How should a company adap prices to meet varying oppurtunities and circumstances?
How should a company adapt prices to meet varying circumstances and opportunities
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Transcript of How should a company adapt prices to meet varying circumstances and opportunities
ADAPTING THE PRICE
PRICE ADAPTION STRATEGIES
•GEOGRAPHICAL PRICING.
•PRICE DISCOUNTS AND ALLOWANCES.
•PROMOTIONAL PRICING.
•DIFFERENTIATED PRICING.
GEOGRAPHICAL PRICING
CASH , COUNTERTRADE , BARTER
COUNTERTRADE FEATURES:-
1.BARTER
GEOGRAPHICAL PRICING
2.COMPENSATION DEAL
GEOGRAPHICAL PRICING
2.BUYBACK ARRANGEMENT
GEOGRAPHICAL PRICING
4.OFFSET
OFFSET DEAL
GEOGRAPHICAL PRICING
PRICE DISCOUNT AND ALLOWANCES
•EARLY PAYMENT•VOLUME PURCHASES•OFF SEASON BUYING
DISCOUNT PRICING IS THE MODUS OPERANDI OF COMPANIES PRODUCTS AND SERVICES
FEATURES:-1.DISCOUNT – 2/10 , NET 30•ABOVE EXAMPLE IMPLIES PAYMENT DUE WITHIN 30 DAYS•DEDUCT 2% BY PAYING WITHIN 10 DAYS
PRICE DISCOUNT AND ALLOWANCES
QUANTITY DISCOUNT-EXAMPLE-”$10 PER UNIT FOR FEWER THAN 100 UNITS , $9 PER UNIT FOR 100 OR MORE UNITS”
PRICE DISCOUNT AND ALLOWANCES
FUNCTIONAL DISCOUNT ( TRADE DISCOUNT )-•SELLING•STORING•RECORD KEEPING
PRICE DISCOUNT AND ALLOWANCES
SEASONAL DISCOUNT - ALLOWANCE – ( OFF SEASON DISCOUNT ) ( TRADE IN ALLOWANCE )
PRICE DISCOUNT AND ALLOWANCES
PROMOTIONAL PRICING
LOSS LEADER PRICINGSPECIAL EVENT PRICING
SPECIAL CUSTOMER PRICING
• CASH REBATES
• LOW INTEREST FINANCING
• LONGER PAYMENT TERMS
PROMOTIONAL PRICING
• WARRANTIES AND SERVICE CONTRACTS • PSYCHOLOGICAL DISCOUNTING
PROMOTIONAL PRICING
DIFFERENTIATED PRICING
PRICE DISCRIMINATION –
1.FIRST-DEGREE ( DEMAND )
2.SECOND - DEGREE ( VOLUME )
3.TIERED PRICING - PAYING MORE WITH HIGHER USAGE
4.THIRD DEGREE –
•CUSTOMER SEGMENT PRICING
•PRODUCT FORM PRICING
•IMAGE PRICING
PROMOTIONAL PRICING
4.THIRD DEGREE –
•CHANNEL PRICING
•LOCATION PRICING
•TIME PRICING
PROMOTIONAL PRICING
YIELD MANAGEMENT : YIELD PRICING
PROMOTIONAL PRICING
SUMMARY
COMPANIES ADOPT A PRICING STRUCTURE THAT REFLECTS-
• GEOGRAPHICAL DEMAND AND COSTS• MARKET SEGMENT REQUIREMENTS• PURCHASING TIME• ORDER LEVELS
PRICE ADAPTATION STRATEGIES-
• GEOGRAPHICAL PRICING• PRICE DISCOUNTS AND ALLOWANCES• DISCRIMINATORY PRICING
AKASH RANJAN PRADHANNIT ROURKELADURING A MARKETING INTERNSHIP BY PROF.SAMEER MATHUR IIM LUCKNOWWWW.IIMINTERNSHIP.COM
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