MARKETING MIX (PRICE)

Presented to: Presented by:

Mr. Pawan Kumar Yadav 1. Dileep Yadav

2. Himani Singh

3. Arpit Kumar

4. Sahil Chaudhary

5. Ankush Verma
CONTENTS
1. Marketing
2. Marketing mix
3. Elements of marketing mix
4. Price
5. Objectives of Pricing
6. Factors influencing pricing
7. Methods of Pricing
8. General guidelines for setting price
9. Pricing strategy for Raw milk
10.Mother dairy strategy for pricing
 MARKETING

Marketing is a social and managerial process by which

individuals and groups obtain what they need and want
through creating, offering and freely exchanging products
and services of values with others
MARKETING MIX

• American marketing expert James Culliton coined the term ‘marketing mix’
which was later popularized by Neil H. Borden
• Marketing Mix is a set of marketing tool or tactics, used to promote a product
or services in the market and sell it.
• It is about positioning a product and deciding it to sell in the right place, at
the right price and right time. The product will then be sold, according to
marketing and promotional strategy
ELEMENTS OF MARKETING MIX
• The components of the marketing
mix consist of 4Ps Product, Price,
Place, and Promotion.
• In the business sector, the marketing
managers plan a marketing strategy
taking into consideration all the 4Ps.
• Nowadays, the marketing mix
increasingly includes several other Ps
(People , Process and Physical
evidence) for vital development.
 PRICE
• Price is a very important component of the marketing mix.
• The price of the product is basically the amount that a customer pays for to
enjoy it.
• Price is the most critical element of a marketing plan because it dictates a
company’s survival and profit.
• Adjusting the price of the product, even a little bit has a big impact on the
entire marketing strategy as well as greatly affecting the sales and demand of
the product in the market.
• Things to keep on mind while determining the cost of the product are, the
competitor’s price, list price, customer location, discount, terms of sale, etc.,
GOALS OF PRICING

A well-chosen price should accomplish three goals :

• Achieve the company’s financial goals (profitability)
• Fit within the realities of the marketplace (customers are willing and able to
pay the set price)
• Support a product’s positioning and be consistent with the other variables in
the marketing mix (product quality, distribution issues, promotion
challenges)
 OBJECTIVES OF PRICING
Although most of the organization aim at profit maximization but in general the
various objectives the organizations try to achieve are as follows:
• Short term profit maximization
• long term profit optimization
• Target sales volume
• target market share
• more penetration in the market
• selling in new markets
• Supplying goods at affordable prices for economically weaker sections of society,
FACTORS INFLUENCING PRICING

EXTERNAL FACTORS INTERNAL FACTORS

• Market conditions
• consumers behavior for the concerned
product
• bargaining power of major consumers and
suppliers
• pricing policy of competitors
• Marketing objectives of the organization
• The nature of product
• Price elasticity of demand of the product
• Product’s stage in product life cycle
• Pattern of use and turn around rate of the product
• cost of production

• government laws specifically for pricing • marketing costs

of products • Extent of product differentiation

• legal rules • interaction and influence of marketing mix elements on price

• society’s view point. • Organization’s product width and line length.

METHODS OF PRICING

1. Cost based pricing

2. Demand/ market based pricing
3. Competition based pricing
4. Other (tender, subsidy , social welfare price, etc)
GENERAL GUIDELINES FOR SETTING
PRICE

The following guidelines can help set price of a product:

1. Deciding pricing objective
2. Estimating demand
3. Estimating cost
4. Comparing competitors’ cost ,price and strategy
5. Deciding a pricing method.
PRICING STRATEGY FOR RAW MILK

There are various methods of paying for milk procured from producers viz.,
1. On the basis of volume or weight
2. On the basis of fat content
3. On the basis of fat as well as solids-not-fat (SNF) (Two-axes pricing
system).
PRICING METHODS OF MILK
MOTHER DAIRY PRICING STRATEGY
• Mother dairy a very penetrative pricing strategy.
• Mother Dairy also maintains a differential pricing strategy in its marketing
mix and varies according to geographical regions.
• Prices also vary with packages and variants of milk.
• In the Mother Dairy ice creams segment, it keeps for regular ice creams
competitive prices and premium prices for other special flavours.
• The Safal brand also dealing with fresh fruits and vegetables keeps market
based prices.
• The edible oil sections under brand Dhara faces a lot of competition from
many brands and hence as loyalty of customers is based on price and quality.
THANKS FOR PAYING ATTENTION