Competitive Pricing Techniques

Group 8
Topic
To
Be 1 What are the competitive pricing techniques?

Discussed 2 3 Different strands in competitive pricing techniques

3 The advantage and disadvantage of the competitive pricing

techniques in business.

4
Different types of competitive pricing techniques based on your
business field.
What
Competitive 1 It is all about monitoring the prices of competitors?

Pricing
2 Competitive Pricing Strategy is not all about price matching and
undercutting competitor prices.

Techniques
3 When a service or product is set reference to what the
competition is charging, it is called as a competitive pricing.

4 When establishing the appropriate strategy, it is essential to

have a look at the product life cycle.
 3 Different Stands
1 2
Pricing similar products Pricing lower than
higher than what your what your competitors
competitors do, need that are charging depends
your product has on your resources.
something special to offer.
3
Pricing similar to what your
competitors are offering
diminishes the distinguishing
factors.
 Advantage of Pricing Techniques
Respond quicker to competition
Gives your business control
over the competition
Delight customers who are price
sensitive
It’s usually one of the key
deciding factors for businesses
or consumers when making
decision
Avoid revenues loss from race-to-the-
bottom
Some businesses confuse this strategy
where they out their prices to the
cheapest but in fact, there are
opportunities that are missed if you
monitor your competitors right
Combine with other strategies
It can be linked with some other
Lay the foundation of dynamic pricing pricing strategies to make it
You take first steps of dynamic pricing, a even more efficient
complex approach that stands at the top of
competitive pricing strategies
 Disadvantage of Pricing Techniques

May get you distracted from other

business tasks
If a retailer just focuses on
competing with other players in the
market, they may miss covering
production and overhead costs

It doesn’t work in all markets Could be difficult for smaller

By setting a competitive pricing
intelligence tool, retailer assume
that competitors have priced their
product correctly. But, the pricing
strategy of competitors my not fit
with the company’s overall strategy
and might cause disharmony
retailers
For micro and small sized
companies, creating resources
for such technologies, money,
new staffs to sustain
competitive pricing strategy can
be a trouble
Pricing Strategies to attract
customers. Bundle Pricing
Limit Pricing

Penetration Pricing
Premium pricing
Price Matching
Predatory Pricing
Price Skimming

Price Discrimination
Dynamic Pricing
Premium Pricing Decoy
Average Cost Pricing Optional Pricing
Retail Price Mechanism
Reference Pricing
Psychological Pricing
Markup Pricing
Market-Based Pricing
 6 Different Pricing Strategies

Penetration Pricing Price Skimming Bundle Pricing

Premium Pricing Economy Pricing Psychological Pricing

Premium Pricing

Businesses set costs higher than their

competitors.

Along creating a high-quality of product, owners

should ensure their marketing efforts, the product’s
packaging and the store’s décor all combine to
support the premiumprice
Penetration
Pricing

Aim to attract buyers by offering lower

prices on goods and services

Companies often wind up raising their prices

to better reflect the state of their position
within the market
Economy
Pricing

Aim to attract the most price-conscious of

consumers

As a result, customers can purchase the

products they need without frills
Price Skimming

Designed to help businesses maximize sales

on new products and services.

It allows businesses to maximize profits on

early adopters before dropping prices to
attract more price-sensitive consumer
Psychology
Pricing

Refers to techniques that marketer use to

encourage customer to respond on
emotional levels rather than logical wants.

The goal of psychological pricing is to increase demand

by creating an illusion of enhanced value for the
customers
Bundle Pricing

Small businesses sell multiple products for

a lower rate than customers would face if
they purchased each item individually

Bundle pricing is more effective for companies that sell

complimentary products.
 5 Steps to create the right Pricing Techniques

05
Step 1
Determine your business goals. Step 5
01
Create a pricing strategy and
execution plan.

Step 2
02 04
Conduct a thorough market
pricing analysis. Step 4
Profile your competitive
landscape.
Step 3 03
Analyze your target audience.
Thank You