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 Presentation
on
Pricing strategies

BY :-
:-
RAJA S.NAGRALE.
„NTRODUCT„ON :-
:-
No product can be launched without a price
tag. „t should have some value or price.
PR„CE -
When a product is bought or buy, some
money is paid for it. This money represent
the sum of values that consumers exchange
for using the product and its called as the
price of the product.
DEF„N„T„ON :-
:-

Ơ The particular amount of money paid by a

buyer in consideration of the purchase of a
product or a services.ơ
 FACTORS INFLUENCING
PRICING.
Internal Factors Ɗ

sobjectives of the firm.

scharacteristics of the product.
sdemand of the product.
sCosts of manufacturing and
marketing.
External factors Ë

sCompetitorsƞ pricing .
sBuyer behavior of the product.
sGovernment regulation on pricing.
sBargaining power of customers .
Pricing strategies :-
:-
sCompetitive pricing.
Use competitors' retail (or wholesale) prices
as a benchmark for your own prices. Price
slightly below, above or the same as your
competitors, depending on your positioning
strategies.
s Cost plus mark-
mark-up.
This is the opposite of competitive pricing. „nstead
of looking at the market, look at your own cost
structure.
sLoss Leader.
A loss leader is an item you sell at or below cost in
order to attract more customers, who will also buy
high--profit items.
high
s|embership or trade discounting.
This is one method of segmenting customers.
Attract business from profitable customer
segments by giving them special prices.
sClose out.
?eep this pricing technique in mind when
you have excess inventory. Sell the inventory
at a steep discount to avoid storing or
discarding it. Your goal should be to
minimize loss, rather than making a profit.
THAN? YOU
 Presentation
on
Pricing strategies

BY :-
:-
SA?ET BHAS„N
 |ETHODS AND PRICING
POLICIES.
s Penetration Pricing.
The price charged for products and services is
set artificially low in order to gain market
share. Once this is achieved, the price is
increased.
s Economy Pricing.
This is a no frills low price. The cost of
marketing and manufacture are kept at a
minimum.
s Promotional Pricing.
Pricing to promote a product is a very common
application. There are many examples of
promotional pricing including approaches
such as BOGOF (Buy One Get One Free).
s Geographical Pricing.
„n geographical pricing, the company decides
how to price its products to different
customers in different locations and
countries.
s Price Discounts and Allowances.
|ost companies will adjust their list price and
give discounts and allowances for their profits
are much less than planned.
- Cash Discounts .
- Quantity Discounts .
- Seasonal Discounts .
s Premium Pricing.
Use a high price where there is a uniqueness
about the product or service.
THAN? YOU