PRESENTED BY VISHAKH.S VIVEK GOPAN NITIN NAIR ZAKARIA K
Price is an important component of
the product that result in consumers purchasing or not purchasing it. Price decision are cost based: Adding some kind of markup price. Not to charge a price lower than what it costs to make the product. It is generated internally.
ROLE OF MARKETING STRATEGY IN
PRICING Strategy decision do not lead to a specific price setting rule. Eg: Izod Segmentation and Target market affects price. Substancial price variations can exist even within a targeted segmen. These variations have been reffered ta as price bands. Why do variations exist with in
Measuring Perceived Value and
Price Perceived Value> price> Variable Cost: Has set a price that covers the cost of making the product but less than the customers true percieved value and sacrifices profit by charging less than the producer could obtain.
Price> Percieved Value> Variable
Cost: Here price is set higher than the costs and higher than the customers percieved value. Price> Variable Cost> Percieved value: In this case price is set higher than the cost but percieved value is even