BENEDICITE!

TOPIC: PRICING STRATEGY

Group 2:
DE LEON,JEZYL D. BSBA-HRDM2
NATIVIDAD, MERIEL BSBA-FM2
PEREZ, JOHN GEEBE BSBA-HRDM2
MARTINEZ, MIGUEL BSBA-HRDM2

Saint Peter’s College of Ormoc, Inc.

A member of the Association of Benedictine Schools
Saint Peter’s College of Ormoc, Inc.
A member of the Association of Benedictine Schools
What is a PRICING STRATEGY?
-Pricing strategies refer to the processes and methodologies
businesses use to set prices for their products and services.It is
one of the four Ps of marketing, along with product, place, and
promotion.A good pricing strategy can help businesses achieve
their revenue goals, market share objectives, and brand
positioning.

-If pricing is how much you charge for your products,

then product pricing strategy is how you determine what
that amount should be.

Saint Peter’s College of Ormoc, Inc.

A member of the Association of Benedictine Schools
PRICING PRACTICES
-Pricing practices are the specific tactics that businesses use to
implement their pricing strategies.

Some common pricing practices include:

Cost-plus pricing- Calculate your costs and add a mark-up.

Competitive pricing- Set a price based on what the competition
charges.
Price skimming- Set a high price and lower it as the market
evolves.
Penetration pricing- Set a low price to enter a competitive
market and raise it later.
Value-based pricing- Base your product or service’s price on what
the customer believes it’s worth.

Saint Peter’s College of Ormoc, Inc.

A member of the Association of Benedictine Schools
“PRICING MODELS”
While your pricing strategy may determine how your company sets fees
for its offerings overall, the below pricing models can help you set prices for
specific product lines.

1. Freemium
A combination of the words “free” and “premium,” freemium pricing is when
companies offer a basic version of their product hoping that users will eventually pay
to upgrade or access more features.

2. Premium Pricing
Also known as prestige pricing and luxury pricing, a premium pricing model is
when companies price their products high to present the image that their products
are high-value, luxury, or premium.

3. Hourly pricing
Also known as rate-based pricing, is commonly used by consultants, freelancers,
contractors, and other individuals or laborers who provide business services.

Saint Peter’s College of Ormoc, Inc.

A member of the Association of Benedictine Schools
4. Bundle pricing
Is when you offer (or "bundle") two or more complementary products or
services together and sell them for a single price.

5. Project-based pricing
Is the opposite of hourly pricing — this approach charges a flat fee per
project instead of a direct exchange of money for time. It is also used by
consultants, freelancers, contractors, and other individuals or laborers who
provide business services.

6. Subscription pricing

Is a common pricing model at SaaS companies, online retailers, and even

agencies who offer subscription packages for their services.

Saint Peter’s College of Ormoc, Inc.

A member of the Association of Benedictine Schools
“PRICING METHODS”
Pricing methods are the specific techniques that businesses use to
calculate their prices.

Some common pricing methods include:

Markup pricing: Adding a markup to the cost of a product or service to

determine the selling price.
Target costing: Setting a selling price based on the desired profit margin
and
then working backwards to determine the cost of production.
Value pricing: Setting a price based on the value that the product or
service provides to customers.
Competitive pricing: Setting a price based on what competitors are
charging.
Saint Peter’s College of Ormoc, Inc.
A member of the Association of Benedictine Schools
 “PRICE POSITIONING”
Price positioning is the process of determining how a product or
service will be perceived by customers in terms of price.
Businesses can position their products and services as high-end,
premium, mid-range, or budget-friendly.

Real life examples of price positioning:

Jollibee: Jollibee is positioned as a fast food restaurant that offers

affordable and delicious meals to Filipino families. Its prices are lower than
those of its competitors, such as McDonald's and KFC.
SM Malls: SM Malls are positioned as accessible and affordable shopping
malls for Filipino consumers. Its prices are lower than those of its
competitors, such as Ayala Malls and Robinsons Malls.

Saint Peter’s College of Ormoc, Inc.

A member of the Association of Benedictine Schools
“OPTIMIZATION OF STRATEGIES”
Once a business has selected a pricing strategy, it is important to
monitor and optimize it over time. This involves tracking key metrics such as
sales, profit margins, and customer satisfaction. Businesses can also use
data analytics to identify trends and opportunities to improve their pricing
strategies.

Real life examples of optimization of strategies:

Shopee: Shopee uses Foodpanda: Foodpanda uses
optimization strategies to optimization strategies to improve the
increase sales and customer delivery time and customer satisfaction
engagement. For example, it uses of its food delivery service. For
product recommendations and example, it uses a similar route
personalized promotions to optimization algorithm to plan the most
encourage customers to buy efficient routes for its food delivery
more. riders.

Saint Peter’s College of Ormoc, Inc.

A member of the Association of Benedictine Schools
IMPLICATION OF PRICE LEVELS
-Price levels have a number of implications for businesses and consumers.
For businesses, price levels can affect profitability, market share, and brand
image. For consumers, price levels can affect affordability, perceived value,
and purchase decisions.

Here are some examples of how price levels

can impact businesses and consumers:

-A business that sets high prices may be able to generate higher profits, but it
may also have a smaller market share.
-A business that sets low prices may be able to attract more customers and
increase its market share, but it may also have lower profits.
-A consumer who is on a tight budget may be more likely to purchase products
and services that are priced lower.
-A consumer who is looking for a premium product or service may be more
willing to pay a higher price.

Saint Peter’s College of Ormoc, Inc.

A member of the Association of Benedictine Schools
 Here are some specific examples of the implications of price
levels:

- If the price level of food increases, it can lead to food insecurity for
low-income households.
- If the price level of housing increases, it can make it more difficult
for people to afford to buy or rent homes.
- If the price level of goods and services exported by a country
increases, it can make those goods and services less competitive in the
global market.
- If the price level of goods and services imported by a country
decreases, it can make those goods and services more affordable for
consumers and businesses.

Saint Peter’s College of Ormoc, Inc.

A member of the Association of Benedictine Schools
 SUMMARY!

Overall, pricing strategy is a complex and nuanced process that requires

businesses to consider a variety of factors. By carefully considering all of
the relevant factors, businesses can develop pricing strategies that help
them achieve their goals.

Saint Peter’s College of Ormoc, Inc.

A member of the Association of Benedictine Schools
 THAT IN ALL THINGS,
GOD MAY BE GLORIFIED!

Saint Peter’s College of Ormoc, Inc.

A member of the Association of Benedictine Schools
 QUIZ TIME:

Get 1/2 sheet of paper

1/2 ang gamiton?

Yes, 1/2.
Saint Peter’s College of Ormoc, Inc.
A member of the Association of Benedictine Schools
TYPE OF QUIZ: IDENTIFICATION AND ENUMERATION

1. It is the amount of money that is charged for a product or service?

2. It refer to the processes and methodologies businesses use to set prices for their products
and services?

3 . It is the specific tactics that businesses use to implement their pricing strategies?

4-7. Give atleast four common pricing strategies or pricing practices.

8. It is a pricing model in which customers are charged a recurring fee to access a product or
service.

9. It is commonly used by consultants, freelancers, contractors, and other individuals or

laborers who provide business services.

10. It is the process of determining how a product or service will be perceived by customers in
terms of price.
Saint Peter’s College of Ormoc, Inc.
A member of the Association of Benedictine Schools
ESSAY:

Discuss the importance of pricing

strategy for businesses and the
different factors that businesses
should consider when setting
prices.

Saint Peter’s College of Ormoc, Inc.

A member of the Association of Benedictine Schools