▪ NAME : SAMIKSHA DATTATRAY JAGTAP

▪ CLASS : TYBBA
▪ SUBJECT NAME :
▪ SUBJECT TEACHER : DR. NILESH PAWAR SIR
▪ PROJECT TOPIC : PRICING STRATEGY
▪ The amount of money Expected ,
required Or given on payment Or something.
▪ Business can use a variety of pricing strategy when
selling a product or service the price can be set to
maximize profitability for each until sold or from the market overall
it can be used to defend and existing market from new entrants to increase market
shame within the market or to enter in New Market businesses may benefit from
lowering or raising prices depending on the needs and behaviour of customers
and clients in the particular market finding the right path pricing strategy is an
important element in the running a successful business.
▪ Long run profits
▪ Short run profits
▪ Increse sales volume
▪ Company growth
▪ Match compititor price
▪ Create interest and excitement about the product
▪ Discourage new entrants
▪ Survival
▪ Fixed and variable cost
▪ Competition
▪ Company objective
▪ Proposed positining strategy
▪ Target group and wlingNess to Pay
▪ External market demand
▪ Internal factors product cost and objectives of company’s
▪ Pricing is a market consideration not a cost consideration.
▪ Understand your customer primary goals be clear on what the customer wants was
then set pricing in bundling decisions
▪ Consider building products aur services together always bundle low and high
value product together this will create higher cells and greater profitability
▪ understand your value propositions Have a clear understanding Of if and how your
product or service is differentiated from the competitions
▪ know where you are on the scale of innovation to become authorised
▪ Build the customers perception of value constantly build on customers perception
the more subtle the differentiation of the product or service the more often
customers need to be reminded of the value of your product or service
▪ Marketing skimming

▪ value pricing
▪ loss ladder

▪ psychological pricing
▪ going rate pricing

▪ price discrimination

▪ pentration rising

▪ cost plus pricing

▪ contribution pricing
▪ target pricing
▪ marginal cost pricing
▪ absorption cost pricing
▪ Destroyer pressing
▪ influence of elasticity
▪ High price low volume
▪ scheme the profit from the market
▪ suitable for the products that have a short life cycle or which will face competition
at some point in future
▪ example PlayStation digital technology and DVDs
▪ Based on consumer perception
▪ price charged according to the customers perception
▪ price set by the company as per the perceived value
▪ example status products and exclusive products
▪ Good services deliberately sold below cost to increase sales elsewhere
▪ typical in supermarkets example at Christmas selling portals of gene in the hope
that people will attract to the store and buy other things
▪ purchase other atoms more than covers loss on item sold
▪ example free mobile phones when taking up contact package
▪ Many contracts awarded on the tender basis
▪ form submit their price for carrying out the work
▪ purchaser then choose which represents best value
▪ mostly done in secret
▪ Charging a different price for the same good service in different markets
▪ requires each market to be a impenetrable
▪ it requires different price elasticity of demand inmein is market
▪ price for rail travel differ for the same journey at different time of the day
▪ Price set to paint rate the market
▪ low price to secure high volume
▪ Typical in mass market product chocolate bar food stores household goods at
▪ suitable for products with long anti pated life cycle may be useful if launching into
a new market
▪ Price inelastic
▪ %change in Q <%change in P
▪ Eg. A 5% Increase in price would be matter by a fall in sales of something less than
5%
▪ Revenue Would rise
▪ A 7 % reduction in price would lead to a rise in sales of sonething less than 7 %
▪ Revenue would fail
▪ Price elasticity
▪ % change in quantity demanded>% CHANGE IN PRICE
▪ EG. A4% RISE IN price would lead to sales falling by something more than 4%
▪ Revenue would fail
▪ A 9% fall ib price would lead to a rise in sales of sonething more than 9%
▪ Revenue would rise
▪ It is necessary that the marketing manager decide the objective of pricing before
actually setting trial according to experts pricing objective of the overall goal that
describes the role of price in an organisation long range planning the objective
help the marketing manager as a guidelines to develop marketing strategies