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
Theoretically, retailers maximize their profits by setting prices based on the price sensitivity of customers and the cost of merchandise and considering the prices being charged by competitors. Initial markup – retail selling price initially set for the merchandise minus the cost of the merchandise
Theoretically, retailers maximize their profits by setting prices based on the price sensitivity of customers and the cost of merchandise and considering the prices being charged by competitors. Initial markup – retail selling price initially set for the merchandise minus the cost of the merchandise
When most people in the industry talk about online or digital reputation management, what they're really saying is Google search and PPC. And it's usually reactive, left dealing with the aftermath of negative information published somewhere online. That's outdated. It leaves executives, organizations and other high-profile individuals at a high risk of a digital reputation attack that spans channels and tactics. But the tools needed to safeguard against an attack are more cybersecurity-oriented than most marketing and communications professionals can manage. Business leaders Leaders grasp the importance; 83% of executives place reputation in their top five areas of risk, yet only 23% are confident in their ability to address it. To succeed in 2024 and beyond, you need to turn online reputation on its axis and think like an attacker.\
Key Takeaways:
- New framework for examining and safeguarding an online reputation
- Tools and techniques to keep you a step ahead
- Practical examples that demonstrate when to act, how to act and how to recover
Short video marketing has sweeped the nation and is the fastest way to build an online brand on social media in 2024. In this session you will learn:- What is short video marketing- Which platforms work best for your business- Content strategies that are on brand for your business- How to sell organically without paying for ads.
Digital marketing is the art and science of promoting products or services using digital channels to reach and engage with potential customers. It encompasses a wide range of online tactics and strategies aimed at increasing brand visibility, driving website traffic, generating leads, and ultimately, converting those leads into customers.
https://nidmindia.com/
AI-Powered Personalization: Principles, Use Cases, and Its Impact on CROVWO
In today’s era of AI, personalization is more than just a trend—it’s a fundamental strategy that unlocks numerous opportunities.
When done effectively, personalization builds trust, loyalty, and satisfaction among your users—key factors for business success. However, relying solely on AI capabilities isn’t enough. You need to anchor your approach in solid principles, understand your users’ context, and master the art of persuasion.
Join us as Sarjak Patel and Naitry Saggu from 3rd Eye Consulting unveil a transformative framework. This approach seamlessly integrates your unique context, consumer insights, and conversion goals, paving the way for unparalleled success in personalization.
SEO as the Backbone of Digital MarketingFelipe Bazon
In this talk Felipe Bazon will share how him and his team at Hedgehog Digital share our journey of making C-Levels alike, specially CMOS realize that SEO is the backbone of digital marketing by showing how SEO can contribute to brand awareness, reputation and authority and above all how to use SEO to create more robust global marketing strategies.
Mastering Multi-Touchpoint Content Strategy: Navigate Fragmented User JourneysSearch Engine Journal
Digital platforms are constantly multiplying, and with that, user engagement is becoming more intricate and fragmented.
So how do you effectively navigate distributing and tailoring your content across these various touchpoints?
Watch this webinar as we dive into the evolving landscape of content strategy tailored for today's fragmented user journeys. Understanding how to deliver your content to your users is more crucial than ever, and we’ll provide actionable tips for navigating these intricate challenges.
You’ll learn:
- How today’s users engage with content across various channels and devices.
- The latest methodologies for identifying and addressing content gaps to keep your content strategy proactive and relevant.
- What digital shelf space is and how your content strategy needs to pivot.
With Wayne Cichanski, we’ll explore innovative strategies to map out and meet the diverse needs of your audience, ensuring every piece of content resonates and connects, regardless of where or how it is consumed.
Mastering Local SEO for Service Businesses in the AI Era is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
5 big bets to drive growth in 2024 without one additional marketing dollar AND how to adapt to the biggest shifting eCommerce trend- AI.
