The document outlines steps for determining pricing, including understanding objectives, estimating demand, calculating costs, analyzing competitors, selecting a pricing method, and deciding the final price. It discusses factors like demand forecasting, elasticity, costs, competitors' offerings, and various pricing methods. The final section covers adapting prices for things like geography, discounts, promotions, customer segments, optional features, and by-products.

1.  How to decide the prices?
 How to change prices with changed channels?
 How to match prices
with quality?
 How to respond to
competition?
 How to price an
improved product?
 How to price in different
Countries?

2. Final product price
Competitor’s
price
Cost
function
Customer’s
demand

3. I Understanding the pricing objective
II Estimating the level of demand
III Costs calculation
IV Analyzing competitors offerings
V Selecting a pricing method
VI Deciding the final price

4. Survival
Maximum current
profit
Maximum market share/
penetration pricing
Maximum market
skimming
Product quality
leadership

5.  Demand forecasting:
Statistical tools
Price experiments
Customer survey
 Elasticity of demand

6.  Fixed cost
 Variable cost
 Average cost

7. Analyze product differences
Analyze cost differences
Analyze price differences
Analyze offering differences

8.  Target return pricing
 Mark up pricing
 Perceived value pricing
 Going rate pricing
 Auction type pricing
 Sealed bid pricing
 Group pricing

9. Psychological
pricing
Gain & risk
share pricing
Effect of other
p’s on price
Company
pricing policy

10. VII Adapting the price
 Geographical pricing
 Discounts
 Promotional pricing
 Discriminatory pricing
 Product mix pricing
 Optional feature pricing
 By-product pricing