1. Price is determined by what customers are willing to exchange to obtain a product, which may include money, goods, services or other valuable considerations.
2. Setting price involves estimating demand, determining costs, and selecting an appropriate price point based on objectives and constraints. Key factors include demand elasticity, competitors' prices, and customers' perceived value.
3. Pricing strategies can be based on costs, demand factors, or competitors, and involve techniques like cost-plus pricing, value-based pricing, price bundling or discounts. Psychological pricing tactics also influence customers' perceptions of quality and value.
New-Product Pricing Strategies
Product Mix Pricing Strategies
Price Adjustment Strategies
Price Changes
Market-skimming pricing is a strategy with high initial prices to “skim” revenue layers from the market
Product quality and image must support the price
Buyers must want the product at the price
Costs of producing the product in small volume should not cancel the advantage of higher prices
Competitors should not be able to enter the market easily
Market-penetration pricing sets a low initial price in order to penetrate the market quickly and deeply to attract a large number of buyers quickly to gain market share
Price-sensitive market
Inverse relationship of production and distribution cost to sales growth
Low prices must keep competition out of the market
New-Product Pricing Strategies
Product Mix Pricing Strategies
Price Adjustment Strategies
Price Changes
Market-skimming pricing is a strategy with high initial prices to “skim” revenue layers from the market
Product quality and image must support the price
Buyers must want the product at the price
Costs of producing the product in small volume should not cancel the advantage of higher prices
Competitors should not be able to enter the market easily
Market-penetration pricing sets a low initial price in order to penetrate the market quickly and deeply to attract a large number of buyers quickly to gain market share
Price-sensitive market
Inverse relationship of production and distribution cost to sales growth
Low prices must keep competition out of the market
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.
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.
pricing involves the customer demand schedule, the cost function, and competitors’ prices. The question is how should a company integrate cost-, demand-, and competition-based pricing considerations? In setting a price the firm, for example Kodak, will have to consider the following cost-, demand-, and competition-based pricing decisions:
Democratizing Fuzzing at Scale by Abhishek Aryaabh.arya
Presented at NUS: Fuzzing and Software Security Summer School 2024
This keynote talks about the democratization of fuzzing at scale, highlighting the collaboration between open source communities, academia, and industry to advance the field of fuzzing. It delves into the history of fuzzing, the development of scalable fuzzing platforms, and the empowerment of community-driven research. The talk will further discuss recent advancements leveraging AI/ML and offer insights into the future evolution of the fuzzing landscape.
Hybrid optimization of pumped hydro system and solar- Engr. Abdul-Azeez.pdffxintegritypublishin
Advancements in technology unveil a myriad of electrical and electronic breakthroughs geared towards efficiently harnessing limited resources to meet human energy demands. The optimization of hybrid solar PV panels and pumped hydro energy supply systems plays a pivotal role in utilizing natural resources effectively. This initiative not only benefits humanity but also fosters environmental sustainability. The study investigated the design optimization of these hybrid systems, focusing on understanding solar radiation patterns, identifying geographical influences on solar radiation, formulating a mathematical model for system optimization, and determining the optimal configuration of PV panels and pumped hydro storage. Through a comparative analysis approach and eight weeks of data collection, the study addressed key research questions related to solar radiation patterns and optimal system design. The findings highlighted regions with heightened solar radiation levels, showcasing substantial potential for power generation and emphasizing the system's efficiency. Optimizing system design significantly boosted power generation, promoted renewable energy utilization, and enhanced energy storage capacity. The study underscored the benefits of optimizing hybrid solar PV panels and pumped hydro energy supply systems for sustainable energy usage. Optimizing the design of solar PV panels and pumped hydro energy supply systems as examined across diverse climatic conditions in a developing country, not only enhances power generation but also improves the integration of renewable energy sources and boosts energy storage capacities, particularly beneficial for less economically prosperous regions. Additionally, the study provides valuable insights for advancing energy research in economically viable areas. Recommendations included conducting site-specific assessments, utilizing advanced modeling tools, implementing regular maintenance protocols, and enhancing communication among system components.
Water scarcity is the lack of fresh water resources to meet the standard water demand. There are two type of water scarcity. One is physical. The other is economic water scarcity.