1) Romance Your Customers - Retention
2) ‘Alternative’ Lead Gen - Advocacy
3) The Beautiful Basics - Conversion Rate Optimization
4) Land that Bottom Line - Profitability
5) Roll the Dice - New Business Models
In this presentation, Danny Leibrandt explains the impact of AI on SEO and what Google has been doing about it. Learn how to take your SEO game to the next level and win over Google with his new strategy anyone can use. Get actionable steps to rank your name, your business, and your clients on Google - the right way.
Key Takeaways:
1. Real content is king
2. Find ways to show EEAT
3. Repurpose across all platforms
Monthly Social Media News Update May 2024Andy Lambert
TL;DR. These are the three themes that stood out to us over the course of last month.
1️⃣ Social media is becoming increasingly significant for brand discovery. Marketers are now understanding the impact of social and budgets are shifting accordingly.
2️⃣ Instagram’s new algorithm and latest guidance will help us maintain organic growth. Instagram continues to evolve, but Reels remains the most crucial tool for growth.
3️⃣ Collaboration will help us unlock growth. Who we work with will define how fast we grow. Meta continues to evolve their Creator Marketplace and now TikTok are beginning to push ‘collabs’ more too.
How to Run Landing Page Tests On and Off Paid Social PlatformsVWO
Join us for an exclusive webinar featuring Mariate, Alexandra and Nima where we will unveil a comprehensive blueprint for crafting a successful paid media strategy focused on landing page testing.With escalating costs in paid advertising, understanding how to maximize each visitor’s experience is crucial for retention and conversion.
This session will dive into the methodologies for executing and analyzing landing page tests within paid social channels, offering a blend of theoretical knowledge and practical insights.
The Pearmill team will guide you through the nuances of setting up and managing landing page experiments on paid social platforms. You will learn about the critical rules to follow, the structure of effective tests, optimal conversion duration and budget allocation.
The session will also cover data analysis techniques and criteria for graduating landing pages.
In the second part of the webinar, Pearmill will explore the use of A/B testing platforms. Discover common pitfalls to avoid in A/B testing and gain insights into analyzing A/B tests results effectively.
Top 3 Ways to Align Sales and Marketing Teams for Rapid GrowthDemandbase
In this session, Demandbase’s Stephanie Quinn, Sr. Director of Integrated and Digital Marketing, Devin Rosenberg, Director of Sales, and Kevin Rooney, Senior Director of Sales Development will share how sales and marketing shapes their day-to-day and what key areas are needed for true alignment.
Mastering Local SEO for Service Businesses in the AI Era is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
2. Definition
Price is the amount of money and or other item with utility
needed to acquire a product.
“In the narrowest sense, price is the amount of money
charged for a product or service” Philip Kotler and Gary
Armstrong
Price is the sum of all values that consumers exchange for
the benefits of having or using the product or service.
“Price is a monetary summary of the conditions which give
value to a ware”Walton Hamilton
Price is the amount of money that is paid for a product
or a service
3. Meaning
Pricing is a function of determining product
value in terms of money. It is managerial
process which includes the objectives of
pricing, available price flexibilities, factors
influencing price determination, monetary
value of product, and determination
implementation governance of the pricing
policies and strategies.
4. Objectives of
Pricing
Profit Oriented Objectives
To Maximize Profits
To skim the cream price
To achieve a target return on sales
To achieve a target return on investment
To earn reasonable profits
To minimize losses
Sales Oriented Objectives
To maximize sales volume
To maintain market share
To maximize market share
To maximize number of customer
Status-quo Oriented Objectives
To face competitive situation
To ensure existence
Stabilizing prices
To face non-price competition.
