This document discusses pricing strategies and factors that affect pricing. It outlines several pricing policies including cost-based pricing, buyer-based pricing, and competition-based pricing. It also discusses strategies for pricing new products and product mixes. The key points are that price brings in revenue, is determined by both costs and perceived value, and should position the product's value in the market. An optimal price minimizes costs, optimizes margins, and maximizes profits by expressing the true value to customers.

1. Pricing strategies-LINDA SUSAN JOSEPH
S3 MBA
MACFAST COLLEGE,THIRUVALLA.

2. Module II -Contents
• Introduction
• Objectives of pricing
• Factors affecting pricing
• Cost as a determinant of price
• Estimating cost
• Pricing policy & setting pricing policy
Pricing policies
• Cost - Based Pricing
• Buyer- Based Pricing
• Competition-Based
• Pricing Strategies for new products
• Product Mix Pricing strategies
• Price adjustment strategies
• Geographical pricing
• CoNClusiON

3. PrICiNg is….All around us
• Airline, taxi ,train fare.
• Rent.
• Your tuition fee.
• …. And your other utilities….

4. Price –brings revenue
• Only element in marketing mix that brings
in revenue…..others will bring cost.
PRICE BRINGS OUT –
value positioning of the
product.
High price+Low val=Co. misses

5. Value so important??
Low Company
High misses
perceive
price potential
d value profits
Company
Low Low fails to
harvest
price value potential
profits

6. Price fixing
Company sets price on the basis of
value delivered and perceived by customers.
Minimize Optimize Maximize
Costs + Margins = PRICE
VALUE

7. In short……
“ A price is not merely a function of costs
and margins BUT……
…it is an expression of VALUE ”
The key to drive value is to offer relevant and
distinctive product differentiation
“ Tomorrow’s winner companies will
be those who offer distinct products at
low market prices”

8. One final word…. To you….
“ A product is not a product unless it sells….
Otherwise, it’s just a museum piece…”
Ted Levitt