TECHNICAL TRAINING MANUAL GENERAL FAMILIARIZATION COURSEDuvanRamosGarzon1
AIRCRAFT GENERAL
The Single Aisle is the most advanced family aircraft in service today, with fly-by-wire flight controls.
The A318, A319, A320 and A321 are twin-engine subsonic medium range aircraft.
The family offers a choice of engines
Event Management System Vb Net Project Report.pdfKamal Acharya
In present era, the scopes of information technology growing with a very fast .We do not see any are untouched from this industry. The scope of information technology has become wider includes: Business and industry. Household Business, Communication, Education, Entertainment, Science, Medicine, Engineering, Distance Learning, Weather Forecasting. Carrier Searching and so on.
My project named “Event Management System” is software that store and maintained all events coordinated in college. It also helpful to print related reports. My project will help to record the events coordinated by faculties with their Name, Event subject, date & details in an efficient & effective ways.
In my system we have to make a system by which a user can record all events coordinated by a particular faculty. In our proposed system some more featured are added which differs it from the existing system such as security.
Welcome to WIPAC Monthly the magazine brought to you by the LinkedIn Group Water Industry Process Automation & Control.
In this month's edition, along with this month's industry news to celebrate the 13 years since the group was created we have articles including
A case study of the used of Advanced Process Control at the Wastewater Treatment works at Lleida in Spain
A look back on an article on smart wastewater networks in order to see how the industry has measured up in the interim around the adoption of Digital Transformation in the Water Industry.
Quality defects in TMT Bars, Possible causes and Potential Solutions.PrashantGoswami42
Maintaining high-quality standards in the production of TMT bars is crucial for ensuring structural integrity in construction. Addressing common defects through careful monitoring, standardized processes, and advanced technology can significantly improve the quality of TMT bars. Continuous training and adherence to quality control measures will also play a pivotal role in minimizing these defects.
About
Indigenized remote control interface card suitable for MAFI system CCR equipment. Compatible for IDM8000 CCR. Backplane mounted serial and TCP/Ethernet communication module for CCR remote access. IDM 8000 CCR remote control on serial and TCP protocol.
• Remote control: Parallel or serial interface.
• Compatible with MAFI CCR system.
• Compatible with IDM8000 CCR.
• Compatible with Backplane mount serial communication.
• Compatible with commercial and Defence aviation CCR system.
• Remote control system for accessing CCR and allied system over serial or TCP.
• Indigenized local Support/presence in India.
• Easy in configuration using DIP switches.
Technical Specifications
Indigenized remote control interface card suitable for MAFI system CCR equipment. Compatible for IDM8000 CCR. Backplane mounted serial and TCP/Ethernet communication module for CCR remote access. IDM 8000 CCR remote control on serial and TCP protocol.
Key Features
Indigenized remote control interface card suitable for MAFI system CCR equipment. Compatible for IDM8000 CCR. Backplane mounted serial and TCP/Ethernet communication module for CCR remote access. IDM 8000 CCR remote control on serial and TCP protocol.
• Remote control: Parallel or serial interface
• Compatible with MAFI CCR system
• Copatiable with IDM8000 CCR
• Compatible with Backplane mount serial communication.
• Compatible with commercial and Defence aviation CCR system.
• Remote control system for accessing CCR and allied system over serial or TCP.
• Indigenized local Support/presence in India.
Application
• Remote control: Parallel or serial interface.
• Compatible with MAFI CCR system.
• Compatible with IDM8000 CCR.
• Compatible with Backplane mount serial communication.
• Compatible with commercial and Defence aviation CCR system.
• Remote control system for accessing CCR and allied system over serial or TCP.
• Indigenized local Support/presence in India.
• Easy in configuration using DIP switches.
2. • Price is the value that customers give up
or exchange to obtain a desired product
• Payment may be in the form of money,
goods, services, favors, votes or
anything else that has value to the other
party.
