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PRICE IS ALL AROUND US͙..

Rent for a
building

Tariff for phone

Airlines,Rly.,Bus,
Cab͙.Fare
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The amount of money charged for a

product or services or the sum of the
values that consumers exchange for the
benefit of having or using the product or
service.


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Price is the only Revenue͙..

͙͙.Rest are costs


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A firm must set a price for the first time when
½ It develops a new product
½ It introduces its regular product into a new
distribution channel or geographical area

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The company first decides where it wants to
position its market offering. The objective
could be :-
½ Survival
½ Target return on investment
½ Market share
½ Product quality
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½ Resource mobilisation
½ Meeting competition
½ Profit maximisation
½ Maintaining the image
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½ Marketing objectives
½ Organisational considerations
½ Marketing mix
½ Costs
½ Product life cycle
½ Functional position
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½ Market and demand
½ Competition
½ Economic conditions
½ Government regulation
½ Suppliers
½ Buyer behaviour
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½ Selecting the pricing objective
½ Determining demand

Type of Price
Market elasticity
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½ Estimating costs

Variable
Fixed Cost
Cost

Learning
Curve
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½ Analyzing competitors ʹ costs, prices, offers
½ Selecting a pricing method.
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½ Markup pricing
½ Target return pricing
½ Perceived value pricing
½ Value pricing
½ Going rate pricing
½ Sealed bid pricing

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½ Skimming price policy

½ Penetration price policy
 


½ 0igh Price, Low Volumes.
½ Suitable for products that have short
life cycles.
½ Results in fewer most
½ Profitable sales.
Example-Jewellary,new Dvds,
Digital technology,playstation
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½ Low Price, high Volume

½ Suitable for products which have long life
cycles.
½ Useful in launching into new market.
½ Gain market Share.
½ Example-Food Stuffs, 0ousehold goods
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Product Line Pricing
Setting Price Steps
Between Product Line Items
By-Product Pricing
Pricing Low-Value By-Products To
Get Rid of Them

Product Mix Captive ʹProduct Pricing

Pricing Products That Must Be Used

Pricing Along With The Main Product

Optional-Product Pricing
Strategies Pricing Optional or accessory Products
Sold With The Main Product
Product ʹBundle Pricing
Bundles Of Products Sold
Together at a Reduced Price

Two Part Pricing

Consisting of fixed fee plus a
variable usage fee
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½ Discount and Allowance Pricing

½ Segmented Pricing
½ Psychological Pricing
½ Promotional Pricing
½ Geographical Pricing
½ International Pricing
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½ DISCOUNT-Reduction in price on purchases

during a stated period of time

½ ALLOWANCE-Another type of reduction

from the list price.
½ Cash discount
½ Quality discount
½ Functional discount
½ Seasonal discount
½ Trade in allowance
½ Promotional allowance

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Selling a product or service at two or more

prices, where the difference in prices is not
based on differences in costs
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½ Customer Segment pricing

½ Product form pricing
½ Location pricing
½ Time pricing
½ It is used to lessen the impact of the
actual pricing in the consumers mind
½ It is used as a surrogate to indicate the
product quality or esteem

ÿ
½ Loss leader pricing
½ Cash rebate
½ Warranties and service contracts

ÿ
½ FOB Origin Pricing
½ Uniform delivered Pricing
½ Zone Pricing
½ Basing point Pricing
½ Freight absorption Pricing

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½ Adjusting prices for International Markets

½ Price depend upon cost,consumers,Economic
conditions and other factors



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