1.

Pricing
 Introduction
o Most important element of marketing mix
o Fair pricing is to be done
 Under Pricing results in loss of money
 Over Pricing results in loss of customers
 Concept of Pricing.
 Affects the demand
 Biggest challenge for the organization
 Helps generates revenue
 Contributes to success or failure of the organization
 Influenced a lot from external envirornment
o Objectives of Pricing
 Profit oriented
 Maximizing Profit
 Achieving a target return
 Sales oriented
 Increasing the sales volume
 Increasing or maintaining market share
 Status quo oriented
 Stabilizing the prices
 Meeting the competition
o Price and non-price competition
o Factors affecting Pricing decisions
 Organizational objectives
 Costs
 Legal and regulatory issues
 Competition
 Pricing objectives
 Pricing decision framework
o Setting the price objectives
o Estimating the product demand
o Analyzing the competitor’s prices
o Selecting the pricing method
o Selecting the pricing policy
 Pricing methods
o Cost based
 Cost- Plus Pricing
 Mark up Pricing
o Demand based
o Competition based
o Other methods
  Value Pricing
 Target Return Pricing
 Going Rate Pricing
 Transfer Pricing
 Pricing strategies
o Differential Pricing
o Promotional Pricing
 Price leaders
 Special Event Pricing
 Comparison Discounting
o Product line Pricing
 Captive Pricing
 Premium Pricing
 Bait Pricing
 Price Lining
o New Product Pricing
 Skimming
 Penetration Pricing
o Psychological Pricing
 Reference Pricing
 Bundle Pricing
 Prestige Pricing
 Odd- Even Pricing
 Multiple unit Pricing
 Unethical Pricing Practices