Developing Pricing

Strategies and Programs

Marketing Mix
 Pricing

Forms

Price Components

Functions
 Changing Price Environment

Buyers
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 Changing Price Environment
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Sellers

Selective Pricing

Monitor Customers Negotiate Prices

 How Companies Price
Product-line Managers
(w/guidance)

Small Business Owner Pricing Department

Name: Mohaimenul Islam Anik
ID: 1910669
Consumer Psychology and Pricing
 Setting the Price

Pricing Determine Estimate

Objective Demand Costs

Select Price Competito

Final Price Method r Analysis
 Selecting the Pricing Objective

Maximum Maximum Maximum Product-

Other
Survival Current Market Market Quality
Objectives
Profit Share Skimming Leadership
 Determining Demand

• Price sensitivity
• Estimating demand curves
• Price Elasticity of Demand
Inelastic and Elastic Demand
 Estimating Costs

Demand Price Ceiling

Price

Profit Price Floor

Costs
Name: Md. Rifat Ali Sarkar
ID: 1831378
Types of costs
Costs at Varying Levels of Production
 Experience Curve
(Learning Curve)

• The Decline in the average cost

with accumulated production
experience is called the
experience curve or learning
curve.
 Target Costing

• Market research the action or

activity of gathering information about
consumers' needs and preferences
• Design engineers A design engineer is
a person who may be involved in any
of various engineering disciplines
including civil, mechanical, electrical,
chemical, textiles, manufacturing,
systems, building.
 Analyzing Competitors’ Offers

• Consider the closest competitors price.

• Decide whether to change more, same
or less then the competitor.
• Be aware that competitors can change
their price in reaction to the price set
by the firm.
Name: Sabrina Khan Meem
ID: 1931013
 What is price?
Price is the value that is put to a product or service 
Price is the value that is put to a product or service 
 Pricing Method

• Pricing method is the route taken by the firm in fixing the price
• Strategy must be appropriate for achieving the desired pricing objectives.
 Type of Pricing Method
• Markup
• Target-return
• Perceived-Value
• Value
• Going-rate
• Auction-type
 Markup Pricing
• The selling price is Fixed by Adding markup or margin to it’s Cost
• Used By: Distributers , Marketing Firms etc.
• Slower turnover of the Product and Larger Margin

 Markup 𝑝𝑟𝑖𝑐𝑒 = 𝑢𝑛𝑖𝑡 𝑐𝑜𝑠𝑡

1− 𝐷𝑒𝑠𝑖𝑟𝑒𝑑 𝑟𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝑠𝑎𝑙𝑒𝑠
 Target Return Pricing

• Market Leader and Monopolists uses this pricing strategy.

• It uses for fixing the profit Margin
• The Profit Margin is fixed by Considering the ROI
 Target Return Pricing
1. The Target price is set on the basis of a target
rate of return on the investment.
2. Form the graph,
 50 sales in volume is required for the firm target
their target profit which is around 600-800
thousands dollar.
 2. To reach break-even point when they need to
sell 30 volume of units
Name: Nusrat Jahan Nishat
ID: 1910667
 Value Pricing

• Right combination of quality

• Good service at a fair price
 Going-Rate Pricing

• Follow the Leader

• Commodities
 Auction Pricing

• English auction
• Dutch auction
• Sealed-bid auction
 Selecting the Final Price

• Brand Quality
• Impact on others
• Pricing Policies
• Gain-and-risk-sharing
 Adapting the Price

• Geographic Pricing
• Price Discount and Allowance
• Differentiated
• Promotional Pricing
 Dealing with Price Changes

• Raising Prices
• Cutting Prices
• Competitor Moves
Thank You