Professional Documents
Culture Documents
Module 2
Pricing objectives
Pricing process
Pricing strategies
Geographical
Pricing
Adjusting an items sale price based
on the buyer's location
Companies will try to gain maximum
revenue in the markets in which it
operates
Petrol prices in different cities of India ???
Srinagar
Chennai
Hyderabad
Trivananthapuram
Bengaluru
Mumbai
Pondichery
Chandigarh
Promotional pricing
Promotional pricing is a sales
and marketing technique
reducing the price of a product
or service to attract customers
Discriminatory pricing
Value Pricing
offering a product at a fair and
reasonable price that makes sense to the
purchasing customer.As the name itself
suggest price of the product/ service is set
according to value perceived by the
customer
Product Bundle
Pricing
combining several products and offering the bundle
at a reduced price
Walmarts Xbox 360 Super Elite 250GB Bundle,
for example, includes an Xbox 360 console, Final
Fantasy XIII, an Xbox 360 250GB hard drive, 2 Xbox
360 wireless controllers, an Xbox 360 wired headset,
an Ethernet cable, a standard definition Xbox 360
composite A/V/ cable, and a Final Fantasy face
plate.This package sells at a price of $399.This
saves the customer roughly $35 compared to if
these items were purchased individually.
Psychological Pricing
a little less than a round number,
e.g. $19.99 or 2.98 or Rs.1999/only
Premium Pricing
keeping the price of a product or
service artificially high in order to
encourage favorable perceptions
among buyers, based solely on the
price
A luxury flat
Penetration Pricing
A relatively low initial entry price,
often lower than the eventual market
price, to attract new customers. The
strategy works on the expectation
that customers will switch to the
newbrand because of the lower price
Economy Pricing
Avaluation techniquewhichassignsalow
priceto selectedproducts. Economy pricing
is widely used in the retailfood businessfor
groceries such as canned and frozen
goodssold under generic foodbrands
where
marketing andproduction costs
have been kept to a minimum
Price Skimming
when a marketer sets a relatively
highpricefor aproduct orservice at
first, then lowers the price over time.
Classroom activity 4
Take the example of any one of the
following companies
ITC, TATA, NESTLE, HUL, P & G,
AMUL, DABUR, EUREKA FORBES,
MAHINDRA & MAHINDRA
Analyze a few brands of the
chosen company and examine
the pricing strategies