Pricing

Pricing in global market

Pricing plan
1.Selecting pricing plan
2.Determining demand
3.Estimating cost
4.Analysing competitors
5.Selecting a pricing method
6.Selecting finalPricing
price
by Armoghan Tallat KHAN

Selecting pricing objective

1.Survival
Overcapacity
Intense competition
Changing consumer needs
Profit is least priority
2. Maximum current profit
Demand
Increase cash flow
ROI
Pricing by Armoghan Tallat KHAN

3. Maximising market share

High sales volume
Lower unit cost
4. Market penetration
5. Market skimming
status symbol
Sufficient buyers
High price communicate the image
6. Product quality leadership
Pricing by Armoghan Tallat KHAN

3 Cs of Pricing
1. Cost based pricing
Mark up pricing
Target return pricing
2. Competitors based pricing
Going rate pricing
Bid pricing
3. Consumer based pricing
Perceived value pricing
Value based pricing
Pricing by Armoghan Tallat KHAN

Discriminatory pricing
1.Customer segment
2.Product form
Location
Time

Promotional pricing
1.Loss leadership
2.Special event pricing
3.Cash rebate
4.Low interest financing
Pricing by Armoghan Tallat KHAN

5. Longer payment term

6. Warrantees & guarantees

7. Physiological discount

Pricing by Armoghan Tallat KHAN

QUALITY

PRICE
HIGH

MEDIUM

LOW

HIGH

PREMIUM
VALUE

HIGH
VALUE

SUPER
VALUE

MEDIUM

OVER
CHARGING

MEDIUM

GOOD
VALUE

LOW

RIP OFF

FALSE
ECONOMY

ECONOMY

Pricing by Armoghan Tallat KHAN

Pricing methodology
1.Product line pricing
2.Product bundle pricing
3.Captive pricing
4.By product pricing
5.Two part pricing
6.Optional features pricing
7.Down graded pricing/ alternative pricing
Pricing by Armoghan Tallat KHAN