5. Factors
Influencing
Price
The following factors may be considered while taking a decision for pricing a
product:
Product Characteristics
Life cycle of the product
Perishability of the product
Product substitution
Postponement of the product demand
Cost of the product
Fixed cost
Variable cost
Incremental cost
Nature of the demand of a product
Nature of the demand can be divided as follows
Perfectly elastic demand
Excessive elastic demand
Elastic demand
Inelastic demand
Perfectly inelastic demand
6. Levels of Distribution
Direct Distribution
Indirect distribution
Level of Competition
Business Goals
Advertising and Sales Promotion Efforts
Trade Customers
Government Policies
Buyers Characteristics
Factors
Influencing
Price
7. Methods of
Pricing
There are several methods of pricing. Each of
them is appropriate for achieving a particular
pricing objectives.
• Cost Based Pricing
• Demand/Market based pricing
• Competition Oriented Pricing
• Product Line Pricing
• Tender Pricing
• Affordability based Pricing
• Differentiated Pricing
9. Markup pricing
orCost Plus
Pricing and
Absorption
Cost Pricing
Markup pricing or Cost Plus Pricing
Markup pricing refers to the pricing method in which the selling price of
the product is fixed by adding a margin to the cost price.The mark ups
vary depending upon nature of products and markets.
According to this method selling price is calculated as
𝑆. 𝑃 =
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐶𝑜𝑠𝑡 𝑃𝑒𝑟 𝑈𝑛𝑖𝑡
1 − 𝐷𝑒𝑠𝑖𝑟𝑒𝑑 𝑀𝑎𝑟𝑘 𝑈𝑝 𝑃𝑟𝑖𝑐𝑖𝑛𝑔
Markup Pricing or Cost plus pricing is a cost-based method for setting the
prices of goods and services. Under this approach, you add together the
direct material cost, direct labor cost, and overhead costs for a product, and
add to it a markup percentage (to create a profit margin) in order to derive
the price of the product.
10. Markup Pricing
Advantages:
Company knows exactly the amount of expenditure that has incurred on
making a product
It is the simplest method to decide the price for a product
Since company is using its own data for deciding cost which makes it easier
for a company to evaluate the reasons for escalations
Disadvantages
This method does not take into account the future demand for a product
It also does not taken into account the competitor actions and its effects on
pricing of the product
It can result in company overestimating the price of a product
11. Absorption
Costing
Absorption Cost Pricing
It rests on the estimated unit cost of the product at the normal level
of production and sales. The method uses standard cost techniques
and works out the variable and fixed costs of sales, production etc.
when the cost of these three operations are added, the total cost
becomes available. To the total cost, the required margin is added
towards profit and total becomes the selling price of the product.
12. Absorption
cost pricing
Advantages
Consideration of Fixed Costs
Seasonal Sales
Conformity with Accrual and Matching Concepts
External Reporting
No Need to Separate Costs as Fixed andVariable
Relevance of Under-absorption and Over-absorption
Accountability of Departmental Managers
Limitations
Fixed Costs are Period Costs
Apportionment of Overhead Costs
Not Useful in Decision Making
Inflated, Not Real, Profit
Impact on Long-Term Profit
13. Rate of Return
Pricing or
Target Pricing
Method
Cost-Based Pricing
If a small business owner makes three types of scented candle, she must decide
on an appropriate price to charge for each candle before bringing the products
to market. The most basic way to calculate a reasonable price for the candles is
to calculate how much each candle costs to produce and then add a certain
percentage as profit or do without a profit temporarily to break into the market.
However, determining which costs to include is not always straightforward.
Full-Cost Pricing
When calculating cost-based pricing, the business owner must decide whether
to include only the costs directly associated with that specific product or all the
costs of the business. Full-cost or fully distributed cost pricing includes a share
of all business costs in the final price. In the case of the scented candle business,
the rent on a table at a local Renaissance fair would be an example of a shared
cost. In a full-cost pricing strategy, the table rent would be divided in three and
assigned equally to each of the three types of candles to cover the cost.
Marginal-Cost Pricing
In a marginal-cost pricing system, the cost of the product does not include fixed
costs that are not specific to that product. The cost of the table rent is not
considered part of the cost of the candle. Instead, the owner calculates the
costs for producing that particular candle and then adds a margin equal to the
cost of making one more candle. The margin can be used to help the business
owner pay for the table rent if she chooses, but doesn't put an equal share of
the rental cost on a candle that may prove less profitable.
