GIDC Rajju Shroff

ROFEL Institute of
Management
Studies
Subject :- Marketing Management
(4529203)
Topic :- PRICING DECISSION

Submitted to :- PROFESSOR NUPUR ANGIRISH

 Submitted by :-

NAME ENROLLMENT NO.

Bansari Kansara 197160592025

Sofiya Khan 197160592026
Anisha Kizhuppulli 197160592027
Nishi Kushwaha 197160592028
HarshadaLot 197160592029
 Marketing
Presentation
on
Pricing
Decisions
WHAT IS PRICE
•Price is the most flexible component of the marketing mix.
•For manufacturer, price is that amount of money which he
will receive from buyer
•For customer , price is something he secrifices for owning
the product or services.

PRICING:
•Pricing can be defined as , The task of deciding the monetary
value of an idea , a product or service by the marketing
manager before sells it to his target customer.
 Objectives of Product Pricing.
•Profit maximization in the short term

•Profit optimization in the long term

•A minimum return on investment.

•A minimum return on sales turnover

• Achiving a perticular sales volume
Factors influencing Product Pricing
• Internal factors
• Cost of the product:
• Marketing objectives:
• Product differentiation
• Marketing mix

• External factors
• Competitions
• Government controls and subsidies
• Economic condition
INTERNAL FACTORS
 COST OF THE PRODUCT:
Cost of a product is the basic determining factor of the product’s price.

+ =
COST OF
THE
PRODUCT:
 MARKETING OBJECTIVES:

Others firm your firm

Rs.70 Rs. 60

Rs. 65 Rs. 65
 •MARKETING MIX
Marketing mix strategies of an organization are very significant in influencing
the organizatioal pricing.

PRODUCT DIFFERENTIATION
The process of distinguishing a product or service from others to make it more appealing to
a specific target market.

vs
EXTERNAL FACTORS
COMPETITIONS
An organization’s pricing policy is
strongly influenced by the costs and prices
as well as discounts and offers of the
current competitors.

GOVERNMENT CONTROLS AND

SUBSIDIES
This motivate the company to reduce the
prices of the imported products as lower
prices account for smaller deposites.
ECONOMIC CONDITION
A company’s pricing strategies are also influenced by prevaling
economic conditions.
Setting up the price

• Setting pricing objective

• Determining demand
• Estimating costs
• Analysing competitors’ pricing
• Selecting pricing method selecting price
PRICING STRATEGIES
PRODUCT LINE PRICING
Prices are set on the basis of well established price points of other
products in the product line.

OPTIONAL PRICING
A base price is set for the basic products and prices are set for
optional features, services along with the main product.
BUNDLE PRICING
Sellers offer a bundle or packaging of diferent products or services for a lower price
than they would charge if the customer bought all of them seperately.

SKIMMING PRICING
The seller tries to skim the profit from the market by charging a heigh price in the initial
stages and lowers the price in the long run.
PENETRATION PRICING
The seller tries to penetrate the market with a low price and increase the price
subsequently with increase in demand.

VALU BASED PRICING

The seller sets the prices according to the value perceived by the customer of the
product / services.
LOSS LEADER PRICING
Prices are set very low , sometimes below cost to encourages sales of the other products
or a retailer outlet.

CAPTIVE PRICING
A special price is offered to loyal customers.
PSYCHOLOGICAL PRICING
Prices are set according to emotional appeals that influence buying decissions.

PROMOTIONAL PRICING
Prices are set below MRP to stimulate purchases and increase awareness. It includes –
Pricing for Special events Low interest Financial , Cash Rebates, Warranties &
Discounts.
 IMPORTANCE OF PRICING
•More flexible marketing mix variable
•Fixing the right price
•Trigger of first impression
•Important aspect of sales promotion
•Supply and demand
• Position
•Sales volume
•Loss leaders.