Pricing Theories: Balaji K
Pricing Theories: Balaji K
Pricing Theories: Balaji K
by
Balaji K
Overview
Dimensions of Pricing
Objectives of Pricing
Pricing Mechanism
Pricing Techniques
Pricing Methods and Problems
Transfer Pricing
Pricing Policies
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Dimensions of Pricing
Competitive Dimension
Time Dimension
Geographic Dimension
Dimension on the Basis of Business
Marketing Mix
Product Life Cycle
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Objectives of Pricing
Price Stabilisation
Maintenance of Market Share
Target return on Capital
Prevention of Competition(Monopoly Power)
Ethical Pricing Policy
Good Return for Product Line(Multi Product firm
having Common Costs
Liquidity(Customers with Prompt Payment)
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Pricing Mechanism
Selection of Market Targeted
Brand Image
Determination of Marketing Mix
Selection of Specific Techniques
Selection of Pricing Strategy
Setting up Specific Price
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Framing a Pricing Policy
Seven Main Parties are to be Considered
They are
1)Sales Agents
2)Existing Competitors
3)Potential Competitors
4)Consumers of the Product
5)Middlemen 6)Suppliers and 7)Govt
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Pricing Techniques
1)Profit Maximisation Rule(MR =MC) or MR
> MC
2)Demand related Pricing Technique
a)Perceived Value Pricing
b)Demand Differential Pricing
3)Cost Related Pricing
a)Suggested Retail Pricing
b)Incremental Cost Pricing
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Pricing Techniques Contnd.,
3 )c) Target Pricing
d) Cost Plus Pricing
4)Competition Oriented Pricing
a)Pricing in Competitive Vs Monopoly
environment
b)Pricing in Established Markets
c)Going Rate Pricing
d)Sealed Bid Pricing
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Pricing Methods
1) Skimming Pricing
2) Penetrating Pricing
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Problems in Pricing
Transfer Pricing
Differentiated Pricing or Price
Discrimination
Dumping
Solution:
Antidumping Duty
10
k Y ou
Th a n
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