
one product to another.

7. WHAT IS COMPETITOR BASED
PRICING...???

8. Meaning:
 Competitive pricing strategies based on the
firm’s position in relation to its competition

9. Competition based pricing
This pricing method is useful when the product is
homogeneous and market is highly competitive.
Under this method, the company tries to maintain
the price of its products more or less at par with its
competitors price. This pricing method includes :
i. Premium pricing
ii. Discount pricing
iii. Tender pricing

10. Competition based pricing
(i) Premium pricing
Premium pricing means pricing above the
level adopted by competitors.
(ii) Discount pricing
Discount pricing means pricing below the
level adopted by competitors.

11. Competition based pricing
(iii) Tender pricing
In this method the sellers tries to base the price of bid on
the basis of the competitor’s price. It is more applicable to
industrial products and the products or services purchased
and contracted by institutional customers. Such
customers usually go by competitive bidding through
sealed tenders or by quotations.

12. THANK YOU...!!!