Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 103 views

    Indrani Maam's

    Uploaded by

    shailychakraborty
    This document discusses considerations for pricing products and services. It identifies pricing as the most flexible element of the marketing mix but also the area that can get companies into the most trouble. The document outlines different pricing objectives like market skimming, market penetration, survival, current profit maximization, market share leadership, and product quality leadership. It also discusses estimating costs, analyzing competitors, and selecting a final price. Common pricing methods are described like markup pricing, target return pricing, perceived value pricing, and various product-line pricing approaches.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd

    Indrani Maam's

    Uploaded by

    shailychakraborty
    103 views10 pages
    This document discusses considerations for pricing products and services. It identifies pricing as the most flexible element of the marketing mix but also the area that can get companies into the most trouble. The document outlines different pricing objectives like market skimming, market penetration, survival, current profit maximization, market share leadership, and product quality leadership. It also discusses estimating costs, analyzing competitors, and selecting a final price. Common pricing methods are described like markup pricing, target return pricing, perceived value pricing, and various product-line pricing approaches.

    Original Title

    Indrani Maam's Ppt

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document discusses considerations for pricing products and services. It identifies pricing as the most flexible element of the marketing mix but also the area that can get companies into the most trouble. The document outlines different pricing objectives like market skimming, market penetration, survival, current profit maximization, market share leadership, and product quality leadership. It also discusses estimating costs, analyzing competitors, and selecting a final price. Common pricing methods are described like markup pricing, target return pricing, perceived value pricing, and various product-line pricing approaches.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    103 views10 pages

    Indrani Maam's

    Uploaded by

    shailychakraborty
    This document discusses considerations for pricing products and services. It identifies pricing as the most flexible element of the marketing mix but also the area that can get companies into the most trouble. The document outlines different pricing objectives like market skimming, market penetration, survival, current profit maximization, market share leadership, and product quality leadership. It also discusses estimating costs, analyzing competitors, and selecting a final price. Common pricing methods are described like markup pricing, target return pricing, perceived value pricing, and various product-line pricing approaches.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 10

    Pricing Products:

    Pricing Considerations, Approaches,


    and Strategy
     Definition: The amount of money charged
    for a product.
     Most flexible element of marketing mix
     Gets us into the most trouble
     Attitudes hard to change
    Market
    Market Skimming
    Skimming Market
    Market Penetration
    Penetration
    > Setting a High Price > Setting a Low Price
    for a New Product to for a New Product
    Maximize Revenues in Order to Attract
    from the Target
    Market.
    a Large Number of
    Buyers.
    > Results in Fewer,
    More Profitable > Results in a Larger
    Sales. Market Share.
    > Popular night club
    charges a high cover
    charge
    Setting the Pricing objective

    Estimating Costs
    Analysing competitor’s
    costs, prices, and offers

    Selecting a pricing method

    Selecting the final price


    Pricing objective

    Survival
    Survival
    Survival
    Survival
    Low Prices to Cover Variable Costs and
    Low
    LowPrices
    Low Pricesto
    Prices toCover
    to CoverVariable
    Cover VariableCosts
    Variable Costsand
    Costs and
    and
    Some
    Some Fixed
    SomeFixed Costs
    FixedCosts to
    Coststo Stay
    toStay in
    Stayin Business.
    inBusiness.
    Business.
    Some Fixed Costs to Stay in Business.

    Current
    CurrentProfit
    ProfitMaximization
    Maximization
    Choose
    Choosethe
    thePrice
    Pricethat
    thatProduces
    Producesthe
    the
    Maximum
    Maximum Current Profit, Cash Flow orROI.
    Current Profit, Cash Flow or
    Pricing
    Pricing ROI.
    objective
    objective Market
    MarketShare
    ShareLeadership
    Leadership
    Low
    LowasasPossible
    PossiblePrices
    Pricesto
    toBecome
    Become
    the Market Share Leader.
    the Market Share Leader.
    Product
    ProductQuality
    QualityLeadership
    Leadership
    High
    HighPrices
    Pricesto
    toCover
    CoverHigher
    Higher
    Quality
    Quality and Guest ServiceLevels
    and Guest Service Levels
    Pricing objective

    Types
    Types of
    ofcost
    cost
    Survival
    Survival
    Fixed cost
    Low Fixed cost
    LowPrices
    Pricesto Cover
    CoverVariable
    toVariable
    Variable cost
    Variable
    cost
    Costs
    Costsand
    and
    Some Fixed Costs to
    Total
    Some Fixed Costs Stay
    cost in Business.
    Totalto Stay in Business.
    cost
    Accumulated
    AccumulatedProduction
    Production
    Costs
    Costsreduce
    reducewith
    withexperience
    experiencein
    in
    production
    production and procurement costsfall
    and procurement costs
    Estimating
    Estimating fall
    Cost
    Cost Differentiated
    Differentiatedmarketing
    marketingoffers
    offers
    Negotiations
    Negotiationswith
    withretail
    retailchains
    chainskeeping
    keepingin
    in
    mind their method of delivery
    mind their method of delivery

    Target
    Targetcosting
    costing
    Costs
    Costschange
    changewith
    withre-engineering,
    re-engineering,
    eliminate
    eliminate functions andbringing
    functions and bringingdown
    down
    supplier costs.
    supplier costs.
    The firm has to keep in mind the
    Competitors’ costs, prices and offers and
    price close to that or lose sale.
     Markup pricing – a standard markup for profit
    above the product’s cost
     Target return pricing – the firm determines

    the price that would yield its target rate of


    return on investment (ROI)
     Perceived-value pricing
     Value Pricing
    Product-line pricing

    Optional-Feature pricing

    Captive-Product Pricing

    Two-part Pricing

    By-product Pricing

    Product-Bundling pricing

    You might also like