NAME : Zahid Bin Ali

ID : 2019110000010
Subject :
Price:
 amount of money charged for a product or service or the sum of the values thatcustomers
exchange for the benefit of having or using the product or service.
Fixed price The
: The term fixed price is a phrase used to mean the price of a good or a service is notsubject to
bargaining. The term commonly indicates that an external agent, such as a merchant orthe
government, has set a price level, which may not be changed for individual sales. Pran frootohas
fixed price everywhere throughout the year.
Dynamic price:
Dynamic pricing is a partially technology-based pricing system under
which prices are altered to different customers, depending upon their willingness to pay. Several
examples of dynamic pricing are: Airlines. This is not dynamic as their price does not vary.
Fixed cost
: Fixed costs are the costs that do not vary with production and sales level.
Variable cost:
 Variable costs are the costs that vary directly with the level of production.Pricing a product
based on the value the product has for the customer and not on its costs
of production or any other factor. This pricing strategy is frequently used where the value to thec
ustomer is many times the cost of producing the item or service. For instance, the cost
of producing a software CD is about the same independent of the software on it, but the prices
varywith the perceived value the customers are expected to have. The perceived value will
depend onthe alternatives open to the customer. In busin
ess these alternatives are using competitor‟s
software, using a manual work around, or not doing an activity. In order to employ value-
based pricing you have to know your customer's business, his business costs, and his perceivedal
ternatives.It is also known as Perceived-value pricing.
Value Pricing
This approach is used where external factors such as recession or increased competition
forcecompanies to provide value products and services to retain sales e.g. value meals at
McDonaldsand other fast-food restaurants. Value price means that you get great value for money
i.e. the price that you pay makes you feel that you are getting a lot of product. In many ways it is
similarto economy pricing. One must not make the mistake to think that there is added value in
terms ofthe product or service. Reducing price does not generally increase value. As frooto is not
varyingin price in case of value so value pricing is not a part of this

 
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In terms of the marketing mix some would say that price is the least attractive element.Marketing
companies should really focus on generating as high a margin as possible. Theargument is that
the marketer should change product, place or promotion in some way beforeresorting to price
reductions. However price is a versatile element of the mix as we will see.
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. This approach was used by France Telecom
and SkyTV. These companies need to land grab large numbers of consumers to make it worth
theirwhile, so they offer free telephones or satellite dishes at discounted rates in order to get
people tosign up for their services. Once there is a large number of subscribers prices gradually
creep up.Taking Sky TV for example, or any cable or satellite company, when there is a
premium movieor sporting event prices are at their highest
 – 
 so they move from a penetration approach to moreof a skimming/premium pricing approach.
Price Skimming.
Price skimming sees a company charge a higher price because it has a substantial
competitiveadvantage. However, the advantage tends not to be sustainable. The high price
attracts newcompetitors into the market, and the price inevitably falls due to increased
supply.Manufacturers of digital watches used a skimming approach in the 1970s. Once
othermanufacturers were tempted into the market and the watches were produced at a lower unit
cost,other marketing strategies and pricing approaches are implemented. New products
weredeveloped and the market for watches gained a reputation for innovation

 
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Market-skimming pricing is a strategy under which producer sets a high price for a new high-end
product or a uniquely differentiated technical product. The aim of this strategy is to
obtainmaximum revenue from the market before substitutes products appear. After the aim is
fulfilledthe producer can lower the price drastically to capture the low end buyers.On the other
hand, Market penetration strategy is a strategy under which a product is widely promoted and its
introductory price is kept comparatively low to keep the competition out. Thisstrategy is adopted
for quickly achieving a high value of sales and deep market penetration of anew product.This
strategy is based on some assumptions. Those are:1. Buyers are price sensitive2. The market is
large enough to sustain relatively low profit margins3. The competitors too will soon lower their
price.For example: the target customer of PRAN junior juice is the kids. They can't consume a
500 ml juice. So PRAN came up with an idea keeping the children and their needs in mind. They
cameup with a 250 ml frooto juice pack at a very reasonable price. They try to intact the lowest
in themarket. Hence they follow market penetration.

 
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Product bundle pricing is a marketing ploy in which several products are offered for sale in
onecombined unit that is often marked at a reduced price compared to the sum of their
separate purchase prices. In case of international trade fair we can consider Pran juice,
biscuit and mango bar to be bundle pricing at lower price in comparison to individual buying if
those products.
Price Adjustments Strategies:Discount and Allowance Pricing:
Discount is a straight reduction in price on purchases during a stated period of time or of
largerquantities. Discount can be available in various forms- cash discount, quantity
discount,functional discount, seasonal discount. Although cash discount in association with robi
frootohas ensured tk 6 off upon purchase of any tk58 or tk 28 recharge card. If they purchase
fromruposhi dokan at least 100 units they get tk 50 off so quantity discount existed. Fuctional
andseasonal discount was not identified during our reaserch.Allowance is promotional money
paid by manufacturers to retailer in return for an agreement tofeature the manufacturer's
products in some way. Allowances are of two types: trade inallowances and promotional
allowances. PRAN doesn't provide discounts but provides promotional allowances in some
cases.
Segmented Pricing:
Segmented pricing is a situation that occurs when a company sets more than one price for
a product without experiencing significant differences in the costs of producing or distributing
the product. Different size have differently priced such as tk22 for 250 ml and tk 70 for 1 ltr.
Psychological Pricing:
A psychological pricing strategy relies on the nature of human psychology to make prices
appearmore attractive to consumers.For example: a PRAN Junior Juice is available at taka 12 in
the market. Star ship juice is 16takaand an Acme juice is worth 15taka. As PRAN has a well
established reputation for its quality.