3. Opportunity Costs
• The value of something that is given up to
obtain something else also affects the “price”
of a decision
• Example: the cost of going to college is
charged in tuition and fees but also includes
the opportunity cost of what a student cannot
earn by working instead
4. The Importance of Pricing Decisions
• Price is the only P which represents
revenue rather than an expense
• Pricing and the Marketing Mix
– Price and Place
– Price and Product
– Price and Promotion
5. The price of four different purchasesThe price of four different purchases
6. Identify objectives & constraints
Estimate demand & revenue
Determine cost, volume and profit
Set an approximate price level
Set List or Quoted price
Make adjustments to list price
Steps in setting priceSteps in setting price
7. Identifying Pricing constraints
– Demand for the Product Class, Product, and Brand
– Newness of the Product: Stage in the Product Life
Cycle
– Single Product versus a Product Line
– Cost of Producing and Marketing the Product
– Cost of Changing Prices & Time Period They Apply
– Types of Competitive Markets - Competitors’ Prices
9. Estimating Demand
• Demand refers to customers’ desire for products
– How much of a product do consumers want?
– How will this change as the price goes up or down?
• Identify demand for an entire product category in
markets the company serves
• Predict what the company’s market share is likely
to be
10. The Price Elasticity of Demand
• How sensitive are customers to changes in
the price of a product?
• Price elasticity of demand is a measure of
the sensitivity of customers to changes in
price.
• Price elasticity of demand = Percentage
change in quantity demanded / Percentage
change in price
11. Demand Curves
• Shows the quantity of a product that
customers will buy in a market during a
period of time at various prices if all other
factors remain the same
• Vertical axis represents the different prices
a firm might charge
• Horizontal axis shows the number of units
13. Influences on Price Elasticity of Demand
• Availability of substitute goods or services
– If a product has a close substitute, its demand will be elastic
• Time period
– The longer the time period, the greater the likelihood that
demand will be more elastic
• Income effect
– Change in income affects demand for a product even if its
price remains the same
• normal goods, luxury goods, inferior goods
15. Types of Costs - 1
• Variable costs - per-unit costs of production
that will fluctuate depending on how many
units or individual products a firm produces
• Fixed costs - do not vary with the number of
units produced. Costs remain the same
regardless of amount produced
16. Types of Costs - 2
• Average fixed cost is the fixed cost per unit
produced (total fixed costs / number of units
produced)
• Total costs = variable costs plus fixed costs
17. Break-Even Analysis
• Technique used to examine the relationship
between cost and price and to determine what
sales volume must be reached at a given price
before the company will completely cover its
total costs and past which it will begin making a
profit
• All costs are covered but there isn’t a penny left
over
19. Marginal Analysis
• Provides a way for marketers to look at cost and
demand at the same time
• Examines the relationship of marginal cost to
marginal revenue
– marginal cost is the increase in total costs from producing
one additional unit of a product
– marginal revenue is the increase in total income or revenue
that results from selling one additional unit of a product
21. Pricing Strategies Based on Cost
• Advantages
– Simple to calculate
– Relatively risk free
• Disadvantages
– Fail to consider several
factors
• target market
• demand
• competition
• product life cycle
• product’s image
– Difficult to accurately
estimate costs
22. Cost-Plus Pricing
• Most common cost-based approach
• Marketer figures all costs for the product and
then adds desired profit per unit
• Straight markup pricing is the most frequently
used type of cost-plus pricing
– price is calculated by adding a pre-determined
percentage to the cost
23. Steps in Cost-Plus Pricing
• Estimate unit cost
• Calculate markup
– Markup on cost
– Markup on selling price - markup percentage is the
seller’s gross margin
• gross margin is the difference between the cost to the
wholesaler or retailer and the price needed to cover
overhead and profit
24. Cost Plus Pricing Excerpt
• Fixed costs = $2,000,000
• Number of jeans produced = 400,000
• Fixed costs per unit = $5
• Variable costs per unit = $15
• Markup as % of costs = 25%
• Markup on cost
– Price = total cost + (total cost * markup percentage)
– Price = $20 + ($20 * .25) = $20 + $5 = $25
26. Price Floor Pricing
• Method for calculating price that considers both costs
and what can be done to assure that a plant can operate
at capacity
• Typically used when market conditions make it
impossible for a firm to sell enough
• If the price-floor price can be set above the variable