14. Rate of Return
Pricing orTarget
Pricing Method &
MarginalCost
Pricing
Rate of Return Pricing or Target Pricing Method: An arbitrary
desired rate of profit on the capital invested is determined by the
firm. This desired rate of profit is calculated on the basis of the
rate of return.
Marginal Cost Pricing: The marginal cost pricing aims at
maximizing the contribution towards fixed costs. The marginal
cost will include all direct and variable costs of product. In
marginal costing the direct variable costs as well as some of the
part of fixed cost is also realized.
15. Demand/Mark
et Based
Pricing
Demand-based pricing, also known as customer-based pricing, is
any pricing method that uses consumer demand - based on
perceived value - as the central element.
These include: price skimming, price discrimination, psychological
pricing, bundle pricing, penetration pricing, and value-based pricing.
17. Demand/Mark
et Based
Pricing
Price skimming is a pricing strategy in which a marketer sets a
relatively high price for a product or service at first, then lowers the
price over time.
Price discrimination exists when sales of identical goods or services
are transacted at different prices from the same provider.
Psychological pricing is a marketing practice based on the theory that
certain prices have a psychological impact.
Bundle pricing is a marketing strategy that involves offering several
products for sale as one combined product.
Penetration pricing is the pricing technique of setting a relatively low
initial entry price, often lower than the eventual market price, to
attract new customers.
Value-based pricing sets prices primarily on the value, perceived or
estimated, to the customer rather than on the cost of the product or
historical prices.
18. Competition
Oriented
Pricing
Competitive-based pricing, or market-oriented pricing, involves setting a
price based upon analysis and research compiled from the target market
.With competition pricing, a firm will base what they charge on what other
firms are charging.
Competitive pricing is setting the price of a product or service based on
what the competition is charging. This pricing method is used more often
by businesses selling similar products, since services can vary from business
to business, while the attributes of a product remain similar.
Competitive based
pricing
Premium Pricing Parity Pricing Discount Pricing
19. Product Line
Pricing
The process used by retailers of separating goods into cost categories in
order to create various quality levels in the minds of consumers. Effective
product line pricing by a business will usually involve putting sufficient
price gaps between categories to inform prospective buyers of quality
differentials.
20. Tender Pricing
To tender is to invite bids for a project, or to accept a formal offer such as a
takeover bid. Tender usually refers to the process whereby governments
and financial institutions invite bids for large projects that must be
submitted within a finite deadline
Business firms are often required to fix the prices of their products on
tender basis. Tender pricing is of special type though it is also a
competition oriented method of pricing. It is more applicable to industrial
products and the products or services purchased or contracted by
institutional customers. Such competitors usually go by competitive
bidding through sealed tenders or by quotation. They seek the best price
consistent with the minimum quality specifications
21. Affordability
Based Pricing
This method is relevant in respect of essential
commodities which meet the basic needs of all the
people. The idea here is to set prices in such a way that
all sections of population are in a position to buy and
consume the products to the required extent.
22. Differential
Pricing
The term differential pricing is used to describe the practice of charging
different prices to different buyers for the same quality and quantity of a
product, but it can also refer to a combination of price differentiation and
product differentiation.
1st Degree Price Discrimination is charging a different price based on the
customer. 2nd Degree Price Discrimination is charging a different price
based on quantity sold. 3rd Degree Price Discrimination is charging a
different price based on location of customer segment.
Price discrimination is illegal if it's done on the basis of race, religion,
nationality, or gender, or if it is in violation of antitrust or price-fixing laws.
23. Price
Determination
Process
Collecting basic information
Estimating product demand
Estimating and analyzing competitive reactions
Evaluating internal environment
Considering marketing mix components
Determining expected share of market
Selecting a suitable share of market
Selecting the prices