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  • Pricing: Click To Edit Master Subtitle Style by Sayyed Khaleel Ahmed MBA 2sem Pcedbm

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    Kristin Dean
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    This document discusses pricing strategies and objectives. It begins by defining price as the numerical monetary value assigned to goods and services, and identifies price as a key variable in the marketing mix. The document then poses questions to consider when deciding price, such as pricing objectives, methods for setting price, and whether to offer quantity discounts. It also notes that price should support a product's positioning and be influenced by factors like distribution channels, promotions, quality, and manufacturing costs. Common pricing objectives mentioned are maximizing long-run profit, increasing sales, increasing market share, and maximizing short-run profit. The cost-plus pricing method is provided as an example, along with its advantages of being easy to calculate and administer, and disadvantages of

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    This document discusses pricing strategies and objectives. It begins by defining price as the numerical monetary value assigned to goods and services, and identifies price as a key variable in the marketing mix. The document then poses questions to consider when deciding price, such as pricing objectives, methods for setting price, and whether to offer quantity discounts. It also notes that price should support a product's positioning and be influenced by factors like distribution channels, promotions, quality, and manufacturing costs. Common pricing objectives mentioned are maximizing long-run profit, increasing sales, increasing market share, and maximizing short-run profit. The cost-plus pricing method is provided as an example, along with its advantages of being easy to calculate and administer, and disadvantages of

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    6 views12 pages

    Pricing: Click To Edit Master Subtitle Style by Sayyed Khaleel Ahmed MBA 2sem Pcedbm

    Uploaded by

    Kristin Dean
    This document discusses pricing strategies and objectives. It begins by defining price as the numerical monetary value assigned to goods and services, and identifies price as a key variable in the marketing mix. The document then poses questions to consider when deciding price, such as pricing objectives, methods for setting price, and whether to offer quantity discounts. It also notes that price should support a product's positioning and be influenced by factors like distribution channels, promotions, quality, and manufacturing costs. Common pricing objectives mentioned are maximizing long-run profit, increasing sales, increasing market share, and maximizing short-run profit. The cost-plus pricing method is provided as an example, along with its advantages of being easy to calculate and administer, and disadvantages of

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 12

    Pricing

    By Click to edit Master subtitle style Sayyed Khaleel Ahmed MBA 2sem PCEDBM

    2/1/13

    Introduction
    It

    is the assigned numerical monetary

    value of goods & service

    It

    is central to marketing, one of the four

    variables in marketing mix

    Economist

    view as an exchange ratio


    2/1/13

    Questions
    We

    Come across these que for deciding price:


    How much to charge for products or

    service?
    What are the pricing objectives? How to set the price?(Some methods) Should there be quantity discounts? What prices are competitors charging? Should prices charge in varying
    2/1/13 geographical area as zone pricing?

    A well chosen Price


    Achieve

    financial goals of the firm

    Profitability
    Fit

    realities of the market places.

    Will customers buy at that price?


    Support

    a products positioning
    2/1/13

    Product at postion

    Characteristics
    Price

    is influenced by

    Type of distribution channel used Type of promotions used Quality of products

    Price

    will usually need to be high if

    2/1/13 manufacturing cost is high

    Pricing Objectives
    Deciding the Pricing objectives We must consider:
    The overall financial ,marketing, strategic

    objectives of the company


    Objectives of your products or brand Consumer price elasticity Resource you have available
    2/1/13

    Common Objectives
    Maximize Increase Increase

    long run profit

    the sales the market share growth short run profit


    2/1/13

    Company Maximize

    Methods
    Cost-plus

    Pricing Method:

    P= (AVC+FC%) * (1 +MK%) where


    P:price AVC: Avg variable Cost FC: percentage Fixed Cost MK: percentage Markup
    2/1/13

    Example
    If variable cost:Rs.30 Allocation to fixed cost:Rs10 Mark up 50% Then Price = (30+10)*(1+.50) =60 Price is Rs.60
    2/1/13

    Advantages
    Easy

    to calculate information requirements

    Minimal Easy

    to administer to stabilize markets


    2/1/13

    Tends

    Disadvantages
    Tends Tends

    to ignore the role of consumer to ignore the role of

    competitors
    Ignores

    opportunity cost

    2/1/13

    Thank you

    2/1/13

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