costs, the firm can use the difference to increase profits
or cover fixed costs
27. Pricing Strategies Based on Demand-1
• Demand-based pricing means that the selling
price is based on an estimate of volume or
quantity that a firm can sell in different markets
at different prices
• Demand-backward pricing starts with a
customer-pleasing price and works backward to
costs
28. Pricing Strategies Based on Demand-2
• Chain-Markup Pricing extends demand
backward pricing from end consumer back
to the manufacturer
– Example:
• Price customers are willing to pay = $39.99
• Markup required by retailer = 40%
• Price retailer will pay $39.99 * .60 = $23.99
29. Pricing Strategies Based on Competition
• Competitive parity - price products at near the
competition
• Price leadership - price products based on
prices of industry leaders
• Loss leaders - price products below competition
30. Pricing Strategies Based on Customers’ Needs
• Cost of ownership strategy - price consumers
pay for product, plus the cost of maintaining
and using the product, less any resale value
(e.g., Sanyo batteries)
• Value pricing (EDLP*) - offers a fair value to
consumers (e.g., Kmart’s blue light specials)
** EDLP = everyday low pricing
31. New Product Pricing
• Skimming price - firm charges a high, premium
price for its new product with the intention of
reducing it in future response to market pressures
• Penetration pricing - new product is introduced
at a very low price
• Trial pricing - product carries a low price for a
limited time period
32. Pricing Tactics
• Pricing for Individual Products
– two-part pricing (e.g., country clubs)
– payment pricing (e.g., easy payments for new cars)
• Pricing for Multiple Products
– Price bundling (e.g., monitor, keyboard, CPU in a
computer package)
– Captive pricing (e.g., razors and razor blades)
34. Discounting for Channel Members
• Trade or functional discounts
• Quantity discounts
• Cash discounts
• Seasonal discounts
35. Trade Discounts
• Pricing structure built around list price
– List price, also called suggested retail price, is
the price that the manufacturer sets as the
appropriate price for the end consumer
– Manufacturers offer discounts because channel
members perform selling, credit, storage and
transportation services
36. Pricing with Electronic Commerce
• Dynamic pricing strategies
– price can be adjusted to meet changes in the
marketplace
– online price changes can occur quickly, easily, and
at virtually no cost
• Auctions
– sites offer chance to bid on items
– sites offer reverse-price auctions
37. Price Discrimination
• Means that marketers classify customers based
on some characteristic that indicates what they
are willing or able to pay
• Acceptable when price differences are in
response to
– changes in cost of product
– changes in competitive activity
38. Psychological Issues in Pricing
• Internal Reference Prices - consumers have a set price or
price range in their mind
– If the actual price is higher, consumers will feel the product is
overpriced
– If it is too low below the internal reference price, consumers
may assume its quality is inferior
• Competition as Reference Price - If the price is close, the
assimilation effect will encourage the customer to think
the products are similar enough and choose the lower
priced product
39. Price-Quality Inferences
• If consumers are unable to judge the quality
of a product through examination or prior
experience, they usually will assume that
the higher-priced product is the higher-
quality product
40. Price and Quality
Consumers tend to
associate high prices with
high quality. This Belgian
ad for Chat Noir coffee
tries to suggest otherwise.
It reads, “Quality coffee.
But we’ve really squeezed
the price.”
43. Legal and Ethical Considerations in Pricing
• Deceptive pricing practices
• Price discrimination
44. Deceptive Pricing Practices
• Retailers must not claim prices are lower than
competitors unless it is true
• A going out-of-business sale should be the last sale
before going out of business
• Bait-and-switch - consumers are lured into store for a
very low price, but then the item is not available. A
more expensive product is offered instead
– Trading up is acceptable
45. Price Discrimination
• Means selling the same product to different
wholesalers and retailers at different prices
if practices lessen competition
46. Price Fixing
• Occurs when two or more companies
conspire to keep prices at a certain level
– Horizontal price fixing occurs when competitors
making the same product jointly determine what
price they each will charge
– Vertical price fixing occurs when manufacturers
attempt to force the retailer to charge the suggested
retail price
47. Predatory Pricing
• Means that a company sets a very low price
for the purpose of driving competitors out
of business.
48. Dumping (US)
• Selling in foreign market at or below cost
• Selling in a foreign market more than 5%
below price in home market