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Industrial marketing presentation
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Price : The amount of money that is charged forsomething of value.
Prices are how much someone is willing to pay.
Price is called differently
SERVICE PRICE PAYMENT
university tuition landlord rent
banks
interest
transportation fares highway toll
doctor ,lawyer fee employee wage
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Dollar or UnitSales Growth
Growth inMarket Share
TargetReturn
MaximizeProfits
MeetingCompetition
NonpriceCompetition
PricingObjectives
SalesOriented
ProfitOriented
Status QuoOriented
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Target return sets a specific level of profit as
an objective.
Profit maximization to get as much profit as
possible.
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Sales-oriented objective: to get some level of unit
sales, dollar sales, or share of market, without
referring to profit.
Sales growth – for companies pioneering
innovative products or technologies to develop
markets. Growth in market share – to enjoy better
economies of scale (more profits, lower costs).
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Status quo: “Don’t rock the pricing boat.”
To stabilize prices, or meet competition, or even
avoid competition.
Non-price competition: aggressive action on one
or more of the Ps other than price.
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Demand
Costs
Competition
Technology
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Skimming price strategy
Market Penetration pricing strategy
Price Flexibility Strategy
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Price
Quantity
Initialskimmingprice
Secondprice
Finalprice
Skimming Pricing
Sell at highprice beforereducing to
next price leveland repeat
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Highly price sensitivity.
Cost of production and distribution fall with
accumulated output.
Market share is major goal rather then short term
high profit
High sale of complementary products
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One-price policy – used in mass selling The same price to all customers who purchase products
under essentially the same conditions and quantities
Flexible pricing (e.g., in channels, business markets,expensive consumer shopping products) – used in personalselling
Offering the same product and quantities to differentcustomers at different prices.
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Cost plus pricing (Set the price at your production cost, including
both cost of goods and fixed costs at your current volume, plus a certain
profit margin)
Target return pricing (Set your price to achieve a target return-on-
investment (ROI) ).
Value based pricing (Price your product based on the value it
creates for the customer. This is usually the most profitable form of
pricing, if you can achieve it. )
Psychological pricing (Ultimately, you must take into
consideration the consumer's perception of your price, figuring things like:
Positioning
Fair pricing
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