 
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often in a face-to-face manner or by telephone. Examples include sales presentations,sales
meetings, sales training and incentive programs for intermediary salespeople,samples, and
telemarketing
.
 

 
Sales Promotion
 is media and non-media marketing communication used for a pre-determined limited time to
increase consumer demand, stimulate market demand orimprove product availability. Examples
include coupons, sweepstakes, contests, productsamples, rebates, tie-ins, self-liquidating
premiums, trade shows, trade-ins, andexhibitions
.
 

 
Public relations
 or  publicityis information about a firm's products and services carried by a third party in
an indirect way. This includes free publicity as well as paid efforts tostimulate discussion and
interest. It can be accomplished by planting a significant newsstory indirectly in the media, or
presenting it favorably through press releasesorcorporate anniversary parties. Examples include
newspaper and magazine articles, TVsand radio presentations, charitable contributions, speeches,
issue advertising, seminars

 
Direct Marketing
 is a channel-agnostic form of advertising that allows businesses andnonprofits to communicate
directly to the customer, with methods such as mobilemessaging, email, interactive consumer
websites, online display ads, fliers, catalogdistribution, promotional letters, and outdoor
advertising.PRAN uses Advertisements, publicity programmes and sales promotional
programmes aswell. For example: they use billboards, television and radio to promote their
product.
Integrated marketing communication
It is an approach to achieving theobjectivesof amarketing campaign, through a wellcoordinated
use of different promotional methodsthat are intended to reinforce each other.As defined by the
AmericanAssociationofAdvertising Agencies, integrated marketingcommunications
" ... recognizesthevalueof a comprehensive planthat evaluates the strategicrolesof a variety
of  communication disciplines advertising, public relations, personal selling, and
 
A
 – 
 Attention (Awareness): attract the attention of the customer.

 
I
 – 
 Interest: raise customer interest by focusing on and demonstrating advantages and benefits
(instead of focusing on features, as in traditional advertising).

 
D
 – 
 Desire: convince customers that they want and desire the product or service and thatit will
satisfy their needs.

 
A
 – 
 Action: lead customers towards taking action and/or purchasing.Using a system like this gives
one a general understanding of how to target a market effectively.Moving from step to step, one
loses some percent of prospects.AIDA is a historical model, rather than representing current
thinking in the methods ofadvertising effectiveness.
Methods for setting Total budget:
Promotional budgets are often determined using a more simplistic approach, such asdetermining
how much money is available or basing promotional expenditures on a percentageof a company's
or brand's sales revenue. At this stage, the budget is often only tentative and maynot be finalized
until specific promotional mix strategies are developed.
Four common methods are used to set the total budget for advertising:1. Affordable method:
 Companies use this method, at the level of their affordability.
Small businesses often use this method with the logic that the company cannot spend more onad
vertising than the amount it has left after the other expenses.
2. Percentage of Sales method:
 In this method, companies set their budget at a
certain percentage of current or forecasted sales. The percentage of sales method is simple to use 
and
 
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A „push‟ sales promotion strategy involves „pushing‟ distributors and retailers to sell your
 products and services to the consumer by offering various kinds of promotions and personalselli
ng efforts. What happens here is that a company promotes their product/services to a resellerwho
in turn promotes it to another reseller or to the consumer. The basic objective of thisstrategy is to
persuade retailers, wholesalers and distributors to carry your brand, give it shelfspace, promote it
by advertising, and ultimatel
y „push‟ it forward to the consumer. Typical push
sales promotion strategies include; buy-back guarantees, free trials, contests, discounts,
andspecialty advertising items.
A Pull Strategy:
 
A „pull‟ sales promotion strategy focuses more on the consumer in
stead of the reseller or
distributor. This strategy involves getting the consumer to „pull‟ or purchase the
product/services
directly from the company itself. This strategy targets its marketing efforts directly on
theconsumers with the hope that it will stimulate interest and demand for the product. This
pullstrategy is often used when distributors are reluctant to carry or distribute a product. Typical
pullsales promotion strategies include; samples, coupons, cash refunds or rebates, loyalty
programsand rewards, contests, sweepstakes, games, and point-of-purchase displays.The PRAN
follows the
 Pull strategy
.
 
Pull strategy is directing the promotional mix at ultimateconsumers to encourage them to ask the
retailer for the product.
 Chapter-15 Marketing Communication MixAdvertising
Advertising refers to any paid form of advertisement of non-personal presentation and
promotionof ideas, goods and services by an identified sponsor. If we take a look at the Pran add
of 250ml,
titled as “Shomoy Oshomoy” by the use of an identified sponsor such as the Pran used the non
- personal presentation ( no representative the company of involved) and paid the channel to broa
dcast their add and hence they conduct what is called
advertisement.Types of advertisement1.
 
Informative Advertisemen