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    Price and Pricing Theme 9 Complete

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    Bilal Nazeer
    The document discusses various aspects of pricing, including: 1) It defines what price is and explains that price is the only revenue-generating part of the marketing mix. 2) It then covers different pricing methods like value-based pricing, cost-based pricing, and competition-based pricing. 3) Various pricing strategies are outlined such as new product pricing strategies, product mix pricing strategies, and price adjustment strategies.

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    Price and Pricing Theme 9 Complete

    Uploaded by

    Bilal Nazeer
    9 views29 pages
    The document discusses various aspects of pricing, including: 1) It defines what price is and explains that price is the only revenue-generating part of the marketing mix. 2) It then covers different pricing methods like value-based pricing, cost-based pricing, and competition-based pricing. 3) Various pricing strategies are outlined such as new product pricing strategies, product mix pricing strategies, and price adjustment strategies.

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    The document discusses various aspects of pricing, including: 1) It defines what price is and explains that price is the only revenue-generating part of the marketing mix. 2) It then covers different pricing methods like value-based pricing, cost-based pricing, and competition-based pricing. 3) Various pricing strategies are outlined such as new product pricing strategies, product mix pricing strategies, and price adjustment strategies.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    9 views29 pages

    Price and Pricing Theme 9 Complete

    Uploaded by

    Bilal Nazeer
    The document discusses various aspects of pricing, including: 1) It defines what price is and explains that price is the only revenue-generating part of the marketing mix. 2) It then covers different pricing methods like value-based pricing, cost-based pricing, and competition-based pricing. 3) Various pricing strategies are outlined such as new product pricing strategies, product mix pricing strategies, and price adjustment strategies.

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    Price And Pricing

    What is a Price?
    Price is the amount of
    money charged for a
    product or service.

    It is the sum of all the


    values that consumers
    give up in order to gain
    the benefits of having or
    using a product or
    service.
    Price And Pricing

    What is a Price?

    Price is the only element


    in the marketing mix that
    produces revenue; all
    other elements represent
    costs……….
    Price And Pricing

    What is a Pricing?

    The process of
    determining and
    setting price of a
    product…………..
    Price And Pricing

    What to consider for Pricing?

     Price Ceiling

     Price Floor
    Price And Pricing
    Factors Affecting Pricing

     Overall Marketing
    Strategy

     Type of Demand

     Type of Market
    Factors Affecting Pricing

     Economic
    Conditions

     Government

     Social Concerns
    Price And Pricing

    What are different


    pricing methods?
    Major Pricing Methods

     Value Based
    Pricing

     Cost Based Pricing

     Competition Based
    Pricing
    Price And Pricing

    Value Based Pricing

    uses the buyers’


    perceptions of value,
    not the sellers’ cost,
    as the key to pricing.

    Price is considered
    before the marketing
    program is set.
    Price And Pricing

    Cost Based Pricing

    sets prices based on


    the costs for
    producing,
    distributing, and
    selling the product
    plus a fair rate of
    return for effort and
    risk.
    Price And Pricing

    Competition Based
    Pricing

    is setting prices
    based on
    competitors’
    strategies, costs,
    prices, and market
    offerings.
    Special Pricing Concepts

     Good-value Pricing

     Everyday low
    Pricing

     High-low Pricing
    Price And Pricing

    What are different


    pricing strategies?
    Pricing Strategies

     New-Product
    Pricing Strategies
     Product Mix Pricing
    Strategies
     Price Adjustment
    Strategies
     Price Changes
    New-Product Pricing Strategies

     Market-skimming
    pricing
     Market- penetration
    pricing
    New-Product Pricing Strategies

    Market-skimming
    pricing
    strategy sets high initial
    prices to “skim” revenue
    layers from the market.

     Product quality and


    image must support
    the price.

     Buyers must want the


    product at the price.
    New-Product Pricing Strategies

    Market- penetration
    pricing

    involves setting a low


    price for a new
    product in order to
    attract a large
    number of buyers
    and a large market
    share.
    Product Mix Pricing Strategies

     Product line pricing


     Optional- product
    pricing
     Captive- product
    pricing
     By-product pricing
     Product bundle
    pricing
    Product Mix Pricing Strategies

    Product Line
    Pricing

    takes into account


    the cost differences
    between products in
    the line, customer
    evaluation of their
    features, and
    competitors’ prices.
    Product Mix Pricing Strategies

    Optional- product
    pricing

    takes into account


    optional or accessory
    products along with
    the main product.
    Product Mix Pricing Strategies

    Captive- product
    pricing

    sets prices of
    products that must
    be used along with
    the main product.
    Product Mix Pricing Strategies

    By-product pricing

    refers to products
    with little or no value
    produced as a result
    of the main product.
    Producers will seek
    little or no profit other
    than the cost to
    cover storage and
    delivery.
    Product Mix Pricing Strategies

    Product bundle
    pricing

    combines several
    products at a
    reduced price.
    Price Adjustment Strategies

     Discount and
    allowance pricing

     Segmented pricing

     Psychological
    pricing

     Promotional pricing
    Price Adjustment Strategies

     Geographic pricing

     Dynamic pricing

     International pricing
    Price Changes

     Price cuts
    o Excess capacity
    o Increased market share

     Price increases
    o Cost inflation
    o Increased demand
    o Lack of supply
    Price Changes

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