Presented by ABHISHEK RAVEENDRAN S2,MBA ROLL NO:1 PRICING STRATEGIES

Introduction Companies face dynamic pricing challenges from local and international markets and are impacted from a variety of sources including macro and micro economic issues and competitors. Price is equated to the sum of the values that consumers exchange for the benefits of having or using the product or service. Price is one of the most important and far-reaching of the variables that marketing managers control. Price is the only element of the marketing mix that produces revenues.

Price defined Price is the amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the product or service.

Factors to be considered before adopting a Pricing Strategy The demand for the Product/Service in the market The image of the company in the market. The expenditure incurred for producing the goods.

Factors affecting price decisions

Pricing strategies cost-plus pricing- cost-plus pricing- this pricing method assumes that no product is sold at a loss since the price covers the full cost incurred this pricing method assumes that no product is sold at a loss since the price covers the full cost incurred

Price Lining Pricing decision are taken initial stages of product and remain fixed period of time. Eg: Readymade dress material

Perceived value pricing The marketer establishes the value in the buyers mind concerning different competitive offers

Skim the cream pricing : Skim the cream pricing : it uses a very high introductory price to skim the cream of demand. Market penetration pricing : Market penetration pricing : this is just opposite to the Skim the cream pricing. It offers a very low introductory price to speed up the sales and therefore widening the market base.

Price discrimination: Price discrimination: The use of different prices for different customers. It is illegal if a price advantage is granted to one, but not another, where both compete and the articles are similar.

. Competition oriented pricing : Competition oriented pricing :here price is fixed after carefully considering the competitor’s price structure. Eg:

Odd pricing In this type of pricing, the seller tends to fix a price whose last digits are odd numbers. This is done so as to give the buyers/consumers no gap for bargaining as the prices seem to be less and yet in an actual sense are too high Eg: bata products

Prestige pricing Segment among the customers withdrawn quality of a product Only for luxuary goods or consumer goods They charge higher price than their substitute products

THANK YOU…….. Kazmi SHH “Marketing Management”,New Delhi,Excel Books.