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Pricing strategies

Submitted to:Prof. Neha Madam

Group members:Mayur Gogra 12 Dhaval Madhu 22 Sumit thaker 59 Harshit Patel 63

What is pricing?
Pricing is the process of determining what a company will receive in exchange for its products. Pricing factors are manufacturing cost, market place, competition, market condition, and quality of product. Pricing is a fundamental aspect of financial modeling and is one of the four Ps of the marketing mix. Price is the only revenue generating element amongst the four Ps, the rest being cost centers Pricing strategy refers to method companies use to price their products or services.

Importance of pricing strategies

Most Flexible Marketing Mix Variable Setting the Right Price Trigger of First Impressions Important Part of Sales Promotion

Setting pricing policy

Selecting the pricing objectives Determining demand Estimating costs Analyzing competitors cost, prices and offers Selecting the pricing method Selecting the final price

Objectives of pricing strategies

Maximize long-run profit Increase sales volume (quantity) Increase market share Obtain a target rate of return on sales Maintain price leadership Match competitors prices Discourage new entrants into the industry Obtain or maintain the loyalty and enthusiasm of distributors and other sales personnel Be perceived as fair by customers and potential customers Discourage competitors from cutting prices

Types of pricing strategies

Price: Cars do not cost the same price according to the different regions Toyota is implanted, as for example for a similar model there can be a huge difference of price like the Toyota Land Cruiser that costs 20 000 euros more in France than in the USA whereas it is the same product. The economic situation, Toyota adapts its price range to be closer to the consumers expectations

Toyota offers similar products to a specic region, but there are huge differences concerning the price. A good example lies between Ireland and Germany that are in the same region and where the Toyota Yaris is 3000 euros less expensive in Germany. This difference is not really understandable, as Germany is one of the most powerful countries in the European Union and the world, and consumers have one of the highest purchasing power. Ireland has recently known an economic crisis, and consumers do not have the same purchasing power as German people

concerning South Africa and it is even more signicant. The Toyota Yaris costs 7000 euros more than in Germany; most of South African could not even afford the German price, and Toyota is trying to reach a rich minority to purchase its cars.