Public Policy and

Marketing
1.
Existing Laws &
Regulations
Under the area of competition or anti-trust
Philippines Laws and Regulations
as amended, otherwise known
1. Act No. 3815 (1930)
as the Revised Penal Code, punishes
anticompetitive behavior that is criminal in
nature.

also penalizes other frauds

2. The Revised Penal Code
in commerce and industry such as falsely
marking gold and silver articles and altering
trademarks (Republic Act No. 166, 1947).
Philippines Laws and Regulations
as amended,
3. Republic Act (RA) No. 386 (1949)
otherwise known as the Civil Code of the
Philippines, allows the collection of damages
arising from unfair competition in agricultural,
commercial, or industrial enterprises or in labor
(Article 28). It also allows the collection of
damages arising from abuse in the exercise of
rights and in the performance of duties (Article
19).
Philippines Laws and Regulations
otherwise known as the Price Act,
4. RA 7581 (1991),
and RA 7394 (1932), otherwise known as the
Consumer Act of the Philippines.

designating the
5. Executive Order (EO) No. 45,
Department of Justice (DOJ) as the Competition
Authority. This EO has effectively given the DOJ
full jurisdiction over matters pertaining to
competition and fair trade practices among
corporations operating in the country.
2 Public Policy Issues in
Pricing
Pricing within Channel Levels

Price-fixing states that

sellers must set prices
without talking to
competitors.
Pricing within Channel Levels
Predatory Pricing
selling below cost with
the intention of
punishing a competitor
or gaining higher long-
run profits by putting
competitors out of
business.
Pricing across Channel Levels

Laws also prohibit retail (or resale) price maintenance a

manufacturer cannot require dealers to charge a specified
retail price for its product.
Deceptive pricing occurs when a seller states prices or price
savings that mislead consumers or are not actually available
to consumers.
Pricing across Channel Levels
The laws prevents unfair price discrimination by ensuring
that sellers offer the same price terms to customers at a
given level of trade.

Exception:
- If the seller can prove that costs differ when selling to
different retailers
- If the seller manufactures different qualities
of the same product for different retailers

Treating customers fairly is
an important part of building
strong and lasting customer
relationships.
The End
thanks!
Any questions?
QUESTIONS
 WHAT DO YOU CALL
1 Setting a high price for a new
product to skim maximum
revenues layer by layer from the
segments willing to pay the high
pricethe company makes fewer,
but more profitable sales.
Market-skimming pricing
 TRUE or FALSE?

Product bundle pricing is

2
setting a price for products
that must be used along with
a main product, such as
blades for a razor or film for a
camera.
False. Its Captive-product Pricing.
3 WHAT DO YOU CALL

Its
Reference
Prices. Prices that buyers
carry in their minds
and refer to when
they look at a given
product.
 WHAT DO YOU CALL

4 Promotional money paid by

manufacturers to retailers in
return for an agreement to
feature the manufacturer's
products in some way

Allowance
AT DO YOU CALL
5
A geographical pricing strategy in
which the seller designates some
city as a basing point and charges
all customers the freight cost from
that city to the customer

Basing-point pricing
 TRUE or FALSE?
Zone pricing is a geographical
6
pricing strategy in which the
company charges the same
price plus freight to all
customers, regardless of their
location.
False. It is uniform-delivered pricing
 TRUE or FALSE?
Freight-absorption pricing is a
geographical pricing strategy in
which the seller absorbs all or
part of the freight charges in
order to get the desired business.

True. 7
 TRUE or
FALSE? 8
Promotional Pricing is a pricing
strategy in which the products
are permanently priced below
the list price, and sometimes
even below cost, to increase
short-run sales.
False. It is only temporary.
 9
CALL
WHAT DO YOU

Selling a product or service at

two or more prices, where the
difference in prices is not
based on differences in costs

Segmented pricing
WHAT DO YOU CALL
1
A straight
reduction in 0
price during a
stated period of Dis
cou
nt
time
WHAT DO YOU CALL
A pricing approach that
considers the psychology of
1
prices and not simply the
economicsthe price is
used to say something
about the product.
1
Psychological pricing
 1 WHAT IS IT
When a retailer sets artificially
2 high regular prices and then
announces sale prices close
to its previous everyday
prices.
Bogus Reference or Comparison Pricing