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    Pricing Strategies Say

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    marirs
    This document discusses various pricing strategies used by companies. It begins by defining pricing and pricing strategy. The objectives of pricing strategy are then outlined, including earning profits, increasing sales volume, maintaining competitive edge, and ensuring company growth and survival. Several types of pricing strategies are then described in detail, including penetration pricing, price skimming, competitive pricing, product line pricing, psychological pricing, premium pricing, and optional pricing. The strategies are defined and their objectives explained in one to three sentences for each.

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    Pricing Strategies Say

    Uploaded by

    marirs
    22 views14 pages
    This document discusses various pricing strategies used by companies. It begins by defining pricing and pricing strategy. The objectives of pricing strategy are then outlined, including earning profits, increasing sales volume, maintaining competitive edge, and ensuring company growth and survival. Several types of pricing strategies are then described in detail, including penetration pricing, price skimming, competitive pricing, product line pricing, psychological pricing, premium pricing, and optional pricing. The strategies are defined and their objectives explained in one to three sentences for each.

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    PRICING STRATEGIES SAY

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    This document discusses various pricing strategies used by companies. It begins by defining pricing and pricing strategy. The objectives of pricing strategy are then outlined, including earning profits, increasing sales volume, maintaining competitive edge, and ensuring company growth and survival. Several types of pricing strategies are then described in detail, including penetration pricing, price skimming, competitive pricing, product line pricing, psychological pricing, premium pricing, and optional pricing. The strategies are defined and their objectives explained in one to three sentences for each.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    22 views14 pages

    Pricing Strategies Say

    Uploaded by

    marirs
    This document discusses various pricing strategies used by companies. It begins by defining pricing and pricing strategy. The objectives of pricing strategy are then outlined, including earning profits, increasing sales volume, maintaining competitive edge, and ensuring company growth and survival. Several types of pricing strategies are then described in detail, including penetration pricing, price skimming, competitive pricing, product line pricing, psychological pricing, premium pricing, and optional pricing. The strategies are defined and their objectives explained in one to three sentences for each.

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    of 14

    PRICING

    STRATEGIES
    BY
    Sriram Purna Kotla
    Aman Bhargava
    What is Pricing ?
    1. Pricing is one of the 4P’s of Marketing Mix which
    plays a very Important role .All other P’s are cost
    for the company whereas pricing is revenue for the
    company
    2. Pricing means determining the price of the product
    a firm is selling or going to sell
    3. While determining a price it involves various pricing
    decisions which are to be taken while deciding a
    price of a product
    4. The price structure of a firm is a major determinant
    What is Pricing Strategy ?

    ● It is the activity under which the activities are aimed at finding the optimum
    price of a product
    ● It typically includes the marketing objectives,Consumer demand,product
    attributes,competitors price and market and economic trends
    ● Finding the right pricing strategy is an important element in running a
    successful business.
    Objectives of Pricing Strategy

    ❏ To earn profits
    ❏ To increase sales volume
    ❏ Company Growth
    ❏ To maintain competitive edge
    Objectives of Pricing Strategy ( Contd…..)

    ❏ Survival
    ❏ To create a good image of the product as
    well as about the company
    ❏ To discourage the competitors to cut the
    prices
    Types of Pricing Strategies
    Penetration Pricing

    1. It is a pricing strategy used by business


    to attract customers to new product or
    service
    2. The price charged for products and
    services is set artificially low in order to
    gain market share. Once this is achieved,
    the price is increased.
    3. It is to lure the customers away from
    competitors
    Price 1. Price skimming sees a company charge
    a higher price because it has a
    Skimming substantial competitive advantage.
    2. The skimming strategy gets its name
    from skimming successive layers of
    cream, or customer segments, as prices
    are lowered over time.
    3. As it starts with high pricing therefore it
    attracts new competitors to enter the
    market as due to which the price
    eventually fall
    Competitive Pricing

    1. It is the pricing strategy under which the


    companies use the prices of their
    competitors
    2. As the company thought that the
    competitor has set this price by
    assuming that the competitors have
    thoroughly worked on the price
    3. Therefore, by setting the same price as
    its competitors, a newly-launched firm
    can avoid the trial and error costs of the
    price-setting process.
    Product Line 1. Where there is a range of products or
    services the pricing reflects the benefits
    Pricing of parts of the range
    2. It refers to the practice of reviewing and
    setting prices for multiple products that a
    company offers in coordination with one
    another.
    3. Effective product line pricing by a
    business will usually involve putting
    sufficient price gaps between categories
    to inform prospective buyers of quality
    differentials. Also called price lining.
    Psychological 1. It is a pricing as well as marketing
    strategy which means that certain prices
    Pricing have a psychological impact on the
    customers
    2. Retail prices are often expressed as "odd
    prices": a little less than a round number
    eg Rs. 199 ,99 etc
    3. The theory that drives this is that lower
    pricing such as this institutes greater
    demand than if consumers were
    perfectly rational.
    Premium 1. It is also known as image pricing or
    prestige pricing. It is used when there is a
    Pricing unique brand
    2. It is a practice of keeping price of a
    product artificially high to attract the
    favourable perceptions among buyers
    3. This approach is used where a
    substantial competitive advantage exists
    and the marketer is safe in the
    knowledge that they can charge a
    relatively higher price.
    Optional 1. It is strategy when a company sells a
    base product at a relatively low price, but
    Pricing sells complementary accessories at a
    higher price.
    2. Companies will attempt to increase the
    amount customers spend once they start
    to buy.
    3. Optional ‘extras’ increase the overall price
    of the product or service.
    THANK YOU

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