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Pricing Concepts
Pricing Concepts
PRICING
CONCEPTS
Aligning Price with Value
MADFUND_V24 Presented by
PRICING CONCEPTS MIDAS (Group 3)
MIDAS (Group 3)
OVERVIEW
Significance of pricing The 6-Step Pricing Procedure
WHAT IS PRICING?
Significance
of Pricing
Direct impact on revenue
generation and profitability
Reflecting the perceived
value of products/services
Positioning the brand in the
competitive landscape.
MIDAS (Group 3)
Aligning Pricing
with Company
Mission-Vision
How pricing reflects the company's
values and long-term vision.
Ensuring price consistency with the
promised value and product definition.
MIDAS (Group 3)
Understanding Price
Sensitivity and Behavioral
Dimensions
The psychology of price: What drives
value perception?
Psychological Pricing
Emotional and Rational Drivers
Behavioral economics insights into
price sensitivity.
Price Sensitivity
Behavioral Economics
MIDAS (Group 3)
Comprehensive Pricing
Consideration Framework
Identity and uniqueness of goods/services.
Defining Identity
Differentiation
Competitive pricing analysis.
Market Comparison
Positioning
Target audience and their willingness to pay.
Demographic Analysis
Willingness to pay
Total cost of production.
Cost Analysis
Pricing to cover costs
External market and economic factors.
Market Dynamics
Adaptability
MIDAS (Group 3)
STRATEGIC
OBJECTIVES OF
01
Ensuring
02 PRICING
Fostering growth
sustainability and
and expansion
survival
03 04
Gaining or Premium pricing for
maintaining market innovative offerings
share
MIDAS (Group 3)
Competitive Analysis
Analyzing competitors’ pricing
Benchmarking
MARKET-ORIENTED PRICING
Value-based pricing.
A
Definition: Setting prices based on the perceived value of the product or service to the customer.
Application: Discussing how value-based pricing can be used to reflect the benefits and features of a
product.
Differential or segmented pricing.
Definition: Charging different prices to different segments of the market.
Application: Discussing how differential pricing can be used to maximize revenue from different market
segments.
MIDAS (Group 3)
Revenue Generation: Price is the sole revenue generator Price-Value Alignment: It is important to align the price with
among the 4Ps, and its critical role in covering costs and the perceived value of the product to meet customer
generating profit. expectations.
Price's Role in Marketing Mix: Price interacts with Building Loyalty: A fair price-value equation can enhance
product, place, and promotion to create a coherent customer satisfaction, foster trust, and build loyalty over time.
marketing strategy..
MIDAS (Group 3)
REAL-WORLD APPLICATIONS OF
PRICING STRATEGIES
THANK YOU
FOR LISTENING!
MADFUND - PRICING CONCEPTS