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Total Market Potential Area Market Potential Industry Sales and Market Share
Price
Price
The amount of money charged for a product or service or the sum of the values that consumer exchanges for the benefits of having the product.
Pricing Objectives
Survival: Short term Maximize Current Profit: Price and demand equilibrium Maximize Market Share : Long term Maximum Market Skimming : New product Product Quality Leadership : High price for high performance Cost Recovery : Non profit, Public organization
Marketing Objectives : Target market, Positioning Marketing Mix Strategy : Category, Design, Distribution, Promotion Cost: Fixed cost, Variable cost. Cost as a Function of Production Experience: Learning curve Organizational Consideration : Opinion of various head of departments.
Consumers Perception About Price and Value. Competitors Price, Cost and Offers. Other External Factors: Economic condition,
Interest rate,Government,Social concern
Pricing Approaches
Cost based pricing Cost plus pricing Break even pricing Value based pricing Competition based pricing
Product Line Pricing: Price based on cost differences. Optional Product Pricing: Price of optional accessories or parts. Captive Pricing Strategies: Exp. Blade for a razor, film for a camera etc. By Product Pricing Product Bundle Pricing: Bundle tickets, Family
suite in hotel
Discount and Allowance Pricing: cash discount, quantity discount, seasonal discount, allowance for an old item. Segmented Pricing : For seniors, children etc Psychological Pricing: Special product Promotional Pricing: Temporary pricing Geographical Pricing: DAT,DAP etc International Pricing : Based on country status