Pricing Practices

Presented by :
Sneha Bhor
Mahima Gotekar
Babli Yadav
Meaning and definition :
Price is an art of translating into quantitative terms
the value of the product to consumer at a point in
time.

Pricing is one of the most important elements of

the marketing, as it is the only factor which
generates a turnover for the organization.
Contd…
It can be defined as “Activities aimed at finding a
product’s
optimum price, typically including overall marketing
objectives, consumer demand, product attributes,
competitors’ pricing, and market and economic trends.”
Pricing is the process of determining what a company
will receive in exchange for its product or service.
A business can use variety of pricing strategies when
selling a product or service.
4 Ps :
 Product
 Price
 Promotion
 Place
Product :
A product can be either a tangible good or an intangible services
That fulfils a need or want of consumers.

Price :
Price determinations will impact profit margines, supply,
demand and marketing strategy.
Promotion :
Promotion looks at the many ways marketing agencies
disseminate relevant product information to consumers
and differentiate a particular product or services. It
includes elements like: advertising, etc.

Place :
To evaluate what the ideal locations are to convert
potential clients into actual clients.  marketers saying
that marketing is about putting The right product, at the
right price, at the right place, at the right time.
For Example :
ADIDAS
As one of the leading organizations in the sport
equipment industry and its reputation for quality and
design, Adidas and its retailers can blow up the pricing
bubbles to a limit where it is only influenced by
competitive pricing and the customers perceived value for
their money.
Contd…
Another important Aspect when it comes to pricing is that
Adidas uses price skimming, which is a strategy that first
sets a high price for a product and lowers the price over
time.
This mainly applies to new products in the market and
charges the highest price that customers would pay for the
desired product.
PUMA
Just as Adidas, Puma is producing its
products in countries with cheaper labour
and lower overall costs.
Furthermore new products and clothing
lines will also have a price when being
introduced to the market as Puma is using
price skimming as well.