Pricing
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This document discusses various aspects of pricing decisions and strategies. It defines price and lists common types of prices like rent, wages, etc. It outlines objectives of pricing such as profit, sales, stability. It also covers determinants of pricing like costs and competition. The document then describes different methods of setting prices including cost-plus, competition-based, and value-based pricing. It concludes by outlining pricing strategies over a product lifecycle and how to respond to price changes.
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Pricing
- 1. Pricing Decisions Dr. Gopal Thapa Nepal Commerce Campus Email:thapazee@gmail.com
- 2. Price ◼ Interest ◼ Rent ◼ Salary ◼ Wages ◼ Tax ◼ Fare ◼ Commission ◼ Premium ◼ Fee etc.
- 3. Price ◼ Price is the amount of money and or other items with utility needed to acquire a product. ◼ Stanton
- 4. Objectives of Pricing ◼ Profit-oriented objectives ◼ Target return ◼ Satisfactory profit ◼ Sales-oriented objectives ◼ Sales volume ◼ Market share ◼ Status quo-oriented objectives ◼ Price stability ◼ Meet competition ◼ Survival ◼ Quality oriented objectives ◼ Quality leadership ◼ Quality imitation
- 5. Importance of Pricing ◼Importance to the economy ◼ Factor of production ◼ Supply and demand ◼ Saving and investment ◼ Economic management
- 6. Importance of Pricing ◼Importance to the firm ◼ Profitability ◼ Market share ◼ Non-price competition
- 7. Importance of Pricing ◼Importance to the customer ◼ Product choice ◼ Quality of the product ◼ Customer value
- 8. Determinants of Pricing ◼ Internal Factors ◼ Pricing objectives ◼ Costs ◼ Other elements of marketing mix ◼ Organization structure ◼ External Factors ◼ Market demand ◼ Competition ◼ Market intermediaries ◼ Government ◼ Pressure groups
- 9. Methods of Pricing ◼ Cost-oriented pricing ◼ Cost-plus ◼ Target return ◼ Break-even ◼ Competition oriented pricing ◼ Meet competition ◼ Below competition ◼ Above competition ◼ Sealed-bid pricing ◼ Value-oriented pricing ◼ Customer value pricing ◼ Perceived value pricing
- 10. Initiating Price Change ◼ Initiating price cuts ◼ Excess capacity ◼ Market share ◼ Price war ◼ Recession ◼ Initiating price increases ◼ Inflation ◼ Over-demand ◼ Quality ◼ Tax
- 11. Pricing Policies ◼ Single price policy ◼ Flexible price policy ◼ Geographical price policy ◼ Product-mix price policy
- 12. Flexible Price Policy ◼ Price discrimination ◼ Discounts: ◼ Cash discount ◼ Quantity discount ◼ Trade/functional discount ◼ Seasonal discount ◼ Allowances ◼ Trade-in allowance ◼ Promotional allowance
- 13. Geographical Price Policy ◼ Free on Board (FOB) ◼ Zone price ◼ Base point price ◼ Uniform delivered price ◼ Freight absorption price
- 14. Product-Mix Price Policy ◼ Product line price ◼ Optional feature price ◼ Product bundle price ◼ Two-part price ◼ Ancillary-product price
- 15. Pricing Strategies ◼ Product life cycle strategy ◼ Introduction stage ◼ Price skimming ◼ Competitive pricing ◼ Penetration pricing ◼ Growth stage ◼ Maturity stage ◼ Decline stage
- 16. Pricing Strategies ◼Price change strategy ◼ Price increase ◼ Price decrease ◼ Price maintain
- 17. Pricing Strategies ◼Price response strategy ◼ Competitive pricing strategy ◼ Do nothing strategy ◼ Non-price competition
- 18. Pricing Strategies ◼Psychological pricing strategies ◼ Prestige pricing ◼ Odd-even pricing ◼ Psychological discounting ◼ Customary pricing ◼ Promotional pricing