This document discusses pricing strategies for new products and trade promotion. It presents different approaches to pricing a new product such as penetrating pricing or skimming. It also outlines rules for pricing like ensuring prices cover costs and profits. The document then defines trade promotion as marketing activities to promote new or existing products. It lists types of trade promotions like in-store displays or temporary price reductions. Finally, it notes some issues with trade promotion including a lack of timely analytics and ineffective organization between partners.

1. PRICING THE NEW PRODUCT
& TRADE PROMOTION
Diwakar Silwal
diwakarsilwal@gmail.com

2. PRICING THE NEW PRODUCT
New product pricing apart of New
Product development……
NPD
PRICING

3. NEW PRODUCT PRICING

4. HOW SHOULD WE CHARGE FOR A NEW
PRODUCT??
PENETRATING
PRICING
SKIMMING

5. CONSUMER VIEW ON MRP

6. RULES OF PRICING
All prices must cover costs and profits
The most effective way to lower prices is to lower
costs
Review prices frequently to assure that they reflect the
dynamics of cost, market demand, response to the
competition, and profit objectives
Prices must be established to assure sales

7. TRADE PROMOTION
Marketing or Promotional activities undertaken to promote a
new product, increase sales of existing product, expand
market share or create a brand awareness.
Trade shows, Special pricing, sales incentives, discounted or
free display fixture, demonstration, tour, free tickets such as
movies, parties, sporting events, novelties etc.

8. TYPES OF TRADE PROMOTION
In-store displays
Temporary Price
Reductions (TPR)
Coupons
Contest
Sampling
Rebates

9. ISSUE IN TRADE PROMOTION
Issue in
trade
promotion
Lack of
accurate
timely
information
Inability to
plan
promotions
based on
analytics
Ineffective
organization
and partner
integration
Lack of
appropriate
Key
Performance
Indicators
(KPI)

10. Activity effects on Sales
50%
30%
20%
Marketing &
Advertising
Trade
Promotion
Consumer
Promotion

11. THANK YOU  !!!